Cheap Car loans in Australia Background

Cheap car loans Australia

The table below shows car loans on our database, sorted by lowest monthly repayment.

Group Manager, Research & Ratings
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Instantly compare 290+ Canstar expert rated products based on the inputs below


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  • Star Rating - lowest first
  • Star Rating - highest first
  • Interest rate - lowest first
  • Interest rate - highest first
  • Comparison rate^ - lowest first
  • Comparison rate^ - highest first
  • Monthly repayment - lowest first
  • Monthly repayment - highest first
Bendigo Bank | Green Secured Personal Loan
Bendigo Bank logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.49% Glossary
Fixed Glossary
6.20% Glossary
$381.93 Glossary
People's Choice | Green Car Loan
People's Choice logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.69% Glossary
Fixed Glossary
6.04% Glossary
$383.78 Glossary
Harmoney | Personal Loan Unsecured
Harmoney logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.76% Glossary
up to 24.03% Glossary
Fixed Glossary
6.57% Glossary
up to 24.99% Glossary
$384.43 Glossary
up to $575.71 Glossary
Great Southern Bank | Green Car Loan
Great Southern Bank logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.99% Glossary
up to 14.29% Glossary
Fixed Glossary
6.36% Glossary
up to 14.69% Glossary
$386.56 Glossary
up to $468.38 Glossary
Westpac | Car Loan - Electric or Hybrid Only
Westpac logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.99% Glossary
up to 12.49% Glossary
Fixed Glossary
7.20% Glossary
up to 13.65% Glossary
$386.56 Glossary
up to $449.86 Glossary
Teachers Mutual Bank | Car Loan - Fixed
Teachers Mutual Bank logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.14% Glossary
Fixed Glossary
6.28% Glossary
$387.96 Glossary
UniBank | Car Loan - Fixed
UniBank logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.14% Glossary
Fixed Glossary
6.28% Glossary
$387.96 Glossary
Police Credit Union | Better Fixed Car Loan-Min $20K(Special Offer)
Police Credit Union logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.24% Glossary
Fixed Glossary
6.24% Glossary
$388.89 Glossary
Police Credit Union | Low Rate Car Loan (Special Offer)
Police Credit Union logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.24% Glossary
Variable Glossary
6.24% Glossary
$388.89 Glossary
IMB | New Car Loan
IMB logo
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.24% Glossary
Fixed Glossary
6.59% Glossary
$388.89 Glossary

Showing 10 of 222 results

check Included
cross Not included
na Not applicable
canstar-rating-icon Canstar rating
indicative-canstar-rating-icon Indicative Canstar rating

Unsure of a term in the above table? View glossary

The initial results in the table above are sorted by Monthly repayment (Low-High) , then Star Rating (High-Low) , then Comparison rate^ (Low-High) . Additional filters may have been applied, see top of table for details.

About cheap car loans

If you’re looking to buy a new or used car, you’ll probably want to look for a cheap car loan to help keep your costs down. But a cheap car loan isn’t just about finding a loan with the lowest interest rate.

There are a number of things you need to consider when looking for a cheap car loan to suit your needs.

Frequently Asked Questions about Cheap Car Loans

One of the best ways to find a cheap car loan is to shop around and compare your options. As well as looking for a low interest rate and comparison rate, it’s important to consider the specific fees charged and features available.

Your credit score may also have an impact on what interest rate you can get. Some lenders look at your credit history when determining what rate to offer you. If you’ve an excellent score, you may be offered a lower interest rate as you’re seen as less of a risk.

You can check your credit score for free with Canstar. If yours isn’t as high as you’d like, there are steps you could take to help improve it.

Let’s take a close look at some of the fees and features you need to consider when looking for a cheap car loan.

Fees

Lenders can charge a range of fees on car loans that can add to the overall cost of the loan. Some common fees include an establishment fee, a monthly service fee, a missed payment fee, an extra repayment fee and early repayment fee.

The comparison rate takes into account most upfront and ongoing fees, but it doesn’t include everything. For example, it doesn’t factor in fees that only apply in certain circumstances, such as an early repayment fee.

Features

The features you get with the loan may help boost its overall value. For example, check if you can make any extra repayments to pay off the loan early without paying a fee. Extra repayments can help to reduce the amount of interest you have to pay on the loan, hence help you pay off the loan faster.

Some loans also offer access to a redraw facility so you can access the extra money you’ve paid on the loan if you need to.

Take care with car loans that offer a ‘balloon payment’ feature. This is a one-off lump sum payment usually made at the end of the loan term. While this can lower your regular repayments, you will generally end up paying more in interest and the loan will cost more overall.

Fixed or variable interest rate

A fixed rate car loan is one where your interest rate is locked in and will stay the same for the fixed period. This means your repayments will also stay the same, which may help with budgeting.

On the other hand, a variable rate car loan is one where your interest rate can change. As a result, your repayments can increase or decrease if the interest rate changes.

Secured or unsecured

With a secured car loan, you need to provide an asset to be used as security (or collateral) for the loan. With car loans, this is usually the car that you are buying.

If you don’t make the loan repayments on time, you run the risk of losing your car. The lender can repossess your car and sell it to recover the loan amount owed.

With an unsecured loan, you don’t need to provide any security for the loan. The interest rate will usually be higher as the lender doesn’t have that added layer of protection as a secured loan.

A lender can still take you to court if you don’t repay an unsecured loan, according to the Australian Government’s Moneysmart website. Unsecured loans are more commonly offered for used cars.

Loan term

The loan term is the amount of time you have to repay the loan. By taking out a car loan with a longer term, you will usually be able to make lower repayments. But that means you will be paying interest over a longer time period.

You can use Canstar’s car loan comparison table, above, to help you find a cheap loan.

All you need to do is enter the amount of the loan you are after, the loan term, whether it’s a used or new car, and finally the state or territory in which you live.

You can then sort the results in order of monthly repayments, from the lowest to the highest.

You can further filter your results if you want to narrow your search to specific providers or a Canstar rating.

It’s a good idea to compare several providers to look beyond just the monthly repayments to find a cheap car loan that suits your needs.

Latest in car loans

Canstar Car Loans Star Ratings and Awards

Looking for an award-winning car loan or to switch lenders? Canstar rates products based on price and features in our Personal and Car Loans Star Ratings and Awards. Our expert Research team shares insights about which products offer 5-Star value and which providers offer outstanding value overall.

Canstar rates a range of financial products, covering banking, insurance and investment. We also reveal which providers have the most satisfied customers in our dedicated Customer Satisfaction Awards.

Personal and Car Loans Awards

About our finance experts

Nina Rinella, Editor-in-Chief

Nina Rinella
As Canstar’s Editor-in-Chief, Nina heads up a team of talented journalists committed to helping empower consumers to take greater control of their finances. Nina has written countless articles about finance and has been interviewed on finance topics by media organisations including The Australian, Realestate.com.au, Domain, the Herald Sun and the Sydney Morning Herald. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for 8 years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids. Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series. You can follow her on LinkedIn, Instagram or Twitter and Canstar on Facebook. Meet the Canstar Editorial Team. Have a media enquiry, and interested in featuring Nina as a financial expert and commentator? Contact Canstar’s Media Team today.

Joshua Sale, Group Manager, Research & Ratings

Joshua Sale

As Canstar’s Ratings Manager, Josh Sale is responsible for the methodology and delivery of Canstar’s Personal & Car Loans Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right product for them.

Josh is passionate about helping consumers get hands-on with their finances. Josh has been interviewed by media outlets such as the Australian Financial Reviewnews.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on Twitter and Facebook.


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Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.

The Car and/or Personal Loan Star Ratings identified in the tables are updated monthly. The results don’t include every provider in the market and we may not compare all features relevant to you. Current rates and fees are displayed and may be different to what was rated. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Car Loans Star Rating Methodology. The rating shown is only one factor to take into account when considering products.

The products and Star Ratings in the table might not match your exact inputs in the selector. Sometimes the methodology uses profiles with categories or bands (e.g. income, loan amount or monthly spend), but sometimes a single methodology, without any categories or bands, is applied. The results will show the products that most closely match your selection, based on our profiles. If you are unsure about any terms used in the comparison table please refer to the glossary.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. Canstar provides information about credit products. We’re not suggesting or recommending a particular credit product for you. If you decide to apply for a loan, you will deal directly with the provider, not with Canstar. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. It’s important you check rates and product information directly with the provider. For more information, read our Detailed Disclosure. ^Read the Comparison Rate Warning.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.