Compare Car Loans*

Save time and effort by comparing a range of Car Loans, including features like interest rates, comparison rates, fees, and loan terms with iSelect. Using our handy filters you can easily sort between different product features to find a car finance option which suits you.

*iSelect (through its wholly owned subsidiary, Tyrian Pty Ltd) and Fair Comparison Pty Ltd (which operates this credit product comparison) may receive a commission if users click through, apply, or successfully qualify, for a loan or credit card product from or through a provider.

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Advertised ProductProduct Image For OurMoneyMarket - New & Used Car Loan - Secured | Fixed | No Vehicle Age Limit

OurMoneyMarket - New & Used Car Loan - Secured | Fixed | No Vehicle Age Limit

Advertised Rate

From 6.57% p.a. to 18.99% p.a.

Comparison Rate

From 7.19% p.a. to 21.78% p.a.
A Secured loan with an advertised rate from 6.57% p.a. and comparison rate of 7.19% p.a.
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Showing personal loans based on borrowing $20,000 over 3 years, showing both secured and unsecured loans, with fixed and variable interest rates
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Fair Comparison compares loan products from a range of banks and other financial or credit product providers and does not compare all products in the market or all product features. To filter the results, you will need to enter some basic information which will generate a comparison of products that fall within those parameters. The default ordering of products is based on comparison rate. Fair Comparison do not take into account your objectives, financial situation or needs, or provide advice, assistance or recommendations.

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What is a car Loan?

Car loans are a great financing option for many Aussies, giving you access to funds to purchase your desired vehicle, so you can drive it while you pay it off. Unlike personal loans which can be used to finance a variety of purchases, a car loan will typically come with a contractual obligation that the funds must be used to purchase a vehicle.

Compare Car Loans | iSelect

What are the pros and cons of car loans?

When it comes to getting financing for your new wheels, it’s important to consider the pros and cons of taking out a car loan, and considering whether it’s suitable for you.


  • Spread repayments: You typically have a number of years with which to repay the loan (typically anywhere from 1 to 17 years depending on the lender) which could make repayments easier to manage.
  • Won’t drain your savings: A car loan helps you purchase a vehicle and repay in installments, rather than having to make a large cash outlay that puts a large dent in your savings account.
  • Lower interest rate: Sometimes car loans can attract a lower interest rate than a personal loan, especially if the car loan is secured.


  • Increased debt: If you’re managing multiple financial products (such as a credit card or a mortgage) then additional repayment obligations could stretch your budget thin.
  • Risk of losing the asset: If the loan is secured and you default on your payments, then the lender typically has the right to seize the asset it and sell it to recoup their losses.
  • Risk damaging your credit score: If you default on your loan, or even if you pay it off but you’re regularly late in making your repayments, this could have a negative impact on your credit score, and as a result potentially reduce your chances of obtaining credit in the future.
  • Fees: Missing repayments could come with additional fees that you might not have factored into your repayment budget, putting you under additional financial strain.

How do I compare car loan deals to find a suitable product?

When comparing car loan offers available from lenders, it’s important to compare a range of different features, not just the advertised interest rate. Here’s just some of the features worth comparing:

  • Interest rate:

    This is the advertised interest rate that will be applied to the outstanding balance of the loan each billing period, and added to your monthly repayments. The interest rate is one of the most important car loan features to compare, as interest payments are typically the highest loan expense on top of your ongoing repayments towards the loan principal.

  • Fees:

    These can come in a variety of forms, including sign-up or application fees, late fees, extra repayment fees, break/exit fees, and ongoing or monthly repayment fees. These can add up over the life of the loan, so it’s important to take them into account when comparing loans.

  • Comparison rate:

    The comparison rate is an important figure to review when comparing car loans. The comparison rate takes all of the loan fees and the interest rate and consolidates them into a single number. This number allows you to more compare products in a more like-for-like way.

  • Fixed or variable:

    The interest rate on your loan can either be fixed or variable. If it’s fixed then that means the interest rate will remain static either for a fixed period or across the life of the loan. However, if the interest rate is variable, then that means your interest rate could increase or decrease over the life of the loan, and your interest repayments could fluctuate accordingly.

  • Secured or unsecured:

    Car loans can often take the form of a secured loan, which means that an asset is required as collateral for the loan. The asset used to secure the loan is typically the car being purchased with the loan funds. An unsecured loan is where no asset is required as collateral, which from a lender’s perspective is generally perceived as more risky and can attract a higher interest rate.

  • Loan term:

    The loan term refers to the number of years in which you’re required to repay the loan. Different lenders can have varying minimum and maximum loan terms, ranging anywhere from one year to ten years. The loan term can have a significant impact on the size of your monthly repayments, so it’s important to choose a loan with a repayment schedule that isn’t going to stretch your budget thin.

Frequently Asked Questions

How do I apply for a car loan?

Finding a car loan that suits you can be an overwhelming process, but it doesn’t have to be! With iSelect you can compare car loans on offer from a range of products and providers to select the one which suits you*. Then all you need to do is click the ‘Go To Site’ button where you’ll be directed to the lender’s website and you can begin the formal application process. The lender will typically ask questions related to your age, income, employment status, whether you’ve declared bankruptcy in the past, and how much you’d like to borrow. Once your application has been submitted, the lender will typically perform a credit check to understand your credit history. If your application is successful, the lender will notify you and settlement of the funds could take up to a week or more.

Is there a ‘best’ car loan or even a ‘cheapest’ car loan?

Unfortunately, there is no ‘best’ or ‘cheapest’ option when it comes to car finance. Finding a loan that’s suitable for you depends on a range of factors, including comparing the individual features of certain products (interest rate, comparison rate, and fees), and taking into account your own personal financial situation (income, employment, existing debts, and expenses). By comparing a range of car loan products, you’re able to access more information which may help identify a loan that could work for you*.

How do interest rates work with car finance?

Interest rates on car loans work similarly to personal loans and home loans, as opposed to say a credit card. With this loan you’ll need to make the minimum repayments towards the loan principal, plus interest on the total outstanding balance of the loan each billing period (typically either fortnightly or monthly).

Additionally, there are two different types of car loan interest rates: fixed and variable. Here’s how they work:

  • Fixed interest: This means that your interest rate will remain fixed either for a set period or for the entirety of your car loan, allowing you to get a clear view of what your repayments could look like.
  • Variable interest: This means that the interest rate for your car loan could either increase or decrease at your lender’s discretion, and therefore increase or decrease your interest repayments accordingly.

What is a car loan ‘balloon’ payment?

A ‘balloon’ payment is a one-off lump sum that is paid at the end of a car loan, covering off the outstanding balance. Because this larger lump-sum is due at the end of the loan term, it could have the benefit of reducing your previous monthly repayments over the loan term. That said, that lump-sum payment could still come as a bit of a financial shock, so it’s important to consider whether this kind of loan arrangement is suitable for your circumstances or not.

Can a car loan be used to finance either a new or used car?

In short, yes. A car loan can either be used to finance the purchase of a new or used/secondhand car. That said, some loans can come with conditions of use. For example, if you tell the lender that you plan to use the funds to purchase a new car, then typically you may be contractually obligated to purchase a new car, not a secondhand car if you change your mind. So it’s beneficial to be clear about what kind of vehicle you’re after before you apply for a car loan. In addition to this, lenders can have criteria of what kinds of vehicles they finance, particularly when it comes to secondhand cars. It’s beneficial to provide the lender with as much detail as possible before making any commitments to car dealers or sellers.

What kinds of fees can come with a car loan?

When comparing car loans, it can be tempting to just look at the interest rate. Credit products can come with a range of different fees, and car financing is no exception. Below are just some of the fees which may be applicable to your car loan:

  • Sign-up or upfront fee: This is the fee paid when you first sign up for the loan. If not waived completely by the lender, it could range anywhere from under $50 all the way up to several hundred dollars.
  • Late payment fee: This is the fee you pay for missing one of your scheduled repayments. It is typically less than $50.
  • Extra repayment fee: Some lenders may allow you to make additional repayments towards your loan, over and above your minimum monthly payments. However, sometimes the ability to make these additional payments can come with fees.
  • Ongoing or monthly fee: Some loans can come with a monthly service fee. This fee can be particularly expensive if the loan term is five years or more. For example, a $15 monthly fee might not seem like much, but over the life of a seven-year loan that adds up to $1,260.

Can my credit score affect my car loan application?

As part of the application process for your car loan, the lender will perform a credit check to understand your credit history. This involves requesting a credit report from one of several licensed credit reporting agencies. Your credit report can contain information on any of your past and present credit products (loans, credit cards), as well as if you’ve ever missed repayments, defaulted on a loan, been bankrupt, or defaulted on utilities or phone bills (if they were $150 or more, and 60 days or more overdue).

If the credit report shows a history of missed or late payments on credit products, or if you’ve defaulted on a loan in the past, this could negatively impact your ability to obtain a car loan.

What happens if I default on my car loan?

Defaulting on your car loan can come with a range of negative consequences, which is why it’s important to choose a loan that’s suitable for your circumstances and budget. If your car loan is secured, then defaulting could see the lender repossesses the secured asset (which in this case could likely be the car). If the loan is unsecured, then defaulting could see the lender take some form of legal action. Additionally, despite whether the loan is secured or unsecured, defaulting on your loan will be noted on your credit score, and could reduce your ability to secure credit products in the future (such as a personal loan, mortgage, or credit card).

You might want to reach out to your lender if you’re struggling to meet your repayments. They may be able to offer some flexibility that makes your payment schedule easier to manage.

What’s the difference between financing through a bank versus a dealership?

When it comes to finding a good deal on your car financing, there’s a range of options available. You could apply via a loan broker, directly with a bank or lender, or through the dealership in which you’re purchasing the car. One of the drawbacks of securing financing through a dealer is that they may not compare a range of loan options for you, as they may have just a single preferred loan provider. However, when you compare a range of products from different lenders using a comparison service like iSelect, you could increase your chances of finding a good deal*.

Can you apply for a car loan before going to a dealer?

Yes, you can apply for a car loan before speaking to a car dealer, and it could even be a good idea to do so. Applying for a car loan and even getting pre-approval could give you a clearer indication of how much you’re able to borrow, which allows you to walk onto the dealership knowing what your spending limits are.

What’s the difference between a secured and unsecured car loan?

The main difference is that a secured loan requires an asset to be used as collateral for the loan, which in this case is typically the car being purchased. This means that if you default on a secured loan, the lender could repossess the secured asset. There can also be other differences between secured and unsecured loans, such as that unsecured loans could attract a higher interest rate, but this varies across products and providers.

Car Loan Guides

    A Guide to Refinancing Your Car Loan

    After having a car loan for a while, you may find a more competitive offer in the market.

    A Guide to Secured Car Loans

    A secured loan is when the borrower provides an asset to a lender which acts as security against the loan being paid back.

    Car Loans providers

    You can use our comparison tools to compare from our range of providers and their products. *