Car Loans: Rates, Repayments & Features

Car Loans Resources

Car Loans HomeFinance Home

Car Loans Calculators

Car Lease Calculator Car Loan Calculator

Related Articles

Guiding Your Car Loan: Benefits of a Finance Broker How to Safely Purchase a Used Vehicle in Australia Key Factors for Securing Your Car Loan Approval Top Five Mistakes First-Time Car Buyers Make

Chatbot

Q&A with
Paige Estritori

Hi! How can I help?

Send

People also ask:

More Finance Options

Bike LoansBoat LoansBusiness LoansCar LoansCaravan LoansCredit CardsDebt ConsolidationFinanceHome LoansJetski LoansMortgage ReductionPersonal LoansShort Term CashTruck Loans

Motor Vehicle Finance

• Compare published interest rates, fees and total repayments, not just the advertised monthly payment.
• Consider how your deposit, trade-in and loan term affect the amount you borrow.
• Check whether the loan suits a new or used car and a dealer or private sale.
• Allow for registration, insurance, fuel, servicing and unexpected repairs.

Comparing Car Loan Rates and Costs

The interest rate is only part of the borrowing cost. Check establishment fees, ongoing charges and any fees for early repayment. A comparison rate combines interest and most fees into one percentage, but is based on a specified loan amount and term and does not include every possible cost. Compare loans using the same amount and term, and read the fee schedule.

A longer term may reduce regular repayments but increase total interest. If a loan includes a balloon payment, part of the balance is left until the end of the term. Lower regular repayments do not remove that final obligation: plan how you would pay it without assuming you can refinance or sell the car for enough to cover it.

Car Loan Features to Understand

• Secured or unsecured: A secured car loan uses the vehicle as security. If repayments are not met, the vehicle may be repossessed. An unsecured loan does not use the car as security, but the debt still needs to be repaid.
• Fixed or variable rates: Fixed rates provide interest-rate certainty for the fixed period. Variable rates can change, affecting borrowing costs and potentially repayments.
• Repayment flexibility: Check whether extra repayments are allowed and whether early payout charges apply.
• Vehicle conditions: Lenders may set limits on vehicle age, value or purchase type. These can matter when considering used car loans or private sales.

Credit History and Car Loan Eligibility

Lenders may consider income, expenses, existing debts, employment history, credit history and the vehicle being financed. Defaults, discharged bankruptcy, a previous declined application or limited employment history may affect the options and rates available. Criteria differ between lenders; a loan advertised for people with bad credit is not a guarantee of approval or affordability.

Review your credit report for errors before applying and understand when a lender will conduct a credit check. Multiple credit applications over a short period may affect how lenders assess you. If borrowing would stretch your budget, consider a less expensive car, a larger deposit or delaying the purchase.

Estimating Car Loan Repayments

A car loan calculator can help you explore how different loan amounts, interest rates and terms affect repayments. Include fees and any final balloon payment in your budget, even if a calculator does not account for them. Calculator results are mathematical estimates based on the inputs and assumptions, not loan offers, approval outcomes or personalised recommendations.

Share this product:

Please note that some of our calculators may use assumptions that are not necessarily applicable to your current specific circumstances and we therefore cannot always guarantee their accuracy.

We recommend that you seek professional financial advice from a licensed professional before proceeding with a loan.

Loan Repayment and Finance Modeling Calculators