Low-interest car loans
The table below displays car loans from our Online Partners, sorted by the lowest interest rate.
Showing 6 of 268 results
Unsure of a term in the above table? View glossary
The initial results in the table above are sorted by Interest rate p.a. (Low-High) , then Star Rating (High-Low) , then Comparison rate^ p.a. (Low-High) . Additional filters may have been applied, which impact the results displayed in the table - filters can be applied or removed at any time.
About low-interest car loans
Car loans are a type of personal loan that can be used to purchase a new or used car. They are usually secured, meaning that the vehicle you’re purchasing acts as collateral for the loan itself, and your lender can repossess it if you don’t meet your repayments. Because of this extra level of protection for the lender, secured car loans typically have lower interest rates than unsecured ones, which exist but are rarer.
What is a low interest car loan?
A low interest car loan is not a specific product on the market—this phrase just refers to a car loan with a low rate. Other than an appealing interest rate, there is nothing especially different about a low interest car loan and any other you may find.
Where do you find the cheapest car loans?
If you’re looking for a cheap car loan, it can pay to shop around. Comparing the options on the market is a way to make sure you end up getting the best deal for you. You can also ask lenders directly to see if they can offer you a better rate than their advertised one.
If you’re hoping to secure a low-interest car loan, there are some factors that may be important:
- Your credit score: Generally speaking, the higher your credit score, the less likely a lender is to view you as a risky borrower. For this reason, people who have a good credit history will typically be offered lower interest rates.
- Whether you opt for a new or used car: On average, new car loans tend to have lower interest rates than used car loans. Of course, it is important to weigh up whether buying a new car instead of a used one is worth it for you.
- Whether your loan is secured or unsecured: A secured car loan often comes with a lower interest rate.
- Whether you’re borrowing with a guarantor: A guarantor is someone who signs on for a loan with you and agrees to take on the debt if you can’t. You may be offered a lower interest rate if you borrow with a guarantor, but before you enter this kind of arrangement, be aware of the risks involved.
How much can I borrow with a low-interest car loan?
The amount you can borrow with a car loan will depend on the provider and the type of loan you choose, as well as your individual circumstances. Although each provider will be different, Canstar’s Research Team found most banks offer secured car loans for between $5,000 and $100,000.
To determine how much you can borrow, lenders will look at your income, expenses, personal circumstances (including if you have any dependents) and any other financial commitments you have (such as other loans or credit cards), and your credit score.
Frequently Asked Questions about Low-Interest Car Loans
Explore other car loan options
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.
About the authors
Karen Yang, Senior Content Production Specialist
Joshua Sale, GM, Research
As Canstar’s Group Manager, Research, Ratings & Product Data, 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 Review, news.com.au and Money Magazine.
You can follow Josh on LinkedIn, and Canstar on X and Facebook.
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.