Low Interest Car Loans
Why pay more than you need to? We compare low interest car loan rates from 50+ banks and lenders to find you a competitive deal, potentially saving you thousands over your loan term.
How to Qualify for the Lowest Rates
Follow these tips to improve your chances of securing the best car loan interest rates
Strong Credit Score
Aim for 700+A credit score above 700 typically qualifies you for the best rates. Check your score for free before applying.
Stable Employment
6+ months in jobLenders prefer 6+ months in your current job. Permanent employment often gets better rates than casual.
Lower Loan-to-Value
10-20% depositA larger deposit (10-20%) shows commitment and reduces lender risk, often resulting in better rates.
Clean Credit History
No defaultsNo defaults, missed payments, or credit enquiries in recent months helps secure the lowest rates.
Compare Lender Types & Rates
Different lenders offer different rates. We compare them all to find your best match.
| Lender Type | Rates From | Best For |
|---|---|---|
| Major Banks | Variesp.a.* | Excellent credit, existing customers |
| Online Lenders | Variesp.a.* | Quick approvals, competitive rates |
| Credit Unions | Variesp.a.* | Members, lower fees |
| Specialist Lenders | Rates varyp.a.* | Self-employed, varied credit |
*Rates are indicative and subject to credit assessment. Rates vary by lender.
Why Choose Simple Loans for Low Rates?
We're not just another lender, we're your advocate in finding a competitive rate
50+ Lenders Compared
We compare rates from major banks, credit unions, online lenders, and specialists to compare your options.
Expert Negotiation
Our relationships with lenders mean we can often negotiate better rates than you'd get going direct.
Fast Approvals
Get an indicative quote same day, with many approvals processed within 24-48 hours.
Trusted by Australia's Leading Lenders
We compare rates from 50+ banks and lenders
Frequently Asked Questions
Everything you need to know about low interest car loans
What is considered a low interest car loan rate in Australia?
Borrowers with good credit are generally offered the sharpest pricing a lender has. Rates vary by lender. A specialist confirms your actual rate based on your credit profile, income, and deposit.
How can I get the lowest car loan interest rate?
To qualify for the lowest rates: maintain a good credit score (700+), have stable employment for 6+ months, provide a 10-20% deposit, choose a newer vehicle (under 5 years old), opt for a shorter loan term (3-5 years), and compare multiple lenders. We can help find the best rate for your situation.
Do new cars get lower interest rates than used cars?
Generally yes. New and near-new vehicles (under 3 years old) typically attract lower interest rates because they're worth more as security and have longer useful life. Older vehicles may have rate loadings of 1-3% added. However, specialist used car lenders can still offer competitive rates.
Is a fixed or variable rate better for car loans?
Fixed rates provide certainty, your repayments won't change regardless of market conditions. Variable rates may start lower but can increase. Most car loans in Australia are fixed rate, which is generally recommended for budgeting certainty over a 3-7 year term.
How much difference does 1% interest rate make?
On a $35,000 loan over 5 years, a 1% lower interest rate saves approximately $900-1,000 in total interest. Over longer terms or larger loans, the savings are even more significant. That's why comparing rates across lenders is so important.
Can I negotiate a lower car loan interest rate?
Yes! Rates are often negotiable, especially through brokers who have relationships with lenders. Having a strong credit profile, being a new customer, or having competing offers can help. Using a broker like Simple Loans means we negotiate on your behalf across 50+ banks and lenders.