Compare car loan
Whether you’re buying a new or used car, we have a variety of car loan options available to suit every scenario.
Our car loans
| Car Loan | Interest Rate | Comparison Rate | Weekly Repayment | Product Features | Details |
|---|---|---|---|---|---|
Green / Electric Car LoanMost Popular
|
6.09 % p.a. | 7.21 % p.a. | $165 |
|
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New / Demo - Special |
6.24 % p.a. | 7.36 % p.a. | $166 |
|
Get started |
Common car loan questions
What’s the difference between a car loan and dealership finance?
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 loans.com.au 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.
Can you apply for a car loan before going to a dealer?
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.
What’s the difference between secured and unsecured car 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.
What do you need to consider before applying for a car loan?
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 1-7 years.
What’s the difference between buying from a dealership and private seller?
Buying a car from a dealership means you buy a new or used car from a licensed car selling company, which generally comes with some sort of guarantee and/or warranty. Purchasing directly from a private seller means you purchase a used car directly from the owner, often at a cheaper price, but without the option for a warranty or guarantee.
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.
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.
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.
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 vehicle.
Why choose loans.com.au?
Low Interest rates
Being an online lender with fewer overheads means we’re able to pass on the savings to our customers.
Australian based
Get help when you need it from our friendly team of Australian based, lending specialists.
Flexible options
Looking to save with an offset, or make extra repayments with a redraw? We have a full range of loan features to suit your situation
Award winning
We keep on winning awards for our products, innovations and customer service, year after year!
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.
Car finance vs paying in cash, it’s a question many ask when looking at buying a new car. We weigh up the pros and cons of each.
Find out what it means to sell a car that is still under finance in Australia.
Looking for a new Car?
Source your new Car through OnlineAuto, finance it with loans.com.au and get rewarded!
Get started
Apply online today. Or, one of our friendly lending specialists can do the hard work for you and manage your paperwork over the phone.
Either way, we can settle your loan quickly so you can start saving thousands sooner.
