Best Car Loans in Australia: Rates, Eligibility Criteria, Documents and More

by satish

Sep 26, 2023

A new car in the house is always a matter of celebration, isn’t it? Hitting the tarmac with the engine revving up and roaring is a feeling that you cannot get over! Talking about the best car loans, Australia has a wide range of lending institutions that offer car loans at great prices. To simplify the process of buying a vehicle, we have compiled the top 10 car loans available in Australia for September 2023 so that you can make an informed decision. Let’s get started.

Top 10 Car Loans Rates in Australia

Lender Interest Rate

Loan Term (Years)

 Max Loan Amount
Our Money Market 6.57% 1-7 Years $75,000 5.99% 1-7 Years $5,000 - $150,000
Stratton Finance 6.89% 1-7 Years $10,000-$300,000
NRMA New Car Loan 6.99% 1-7 Years $5,000-$130,000
RACV New Car Loan 6.49% 1-7 Years $5,000 - $150,000
Great Southern Bank 6.49% 1-7 Years $5,000-$100,000
Heritage Bank 5.39% 1-7 Years $5,000-$100,000
Move Bank - Green Car Loan 5.99% 1-7 Years $10,000-$150,000
ZoomCar Loans No set interest rate 2-5 Years $5,000-$60,000
RapidDrive 6.50% 1-7 Years $70,000

Brief Details of Car Loans

Our Money Market

Our Money Market is one of the leading Australian financial services providers. It offers competitive interest rates. Coupled with this are their flexible loan terms, which allow borrowers to select a repayment period that aligns with their financial commitments. This flexibility is further emphasised by their approach to early repayments; many of Our Money Market's loan products do not penalise borrowers for settling their debts ahead of schedule.


If you're in the market for an electric or hybrid automobile, consider the eco-friendly vehicle financing option from The fixed interest rates begin at 5.79% p.a. (with a 6.91% p.a. comparison rate*). Loan amounts range from $5,000 to $150,000, and repayment periods extend from 3 to 7 years. It's important to note a one-time application charge of $400 and a monthly management fee of $8. The entire application process is digital on, and they typically review submissions within a day. Only vehicles with low carbon emissions qualify for this loan.

Stratton Finance

Stratton Finance is one of the leading financial services providers. It offers attractive interest rates, and what makes Stratton Finance stand out is its emphasis on a hassle-free and efficient loan application process. Thus, if you are looking for the best car loans in Australia, Stratton Finance would be a good choice.

NRMA New Car Loan Australia

The NRMA New Car Loan, offered by the trusted Australian institution NRMA, is tailored specifically for those seeking to finance new vehicles. It offers a transparent fee structure and flexibility in terms of repayment. Backed by the long-standing reputation of NRMA, borrowers can expect a seamless application process combined with impeccable customer support.

RACV New Car Loan Rates

Steer ahead with RACV's fresh car loan offering. Enjoy competitive fixed interest rates that begin at 6.99% p.a. (with a 7.70% p.a. representative rate*). You can apply for loans starting at $5,000, and there's no upper cap, subject to terms and conditions. Choose a loan term ranging from 1 to 7 years and benefit from adaptable payment choices. An initial application charge of $499 is applicable, but you won't have to worry about continuous or upkeep charges. While you can make extra payments without any additional costs, be mindful that settling the loan early, especially within the initial 75% of its term, may incur a fee: the higher of 2% of the remaining loan amount or a flat $205.

Great Southern Bank

Formerly known as CUA (Credit Union Australia), the Great Southern Bank has cemented its reputation as one of Australia's largest customer-owned banks. The company offers a wide range of financial products, from savings accounts to loans. This institution is lauded for its member-centric approach, ensuring transparency, competitive rates, and much more.

Heritage Bank

The Car Loan from Heritage Bank garnered recognition as a winner of the 2023 Mozo Experts Choice Award^ in the "Best Used Car Loan" category. Its appealing fixed interest rate stands at 5.39% p.a. (with a representative rate of 6.03% p.a.*), which underscores its merit. The loan offers a range of $5,000 to $100,000, suitable for financing both modest and substantial vehicle acquisitions. The tenure for these loans spans from 1 to 7 years, and borrowers have the flexibility to make additional repayments for a quicker payoff. While there is a $200 initial processing fee and a recurring $5 monthly service charge, it still ranks as one of the most value-driven loan options in our records, even considering these expenses.

Move Bank - Green Car Loan

For those eyeing an electric vehicle purchase, this particular loan from MOVE Bank may pique your interest. Not only has it clinched the 2023 Mozo Experts Choice Award for the "Best Green Car Loan," but it also boasts a commendable low fixed interest rate, starting at 5.99% p.a. (with a 6.26% p.a. representative rate*). This rate is available for vehicles that align with MOVE Bank's Green Vehicle Criteria and are not older than 3 years. Beneficially, borrowers can accelerate their loan payoff with additional repayments. Furthermore, if needed, they can tap into a redraw facility to access those extra funds. Although there's a one-time $195 establishment charge, borrowers can rest easy knowing there are no recurring service fees. This accolade is one of three, solidifying MOVE Bank's reputation as they also bagged the Mozo Experts Choice Award for "Personal Loan Provider of the Year."

ZoomCar Loans, Australia

As a car loan provider, ZoomCar Loans offers an effective financial solution to its customers. With ZoomCar Loans, customers get a streamlined application process and overall flexibility. This further ensures that Australians have seamless access to car financing.


Known for its speedy processing, RapidDrive is specifically designed for those who want to see a quick turnaround in their car loan application. With a focus on efficiency, RapidDrive offers a range of loan options to cater to diverse needs, all while ensuring transparent terms and competitive interest rates.

Required Documents for Getting a Car Loan

Following are the important documents for getting a car loan in Australia.

Identification Documents

  • Driver's Licence: This is often required as proof of identity and as evidence that you can legally operate a vehicle.
  • Passport: Another form of ID that may be required, especially if you are not an Australian citizen.
  • Proof of Age Card: For applicants who do not hold a driver's licence, this can serve as an identity document.
  • Birth Certificate: Some lenders may require this as additional verification of your identity.

Financial Documents

  • Payslips: Proof of regular income is a must. Usually, lenders will ask for payslips from the last 3 to 6 months.
  • Bank Statements: These can also serve as evidence of income, especially if you’re self-employed or have multiple sources of income.
  • Tax Returns: Sometimes required for self-employed applicants to demonstrate a stable income over a longer period.
  • Credit Report: Most lenders will carry out this check themselves, but it’s also good for you to know your credit score when applying for a loan.

Employment Documents

  • Employment Contract: If you've recently started a new job, a contract can serve as evidence of future income.
  • Employer's Contact Information: Some lenders might require a reference from your employer.

Vehicle-Related Documents

  • Vehicle Registration: This is required for used cars and serves to prove that the vehicle is currently registered.
  • Sales Invoice: From the car dealer, including the Vehicle Identification Number (VIN) and an itemised list of the car’s features and cost.
  • Car Insurance: Proof of a valid insurance policy on the car is often required before a loan can be finalised.

Additional Documents

  • Utility Bills: Sometimes required to prove your place of residence.
  • Loan Statements: If you're refinancing or have other loans, you might need to provide statements to establish your creditworthiness.

Eligibility Criteria

For availing a car loan all the  must be:

  • The customer must be of 18 years of age
  • He or she must be an Australian citizen or a permanent resident of Australia
  • He or she must be able to afford the repayment of the loan

Some other additional requirements for availing a car loan in Australia could be:

  • The customer may need to take out a secured loan
  • The customer must have a good credit score
  • He or she must have a guarantor

Tips for Finding the Best Car Loans in Australia

Here are some tips for finding the best car loans in Australia:

  • Check Your Credit Score: The better your credit score, the better the interest rate you're likely to get. If your credit score is not optimal, consider waiting a few months while you improve it.
  • Explore Different Types of Lenders: Don't just limit yourself to banks; credit unions and online lenders can also offer competitive rates.
  • Look for reviews and testimonials from people who have used those lenders. This can give you a good sense of their customer service and reliability.
  • Compare Loan Features
  • While a lower rate is preferable, understand that the cheapest loan may come with other restrictions or higher fees.
  • Shorter loan terms usually come with lower interest rates but higher monthly payments. Longer terms will generally cost you more in the long run.
  • Look for loans that allow you to make extra payments without penalty, in case you find yourself able to pay off the loan more quickly.
  • Understand the total cost
  • The interest rate isn't the only cost; consider application fees, monthly fees, and any early repayment fees.
  • They can help clarify any terms you don't understand and can even tip you off to any hidden fees or charges.
  • Make sure there are no hidden fees or terms that haven't been clearly explained to you.
  • If you’re planning to pay off your car loan early, make sure there are no prepayment penalties.
  • Know Your Budget: Securing pre-approval gives you an idea of how much you can afford before you start car shopping.
  • Dealers may try to sell you add-ons like extended warranties or insurance products you don't need.

Frequently Asked Questions

What is the best interest rate for a car loan in Australia?

Depending upon multiple factors like credit score, loan term, as well as the lender’s policy, the interest rates can differ. Thus, it is always better to compare different lenders as well as loan types to find the right fit.

Which bank has the lowest car loan interest rate in Australia?

The bank(s) offering the lowest car loan interest rate can change in the course of time owing to multiple factors, thus, it is always best to check the most recent and updated rates before you make any decision.

Is it hard to get a car loan in Australia?

With a good credit score, and a stable income, it becomes easy to get a car loan. On the other hand, a bad credit score and an irregular income makes it tough to get a car loan in Australia.

Can you get 0% interest on a car loan?

No, not every car model can be purchased with a 0% car loan. Such types of loans are available for only selected car models that are often less popular.

How long is a car loan in Australia?

Usually, the tenure for a car loan ranges between 1-7 years. The shorter the loan term, the higher the monthly payment would be but at lower total interest costs. On the other hand, the longer loan terms generally have a low repayment capacity but you will end up paying more in interest over the life of the loan.

Who can apply for a car loan in Australia?

People 18 years of age or older with a stable income source can easily apply for a car loan.

Can I refinance my car loan to a better rate?

Yes, you can refinance your car loan. It will help you take advantage of a lower interest rate thus benefiting you in the long run.


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