7-Year Car Loan

A 7-year car loan might just be the right option for you. Get a quick quote with Savvy today and compare great offers from over 25 lenders Australia wide.

No obligation. It won't affect your credit score.
Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on July 4th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Compare 7-year car loans

The term of a car loan can range between one year to seven years. The various loan terms are designed to help applicants in different circumstances. Finding the right term for your loan can make it easier for you to manage your finances.

Lenders determine loan terms based on a car’s age. A car cannot be older than 15-20 years at the end of the loan term. Therefore, applying for a 7-year car loan, it is safest for you to purchase a car that is not older than 8 years. Your age might make a difference, as well. Lenders will determine your situation more carefully if you are heading towards retirement when you apply for a car loan.

Stretching a car loan out to seven years in length is one of the most effective methods to ensure that your monthly instalments are affordable. At Savvy, we’re partnered with a range of lenders who allow you to stretch your car loan’s term all the way up to seven years.

We’re dedicated to finding the best loan for your needs. Our diligent consultants will review the top offers on the market, only considering those that go up to seven years, to help you secure the cheapest and most suitable car finance. You can get the process started with a quick quote, which will only take a few minutes to fill out.

Car Loan Banner

The key features to look for on a 7-year car loan

Manageable instalments

Because of the length of your car loan, you’ll save month to month on repayments and potentially free up further funds to use for other purposes.

Borrowing up to your car’s value

You can be approved for a loan worth up to your car’s sale value, with other on-road costs such as registration and stamp duty also able to be included.

Lower interest rates

Because seven-year loans typically deal with larger loan sums than short-term deals, you can enjoy competitive rates tailored to your borrowing profile from trusted Australian lenders.

Quick funding in just 48 hours

Your car loan is able to be processed rapidly, with as few as 48 hours between submitting your quick quote and having the funds sent to your seller.

Pay out your loan early

Save money on your car loan by choosing one of our many lenders who offer free additional repayments and low or no early settlement fees.

Pay by your own schedule

As part of your loan, you get to decide whether to make contributions on a monthly, fortnightly or weekly basis towards your car financing deal.

Why choose Savvy for your car loan?

What are pros and cons of 7-year car loans?


Lower repayments

As seven-year loan terms are stretched out more than those of average car loans, your repayments will be lower.

Higher financed amount

Lenders calculate your affordability based on your expenses and income. A longer loan term will lower your repayments. These low repayments will also allow you to borrow more from the lender. 


Higher interest payable

The unfortunate reality is that the longer your loan term is, the more interest you'll pay. 


A car loan is ‘underwater' when the amount you owe to the lender is higher than your car's market value. You  need to be aware of the risk that you are taking on with a 7-year loan.

More pressure towards the end of the loan term

Cars often require higher repair and maintenance costs after a certain age. It is easy to overlook these expenses when applying for a 7-year car loan. If you do not take all the expenses into account, you may end up with a cost crunch in the last few years of your loan.

What are my options for paying off my loan early?

Frequently asked car loan questions

Can I take out a seven-year car loan without security?

Yes – unsecured car loans are essentially just personal loans, which enables you to bypass the age restrictions on your chosen vehicle and not put any assets forward for your financing.

They can also be processed far more quickly than car loans at just 24 hours from application to the funds being transferred to your account. However, borrowing for these loans is capped at $50,000 and rates are higher than their secured counterparts.

Are there any 7-year options for commercial finance products?

Yes – you can extend a car lease to seven years from five by refinancing the residual at its conclusion. Aside from this, though, leases, hire purchases and chattel mortgages generally only run up to a maximum of five years in length.

How else can I reduce my car loan interest rate?

Increasing your credit rating is one effective way of reducing your interest. You can do this by paying off existing debts and lowering limits on your credit cards (as well as getting rid of those which you don’t need). Also, selecting a new or near-new car is likely to improve your interest rate, while you’re at an advantage if you’ve successfully repaid a similar financing arrangement in the past.

How old can my car be?

Lenders determine loan terms based on a car’s age. A car cannot be older than 20 to 25 years at the end of your loan term. Therefore, when applying for a 7-year car loan, you’ll need to purchase a car whose age fits your lender’s parameters.

Your age might make a difference, too. Lenders will determine your situation more carefully if you are heading towards retirement when you apply for a car loan.

How else should I compare car loans?

When comparing the top car loan offers, you should be primarily be looking at the interest and comparison rates, the latter of which provides an indication of the combined interest and fees.

You should also consider whether each lender affords you the freedom to make free early repayments, redraw funds and set your own payment schedule.

Helpful guides on car loans

New cars Australia

Car Statistics Australia: Car Sales & Car Loans Report

As part of Savvy’s ongoing research into automotive consumer sentiment and broader financial landscape of Australians, we present the latest car finance statistics in Australia. Check back for new and...

Car Insurance Banner - Couple driving their vehicle on a short-term holiday with the sunset in the background.

Do I Need a Deposit for a Car Loan?

A car loan deposit is a lump sum contribution made towards the purchase of your vehicle, in conjunction with a loan from your car financier. While you don’t always need...

Car Loans Banner - Couple happily smiling and holding car keys after buying a new car

How to Avoid Paying Stamp Duty on a Car

Stamp duty is a crucial part of purchasing a car in Australia, but did you know there are certain situations where you may not have to pay it? You can...