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Common car loan questions

Dealership finance is a loan offered by car dealerships with the enticement of being able to drive away in your new car sooner. Car loan rates from the dealership can often be higher than if you’d arranged your finance with a lender beforehand, and online lenders like can often offer lower rates than traditional lenders. Dealership finance almost always requires a balloon payment at the end of the finance period. Financing is also often restricted to new vehicles, whereas car loan lenders approve new and used cars.

You can get preapproved for a car loan before finding a car, which may make your car buying process easier because you’ll know what you can afford.

A secured loan is usually cheaper and safer, because the lender can repossess the car if the repayments are not met. Unsecured loans have higher interest rates and are the riskier option, because if you default on the loan you’re still responsible for the debt.

Before applying for a car loan, you’ll need to think about what you can afford in terms of loan repayments, services and repairs (which may vary between brands), and also consider the loan term, which will be between 1-5 years.

How do you compare car loans?

There are a few key factors to analyse when comparing car loans. First you want to ensure you choose the right type of loan.

Your car loan may only run for a few years but that doesn’t mean you should miss the chance to put some more money in your pocket over that period.

Types of car loans


Used Car Loans

We’re here to help finance your next car, even if it has clocked a few kilometres over the years. If you’re looking to purchase a used car, we can assist with the purchase of vehicles that are up to 12 years of age at the beginning of the loan term.

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New Car Loans

Are you looking to buy a new vehicle? We can assist with car loans for dealer new and used cars up to 5 years old for a low rate.

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Secured vs Unsecured

When choosing a car loan, you also have the option to choose a secured or unsecured loan. A secured loan is usually cheaper and safer, because the lender can repossess the car if the repayments are not met. Unsecured loans have higher interest rates and are the riskier option, because if you default on the loan you’re still responsible for the debt.

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Green Car Loans

We care about the environment and encourage you to care too. That’s why we offer a discount on our car loans if you choose to buy a more environmentally friendly car like a qualifying electric or hybrid vehicle.

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Why buy a car with is an award-winning online lender that is proudly Australian and based in the heart of Brisbane, with offices in other capital cities.


Low interest rates

We can offer extremely low rates because our online model is so efficient. Fewer overheads mean doing business costs less and those savings translate directly into lower interest rates and fees for our customers.


Australian based support team

We have an experienced, Australian based team. At every step of the way, you’ll talk to a real person from our friendly team of lending specialists who are here to help you.


Flexible options

No matter what car you’re looking at, it’s likely we can help you. If you’re at the dealership, we can assist with anything from brand new cars to cars up to 12 years old. Plus, you can choose either a low rate variable or fixed car loan, and a balloon payment may be optional.


Award winning

By keeping our interest rates low and revolutionising the loan application process, we keep on winning awards for our products, innovations and customer service, year after year!


Hassle free

Find out if you qualify for our new car loans in just minutes. The application process is simple, online, plus we’re here to help at each step of the way.


onTrack advantage

onTrack is our online app which allows you to complete your car loan application on your device from initial contact through to settlement and beyond. In onTrack you can complete your loan application in your own time, as it suits you. But as always, we’re here to help!

How do car loans work?

A car loan is a sum of money lent to an individual or couple to use as finance to purchase a car. The amount borrowed depends on a few factors, including income, credit history and personal savings. The lender and borrower will agree on a term, in which the loan will need to be paid back weekly, fortnightly or monthly, including accrued interest.

1. Fixed vs variable rate

Fixed rate loans means the interest rate remains the same over the fixed rate term of the loan. During this period, your repayments will be the same until it changes to a variable rate.

A variable rate loan is a loan with an interest rate that can change at any time at the lenders discretion, which means your repayments can vary throughout the life of your loan.

2. Interest rates

Interest rates are always charged on a loan and impact your repayments and the overall amount you pay back on your car loan. Your monthly interest is calculated using the formula:
Interest = (loan amount x interest rate) / 12 (months)

3. Deposit

In Australia, borrowers don’t always need a deposit when applying for a car loan. However, there are many benefits that make it worthwhile to save for a deposit if you have the option. Some benefits include less interest paid throughout the term potentially saving you hundreds, and increasing the chance of being approved for a loan.

4. Repayments

When you repay your car loan, you can choose to repay it weekly, fortnightly or monthly. Monthly is the most common repayment frequency, however it’s recommended you choose the frequency most suitable for your financial situation. The repayment amount is dependant on your interest rate. If you opted for a fixed rate loan, your repayments will be the same during the fixed rate term of your loan, whereas variable rate loan repayments will vary based on the current rate set by your lender.

Need help with your car loan?

Choosing a car loan is a big decision, and it can be overwhelming trying to find a suitable car loan and understand the finance lingo. We have a variety of free resources and guides available to help car buyers at any stage of the car buying journey. From learning about interest rates to unsecured loans, we’ve got you covered.

Applying for your first car loan? Follow a few simple steps to help your chances of getting approved.

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