Car loans, compared by people who read the fine print.
Tell us what you're buying and how you earn. We compare lenders on our panel and explain the options in plain English.
Australian Credit Licence 509582. Lender fees may apply. Lender criteria apply.
Who this is for
We arrange car finance for people whose income is not a neat full time salary: apprentices, nurses, teachers, pensioners, veterans, FIFO and single parents. No upfront assessment fee. Lender fees may apply. ACL 509582.
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What is a car loan in Australia?
A car loan is a fixed-term finance contract used to buy a vehicle, usually secured against the car itself. You repay the amount borrowed plus interest and fees over an agreed term, most commonly one to seven years. Because the vehicle is held as security, car loans are generally priced below unsecured personal loans, and the rate you are offered depends on your credit profile, the age of the vehicle and the term you choose.
Types of car loan
How to compare a secured car loan
A secured car loan uses the vehicle as security, which is how most Australian car loans are written. No lender suits everyone, so compare these points between secured, unsecured and balloon structures, and look at the comparison rate rather than the advertised rate alone.
| What to compare | Secured car loan | Unsecured car loan | Balloon car loan |
|---|---|---|---|
| Security | The vehicle is held as security | No vehicle security | Usually secured against the vehicle |
| Rate | Often lower than unsecured, set by the lender | Often higher than secured, set by the lender | Set by the lender, interest runs on the balloon too |
| Vehicle limits | Lenders set age and type limits | Fewer vehicle limits, useful for older cars or private sales | Lenders set limits on age and balloon size |
| Repayments | Fixed over the term | Fixed over the term | Lower regular repayments, lump sum due at the end |
| Suits | Most buyers of a car they want to keep | Older cars or buyers who want no security | Buyers who can plan for the lump sum, often business use |
| Watch for | Fees and early repayment charges | A higher rate, and often a shorter term | Higher total interest and the final payment |
Comparison rates are calculated on the stated amount and term and may not reflect your loan. Fees, charges and a different amount or term can change the cost. Approval, rate and loan amount depend on the lender's assessment. No upfront assessment fee. Lender fees may apply, and we may receive commission from a lender if your loan settles.
Secured car loans, unsecured car loans and balloon car loans each have their own guide.
How to get a car loan, step by step
- 01Tell us about the car and your situationA two-minute form covering the vehicle, the amount, your income type and your residency status. No documents needed at this stage.
- 02We compare 50+ banks and lendersYour details are matched against lender policy, not just advertised pricing, so the shortlist reflects who will actually consider the application.
- 03You review the optionsYou see the structures that fit, including term, security type and any balloon, with the fees itemised rather than buried.
- 04Submit and settleOnce you choose, the application is lodged with that lender and the funds are paid to the dealer or private seller on settlement.
Car loans by location
Lender panels are national, but stamp duty, registration and dealer mix differ by state.
Car loan questions, answered
What is a car loan in Australia?
A car loan is a fixed-term finance contract used to buy a vehicle, usually secured against the car itself. You repay the amount borrowed plus interest and fees over an agreed term, most commonly between one and seven years. Because the car is security, secured car loans are generally priced below unsecured personal loans.
How much can I borrow for a car loan?
Most Australian lenders write consumer car loans from about $5,000 up to $150,000, and higher for commercial and asset finance. Your borrowing capacity depends on income, living expenses, existing commitments, credit history and the age and type of the vehicle.
What interest rate can I get on a car loan?
Pricing is set by each lender based on your credit profile, the vehicle age, the loan term and whether the loan is secured. Simple Loans compares a panel of more than 50 Australian banks and lenders, and the rate you are offered depends on your individual circumstances.
Does comparing car loans affect my credit score?
Getting an indicative quote through Simple Loans does not involve a credit enquiry, so it does not affect your credit score. A credit enquiry is only recorded once you choose a lender and a formal application is submitted with your consent.
How long does car loan approval take?
Many lenders return a decision the same business day when the application is complete. Settlement typically follows within one to three business days once the vehicle details, invoice and verification documents are provided.
What documents do I need for a car loan?
Generally a driver licence, evidence of income such as recent payslips or business financials, and 90 days of bank statements. Self employed applicants may need an ABN, BAS or tax returns. See our car loan documents guide for the full checklist.
Can I get a car loan with bad credit?
Yes, in many cases. Specialist lenders assess defaults, discharged bankruptcy and Part 9 arrangements case by case, looking at your current position rather than only your history. Pricing on those products is higher than mainstream lenders.
Should I choose a new or used car loan?
New vehicles usually attract the lender's best pricing tier, while used vehicles are priced according to age at the end of the term. Some lenders cap the vehicle age at settlement or at loan expiry, which is one of the biggest differences between lender policies.
What is a balloon payment?
A balloon is a lump sum left owing at the end of the term. It lowers the monthly repayment but increases the total interest paid, and you must refinance, sell or pay out the balloon when the term ends.
Is it better to finance through a dealer or compare lenders?
Dealer finance is convenient but is usually limited to one or two funders. Comparing across a broad lender panel lets you see how policy and pricing differ before you commit, which matters most for used vehicles, private sales and non-standard income.
See what you qualify for
Two minutes, no documents, no credit score impact. You will see the lenders whose policy fits your situation.
Simple Loans is a finance comparison tool. Options shown across 50+ lenders are a guide only and the rate, fees and approval you receive depend on your circumstances and the lender's assessment.