Car Loan Rates Australia
What sets a car loan rate in Australia, updated October 2026. We compare a panel of 50+ lenders once we know your situation.
Australian Credit Licence 509582. Fees and lender criteria apply.
Why there is no headline rate here
A rate on a page is only true for the borrower it was priced for. Lenders on our panel price each application on three things, so we show you the rate after we know them, with the comparison rate beside it.
01
You
Credit history, income type, how long you have been in your job, and any existing debts.
02
The car
New or used, its age, and whether it can be used as security for the loan.
03
The loan
Amount, term, deposit and any balloon payment you choose.
How Lenders Set Your Car Loan Rate
Rates vary by lender, security, credit profile and loan amount. Indicative rates are set by the lender. A specialist confirms your actual rate after a soft credit check.
Rates are indicative and subject to change. Individual rates depend on full credit assessment, loan amount, vehicle age and lender criteria.
What Affects Your Car Loan Rate?
Credit Score
Higher scores (700+) qualify for prime pricing tiers. Check your score before applying.
Vehicle Age
Newer vehicles attract lower rates due to better resale value and lower risk.
Loan Amount
Very small loans may have higher rates. Sweet spot is usually $15,000-$60,000.
Deposit Size
A larger deposit (20%+) reduces lender risk and can lower your rate.
Employment Stability
Permanent employment and 6+ months in current role helps secure better rates.
Loan Term
Shorter terms often have slightly lower rates but higher monthly payments.
Tips to Improve Your Car Loan Rate
Car Loan Rates FAQs
What is a good car loan interest rate in Australia?
A good car loan rate depends on your credit profile, the vehicle, and current market conditions. Well-qualified borrowers are generally offered a lender's sharpest pricing. Your actual rate is confirmed after a soft credit check with a specialist.
How are car loan rates determined?
Car loan rates are based on the RBA cash rate, your credit score, employment stability, loan-to-value ratio, vehicle age, and whether the loan is secured. Lenders also consider their own cost of funds and risk appetite.
Fixed vs variable car loan rates - which is better?
Fixed rates provide payment certainty and protection against rate rises, ideal if you prefer predictable budgeting. Variable rates may start lower and can decrease if the market drops, but can also increase. Most Australians choose fixed rates for car loans.
What is a comparison rate for car loans?
A comparison rate includes the interest rate plus most fees and charges, giving a more accurate cost picture. By law, lenders must display comparison rates. However, comparison rates are based on a $30,000 loan over 5 years, so your actual rate may differ.
How can I get a lower car loan rate?
To get lower rates: maintain a good credit score (pay bills on time), save a larger deposit (20%+ helps), choose a newer vehicle, provide stable employment history, and compare multiple lenders. We do the comparison work for you across 50+ banks and lenders.
No upfront assessment fee
Get your personalised rate
Find out what rate you qualify for with no impact on your credit score.
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