Get your personalised car loan quote by comparing 40+ Australian lenders in minutes. We make it easier to find the loan that’s right for you.
Rather than paying for a vehicle in full immediately, a car loan lets you pay for it in instalments. In Australia, over 22 million vehicles are registered, making cars an essential part of daily life; so understanding your financing options is important. Understanding how car loans work can help you choose a good lender and manage your repayments comfortably. At LoanCalculator.com.au, we provide tools and guidance to compare loans and find the option that suits your budget best.
One kind of personal loan intended especially for the purchase of a new or used car is a car loan. They enable borrowers to spread out the cost of a car over time rather than making an upfront payment by allowing you to borrow money and pay back both the principal and interest over a predetermined period of time, typically ranging from one to seven years.
A secured car loan means the car itself acts as a guarantee for the lender. Since the lender has something to hold onto, the interest is usually lower, and the repayment terms are easier to manage.
Unsecured car loans don’t use the car as security. The lender looks at your finances and credit to decide if you can get the loan. Because there’s more risk for them, the interest rate is generally higher.
A chattel mortgage is a way for businesses to buy a car or work vehicle. You own the car, but the lender keeps a claim over it until you’ve finished paying. It can also help you save on tax if the vehicle is used for business purposes.
A novated lease is a deal between you, your employer, and a finance company. You drive the car, and your employer pays the lease from your pre-tax pay. It’s handy if you want a car that suits you and can also reduce your tax a bit.
If your credit isn’t great, a bad credit car loan can help you still get a car. These loans make it easier to qualify, but the catch is that the interest is usually higher, and the repayment terms can be a bit stricter.
Dealer finance is when you get the loan straight from the car dealership. It’s convenient because you can sort the car and the finance all in one go, but sometimes the interest rates are higher than what you’d get from a bank or other lender.
You get a car loan by giving a lender your personal details, and details of your finances; the lender checks you can pay it back, your eligibility and credit, mainly, and if you are approved, will then give you the money.
Ensure your credit report is accurate and address any issues
Use comparison tools to evaluate interest rates, fees, and loan terms
Prepare proof of income, identification, and details of your financial commitments
Submit your application to your chosen lender and await their decision
Pre-approval is an incredibly helpful solution for buyers who want to buy a car, buying the car to help the consumer feel comfortable with the price and simplifying it. But it’s crucial to check the details and not overcommit yourself to a loan you can’t afford to repay.
| Borrow from $5,000 to $200,000 | Car loans available for new and used vehicles | Flexible loan terms ranging from 12 months to 7 years |
| Choose from weekly, fortnightly, or monthly repayments to suit your paycycle | Customised interest rates based on your financials and credit history | Choose between fixed or variable loan rates |
| Some loans may allow additional payments without penalty | Option for a balloon payment at the end to reduce regular repayments | No upfront deposit required for select customers |
A lot of Aussies head to LoanCalculator.com.au because we make comparing car loans way easier. You can see different lenders, check repayments, and get a feel for what suits your budget without the usual stress.
For business owners, business car loans and chattel mortgages are effective ways to finance vehicles. Chattel mortgages offer potential tax benefits on interest and depreciation, with the lender holding the car as security until repayment. To qualify, you generally need a valid ABN, a registered business, and supporting financial documents such as bank statements or BAS.
Yep, totally. You can pop the loan amount, term, and interest rate into an online car loan calculator and see roughly what you’ll be paying each month. It’s a good way to figure out if the repayments are going to work for you before you actually commit.
