Compare Car Finance in Australia

Live offers

20 live offers compared from 17 providers, from 6.89% APR. Updated daily.

What is car finance in Australia?

Car finance lets you spread the cost of a vehicle over several years rather than paying the full price upfront. Common structures include a secured car loan, where the car itself is used as security, an unsecured personal loan, and for business buyers, chattel mortgage or novated lease arrangements that carry tax benefits. Secured loans typically offer the lowest rates because the lender can repossess the vehicle if you default, reducing their risk.

How the Australian market works

Car finance is offered by banks, non-bank lenders and specialist finance brokers, and is often arranged at the dealership at the point of sale. Dealer finance is convenient but not always the cheapest option, so comparing with direct lenders and brokers before you buy can save money. Loans are usually secured against the vehicle, and the rate you are offered depends on your credit history, income, the car's age and the loan term, with newer cars typically attracting lower rates.

Benefits of car finance

Preserves cash flow — You keep your savings intact for other needs and spread the cost over manageable monthly repayments.

Lower secured rates — Using the car as security typically means a lower interest rate than an unsecured personal loan of the same size.

Fixed repayments — Most car loans have a fixed rate and term, so your repayments are predictable, which makes household budgeting straightforward.

How to choose a loan

Compare the comparison rate, which includes most fees alongside the interest rate, rather than the headline rate alone. Check whether the rate is fixed or variable, the loan term, and whether extra repayments or an early payout are allowed without penalty so you can clear the loan sooner. Consider the effect of any balloon or residual payment at the end, which lowers monthly repayments but leaves a large lump sum due later.

Leading providers in Australia

The comparison features Latitude, CommBank, ANZ, NAB, Westpac, Macquarie Bank, Pepper Money and Stratton Finance. The big banks and Macquarie offer secured car loans directly with competitive rates for strong borrowers, Pepper Money serves a broad credit spectrum including non-conforming applicants, and Stratton Finance is a broker sourcing loans across many lenders. The best fit depends on your credit profile and whether you value the sharpest rate or greater approval flexibility.

What it costs

Advertised rates in this comparison range from about 6.89% to 9.99%, with secured loans for newer cars at the lower end and higher-risk or older-vehicle loans higher. On top of interest you may face establishment fees, monthly account fees and, with some lenders, early-payout costs. Always compare the comparison rate rather than the headline rate, and factor in that a longer term reduces repayments but increases the total interest you pay. Choosing a newer car, offering a deposit and keeping the term short all help secure a lower rate, while a strong credit history is often the biggest single factor.

Protections and regulation

Car finance is regulated by ASIC under the National Consumer Credit Protection Act, including responsible-lending obligations that require lenders to check the loan is suitable and affordable for you. Lenders and brokers must hold a credit licence and belong to AFCA for disputes. Reforms have curbed dealer flex commissions, so the rate quoted should now reflect your risk rather than an inflated dealer markup.

Common questions

Is dealer finance the cheapest? — Not always; it is convenient, but comparing with bank and broker offers before signing often reveals a lower rate elsewhere.

Secured or unsecured? — A secured car loan usually carries a lower rate because the vehicle is collateral, but the lender can repossess it if you fall behind on repayments.

Car Finance in Australia — FAQ