Cheap Car Loans

Gain access to a range of car loans with cheap interest rates and fees when you apply for financing through Savvy.
No obligation. It won't affect your credit score.

Last updated on April 19th, 2022 at 02:16 pm by Thomas Perrotta

Compare Australia's cheapest car loans with Savvy

Buying a car under finance can be an expensive process when you go it alone, both in terms of the purchase of the vehicle itself and the time you dedicate towards finding the right deal. It can be very easy to miss key deals when there’s such a mountain of cheap car finance products on the market, which is where Savvy can help you out.

When you apply with us, we do the heavy lifting for you: finding the most suitable and affordable deals for your profile based on our nationwide panel of lenders. Our smart technology and car loan consultants sift through a sea of offers to find cheap car loan rates and deals for our customers every day, saving you valuable money in the process. Get started with your application now by taking out a quick quote and reap the rewards of low-cost financing.

Car Loan Banner

The features and benefits of a cheap car loan through Savvy

Interest from 3.99% p.a. (4.36% p.a. comparison)

We’re partnered with a diverse set of competitive financiers whose car loan interest starts at basement levels, allowing you to secure cheap car finance rates from the beginning.

Waivable fees

Even ongoing and establishment fees may apply to your loan, up to $20 and $600 respectively, many of our lenders are willing to reduce or waive these in certain circumstances.

Optional deposits available

You can pay a lump sum at the beginning of your car loan to help offset your loan amount and reduce the payable interest on your deal overall.

Pay your loan out early

Our flexible lenders also offer many borrowers the opportunity to make extra repayments free of charge, which can go a long way towards reducing your loan debt.

Choose your loan term

You’ll have a say in what your personal loan repayments cost based on the length of your term, with loans available over as little as one year all the way up to seven.

Buy new or used

You can secure a cheap car loan deal for your car regardless of whether it’s new or used or whether you’re buying from a dealership or a private seller.

Secured financing

Because your car loan is secured by the purchase of the vehicle itself, you can enjoy a lower interest rate than other similar types of finance (such as personal loans).

Purchase for your business

You can also make use of commercial finance products such as chattel mortgages, car leases and hire purchases to enjoy various tax benefits.

Why so many Australians find cheap car loans with Savvy

How to save money on your car loan

Hold a strong credit score

One of the most effective ways of reducing the cost of your car loan is by entering the process with a strong credit rating. This indicates to your lender that you’re reliable and trustworthy when it comes to taking on and repaying debts, whether they be for loans or standard household bills.

Customers with high scores are typically exposed to the lowest interest rates, which can save them thousands of dollars overall. You can improve your score by lowering limits on your credit cards and paying off outstanding debts.

Have a similar loan repaid previously

Lenders won’t look solely at your credit score, though; how you’ve built that score is also of importance to them. Having successfully repaid a similar car or personal loan within the past few years will instantly increase a lender’s confidence in you as a borrower and lower your interest rate overall.

This is because taking on a large debt and consistently repaying it requires discipline, so your financier will want to know whether you’ve proven yourself able in the past or have simply built up a score over time from paying bills and credit card debts.

Repay ahead of schedule

Making additional payments above the minimum is a simple way for you to potentially save hundreds of dollars on your car loan. The way that interest is calculated is based on your outstanding loan amount at any given time, meaning that a steeper decline in your principal will result in a faster drop in interest.

For example, paying an extra $100 each month on your $50,000, five-year car loan at 4% p.a. could save you $570 in interest overall and shorten your term by six months.

Make a deposit

A deposit is a lump sum paid at the beginning of your car loan, which takes a portion out of the required loan sum. This is essentially a contribution towards your loan without any interest payable, saving you money in that respect.

However, where it’s perhaps the most important is in reducing repayments. Many borrowers are motivated to supply a deposit because it means that they’ll save month to month, giving them more disposable income to work with.

Keep your options open

Finally, it’s important to know that signing onto your car loan doesn’t mean that you’re locked in for good. You should always keep an eye out for great car loan deals even when you’re midway through repaying your current one.

This may be to access a lower rate, which could’ve come about thanks to the improved credit score through your loan payments, or to extend your loan and give you more time and lower repayments each month.

Frequently asked questions about cheap car loans

Will buying a used car help me get a cheap car loan?

In a sense, yes – because used cars are cheaper than brand-new models, electing to buy one with finance means that the loan you’ll need to take out is smaller than what it otherwise would’ve been. However, new cars usually come with the lowest interest rates, albeit not significantly lower than the average used car.

Can I use a balloon payment at the end of my car loan to make it cheaper?

Probably not – residual, or balloon, payments are generally reserved for commercial finance products. While they’re mostly optional and flexible when it comes to chattel mortgages, you’re required to have a residual set at the conclusion of any car lease.

What this is worth is set by the ATO and depends on the length of your lease. You’ll generally have the option to pay the residual to buy the car, sell or trade in the car to cover the lease and take out a new one or refinance it to continue leasing the same car.

Are cheap car loans still available to bad credit borrowers?

Not really – a bad credit score in car loan terms means that you’ll be charged a steep interest rate on your loan, with the likely addition of fees also. However, we can connect you to specialist lenders who work with customers who’ve had troubles with credit in the past to help you get approved for a car loan in no time at all.

Will my interest rate be fixed or variable?

All car loans come with fixed interest rates, which have several key advantages. Firstly, because your rate remains the same across your loan, you can benefit from more accurate budgeting around your loan repayments each month. Fixed interest in itself is also set at a lower base rate than variable interest and protects you from any potential rises that may occur during your repayment term, which can save you a meaningful amount of money.

What are the other costs I have to account for when buying a car?

Aside from interest and fees, there are several costs that you’ll need to be aware of when buying your car. Stamp duty, vehicle registration and comprehensive car insurance are three of the big ones, which you can arrange to be included in your loan amount.

You’ll also need to think about other basic costs such as general maintenance and petrol, which will be ongoing throughout your time using the car.

Is it cheaper to access 0% finance from my dealership?

Most often, no – 0% dealership finance isn’t as cheap as it may appear. While the offer may indeed be for 0% p.a. interest, dealerships can often inflate the cost price of your vehicle and raise the applicable fees to make up for the lack of interest, which can work out to be more expensive overall.

On top of this, the 0% p.a. interest period is usually only in place for a short period (12 months or so) before reverting to a standard or more expensive rate.