Canstar’s Best Value Car Loans

Canstar has released its latest Personal Loans Star Ratings research, which included ratings for 256 car loans. See which 26 car loans received a 5-Star rating.

The tables below list Canstar’s highest-rated car loans from its latest Personal Loans Star Ratings (released November 2017), as well as a breakdown of what makes up a 5-Star car loan and how they are different from other products.

Compare Car Loans

All Outstanding Value Car Loans

The following 26 car loans received a 5-Star rating in our latest Personal Loan Star Ratings, as of November 2017. Please note any monthly repayment and interest rate figures are based on a loan amount of $20,000 for five years in New South Wales.

Company Product
Bank Australia New Car Loan – Fixed
Bank Australia Used Car Loan – Fixed
Beyond Bank Low Rate Car Loan Special Offer
Catalyst Money Car Loan (New)
Community First Credit Union New Car Loan
CUA Secured Fixed Car Loan
First Option Credit Union New Car Loan – Fixed
G&C Mutual Bank Fixed Rate New Car Loan
Greater Bank New Car Loan
Heritage Bank Low Rate Secured Loan
Holiday Coast Credit Union New Car Loan Variable
Horizon Credit Union New Car Loan Fixed
Illawarra Credit Union NSW Car Loan (New)
IMB Bank Car Loan (up to 2 years old)
Company Product
My Credit Union Fixed Rate New Car Loan
Queensland Country Credit Union New Car Loan
Company Product
Select Encompass Credit Union New Car Loan < 2yrs
The Mac Car Loan New
Transport Mutual Credit Union New Car Loan
Transport Mutual Credit Union New Car Loan ? 10% Deposit
Victoria Teachers Mutual Bank Green Car Loan Fixed
Victoria Teachers Mutual Bank Green Car Loan Variable
Victoria Teachers Mutual Bank New Car Loan Fixed
Victoria Teachers Mutual Bank New Car Loan Variable
Victoria Teachers Mutual Bank Used Car Loan Fixed
Victoria Teachers Mutual Bank Used Car Loan Variable
Source: Canstar Personal Loans Star Ratings, November 2017  

Interest rates on car loans

To give you an idea of the value a 5-Star car loan can represent, the table below displays the average interest rates on all 5 Star products compared to the market as a whole. With a 5-Star car loan you’re looking at an average of 6.16% while the average for all products on the market is 10.31%. This means there are loans out there that are far higher than this, resulting in more money paid in interest over the years.

Car Loan Interest Rates
Loans rated 256
Min 5.12%
Max 21.99%
Average 10.31%
5-Star Average 6.16%
Difference 4.15%
Rates as per conditions outlined in Personal Loans Star Rating Methodology for relevant profile and are correct as at 3/11/2017
Source: www.canstar.com.au

Fees on car loans

Fees are another important consideration when taking out a car loan, and there is another massive difference between 5-Star products and the market average. A 5-Star car loan could save you money upfront and over the course of the loan..

Car Loan
Upfront Fees Ongoing Fees*
Min $0.00 $0.00
Max $1,250.00 $156.00
Market Average $199.21 $38.39
5-Star Average $154.04 $6.92

*Fees are the ongoing fees that would be incurred on an annual basis and are correct as at 3/11/2017. Source: www.canstar.com.au

How much you could save

Combined, these fees and interest rates can make a huge difference. For example, if you plugged the numbers from the table below into Canstar’s loan comparison calculator, you’ll see how a 5-Star car loan could save you thousands compared to a car loan with market average fees and interest rates.

Average 5-Star loan Market Average loan
Loan amount $20,000 $20,000
Loan term 5 years 5 years
Upfront fees $155.04 $199.21
Ongoing fees $7 $38
Interest rate 6.16% 10.31%
Repayments Monthly Monthly

The calculator demonstrates that with the average 5-Star option, your ongoing repayment per month would be $395, compared to $466 for the market average loan. This would end up as a total amount payable of $23,909, which represents a saving of $4,251 in five years. Granted this is just an average figure and will vary depending on your circumstances and criteria, but you get the idea of just how much better value a 5-Star car loan could be.

Get comparing car loans with Canstar today:

Compare Car Loans with Canstar

Similar Topics:

Share this article

Enjoyed reading this article?

Sign up to receive more news like this straight to your inbox

By subscribing you agree to the Canstar Privacy Policy.

Thanks for signing up!

Good things are coming your way.