Low Interest Car Loans
Why pay more than you need to? We compare low interest car loan rates from 50+ banks and lenders to find you a competitive deal, potentially saving you thousands over your loan term.
Australian Credit Licence 509582. Fees and lender criteria apply.
How to Qualify for Prime Pricing
These steps can improve your chances of a lower car loan interest rate
Strong Credit Score
Aim for 700+A credit score above 700 typically qualifies you for prime pricing tiers. Check your score for free before applying.
Stable Employment
6+ months in jobLenders prefer 6+ months in your current job. Permanent employment often gets better rates than casual.
Lower Loan-to-Value
10-20% depositA larger deposit (10-20%) shows commitment and reduces lender risk, often resulting in better rates.
Clean Credit History
No defaultsNo defaults, missed payments, or credit enquiries in recent months helps support a lower rate.
Compare Lender Types & Rates
Different lenders offer different rates. We compare eligible options from our panel and explain the trade-offs.
| Lender Type | Rates From | Best For |
|---|---|---|
| Major Banks | Variesp.a.* | Excellent credit, existing customers |
| Online Lenders | Variesp.a.* | Quick approvals, competitive rates |
| Credit Unions | Variesp.a.* | Members, lower fees |
| Specialist Lenders | Rates varyp.a.* | Self-employed, varied credit |
*Rates are indicative and subject to credit assessment. Rates vary by lender.
Why Choose Simple Loans for Low Rates?
We are not a lender. We compare eligible options from our panel and explain the trade-offs
50+ Lenders Compared
We compare rates from major banks, credit unions, online lenders, and specialists to compare your options.
Expert Negotiation
Our relationships with lenders mean we can often negotiate better rates than you'd get going direct.
Fast Approvals
Decisions can be available the same day. Timing depends on the lender and your documents.
Lenders on Our Panel
We compare eligible options from a panel of 50+ banks and lenders, not the whole market.
Frequently Asked Questions
Everything you need to know about low interest car loans
What is considered a low interest car loan rate in Australia?
Borrowers with good credit are generally offered the sharpest pricing a lender has. Rates vary by lender. A specialist confirms your actual rate based on your credit profile, income, and deposit.
How can I get a lower car loan interest rate?
To qualify for lower rates: maintain a good credit score (700+), have stable employment for 6+ months, provide a 10-20% deposit, choose a newer vehicle (under 5 years old), opt for a shorter loan term (3-5 years), and compare multiple lenders. We can help compare eligible options for your situation.
Do new cars get lower interest rates than used cars?
Generally yes. New and near-new vehicles (under 3 years old) typically attract lower interest rates because they're worth more as security and have longer useful life. Older vehicles may have rate loadings of 1-3% added. However, specialist used car lenders can still offer competitive rates.
Is a fixed or variable rate better for car loans?
Fixed rates provide certainty, your repayments won't change regardless of market conditions. Variable rates may start lower but can increase. Most car loans in Australia are fixed rate, which is generally recommended for budgeting certainty over a 3-7 year term.
How much difference does 1% interest rate make?
On a $35,000 loan over 5 years, a 1% lower interest rate saves approximately $900-1,000 in total interest. Over longer terms or larger loans, the savings are even more significant. That's why comparing rates across lenders is so important.
Can I negotiate a lower car loan interest rate?
Yes! Rates are often negotiable, especially through brokers who have relationships with lenders. Having a strong credit profile, being a new customer, or having competing offers can help. Using a broker like Simple Loans means we negotiate on your behalf across 50+ banks and lenders.