Low rate car finance for new and used cars
Buy your dream car your way – with low rates and options that suit you
Savvy drives car loans further
We have helped hundreds of Australians save thousands of dollars on their car loan. We’re linked to over 25 of Australia’s top lenders fighting for your business. This means you save more because we compare more.
Our expert car loan consultants are with you every step of the way.. We give each and every customer personalised service so you can rest knowing you’ve secured a great car loan deal suiting your budget and needs.
Think car loans, think Savvy
Get more car loan options. Whether you’re buying used, certified used, or from a private seller or dealer, we can help secure the best rates and most flexible terms. If you’re in business, we speak your language. We help businesses secure commercial chattel mortgages and hire purchases that keeps cash flowing.
Do you have bad credit? We fight hard for bad credit customers to get the fairest treatments on car finance. Our consultants can help you, no matter your circumstances.
Calculate and save by comparing car loans
Savvy uses the latest in technology to compare car loans – use our car loan calculator to figure out just how much you could save with one of our top-rated car loans.
|Lender||Product Name||Advertised Rate||Comparison Rate||Monthly Repayment|
|Savvy||New Car Loan|| 2.85% |
|Bank of Australia||Used Car Loan|| 6.45% |
|ANZ||Online Secured Car Loan|| 7.85% |
|CUA||Fixed Rate Car Loan|| 7.99% |
|BankSA||Secured Fixed Personal Loan|| 8.49% |
|St George||Secured Fixed Personal Loan|| 8.49% |
|CBA||Secured Car Loan|| 8.49% |
|NAB||Variable Rate Personal Loan|| 14.19% |
* Commercial loan with the loan amount of $40,000 is looking at a 5 year secured fixed rate of 2.85% p.a. and comparison rate of 3.93% p.a.. WARNING: all fees and charges may not be included on the example above, only the comparison rates, monthly repayment and total cost applies. Therefore, the total cost of the loan might be different. Comparison rate do not include broker fees, redraw fees, early termination fees and fee waivers. Comparison rate may change as a result of the different loan terms, fees and the loan amounts. Establishment fees and monthly fees do not apply to commercial loans, only consumer loans. However, there might be different fees apply.
Get the right car loan with Savvy
See how Savvy will help you secure a great deal on your car finance through its panel of lenders
Our range of car loan options to suit your all needs
We not only compare car loans but offer savings on finance for leasing, business, and bad credit customers
Bad credit car loans
Car loan refinance
How to get approved for a car loan and save more money?
Follow these tips to get approved with better rates
Buy new or near new car to avail better rates
Buying a new car increases your chances of gaining approval and more favourable interest rates. That’s because lenders like taking on lower risks – and as a reward, you gain better interest rates. Buying older vehicles makes it more difficult for lenders to approve your loan.
What our customers are saying about their finance experience
Read real stories from our satisfied car loan customers. Our consultants go above and beyond to help you get the best car loan
Got a question about your car loan?
Read through our knowledge base to find answers to all your common car loan questions
How can I get a better interest rate for my car loan?
You can get a more competitive interest rate for your car loan following a few general tips
A new or certified used car has higher residual value than older vehicles, which means you are a lower risk. Lenders will “reward” customers who approach them with low risk transactions by passing on discounted interest rates.
Opting for a secured car loan over an unsecured loan can also mean significant savings in interest rates. Beware: if you don’t pay back your loan, the bank or lender is entitled to repossess the vehicle.
If you have bad credit, using a guarantor with good credit who takes on responsibility for the loan if you are unable is also a way to lock in a lower interest rate. However, if you default on the loan, your guarantor is on the hook – and it can ruin both parties’ credit histories.
Some credit histories contain errors or defaults that you may not know about – such as a housemate from years ago forgetting to pay their share of a utility bill in your name, for example. It’s your responsibility to clear up your credit history.
Pros and cons of taking out a car loan
Paying it off bit by bit
The one clear advantage of taking out a car loan is that you can pay off the loan over a long period of time – typically five years. This can vary between one to seven years, depending on your preferences.
Gives you more choice of cars
Without car finance, almost no one would be able to afford to buy a new car. Saving up for a new or later model car would take years, if not decades as most of our savings would be eaten up by inflation. A car loan gives you a larger range of cars to choose from, instead of only what you can afford with your cash saved up. It also frees up your available savings for your usual expenses.
Fixed repayments (if applicable)
Most car loans are fixed rate loans, which gives borrowers equal repayments over the lifetime of the loan. This way you can budget for the car loan and not have to worry about calculating how much you’ll need each month, like a credit card bill.
Improves your credit score
Taking out a loan and paying it off over time, especially if you do not have a credit history, can build your credit score and show banks and other lenders you’re a responsible borrower. This can come in handy when you’re going after other forms of credit, such as a mortgage.
You’ll have to pay fees
Most car loans come with fees of some kind – either included as part of the loan (in a comparison rate) or on top. You may also have to pay early repayment fees or exit fees in some circumstances.
Risk of default or repossession
If you take out a secured car loan and fall behind on your loan repayments, you could risk a default on your credit history and repossession of the vehicle. This can negatively impact your credit history for up to seven years.
Helpful information on car loans
Read through our knowledge base to find answers to all your common car loan questions
Brands you can trust
Learn more about applying for a car loan
Whether you're wondering how to get a car loan or looking to get approved, Savvy can help you from start to finish
How to apply for a car loan?
Getting a car loan is a financial process you enter with a bank, lender, or broker to purchase a vehicle. To begin applying for a car loan you’ll need 100 points of ID such as a Drivers Licence, Passport, Birth certificate, or Medicare card. You’ll also have to prove income and employment with payslips, tax returns and your employer’s contact details.
The best practice is being upfront with your property ownership details, ongoing expenses, and debts or other loans. You’ll also need to provide information on the car’s make, model, colour, and Vehicle Identification Number (VIN), registration details, and purchase price before a lender or broker will approve your car loan. Unsure about applying for a car loan? Talk to the team at Savvy for expert advice and help.
What is a comparison rate?
A comparison rate put in simple terms is an interest rate that includes most common fees and charges associated with a car loan, given as a percentage per annum (per year.) This is the base interest rate plus ongoing fees such as account keeping fees, administration fees, and other general charges. This does not include transactional or situational fees such as requesting a statement, early payment fees (if applicable), or late payment fees.
Why should I look for comparison rates?
As the name suggests, comparison rates make direct assessments of two loan types easier. If a loan has the same term and loan amount (how much you borrow) you can determine that the loan with the lower number will by most accounts be the cheaper option.
At the top of this page you may have noticed that our interest rates start at 2.85%p.a. with the comparison rate – 3.93%p.a. – given underneath.
|$20,000 principal||Loan A||Loan B||Loan C|
3.93% p.a. comparison
3.5% base interest rate
Total interest paid (incl. fees)
Let’s compare three different loans – two comparison rates and one base interest rate loan. As you can see in the table, the 3.93% p.a. comparison rate is the best of the three, even though the 3.5% p.a. loan has a lower interest rate. Since the monthly fees of $30 are not included in the rate, it makes the loan significantly more expensive overall – selecting Loan A represents a saving of $1,568 in interest over Loan C. Even Loan B, with a less competitive interest rate, beats out Loan C by $1,258 in interest.
This is the main reason why you should ask for the comparison rate when looking at car loan products – or indeed any fixed-term credit product (if applicable.)
How does my credit score effect my interest rate?
Your credit score, a numeric expression of your creditworthiness, effects your interest rate as it’s a major (but not the only) aspect of your financial situation a lender or bank looks at when assessing your risk profile. A higher credit score indicates to other lenders that you are a low risk based on recent past credit history. A lower credit score shows that you are a higher risk – that you may have been in arrears paying bills or other loans, defaulted on a loan, or are hovering near your credit limits with your credit cards. It may also be the fact you are new to finance and have no credit history to speak of; and lenders generally assume you are a high risk based on the information available.
Lower risks gain access to more competitive interest rates as there is a high chance the lender will be paid back in full. Higher risks are only approved for higher interest rates as banks or lenders “insure” themselves against defaults.
How much car loan can I afford?
Finding out what kind of car you can afford is helpful before looking for a new car or shopping for a car loan. You can figure out what kind of car you can afford by looking at your finances. Adding up your income and spending is the first step to knowing how much you can afford in repayments each month. As a rule, using 20% of your monthly salary should be put toward car repayments as a maximum. According to Savvy’s research, the national average spent on repayments is about $130 per week ($520 per month.) This represents about 7.2% of an average household budget.
To figure all this out, you should use a car loan calculator. With this figure, you need to add on additional costs such as fuel, maintenance, registration, and insurance. You should always speak to a professional before getting financial advice. The team at Savvy can help you find an affordable car loan that gives you as much satisfaction as the car you intend to buy.
What car can I afford?
Buying a car is a major asset and the best approach is to fit your car around your lifestyle, not the other way around. Most people own cars – according to the Australian Bureau of Statistics, there are about 750 cars per 1000 people – three out of four. The important part is keeping your purchase within your means. You should consider points such as size – if you are just one person taking infrequent trips, a small car may be suitable. If you’re using your car for family commuting, a larger sedan or SUV is better, especially when it comes to space. You should also consider fuel efficiency as this can also tip the scales when it comes to affordability. Other factors that can affect your car affordability is:
- Its safety rating – can you afford to drive an unsafe car?
- Technology – do you need GPS and other infotainment systems? This can make your car more expensive.
- Primary location of use – a more rugged 4WD or ute is better for rural or country driving vs a compact hatch for city driving.
- Performance – V6 or V8 engines carry a premium and are less fuel efficient. A hybrid or hatch will have lower performance but save fuel.
- Resale value – will your car keep its value over time, or will it be a “money pit?”
The car you can afford is also informed by how much a lender or broker is willing to lend you to fund its purchase. The friendly team at Savvy can help you find out what type of car is in your price range with finance pre-approval. This also helps you haggle with dealers or private sellers.
How does a car loan work?
A car loan is a financial instrument or credit product that enables someone to buy a car or similar type of vehicle. This is a formal arrangement between three parties – the buyer, the seller (or vendor), and a finance company (lender). The process begins when a lender agrees to lend you money to buy a specific car. You then formalise the agreement with the vendor in writing and with payment of necessary duties and taxes. The lender pays the seller on your behalf or may issue a cheque to give to the seller. Over several years (typically five though this can vary), the buyer then repays the lender with added interest.
Other financial instruments one can use to purchase a car is a personal loan – which may be secured against the car or unsecured; or a business loan such as a chattel mortgage or hire purchase. A chattel mortgage gives business customers the option to take possession of the vehicle immediately, finance the entire vehicle without a deposit, claim back GST, depreciation, and interest, and amortise extras such as registration. This is reserved for customers with an ABN who intend to use the car for 50% or more business use. Note these business products are not regulated by the National Consumer Credit Protection Act.
Finding a suitable car loan is part of the overall process of buying a car, and the team at Savvy can help you navigate the entire journey from beginning to end.
How to get a best car loan?
Getting the best car loan depends on your financial situation, your intended purchase, and your willingness to shop around. Firstly, if your credit is good and you have a large deposit to put into your car, this can work in your favour. Showing you’re a good borrower can often help you secure lower than average interest rates.
The second factor to help you get the best car loan is shopping around. You can figure out a good deal on a car loan by comparing several attributes of a loan which can include:
- The loan amount (how much you intend to borrow)
- The length of the loan (known as a term)
- If the loan is secured (tied to the vehicle) or unsecured
- Fixed vs variable rates
- Fees such as early repayment fees or account keeping fees
- Balloon payment options, redraw facilities, and other features
- If your lender requires comprehensive insurance – this is much like a “fee”
The type of car you wish to buy also has an impact on how much your loan will set you back. Buying a newer or certified used vehicle will result in lower interest rates as your car has higher residual value. Lenders are more hesitant to finance a used vehicle with hundreds of thousands of kilometres on the clock. As for shopping around, there are several traps to look out for. For example, a lower interest rate on a car loan may look favourable; however, if the loan term is longer, you might be paying more in interest. A balloon payment option lowers your overall monthly repayment, but a large lump sum is due at the end of the loan term. A broker such as the team at Savvy can help you with finding loans, as we’re linked with 25 of Australia’s best lenders.
What is an average interest rate on a car loan?
An “average” interest rate on a car loan is hard to determine due to many different factors. First, there are two types of loans that lenders use to market their loans. These are the bare interest rate or a comparison rate. A comparison rate is the interest rate with most the associated fees and charges you’ll pay over the loan term expressed as a number. Second, the loan term can affect the amount of interest you’ll pay proportional to the principal. An 8% p.a. loan over 7 years may cost you more in interest than a 10% p.a. loan over 5 years.
Car loan rates are also raised or lowered according to the official cash rate by the Reserve Bank of Australia. The increase or decrease is done at the discretion of the lender. Fixed rates will lock in a rate for a certain period, while variable rates may fluctuate up or down depending on the credit market. For more information, talk to a Savvy team member. There’s no obligation to apply.
How does Savvy compare car loans for you?
Savvy is a car loan broker service that has helped hundreds of Australians find lower rates and better deals on car loans since 2010. As a broker, we’re connected to 25 of Australia’s leading and most trusted lenders. Our team members take on your application and use our secure technology to compare rates with these lenders. Since we do a lot of business with these banks and lenders, they are all in competition to win your business. This drives them to give the borrower the best rate and package possible, which we then present to you as options. We take care of all the shopping around for you so you can save more on your car loan. This is how we keep striving for 100% customer satisfaction, every day.
How to keep safe and take advantage of the car market amid COVID-19?
Though living under COVID-19 restrictions has its many challenges, the upside for car buyers is that it is a buyer’s market. Sales for August 2020 represented a 28.8% drop over the same time last year. Coupled with record low interest rates as set by the Reserve Bank, financing a car at a great rate and negotiating reasonable price can be done – but also remember closures have forced many manufacturing plants to reduce output, which does not mean supply outweighs demand, as represented above, demand has also dropped which can result in dealers offering great prices at the moment.
Can I get finance if I am receiving Jobkeeper payments?
Yes, you can get a car loan if you are receiving jobkeeper. Most lenders will accept jobkeeper so long as you are currently at work not stood down.
If you are part time or casual lender will use the lower of your regular hours (prior to jobkeeper) or jobkeeper payment – whichever is the lower figure.
Should I buy a car sight-unseen?
Thanks to modern technology, you don’t have to buy a car on hope alone – you can request FaceTime, Zoom meetings, or Skype sessions to conduct a “virtual” inspection of the car. Logbook and other information can also be sent electronically. In some places, you can arrange for a trade-in evaluation or test drive conducted at your home. You should always follow government guidelines when it comes to help stopping the spread of COVID-19:
- Wash your hands or sanitise regularly
- Wear a face mask and gloves
- Ask for your dealer’s COVIDSafe plan
- Observe social distancing guidelines
- Sanitise touchpoints such as the steering wheel, transmission shifter, door handles, turn signals, console, and infotainment centre before and after you drive.
If you are still unsure, you can arrange for a third-party inspection such as RedBook Inspect.