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Best Car Loans in Australia — May 2026
Written by the OfferWise team · Updated May 2026
Key takeaways
- Car loan rates start from 6.49% p.a. for new vehicles with strong credit
- Always compare the comparison rate — not just the interest rate — to see the true cost
- Specialist lenders like Pepper Money can approve car loans even with bad credit
Best car loan lenders in Australia
| Lender | Best for | Starting rate | Amount | |
|---|---|---|---|---|
| Macquarie Bank | New cars | 6.49% p.a. | $5k–$150k | See Results |
| Plenti | Low comparison rate | 6.57% p.a. | $5k–$100k | See Results |
| CarMoney | Used cars | 7.29% p.a. | $5k–$150k | See Results |
| Pepper Money | Bad credit | 9.99% p.a. | $5k–$100k | See Results |
| Wisr | No early exit fees | 7.49% p.a. | $5k–$64k | See Results |
| Latitude | Fast approval | 9.99% p.a. | $5k–$70k | See Results |
| Now Finance | Fixed rate certainty | 8.99% p.a. | $5k–$50k | See Results |
| OwnHome | Novated leases | 6.99% p.a. | $10k–$200k | See Results |
Best car loan companies
Best for: New cars — Macquarie Bank
Macquarie Bank
From 6.49% p.a.
Amount
$5k – $150k
Vehicle age
New / Up to 5 years
Term
1 – 7 years
Min. credit score
640+
Best for: Low comparison rate — Plenti
Plenti
From 6.57% p.a.
Amount
$5k – $100k
Vehicle age
New / Up to 7 years
Term
3 – 7 years
Min. credit score
580+
Best for: Used car loans — CarMoney
CarMoney
From 7.29% p.a.
Amount
$5k – $150k
Vehicle age
Up to 15 years
Term
1 – 7 years
Min. credit score
550+
Best for: Bad credit borrowers — Pepper Money
Pepper Money
From 9.99% p.a.
Amount
$5k – $100k
Vehicle age
Up to 12 years
Term
1 – 7 years
Min. credit score
450+
Best for: No early exit fees — Wisr
Wisr
From 7.49% p.a.
Amount
$5k – $64k
Vehicle age
New / Up to 7 years
Term
3 – 7 years
Min. credit score
650+
Average car loan rates in Australia
Car loan rates in Australia range from 6.49% to 18% p.a. depending on the vehicle age, your credit profile, and the lender. New cars attract the lowest rates because they hold their value better and serve as stronger security.
New car (good credit)
6.49% – 8.5% p.a.
Used car
7.5% – 12% p.a.
Bad credit
10% – 18% p.a.
How to compare car loans
The advertised rate is rarely the full story. Here is what to look at before you commit to any car loan.
- Comparison rate: The comparison rate folds in fees to show the true annual cost. A loan with a low interest rate and high fees may be more expensive than one with a slightly higher rate and no fees.
- Secured vs unsecured: Most car loans are secured against the vehicle, which results in lower rates. Unsecured car loans charge more but do not put your car at risk if you miss repayments.
- Balloon payment: Some loans offer lower monthly repayments by deferring a large lump sum to the end. Make sure you have a plan to pay or refinance the balloon when it falls due.
- Early repayment: If you plan to pay off your car loan ahead of schedule, choose a lender with no early exit fee. Some lenders charge a fee equal to several months of interest.
Types of car loans
New car loans
Secured finance for brand new vehicles purchased through a licensed dealer, typically at the lowest rates
Used car loans
Finance for second-hand vehicles from dealerships or private sellers, with slightly higher rates reflecting the asset risk
Novated leases
A three-way arrangement between you, your employer and a financier that allows pre-tax salary payments on your car
Bad credit car loans
Specialist finance for borrowers with defaults, low credit scores or previous financial hardship
Dealer finance
Finance arranged directly through a car dealership — convenient but often not the most competitive option
Balloon payment loans
Lower monthly repayments with a larger lump sum due at the end of the loan term
Car loan requirements
- 18 years of age or older
- Australian citizen, permanent resident, or eligible visa holder
- Regular income from employment or self-employment
- Valid Australian driver licence
- Vehicle must meet lender age and condition requirements
- Good to fair credit history (specialist lenders available for bad credit)