5-Year Car Loans

Drive your dream car and a hard bargain with flexible 5 year car loans – apply online, save time and money with Savvy.

No obligation. It won't affect your credit score.

Last updated on April 19th, 2022 at 02:45 pm by Thomas Perrotta

Compare and apply for a 5 year car loan

Choosing the right term over which to repay your car loan is one of the most important factors that can shape your finance experience. That’s why so many Australians choose five-year terms: it strikes the perfect balance of keeping repayments affordable while not dragging them out for too long.

With all of the best offers on the market located in one place, you can’t go wrong with an application through Savvy. We’re partnered with over 25 lenders across the country to give you the most choice for selecting your loan and more options to compare for the lowest rates and best features. Get started with your application now and drive away in no time.

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The features and benefits of a 5-year car loan

Low rates from 3.99% p.a. (4.36% p.a. comparison)

With a wealth of lenders at our disposal, you can fix your interest at the lowest rate available for your situation and enjoy stability across the loan.

Select your repayment frequency

On top of choosing your term, you also get to decide whether to make monthly, fortnightly or weekly contributions towards your loan sum.

Enjoy cheaper repayments

Stretching your loan out to five years means that your repayments will be cheaper than if you opted for a shorter term, like three years.

Pay faster than five years at no extra cost

You’ll be able to save a significant amount in interest and fees by paying above the minimum when you compare lenders with no charges for early repayments.

Access up to 100% financing

You can borrow any amount from $5,000 up to the sale value of your car, with other on-road costs like stamp duty and rego able to be covered also.

Optional deposits or balloons

You can also further reduce your payments by adding a deposit or balloon (for business purchases) to your loan, which also help you save on interest.

Why you should choose your car loan with Savvy

Top tips to reduce your 5 car loan repayments

Have a good credit score (or improve it)

Before you apply for any type of credit, it’s a great idea to check your credit score. Lenders view your credit report as a way to figure out what kind of borrower you are and the more favourable the result, the lower the rate you’ll be offered. You can make strides towards improving it by paying off outstanding debts and lowering the limits on any existing cards.

You can check your report once a year for free, but your Savvy consultant will also review this as part of your application process. 

Use a deposit

It’s worth remembering that if you do have savings, using a deposit can be worthwhile, because the more deposit you put down, the lower your monthly repayments.  Deposits for car loans aren’t compulsory, however. 

Invest in a newer or brand-new car

Newer vehicles attract lower interest rates than cars with more kilometres on the odometer. That’s because you’ll be using the vehicle as security against your borrowing and lenders view older cars as more of a risk, so the interest rate automatically rises with age. While older used vehicles are cheaper at the point of purchase, their rates are usually higher. 

Show job stability

Remaining in the same job for an extended period, whether that be full-time, part-time or casual, with consistent income is typically rewarded by lenders with a lower interest rate. This is because they look for security when it comes to sources of income that are unlikely to run dry and leave you without the means to complete your loan payments. It’s advisable to avoid any job changes in the lead-up to applying if you want to access the lowest rates.

Compare your options with Savvy

One of the best ways to ensure you get a car loan with all the features you want at the cheap rate you prefer to pay is to talk to one of Savvy’s expert car finance consultants. We’ll search high and low amongst our extensive panel of over 25 lenders across the country to find the products that best match your borrowing profile and needs. 

Car loan repayments calculator

Your estimated repayments

$98.62

Total interest paid: $1233.43
Total amount to pay: $5,143.99

Your frequently asked questions about car loans

How old can my chosen car be?

Savvy works with loan providers who consider applications for cars anything up to 25 years old at the conclusion of your loan. For a 5-year car loan, this would mean the maximum age at purchase would be 20 years old. However, you can exceed this age limit by opting for either an unsecured car loan or classic car loan if your car is a vintage model.

Will I be able to get a five-year loan term if I have bad credit?

Yes – we work with specialist lenders who work with bad credit customers and enable them to take out financing for their car. These come with further restrictions based around the amount they can borrow and are charged higher interest rates and fees due to their increased risk. However, they can be approved for a loan term up to five years in the right circumstances (such as evidence of improved rating and stable, consistent income).

What are my 5-year car loan options if I’m buying for my business?

If you want to buy a car for business purposes, you can take out a chattel mortgage or hire purchase agreement and repay those over five-year terms. Alternatively, car leases usually stretch up to a maximum of five years, so you can also choose this option if you don’t want to commit to the purchase of your business vehicle.

How quickly will my car loan be approved?

If your application runs smoothly and there aren’t any major bumps in the road (such as not having the required documents), you can have your car loan application approved in as little as 48 hours. This means that from the moment you submit your quick quote, you could be driving your car in just two days.

Some of the things that you can do to speed up the process include submitting all of your correct documents promptly and applying earlier in the day or week.

Should I seek pre-approval for car financing?

Pre-approval can be highly beneficial for you when it comes to purchasing your car. Firstly, it gives you a concrete figure to work within when researching cars to buy. What it also does is provide you with a strong hand at the negotiating table, as sellers will know that you can’t afford to buy a vehicle above your pre-approval price. This can save you money overall.

What is a comparison rate and why is it important?

The comparison rate on your car loan is a figure that incorporates both your interest rate and primary fees, such as your establishment and ongoing monthly costs. The comparison rate is designed to provide you with a more accurate indication of what your loan is likely to cost, not including conditional fees like early and late payment charges. As such, it’s arguably more important to look to this rate than the interest rate on its own, as it doesn’t tell the full story.