you get a car loan in Australia
you get a car loan in Australia
Blog Article
Yes, you can get a car loan in Australia through a variety of lenders including banks, credit unions, online lenders, and dealerships. Here’s a breakdown of your main options and what you need to know:
Types of Car Loans in Australia
- Secured Car Loan
- The vehicle acts as collateral.
- Lower interest rates.
- Best for new or near-new cars.
- Unsecured Car Loan
- No asset is tied to the loan.
- Higher interest rates.
- More flexible in terms of vehicle age/type.
- Dealer Finance
- Offered directly through car dealerships.
- Can include promotional rates (e.g. 0% finance), but may have higher fees or limited negotiation room.
- Novated Lease (via employer)
- Salary packaging option.
- Tax-effective but comes with strict conditions.
- Personal Loan (used for car purchase)
- Works well if the car is older and can’t be used as security.
Top Lenders for Car Loans
| Lender | Interest Rate (From) | Loan Amount | Features |
| Plenti | ~6.49% p.a. | $5,000–$100,000 | Fixed rates, no early exit fees |
| MoneyMe | ~6.95% p.a. | $2,100–$50,000 | Fast digital process |
| Bank Australia | ~6.99% p.a. | $2,000–$100,000 | Green car discounts available |
| CBA (CommBank) | ~8.49% p.a. | $4,000–$100,000 | Flexible repayments |
| Pepper Money | Varies (non-bank) | $5,000–$100,000 | Good for bad credit or self-employed |
Eligibility Criteria
- Be at least 18 years old
- Australian citizen, copyright, or valid visa holder
- Proof of income and stable employment
- Credit check (some lenders allow for bad credit options)
Documents You’ll Need
- ID (driver’s license, copyright)
- Proof of income (payslips or bank statements)
- Car details (for secured loans)
- Proof of residence (utility bill or similar)
Tips Before You Apply
- Compare APR, not just interest rates (APR includes fees).
- Check your credit score for free via Equifax or illion.
- Pre-approval can help you shop with a clear budget.
- Calculate repayments using a loan calculator before applying.
Would you like help finding the best loan for your budget, credit score, or car type?
Report this page