Car & Vehicle Loans Australia

Independent reviews of car and vehicle finance available in Australia in 2026. Lenders compared include banks, non-bank lenders and specialist vehicle finance providers, all operating under ASIC regulation and the responsible lending requirements of the National Consumer Credit Protection Act 2009.

A car loan is typically secured against the vehicle itself, which is why rates are usually lower than for an unsecured personal loan — if repayments stop, the lender can repossess the car to recover its loss. This makes vehicle finance one of the more cost-effective ways to borrow for a car, especially for buyers with a limited deposit.

Most Australian car loans run from AUD 5,000 to AUD 150,000 over terms of 1 to 7 years, and can be used for new or used vehicles bought from a dealer or private seller, depending on the lender's policy. Some products are structured as a chattel mortgage or novated lease for business and fleet buyers, which can carry different tax treatment — always check whether a loan is a consumer or business product before applying.

Eligibility typically requires being 18+, an Australian resident with a regular income, and the vehicle meeting the lender's age and condition criteria (many lenders cap finance on vehicles older than 10-15 years, or apply a loading). Expect to provide proof of income, ID, and details of the vehicle (VIN, purchase price, odometer reading).

When comparing offers, look beyond the headline rate at the comparison rate, any origination or monthly fees, and whether early repayment is penalty-free — paying off a car loan faster than scheduled can save a meaningful amount of interest over a 5-7 year term.

Most car and vehicle loans are secured against the car itself, which is why they typically carry lower interest rates than an unsecured personal loan of the same size — the lender can repossess the vehicle if repayments stop, which reduces its risk. Terms usually run from one to seven years, and some lenders offer a balloon or residual payment structure that lowers monthly repayments in exchange for a larger final payment.

Both new and used vehicles can usually be financed, though older or higher-mileage used cars may attract a higher rate or a maximum loan-to-value limit. Businesses sometimes use a novated lease or chattel mortgage instead of a standard car loan for tax reasons — these are different products with different eligibility rules and are worth comparing separately.

To apply you will typically need proof of identity and income, the vehicle's details (VIN, purchase invoice or dealer quote) and evidence of comprehensive insurance, which most secured lenders require for the life of the loan. As with any consumer credit in Australia, ACL holders must assess affordability under the National Consumer Credit Protection Act 2009 before approving the loan.

When comparing offers, look beyond the headline rate to the comparison rate, any origination or monthly account fees, and whether early payout is free — paying off a car loan early can save a meaningful amount of interest if there is no penalty.