Compare Low Rate Auto Loans September 2021

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Are you looking to buy a new car? Savings.com.au has compiled some of the cheapest auto loans on the market this month.

This page provides an overview of the car loans, showing some of the lowest interest rates available for:

Low fixed rate auto loans – new cars

Rates based on a $ 30,000 loan for a five-year term. Products sorted by advertised price. Prices correct as of September 26, 2021. See disclaimer.

Low fixed rate auto loans – used cars

Rates based on a $ 30,000 loan for a five-year term. Products sorted by advertised price. Prices correct as of September 26, 2021. See disclaimer.

Green auto loans at low interest rates

Basic criteria: Fixed and guaranteed auto loans for “low emission” cars. Data correct as of September 1, 2020. Rates based on a loan of $ 30,000 for a loan term of five years. Products sorted by advertised price. Refunds are calculated on the basis of the advertised rates. Prices correct as of September 26, 2021. See disclaimer.

Low Interest Variable Rate Auto Loans – New Cars

Rates based on a $ 30,000 loan for a five-year term. Products sorted by advertised price. Prices correct as of September 26, 2021. See disclaimer.

Low variable interest rate auto loans – used cars

Rates based on a $ 30,000 loan for a five-year term. Products sorted by advertised price. Prices correct as of September 26, 2021. See disclaimer.

Other car loan guides and resources:

Auto loan comparison

There are many factors to consider when choosing a car: make, model, year, safety rating, fuel mileage, and number of cup holders, to name a few. -a.

But when it comes to choosing an auto loan, arguably the most important factor is the interest rate. It is essential to shop around when taking out a loan for a car, as interest rates can vary widely from loan to loan.

Auto credit rate comparator

It is also important to know the difference between a comparison rate and the advertised rate. The advertised rate is the annual interest rate you will be charged on your debt, while the comparison rate reflects the advertised rate PLUS the fees and charges you will pay, giving you a more accurate picture of the true cost of the loan. .

For example, a car loan with an advertised rate of 6% per annum but a comparison rate of 9% per annum is likely to incur significant costs. All approved lenders in Australia are legally required to display the comparison rate next to any advertised rate to make it easier for consumers to compare loans from different lenders. But comparison rates should only be used as a guide – it’s important that you review all fees and charges yourself before committing to anything.

Check out the various auto loan fees and charges and their cost here.

Car loans in Australia

Cars are a passion for some but a pain for others – symbolizing something akin to a money-burning machine. Usually, a car will be the second most expensive purchase a person makes – behind a house.

Most Australians don’t have tens of thousands of dollars lying around so they can easily buy a new car. This was evident in 2017 when the search for a royal commission inquiry found that 90% of all car sales are organized through finance – 39% of these are organized through dealerships, while the remaining 61% are funded from other sources, such as the banks.

Secured loans vs unsecured loans

You will see that some of the above loans are secured while others are not, so what’s the difference?

A secured loan is a loan secured by an asset, usually the car itself. The lender uses this asset as collateral, so if you can no longer pay your repayments, they have the right to repossess the asset and use it to cover the remaining cost of the loan.

This extra security allows the lender to offer a lower interest rate for many secured auto loans because they have the secured asset as a backup. When it comes to cars, lenders have different rules, but you will usually need to provide vehicle details and review a relatively new car.

Unsecured loans can be used for a wide variety of things like a vacation, a wedding or maybe even a gorilla. Either way, an unsecured loan does not have the security for the lender than a secured loan, so these loans tend to have a higher interest rate, although this is not always the case. .

You could get an unsecured loan when buying an older car or when buying the car as a gift for someone. They are generally more difficult to approve because they depend on your credit report.

New vs used cars

You will see in the tables above that we have posted loans for new and used cars, what difference does it make?

When it comes to secured auto loans, you will find that used auto loans can have slightly higher interest rates. This is simply because they are less reliable assets.

What difference does a good interest rate make?

Let’s take a look at what a small margin can do on your interest rate, using our car loan repayment calculator for a five-year loan.

Secured loan Unsecured loan
Amount of the loan $ 20,000 $ 20,000
Interest rate 5% 6.5%
Monthly repayments $ 377.42 $ 391.32
Total loan payable $ 22,645.20 $ 23,479.92

So a five-year, $ 20,000 secured car loan in this example could cost you about $ 800 less in total interest charges compared to an unsecured loan, assuming you pay a fairly low interest rate. on each. Take this with a grain of salt – it ignores several things like your car loan fee, what your lump sum payment is, possible introductory rates, and whether or not your rate changes (if you’re on a variable loan) .

Savings.com.au two hundred

Car reimbursements on top of rent or mortgage reimbursements, groceries, and all of life’s other bills can be a real financial burden on those who have them. You can see from the examples above how much of a difference a good interest rate for a car loan can make. That’s why it’s worth taking the tour and revisiting this page to get a feel for which lenders can offer the best rates in the market.

Remember, just because you can borrow a certain amount doesn’t mean you should, so stay within your means. Most importantly, do your research not only on your loan, but also on your vehicle. Cars are a depreciating asset, so be sure to choose a loan term that suits the vehicle and your budget. The last thing you want is to pay for a car that can’t be driven.


Photo by negative space from Pexels. Originally published by William Jolly. Updated by Alex Brewster 7/1/2021.

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Customer-Owned Institutions and Australia’s largest non-banks:

Products from some vendors may not be available in all states.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*The Comparison rate is based on a loan of $ 30,000 over 5 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees, or other loan amounts may result in a different comparison rate.

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