Car Loans Australia - Compare Rates from 50+ Lenders

Secured car loan rates through Emu Money's lender panel start from 5.67% for new cars and 5.8% for used cars (comparison rate 7.03% p.a.*). The rate you're offered depends on your credit profile, the vehicle's age, the loan term and the lender.

Rates vary more between lenders than most people expect. ASIC's June 2026 review of eight car lenders found median interest rates ranging from 10% to 22%, so comparing before you commit can save thousands. For used cars, lenders also cap the car's age at the end of the loan: most of the lenders ASIC reviewed set that limit at 15 years. Our guide to used car loans covers the details.

*Used car comparison rate based on a $30,000 secured loan 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.

Unsecured rates start from around 8% and can reach 15%+ for applicants with credit impairments. The rate gap between secured and unsecured narrows on smaller loan amounts (under $10,000) where the total interest difference may not justify the PPSR registration.

Your credit history is the single biggest factor in the rate you're offered. A clean file with no missed payments or defaults in the past 12 months puts you in the strongest position.

New and used car loans are both available through Emu Money's lender panel, from $5,000 to $200,000.

New car loans offer the lowest rates (from 5.67%) and the widest choice of lenders.

Used car loans start from 5.8% (comparison rate 7.03% p.a.*). The purchase price is lower, but lenders cap the car's age at the end of the loan and not every lender finances private sales. Our guide to used car loans covers rates, age limits, private sales and balloon payments, with repayment examples.

For more on how deposits affect the equation, see No deposit car finance: How it works.

Buying used? Our free used car buying checklist scores a car on 20 inspection points and estimates the cost of owning it, and our guide to buying a used car covers the PPSR search, cooling-off periods and dealer warranties state by state. Before you pay, run the final checks before buying a used car, and if a fault turns up afterwards, our guide to used car warranty rights sets out what the statutory warranty covers in NSW, Victoria, Queensland and WA.

On a $25,000 loan over five years, the difference between a secured rate of 7.5% and an unsecured rate of 11% is roughly $3,100 in total interest. Secured loans are cheaper because the lender holds security over the vehicle.

With a secured car loan, the lender registers a security interest on the PPSR against the vehicle's VIN. You own and drive the car, but you can't sell it until the loan is paid or the security is released. If you default, the lender can repossess the vehicle after the required notice period.

With an unsecured car loan, the vehicle is yours outright from day one. You can sell it, trade it, or modify it without lender permission. The lender has no claim on the car if you default, but they can still pursue the debt through other means.

For loans under $10,000, the total interest difference shrinks to $800-$1,500. At that level, the freedom of unsecured finance may be worth the extra cost, particularly if you're buying an older vehicle that may not qualify for secured finance.

For the full comparison with worked examples, see Secured vs unsecured car loans: What's the difference?.

Most borrowers can finance $5,000 to $200,000 for a car through Emu Money's lender panel. Your borrowing capacity depends on your income, existing debts, living expenses, and the vehicle you're buying.

A useful starting point: keep your total car loan repayment under 15% of your gross monthly income. On a $60,000 salary, that typically means a car loan of $20,000 to $30,000 over five years.

Lenders use the Household Expenditure Measure (HEM) or your declared expenses (whichever is higher) to calculate how much you can afford to repay. Credit card limits, BNPL accounts, and existing loans all reduce your capacity, even if you're not using them. A $10,000 credit card limit can reduce your car loan capacity by $10,000-$15,000, regardless of your actual balance.

A deposit improves your position. Even $2,000-$5,000 reduces the amount financed, can unlock a lower rate tier, and shows the lender you can save. That said, no deposit car loans are available for borrowers with strong credit profiles.

To see what a given loan amount costs each week, fortnight or month, try the car loan calculator.

For detailed borrowing estimates by salary, see How much can I borrow for a car loan?.

Yes, you can get a car loan with bad credit in Australia. Specialist non-bank lenders on Emu Money's panel assess your current situation, not just your credit score. Expect higher rates of 12-25% depending on the severity and age of your credit issues.

The cost difference is real. On a $25,000 secured loan over five years, interest at our 5.67% starting rate comes to about $3,770. At 12% to 25%, the range for borrowers with credit issues, the same loan costs about $8,370 to $19,030 in interest.

What matters most to specialist lenders: the age and type of your credit issues (a $300 telco default reads differently to a $15,000 personal loan default), how many recent credit enquiries you have, and whether your current income can comfortably cover the repayments.

Time is your strongest lever. Most specialist lenders use internal tiers: 0-12 months since default is the hardest band, 12-24 months opens more options, and beyond 24 months rates drop meaningfully. If you can wait, it may save you thousands.

For strategies on strengthening your application, see Car loans with bad credit in Australia.

A secured car loan is almost always cheaper than an unsecured personal loan for buying a vehicle. On a $25,000 purchase over five years, the interest difference can be $3,000 or more in favour of the car loan.

The reason is simple: a car loan uses the vehicle as security, which lowers the lender's risk and your rate. A personal loan is unsecured, so the rate is higher to compensate.

A personal loan makes more sense when you're buying an older vehicle that doesn't qualify for secured finance (for example, one that would be past a lender's age limit by the end of the loan), buying privately and you want the flexibility to own the car outright from day one, or borrowing a smaller amount where the total interest difference is minimal.

Keep in mind that secured car loans typically offer higher borrowing limits (up to $200,000) compared to unsecured personal loans (usually capping at $50,000-$75,000). If you're financing a newer vehicle over $30,000, a secured car loan is the clear choice.

For a detailed cost comparison with worked examples, see Car loan vs personal loan: Which is better?.

Your rate is determined by four factors you can influence: your credit profile, the vehicle's age, your loan-to-value ratio (LVR), and whether you use a broker or go direct.

Clean up your credit file before applying. Check your report for free and dispute any errors. Clear small outstanding debts. A single unpaid $200 default can shift your rate tier.

Put down a deposit. A deposit reduces how much you borrow, and with it the interest you pay over the loan.

Choose a newer vehicle. Newer cars make stronger security, and older cars can fall outside lenders' age limits: most of the lenders ASIC reviewed capped the car's age at 15 years when the loan finishes.

Compare lenders before you sign. ASIC's June 2026 review of eight car lenders found median interest rates ranging from 10% to 22%, and Moneysmart notes that finance arranged at a dealership can include dealership or introducer fees. A broker like Emu Money compares 50+ lenders with one application, so you can see your options before you commit.

Apply once, not five times. Multiple credit enquiries in a short period can lower your score and signal desperation to lenders. One application through a broker searches multiple lenders with a single credit pull.