Rates snapshot (April 2026)
These are indicative ranges observed across mainstream lenders and broker panels. Your actual rate depends on credit profile, vehicle, loan amount/term, documentation and fees.
| Scenario | Interest rate (p.a.) | Comparison rate (p.a.) | Typical term |
|---|---|---|---|
| Consumer car loan — New vehicle (excellent credit) | 6.99% – 8.99% | 7.45% – 9.85% | 3–7 years |
| Consumer car loan — Used vehicle ≤5 years | 8.49% – 11.49% | 8.95% – 12.45% | 3–7 years |
| Business car finance (Chattel Mortgage) — New vehicle | 7.29% – 10.99% | n/a (business credit) | 2–5 years |
| Low-doc / self-declared income (ABN/GST registered) | 9.49% – 14.49% | n/a (business credit) | 2–5 years |
| EV/Hybrid incentives (selected lenders) | Rate discounts ~0.25% – 1.00% | Varies | 3–7 years |
Comparison rates shown for consumer loans are examples only and include typical fees. See the comparison rate warning below.
Repayment examples (worked calculations)
Consumer car loan example (no balloon)
- Loan amount: $30,000 (secured consumer car loan)
- Fixed interest rate: 8.49% p.a. (comparison rate 8.92% p.a.)
- Term: 5 years (60 months)
- Fees: $395 application fee; $8 monthly fee
Estimated repayment (excluding monthly fee): $615.30/month. Adding the $8 monthly fee gives $623.30/month.
- Total of monthly repayments (including $8 fee): $623.30 × 60 = $37,398
- Plus application fee: $395
- Total amount payable: $37,398 + $395 = $37,793
- Estimated total interest over term (excl. fees): ~$6,918
Business chattel mortgage example (with balloon)
- Loan amount: $60,000 (business use)
- Fixed interest rate: 7.99% p.a.
- Term: 5 years (60 months)
- Balloon: 30% ($18,000) due at end of term
- Fees: $495 establishment; $10 monthly fee
Estimated monthly repayment (excluding monthly fee): ~$973.40. Including the $10 monthly fee: ~$983.40/month.
- Total of monthly repayments (including $10 fee): ~$983.40 × 60 = ~$59,004
- Plus balloon payable at end: $18,000
- Plus establishment fee: $495
- Total amount payable: ~$77,499
- Estimated total interest over term (excl. fees): ~$16,404
Warning: The above calculations are illustrative only and do not constitute an offer or credit approval. Actual pricing depends on your circumstances, loan structure, fees and lender policies.
Standard comparison rate warning (consumer loans): Comparison rate based on a secured loan of $30,000 over 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. See ASIC Moneysmart for guidance on comparison rates.
What drives car loan interest rates?
- Credit profile and conduct: Strong credit history and stable liabilities generally secure sharper pricing; recent arrears or high enquiry volumes can increase rates.
- Vehicle age and type: Newer vehicles price better; older or high‑km cars usually price higher. EVs/hybrids may attract discounts with some lenders.
- Loan amount and term: Larger loans and shorter terms can reduce pricing; very small loans or long terms can raise it.
- Documentation: Full‑doc income verification often prices keener than low‑doc/self‑declared income.
- Security and LVR: Lower loan-to-value (via deposit or trade‑in) can improve offers.
- Economic settings: Lenders’ cost of funds and the RBA cash rate flow through to retail pricing over time. See the Reserve Bank of Australia for monetary policy updates.
References: Reserve Bank of Australia (monetary policy, cash rate); ASIC Moneysmart (comparison rate and loan cost guidance).
Vehicle age, odometer and private sales: typical limits
- Maximum vehicle age: Many mainstream lenders cap at around 12 years at the end of the term (example: 7‑year‑old car can be financed for up to 5 years). Specialist lenders can consider older vehicles.
- Odometer guidance: Common thresholds are 150,000–200,000 km at purchase for consumer loans; business lenders may allow higher with strong resale profiles.
- Private sale: Often allowed but may require an inspection report, PPSR check, verified seller ID and clear title before settlement.
- Commercial use: For business car finance (e.g., chattel mortgage), ABN tenure (often 6–24 months), GST registration and BAS/income verification can influence approval and pricing.
How to compare car loan interest rates effectively
- Match product to purpose: Consumer car loan for primarily personal use; business products (e.g., chattel mortgage) for business use.
- Compare comparison rates (consumer): Use the comparison rate to factor fees; always verify actual dollar fees and break costs.
- Price the full structure: Consider term, any balloon/residual, fees, and early‑payout costs—not just the headline APR.
- Request a fee schedule: Upfront, monthly, PPSR, early termination, and any broker/lender admin fees.
- Run total cost scenarios: Shorter term versus longer term; with/without balloon; new versus used vehicle.
Get help with car loan interest rates
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Important: Asset Finance Help is a general information publisher and is not a lender or credit provider. If you request assistance, we may refer you to an Australian Credit Licensee for personalised advice.
Frequently asked questions
What are current car loan interest rates in Australia?
As of April 2026, typical advertised ranges: New car (consumer): ~6.99%–8.99% p.a. (comparison rate ~7.45%–9.85% p.a.). Used car ≤5 years: ~8.49%–11.49% p.a. (comparison rate ~8.95%–12.45% p.a.). Business chattel mortgage (new): ~7.29%–10.99% p.a. Low-doc/self-declared income: ~9.49%–14.49% p.a. Your rate will depend on credit profile, vehicle, loan amount/term, documentation and fees.
What is a good car loan interest rate right now?
For strong credit and a new vehicle, many lenders are around 6.9%–8.5% p.a. (comparison rate typically 7.3%–9.3% p.a.) in April 2026. Used vehicles or thinner credit files often sit 8.5%–11.5% p.a. Ask for both the interest rate and the comparison rate (consumer loans) plus a full fee list.
What’s the difference between an interest rate and a comparison rate?
The interest rate is the base annual percentage charged on the balance. The comparison rate includes most fees with the interest rate to show a single annual percentage for easier comparisons. Consumer lenders must display comparison rates. See ASIC Moneysmart’s guide: https://moneysmart.gov.au/loans/comparison-rates
Do business car loans have to show a comparison rate?
No. Comparison rates are mandated for consumer credit under the National Credit Code. Business loans (e.g., chattel mortgage) are typically unregulated and don’t require a comparison rate. Always compare total fees and charges.
How much can a balloon payment reduce my monthly repayment?
Often 15%–30% versus a no‑balloon structure, depending on term and rate. Example: $60,000 over 5 years at 7.99% p.a. with a 30% balloon is about $973/month plus fees; with no balloon it’s about $1,216/month plus fees. Balloons increase total interest and leave a lump sum at the end.
Can I finance a private sale or older vehicle?
Generally yes with the right lender, but typical caps apply: many lenders want vehicle age ≤12 years at end of term and may set odometer limits around 150,000–200,000 km at purchase. Private sales often need inspections, PPSR checks and verified seller ID.
Are car loans fixed or variable?
Most are fixed-rate for certainty of repayments over 3–7 years. Variable car loans exist but are less common. Early payout fees or break costs can apply to fixed loans—check your credit contract.
How can I get a lower rate?
Improve credit conduct, consider a newer vehicle, provide full-doc income evidence, reduce the loan amount with a deposit/trade‑in, and compare offers (including fees). Some lenders discount for EVs/hybrids by around 0.25%–1.00% p.a.
Sources and further reading
- ASIC Moneysmart — Comparison rates explained: https://moneysmart.gov.au/loans/comparison-rates
- Reserve Bank of Australia — Monetary policy decisions and cash rate: https://www.rba.gov.au/
Key takeaways
- Prime new‑car consumers are often seeing around 6.9%–8.5% p.a. (comparison rate 7.3%–9.3% p.a.) in April 2026; used and low‑doc price higher.
- Use the comparison rate (consumer loans) and total fees to compare real cost—not just headline APR.
- Vehicle age, documentation, credit strength, term and balloon choice all influence your final price.