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.
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% | ||
Source: www.canstar.com.au
Rates as per conditions outlined in Personal Loans Star Rating Methodology for relevant profile and are correct as at 3/11/2017
→ Buying a new car? Compare car insurance with Canstar
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.
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