Used Car Loans Australia

Buying a second-hand in 2023? Comparing used car loans online could save you hundreds of dollars each year.

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What is the cheapest used car loan on Finder?

  • Right now on Finder, the cheapest used car loan comparison rate starts from 6.55% p.a. and is offered by Harmoney Car Loan.
Swipe to see more loans
Promoted
7.04%
to 18%
interest rate
8.63%
to 19.61%
comparison rate
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.

Used car finance June 2023

$
Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Rate Type Application Fee Monthly Fee Monthly Repayment
loans.com.au - Variable Rate Used Car < 3 years Variable, 3 - 7 Years, $5,000 - $150,000
loans.com.au - Variable Rate Used Car < 3 years
7.04%
8.16%
Variable
$400
$8
Stratton Finance Used Car Loan Fixed, 1 - 7 Years, $10,000 - $300,000
Stratton Finance Used Car Loan
7.04%
to 18%
8.63%
to 19.61%
Fixed
$482
$8.90
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.
Harmoney Car Loan Fixed, 3 - 7 Years, $2,000 - $70,000
Harmoney  Car Loan
5.76%
to 19.09%
6.55%
to 19.99%
Fixed
$275 - $575
$0
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 Used Car Loans Fixed, 1 - 7 Years, $5,000 - $150,000
RACV Used Car Loans
8.04%
to 16.54%
8.75%
to 17.31%
Fixed
$499
$0
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.
OurMoneyMarket Car Loan Fixed, 1 - 7 Years, $2,001 - $75,000
OurMoneyMarket Car Loan
6.57%
to 18.99%
7.19%
to 21.78%
Fixed
1.5% - 6%
min. $250
$0
NRMA Used Car Loan Fixed, 1 - 7 Years, $5,000 - $130,000
NRMA Used Car Loan
8.04%
to 16.54%
8.75%
to 17.31%
Fixed
$499
$0
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.
loans.com.au - Variable Rate Used Car < 5 years Variable, 3 - 7 Years, $5,000 - $150,000
loans.com.au - Variable Rate Used Car < 5 years
7.24%
8.36%
Variable
$400
$8
loans.com.au - Variable Rate Used Car Loan (6 to 7 years) Variable, 3 - 7 Years, $5,000 - $150,000
loans.com.au - Variable Rate Used Car Loan (6 to 7 years)
7.94%
9.05%
Variable
$400
$8
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.

loans.com.au - Variable Rate Used Car Loan (8+ years) Variable, 3 - 7 Years, $5,000 - $150,000
loans.com.au - Variable Rate Used Car Loan (8+ years)
11.84%
12.95%
Variable
$400
$8
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 do used car loans work?

Used car loans can be used to completely or partially cover the cost of a used car. Once you get a loan approved, the lender hands over the money and you can purchase the car. Then you start making monthly repayments, plus interest, until you pay off the loan.

Types of used car loans

There are a few types of finance when you're buying a secondhand car.

Secured

Secured car loans

With secured car finance, the vehicle you purchase is held as collateral against the used car loan. As a result, lenders will offer a more competitive interest rate – but you put your vehicle at risk if you can't make repayments.

Unsecured

Unsecured car loans

With unsecured car loans, you have more freedom on how you spend the money and no collateral is taken but as there is more risk for the lender, you will get a higher interest rate.

As there is no security, the lender is less concerned about the age or condition of the car. This is why unsecured loans are more common with older used cars. They are essentially a personal loan.

Dealer

Dealership finance

You might find finance options through used car dealerships. They can offer some attractive used car finance rates with their chosen finance partner. However, these agreements often have hefty deposits and balloon payments, which require you to make a final payment of several thousand dollars. The repayments seem smaller and cheaper than they really are.

How old can a car be for a used car loan?

If you're buying a used car with a secured car loan, your lender has the right to sell your car to recover its costs if you can't repay the loan. This means the lender cares about the age of the car you're buying.

Many lenders only offered secured car loans for cars that are less than 7 years old. Some lenders accept cars up to 12 years old. The older the car, the higher your interest rate may be.

An unsecured car loan doesn't require the vehicle as security. So the age of the car is not an issue.

Maximum ages of used cars accepted by different lenders in Australia

LenderProduct nameMaximum age of carLoan amountFind out more
Macquarie BankMacquarie Bank Used Car Loan Fixed6 yearsFrom $10,000Details
Beyond BankBeyond Bank Low Rate Car Loan6 yearsFrom $5,000Details
Beyond BankBeyond Bank Flexi Car LoanOver 6 yearsFrom $5,000Details
CommBankCommBank Secured Car Loan5 years$4,000 to $100,000Details
Great Southern BankGreat Southern Bank Fixed Rate Car Loan7 yearsFrom $5,000Details
DrivaDriva Car Loan7 years$1,000 to $250,000Details
loans.com.auloans.com.au - Variable Rate Used Car Loan8+ yearsFrom $5,000Details
IMBIMB Secured Personal Loan6 years$2,000 to $60,000Details
NRMANRMA Used Car Loan10 years$5,000 to $130,000Details
OurMoneyMarketOurMoneyMarket Car Loan10 years$2,001 to $75,000Details
People's Choice Credit UnionPeople's Choice CU Discounted Personal Loan (Car Loan)10 years$20,000 to $120,000Details
RACVRACV Used Car Loans10 yearsFrom $5,000Details
St.George BankSt.George Secured Personal Loan - Fixed Rate12 years at loan expiry$3,000 to $100,000Details
Suncorp BankSuncorp Bank Secured Car Loan7 years$5,000 to $80,000Details
Symple LoansSymple Loans Personal Loan7 years$5,000 to $80,000
WestpacWestpac Car Loan7 years$10,000 to $100,000Details

Used car loan calculator

Fill in our used car loan calculator to see how much your used car loan could cost you. You'll need to enter:

  • Loan term. How long you want the loan to be in years (between 1 and 7 years is the norm).
  • Rates and fees. Put in the loan interest rate and any loan fees.

Then you can see see how much you'll end up paying.

Your loan details

Loan amount
$
Term
Repayment type
Interest rate
%
Interest only period
Payment frequency
Extra monthly repayments
$

Overview of your loan

Once the interest only period ends, your estimated repayments will be
(including extra )
Total loan repayments:
Total interest payable:
Compare car loans
By making extra monthly repayments of
Your loan term could reduce by:
You could pay less interest, saving:
Years remainingPrincipal remaining
Calculator Assumptions: The above calculations are worked out assuming you’re paying off a principal and interest loan where the interest rate remains the same over the life of the loan. The repayment amounts do not take into account any additional fees or charges that may be charged to your loan (e.g. application fees).
Disclaimer: Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as indication only. They are neither a quote nor a pre-qualification for a loan.

How do I apply for a used car loan?

Once you've found a suitable used car loan, you can apply. Most lenders accept online applications. You will need:

  • Your personal identification details.
  • Evidence you can repay the loan (employment information, recent payslips).
  • Details of the car you're buying (make, model, year, registration details).

What should I look for in used car loans?

  • Interest rate. The higher the interest rate the more expensive your loan becomes. You always want a lower interest rate. But lenders charge different rates based on your car, your loan amount, and your credit score.
  • Payment flexibility. Check whether lenders will allow you to pay at your own schedule, whether weekly, fortnightly or monthly.
  • Loan term. If you choose a longer time to pay off the loan you'll have smaller monthly repayments. But you'll end up paying more interst over time. You need to find the right balance between affordability and long term cost.
  • Fees. Many loans have application fees, which can vary from $200 to $800. Other loans may charge a monthly service fee. A loan with a $10 monthly service fee over 3 years will cost you $360. Some used car loans penalise you for repaying the loan early, while others don't charge early termination fees.
  • Vehicle criteria. Make sure the lender is prepared to offer you a used car loan for the age and model of vehicle you're looking at.
  • Pre-approval. Conditional pre-approval means you know how big a loan you can get. This puts you in a great place when haggling.
  • Other features. A redraw facility, where you can claim back any money you've overpaid, might be useful.

Pros and cons of buying a used car

There are plenty of benefits to buying a used car over brand new:

  • Value. You can get a used car for a cheaper price than a similar, brand-new vehicle. Let someone else pay for the first few years' depreciation (according to RACQ, it could be as much as $299.12 per week).
  • Avoid salespeople. Buying a used car means avoiding professional salespeople using high-pressure selling strategies. Buying privately means you don't have to pay the extra that a dealer puts on top.
  • No wait. There's often a long wait for new cars. Sometimes the dealer only has a display model and you have to wait weeks or months for your car to be built and shipped.
  • More options. Buying second-hand means you have more options, and can possibly get a higher-end model than you would if buying brand new.
  • Insurance. A lower value can mean lower car insurance costs.

There are some downsides to buying used:

  • You need to do more research. Buying used, there's a chance you end up buying a car that's in worse shape than it looks. You really need to take a good look at the car, and spend time researching online. A test drive is also essential.
  • Out of warranty. Depending on the age of the car you're buying, you might miss out on warranty protections.
  • Paperwork. Certain used vehicles might need a roadworthiness certificate or safety inspection
  • Tighter financing conditions. It is harder to get a used car loan compared to a loan on a new car. But this really depends on the age and condition of the vehicle. You may just need to shop around a bit more for a suitable car loan, or accept a slightly higher interest rate.

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More questions about getting used a car loane

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    40 Responses

      Default Gravatar
      SteveSeptember 28, 2018

      I am looking to secure a $50,000 car loan. I have been told that you can pay off lump sums without penalties with some finance companies, but I am a little skeptical of this. Please clarify.

      Regards.

      Steve

        Avatarfinder Customer Care
        JeniOctober 1, 2018Staff

        Hi Steve,

        Thank you for getting in touch with finder.

        Repaying a car loan early without penalty is another common feature of variable rate car loans, however it is still best to check if you are able to make extra or lump sum repayments as well as if an early prepayment or early termination fee applies.

        I hope this helps.

        Please feel free to reach out to us if you have any other enquiries.

        Thank you and have a wonderful day!

        Cheers,
        Jeni

      Default Gravatar
      JadeMarch 30, 2018

      I’m currently bankrupt and have gained casual employment and need a car am I able to apply for a loan somehow

        Default Gravatar
        JoelMarch 30, 2018

        Hi Jade,

        Thanks for leaving a question on Finder.

        You can get a loan if you are discharged bankrupt or even if you are currently bankrupt. You will be more limited in terms of the lenders you have to choose from, and the fees and rates will also be higher on bankrupt loans. You may also be required to attach an asset as security or apply with a guarantor. You may click the link above to find out about your loan options and see what you might be eligible for.

        You may click the name of the lender to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button if available and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

        Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

        Cheers,
        Joel

      Default Gravatar
      jj93February 7, 2018

      I am a PhD student and am struggling to find a car loan as most places aren’t accepting of the scholarship as a wage – is there any places I should try applying for?

        Avatarfinder Customer Care
        MayMarch 1, 2018Staff

        Hi jj93,

        Thanks for your inquiry.

        When getting a car loan and you’re a student, it’ll be worth doing your homework on which lender would accept your form of income whether it be from casual work, permanent part-time work, or Centrelink payments. Not sure though for scholarship wages. Also when getting a student car loan, you may need to have a guarantor or co-borrower who can take on the legal and financial responsibility for the debt incurred with your car loan if you default or fail to make the repayments.

        While we can’t recommend a specific lender to you and are not sure of your approval, you may like to check the guide on student car loans. On the page, is a comparison table you can use to see which lender suits you.

        When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

        Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

        Cheers,
        May

      Default Gravatar
      MichaelFebruary 7, 2018

      Hi Im looking at purchasing a 1986 Van for work, I have owned and operated a company since 2012.

      What is my most affordable options

        Default Gravatar
        AshFebruary 17, 2018

        Hi Michael,

        Thank you for reaching out to us.

        If you are looking for a used Van, you may refer to the above list of lenders that offer used car loans. If you’ve chosen a brand and you think you are eligible, please click on the ‘Go to site’ button to be redirected to the lender’s official site and apply from there. Otherwise, some other car loans you may consider and compare are on these pages:

        I would suggest that you review the features and details of the loan and the eligibility requirements and consider whether the loan is right for you. You can also contact the lender to discuss your options.

        I hope this helps.

        Please do not hesitate to reach out to us again if you have additional questions.

        Cheers,
        Ash

      Default Gravatar
      nurse31August 2, 2017

      i want to borrow enough to paid off my existing car loan and buy two more cars one for me and one for my fiance . The two of us will be making the repayments

        Avatarfinder Customer Care
        DeeAugust 3, 2017Staff

        Hi there,

        Thanks for your question.

        If you are looking to borrow jointly to pay for your existing car loan and to have extra money, you may compare joint account personal loans and find the best one for you.

        Cheers,
        Anndy

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