Car finance that puts the numbers in your hands

A car loan is one of the largest commitments most Australians make outside their mortgage, yet it is usually arranged in a hurry at the dealership. We compare a wide panel of lenders so you can see the real cost of finance before you sign — not just the monthly repayment a dealer wants you to focus on.

What is car finance?

Car finance is money borrowed to buy a vehicle, repaid in regular instalments over an agreed term. In Australia the most common product for a personal car is a secured car loan, where the vehicle itself is the security for the loan. Because the lender can recover the car if the loan is not repaid, secured loans are typically priced lower than an unsecured personal loan.

When the car is for personal use, the loan is a consumer credit contract regulated under the National Consumer Credit Protection Act (the NCCP Act). That regulation matters: it requires the lender and the broker to assess whether the loan is suitable for you and not likely to cause substantial hardship, and it gives you protections that commercial finance does not carry. If the vehicle is mainly for business use, a different set of products applies — see our commercial vehicle finance page.

How a secured car loan works

You borrow an amount, the lender registers an interest over the vehicle on the Personal Property Securities Register (PPSR), and you repay the loan plus interest over a fixed term, most commonly three to seven years. Rates on car loans in Australia are usually fixed for the life of the loan, so your repayment does not change if the cash rate moves.

Most lenders let you reduce the regular repayment by setting a balloon (also called a residual) — a lump sum left owing at the end of the term. A balloon lowers your monthly cost but increases the total interest you pay, because you are carrying a larger balance for longer. It is a useful tool when used deliberately, and an expensive surprise when it is not.

Fixed interest rate and fixed repayment for the full term
Terms commonly from 1 to 7 years
The vehicle secures the loan, which keeps rates lower than an unsecured loan
Optional balloon/residual to reduce monthly repayments
No penalty for extra repayments with many (not all) lenders

New versus used cars

Lenders generally offer their sharpest rates on newer vehicles because they are easier to value and hold their worth better as security. Used cars can still be financed competitively, but expect the rate to step up as the vehicle ages, and watch the lender's maximum age rule: many cap the age of the car at the end of the loan term, not the start. A seven-year loan on a five-year-old car can fall outside a lender's policy even though the car is fine today.

Private sales — buying from another person rather than a dealer — are accepted by many lenders but often attract a small additional fee and a few extra checks, because the lender has to confirm the seller owns the car outright and that there is no existing finance registered against it.

Understanding the true cost, not just the repayment

A low monthly repayment can hide an expensive loan. The figures that actually determine cost are the interest rate, the term, the fees, and any balloon. The examples below show how the same car looks with and without a balloon — note how the headline monthly figure and the total cost move in opposite directions.

A balloon lowers the monthly repayment because you finance a smaller balance over the term — but you still owe the lump sum at the end and pay more interest along the way. It is a cash-flow tool, not a discount.

Why use a broker instead of dealer finance

Dealer finance is convenient, but the dealership is usually tied to one or two financiers and earns margin on the rate it offers you. A broker compares multiple lenders against your profile and the specific vehicle, then explains why one is cheaper than another rather than simply presenting a repayment.

Because we hold the lender panel and their current policies, we can also flag problems early — a car that is too old for a particular lender, a private sale that needs extra documents, or a balloon that one lender will allow and another will not. That saves a declined application showing up on your credit file.

Access to a panel of lenders, not a single financier
Rates compared on true total cost, not just the monthly figure
No dealership rate markup
One application, assessed against multiple lender policies

Illustrative repayment examples

Figures below are calculated with our repayment engine for the scenarios shown — not a quote or an offer of finance.

New car, no balloon

$701/month

Amount financed: $35,000
Term: 5 years
Total repaid: $42,060

Car with a 30% balloon

$726/month

Amount financed: $45,000
Term: 5 years
Balloon (30%): $13,500
Total repaid: $57,060

Illustrative only. Each example assumes a fixed annual rate (shown per scenario) for demonstration and that fees are not included. Your actual rate, fees and repayments depend on the lender, your credit profile, the asset and how the deal is structured.

Frequently asked questions

Do I need a deposit to finance a car?

Not always. Many lenders will finance the full purchase price for a strong applicant, and some will even finance on-road costs. A deposit lowers the amount you borrow and can sometimes improve the rate, but it is not a universal requirement. Whether 100% finance is available depends on the lender, your credit profile and the vehicle.

Does checking my options affect my credit score?

Getting an indicative quote and comparing your options does not require a credit enquiry, so it does not affect your score. A formal credit enquiry only happens when you choose to submit an application to a specific lender. We help you pick the right lender first, so you are not lodging multiple applications and leaving several enquiries on your file.

Can I pay the loan out early?

Most car loans allow early payout, though some fixed-rate contracts include an early termination fee or recalculate the interest. We confirm the early-payout terms before you commit so there are no surprises if your circumstances change.

What term should I choose?

A longer term lowers the monthly repayment but increases total interest, and it risks you owing more than the car is worth partway through. A good rule is to keep the loan term comfortably shorter than how long you intend to keep the car. Use our car loan calculator to see how the term changes both the repayment and the total cost.

Can I finance a car bought privately?

Yes. Many lenders fund private sales, though they usually add a small fee and verify that the seller owns the vehicle outright with no finance registered against it on the PPSR. We will tell you upfront which lenders handle private sales smoothly.

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