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Our car loans

Loan reasons
Rate type
Car Loan Interest Rate Comparison Rate Weekly Repayment Product Features Details

Variable Car Loan - Green/Electric

Discounted rate on qualifying electric cars Redraw up to $5k/day
5.84% p.a. 6.97% p.a.  $163
  • Discounted rates for Home Owners
  • Up to 7 year loan term
  • Variable rate adjusts with interest rate changes
  • Fast approval times
  • Get Preapproved to confidently secure your car financing
  • Access your account via Smart Money app
Get started

Variable Car Loan - New/Demo

Demo vehicles acceptable up to 7500 kms^ Redraw up to $5k/day
5.99% p.a. 7.12% p.a.  $164
  • Discounted rates for Home Owners
  • Up to 7 year loan term
  • Variable rate adjusts with interest rate changes
  • Fast approval times
  • Get Preapproved to confidently secure your car financing
  • Access your account via Smart Money app
Get started
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Our car loan products are recognised & awarded by the Australian financial industry. View all awards

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 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.

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 1-7 years.

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.

Why choose loans.com.au?

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Low Interest rates

Being an online lender with fewer overheads means we’re able to pass on the savings to our customers.

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Australian based

Get help when you need it from our friendly team of Australian based, lending specialists.

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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

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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.

Got a question? We can help

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.

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Talk to a car loan expert

Book a time that suits you to chat with a lending specialist to take care of the paperwork for you.

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Call us on 13 10 90 or simply start your application online.

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