Refinance Car Loans

Even though interest rates are rising you can still refinance your car loan to get a better deal. Especially if you've improved your credit score. Car Loans - New - Variable Rate Special logo image

6.44 % p.a.

variable rate

7.56 % p.a.

comparison rate


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What you need to know

  • You can refinance your car loan to unlock a lower rate, saving you money.
  • To switch, start by comparing loans and make sure your new car loan works out to be cheaper.
  • Pay attention to the loan term and fees before refinancing. And check your credit score.
1 - 14 of 14
Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Rate Type Application Fee Monthly Fee Monthly Repayment - New - Variable Rate Special Variable, 3 - 7 Years, $5,000 - $150,000 - New - Variable Rate Special
You'll receive a variable rate of 6.44% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees.

Stratton Finance New Car Loan Fixed, 1 - 7 Years, $10,000 - $300,000
Stratton Finance New Car Loan
to 18%
to 19.61%
You'll receive a fixed rate from 6.09% p.a. depending on the lender you are approved with.
Apply for up to $300,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Harmoney Car Loan Fixed, 3 - 7 Years, $2,000 - $70,000
Harmoney  Car Loan
to 19.09%
to 19.99%
$275 - $575
You'll receive a fixed rate between 5.76% p.a. and p.a. based on your risk profile
An unsecured loan from $2,000 to buy a new or used car. Benefit from a simple application and option for early payout.
RACV New Car Loans Fixed, 1 - 7 Years, $5,000 - $150,000
RACV New Car Loans
to 16.54%
to 17.31%
You'll receive a fixed rate from 6.79% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
OurMoneyMarket Car Loan Fixed, 1 - 7 Years, $2,001 - $75,000
OurMoneyMarket Car Loan
to 18.99%
to 21.78%
1.5% - 6%
min. $250
NRMA New Car Loan Fixed, 1 - 7 Years, $5,000 - $130,000
NRMA New Car Loan
to 16.54%
to 17.31%
Note: Take out a loan for an eligible electric vehicle and receive a 1.5% discount on your personalised interest rate (interest rates start from 5.09% p.a. and comparison rates from 5.78% p.a.) - New - Fixed Rate Special Fixed, 3 - 7 Years, $5,000 - $150,000 - New - Fixed Rate Special
You'll receive a fixed rate of 6.19% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Stratton Finance Used Car Loan Fixed, 1 - 7 Years, $10,000 - $300,000
Stratton Finance Used Car Loan
to 18%
to 19.61%
You'll receive a fixed rate loan from 7.04% p.a. with a comparison rate of 8.63% p.a.
A used car loan of up to $300,000 with quick approval times and balloon payment options.
RACV Used Car Loans Fixed, 1 - 7 Years, $5,000 - $150,000
RACV Used Car Loans
to 16.54%
to 17.31%
You'll receive a fixed rate from 8.04% p.a.
Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.
NRMA Used Car Loan Fixed, 1 - 7 Years, $5,000 - $130,000
NRMA Used Car Loan
to 16.54%
to 17.31%
You'll receive a fixed rate from 8.04% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours. - Variable Rate Used Car < 3 years Variable, 3 - 7 Years, $5,000 - $150,000 - Variable Rate Used Car < 3 years
$8 - Variable Rate Used Car < 5 years Variable, 3 - 7 Years, $5,000 - $150,000 - Variable Rate Used Car < 5 years
$8 - Variable Rate Used Car Loan (6 to 7 years) Variable, 3 - 7 Years, $5,000 - $150,000 - Variable Rate Used Car Loan (6 to 7 years)
You'll get a variable rate of 7.94% p.a.
Borrow up to $150,000 for a used car for 6+ years, with no monthly fee. - Variable Rate Used Car Loan (8+ years) Variable, 3 - 7 Years, $5,000 - $150,000 - Variable Rate Used Car Loan (8+ years)
You'll get a variable rate of 11.84% p.a.
Borrow up to $150,000 for a used car for 8+ years, with no monthly fee.


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How car loan refinancing can save you time and money

Refinancing a car loan means applying for a new loan and paying off the old one. You can refinance a car loan to get a better deal with a new lender and to get out of debt faster.

You should aim to refinance to a new car loan with fewer fees and a lower interest rate than your old one. This saves you money.

Example: refinancing a car loan to lower your repayments

You have a $20,000 car loan with a 12% interest rate. It's a 4-year loan and after 1 year you've paid off $5,000. This leaves you with an outstanding debt of $15,000 over 3 years.

Since getting the loan your credit score has improved significantly. You are confident you can now get a much lower interest rate.

You find a new loan with a rate of 7%. After comparing the loan fees and repayments, you apply for a new 3-year loan and borrow $15,000.

At 12% over 4 years, your old car loan repayments were $527 a month. With your new, lower-rate loan the repayments are just $464 a month over 3 years.

Car loan refinance calculations

Here are 3 similar car loans with different interest rates. You can see how the lower interest rate saves you money over time.

Loan 1Loan 2Loan 3
Loan amount$30,000$30,000$30,000
Interest rate15%10%7%
Loan term4 years4 years4 years
Monthly repayment$835$761$719
Total loan cost$40,077$36,523$34,483

Looking at these examples, loan 3 works out to be $2,040 cheaper than loan 2 and $5,594 cheaper than loan 1.

These are just simple examples and don't include loan fees.

Want to refinance your car loan to the lowest rate?

  • Right now on Finder, the cheapest new car loan rate is 5.76% p.a. offered by Harmoney Car Loan.
  • Right now on Finder, the cheapest used car loan rate is 5.76% p.a. offered by Harmoney Car Loan.

How to refinance a car loan in 5 steps

  1. Compare car loans. Compare car loans from multiple lenders and find a loan with a lower rate that suits your needs.
  2. Do the maths. Use a calculator and work out the cost of the new loan, including fees and how the loan length and interest rate affect your repayments. Don't forget about any exit fees from the old loan.
  3. Apply for the new loan. Complete the lender's application process and make sure you have all the paperwork and identification documents you need.
  4. Discharge the old car loan. You will need to pay off and discharge the old loan. Your new lender should help you with this process.
  5. Start repaying your new car loan. Once the new loan is approved you can concentrate on paying it off.

6 car loan refinancing traps and mistakes to watch out for

Make sure you refinance to a new loan that's both cheaper than the old one and suitable for you.

  1. Factor in all the costs of both loans

    Look at the new car loan's application and monthly fees, and any discharge or exit fees that come with your old one.

  2. Pay attention to the loan term

    Let's say you have a 5-year loan term. After 2 years you decide to refinance to a new 5-year loan. This means you're actually extending your 5-year debt into a 7-year debt (2 years of the original loan plus 5 for the new one). This means you'll pay more interest over the longer term.

    Choosing the right loan term is about finding a balance between manageable monthly repayments and the overall interest you pay.

    If the loan term is too long you'll have small monthly repayments but your lender will get a lot more interest from you. A shorter term means higher monthly costs but you'll get out of debt faster.

  3. Make sure the new loan is the right type of loan for you

    There are some differences between car loans. Some have fixed or variable interest rates, and some allow you to make extra repayments.

    Make sure your car is eligible for the new loan before you refinance. If your car is too old or the wrong model, you might not qualify for a particular loan.

  4. Check your credit score before refinancing

    Before refinancing, check your credit score. Many lenders determine your car loan's interest rate based partly on your credit score. If your score is good or excellent you have a strong chance of getting a good deal.

    If your score has fallen since you took out the original car loan you'll probably need to improve your score before refinancing.

  5. Don't forget about depreciation

    Cars lose value quickly, especially new ones. This can be a problem when refinancing if your car is used to secure the loan.

    If you bought a brand new car worth $32,000 and it loses 10% of its value as soon as it's sold and a further 10% a year, after just 2 years the car would be worth $23,328.

    If your car's depreciation outpaces the outstanding loan amount you might have a harder time refinancing. This is less of a problem if you've paid off a good chunk of the loan or if you paid some of the car's total cost upfront.

  6. Avoid over-applying for loans

    Every loan application impacts your credit score. Avoid applying for multiple car loans at once. You can only refinance to one loan, so find the best one for you, make sure you're eligible and then apply.

    If your credit report has multiple loan enquiries then a lender will consider you a higher-risk borrower. You may end up on a higher rate or have your application rejected.

Frequently asked questions

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  • Citi Personal Loan Plus – Car Loan

    With Citi’s Personal Loan Plus you can buy a new or used car and pay it off over a fixed period that works for you.

  • Stratton Finance Used Car Loan

    A used car loan with high borrowing amounts and both secured and unsecured options.

  • CarClarity Car Loan

    Find the best car loan for your circumstances with CarClarity. Rates start from just 3.35% p.a. and borrowers can apply for loans from $10,000 to $250,000 for new and used cars.

  • Great Southern Bank Fixed Rate Car Loan

    If you’re in the market for a new car, the Great Southern Bank Fixed Rate Car Loan may be able to give you the funds you need. With the security of a fixed rate and flexible repayments, this loan might be what you need to own your new set of wheels.

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32 Responses

    Avatarfinder Customer Care
    JhezelynNovember 9, 2018Staff

    Hello Sony,

    Thank you for your comment.

    Since you’re looking for refinancing options for your car, the guide above will give you ideas and tips on how to go about getting one. You may compare the car loan refinancing products above and click the Go to Site button of your preferred loan product.

    Please make sure to meet all the criteria and the requirements before submitting the application. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you. We also recommend that you get in touch with the lender.

    Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.


    Default Gravatar
    SavvasAugust 31, 2017

    I have a car loan and I would like to refinance it somewhere else with a better interest rate

      Default Gravatar
      JonathanAugust 31, 2017

      Hello Savvas,

      Thank you for your question.

      You are on the right page! :)

      You may put your loan amount and the desired term on the calculator at the top of the comparison table. This will help you get the figures down for the loan you’re likely to be comfortable with in terms of repayments.

      It is worth mentioning that you need to review the qualifications and the loan terms prior application.

      Hope this helps.


    Default Gravatar
    AJDecember 5, 2016

    Good Afternoon,

    I am looking to refinance my Harley Davidson motorcycle. The interest rate is extremely high.

    The only default I have is from over 5 years ago – no current credit cards, no credit issues.

    Is there another option I have to re-finance? Payout figure is approximately $28K

      Avatarfinder Customer Care
      MayDecember 6, 2016Staff

      Hi AJ,

      Thanks for your question.

      You may try contacting a motorcycle loan lender for your motorcycle refinancing options. Please note that your approval will be on a case-by-case basis so make sure to read the criteria and requirements before you apply.

      Hope this helps.


    Default Gravatar
    bobMay 25, 2016

    I have an existing car loan and im wanting to borrow an extra $20000. Adding it to my loan. Is that possible? Is that refinancing?

      Avatarfinder Customer Care
      ElizabethMay 25, 2016Staff

      Hi Bob,

      Refinancing involves you taking out a new loan to pay out your existing loan, so borrowing an additional $20,000 on your existing loan is just “topping up” your loan. You’ll need to get in touch with your lender to find out if this is possible and what the process is to apply.

      Hope this helps,


    Avatarfinder Customer Care
    ElizabethMay 12, 2016Staff

    Hi Roy,

    As a financial comparison service we can’t offer you personal advice, but any of the lenders on the page above can help you with car loan refinancing. You can use the table above to compare them. You can also click the “Speak to a broker” tab if you’d like some advice from a car loan broker.

    Hope this helps,


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