Car Loans Sydney

Finance your vehicle in NSW the right way by applying for a car loan through Savvy.

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on May 22nd, 2024       

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Whether you're in Sydney, Wollongong or Byron Bay, if you’re looking for a car loan in New South Wales, Savvy’s got you covered. With our extensive lender panel and experienced loan consultants, we can find the best car loans for your needs, and out 100% online application process means you can apply wherever you are. Get started with a quick quote from Savvy today!

How do I qualify for a car loan in Sydney?

To qualify for a car loan in Sydney or anywhere else in Australia, you will need to meet certain criteria set by lenders. These are some of the key requirements:

  • Age: you must be at least 18 years old to apply for a car loan.
  • Residency: you must be an Australian citizen or permanent resident – though in some cases, a temporary visa may also be considered).
  • Income and employment: you must have the financial means to repay the loan. Depending on the lender, this may include employment income, self-employment income, government benefits or other sources of regular income.
  • Credit score: most lenders will have minimum credit score requirements that you need to meet.
  • Car: the car itself will generally need to be under a certain age and in good condition.

Such conditions are in place to protect both lender and borrower – the lender against risk of losing money and the borrower against taking out a car loan they will struggle to or be unable to pay back. However, note that exact requirements vary from lender to lender, so you may be eligible for a loan even if you have a bad credit rating or lower income. If you’re unsure about whether you qualify or what type of loan you could get, Savvy can search offers from dozens of lenders to help you find a deal that suits your circumstances and needs.

What are the costs involved in financing a car in Sydney?

The average car loan in Sydney costs $211.28 per week according to the Australian Automobile Association’s Transport Affordability Index report for Q1 2024. However, how much your loan will cost depends on a number of factors. These include:

Car value: more expensive cars will result in larger loan amounts and subsequently higher repayments.

Interest rate: rates vary depending on factors such as your credit score and loan term. A higher interest rate can increase the total cost of the loan significantly.

Loan term: longer loan terms typically result in lower monthly payments but may cost more in interest over the life of the loan.

Down payment: this can reduce the amount you need to borrow and lower your ongoing repayments.

Fees: various fees may be associated with financing a car in Sydney, including application fees and early repayment fees.

On top of your loan, it’s important to budget for the other costs involved in owning a car. For drivers in NSW, these include:

  • Stamp duty: this is calculated based on the vehicle’s value, calculated at $3 per $100, then for vehicles over $45,000 at a rate of $1,350 plus $5 per $100 of the vehicle's value over $45,000.
  • Registration: there is an annual registration fee of $70, then additional fees based on the weight of your car. Find out more here.
  • Green Slip: this is NSW’s version of Compulsory Third Party (CTP) insurance and prices can vary between providers. Find out more here.
  • Fuel: the average Sydney household spends $100.83 on fuel each week, according to the AAA.
  • Car insurance: if you have taken out a car loan, you will likely be required to take out comprehensive car insurance.
  • Tolls: there are several toll roads in NSW, particularly Sydney, that drivers must pay to use. Find out more here.
  • Maintenance and repairs: such as regular servicing, oil changes and unexpected repairs.

How do I choose the best car loan in Sydney?

When looking for a car loan in Sydney or anywhere else in NSW, it’s important to weigh up your options rather than settle for the first deal you find. If you can, take time to shop around and compare offers based on factors such as:

  • Interest rate: look for the most competitive rates available.
  • Fees and charges: assess the fees and charges associated with each loan, as these additional costs can impact the overall affordability of the loan.
  • Comparison rate: the comparison rate includes both the interest rate and any associated fees and provides a more accurate representation of the total cost of the loan.
  • Loan term: the length of the term can significantly impact the total cost of your car loan once interest is considered.

The examples below for a $30,000 vehicle can help give you a better understanding of how these elements can affect the cost of your loan:

Scenario #1: low interest Scenario #2: high interest Scenario #3: shorter loan term Scenario #4: longer loan term
Interest rate
Comparison rate
Loan term
4 years
4 years
2 years
7 years
Monthly payment
Total interest & fees paid

Ultimately, the best loan is one that suits your income, expenses and circumstances. Before applying for a loan, determine your budget, including how much you can afford for monthly repayments and any upfront costs such as a deposit or fees, to ensure you don't overstretch yourself. You can also seek advice from experts like Savvy, who can walk you through the process.

Why Sydney residents trust Savvy to help them find the best car loans

Calculate car loan repayments

Your estimated repayments


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

Disclaimer:  The results provided is an estimate only. Please read our Calculator Assumptions and Disclaimer for more information

The documents you’ll need when applying for car finance

Common car finance queries from Sydney borrowers

Does my car have to be purchased in Sydney?

No – your loan can be approved to purchase a car anywhere in Australia. It doesn’t matter where your car is located at the point of purchase; we can help your application be successful for cars sources locally or interstate.

How quickly will my car loan be approved?

Thanks to our advanced technology and dedicated consultants, your application can be completed from quick quote to having the funds sent to your seller in as few as 48 hours. While this may be affected by other aspects of your application, such as your borrowing history and whether you have the required documents, you can be sure you’ll be on the road in no time when you apply through Savvy.

What are my car loan options if I’m self-employed?

Self-employed workers in Sydney can apply for a standard, private-use car loan by supplying tax returns from the previous two financial years in place of payslips. However, if you can’t do this, you’re limited to commercial finance products, namely a low doc car loan. This allows you to instead submit documents like profit and loss statements, BAS and an income declaration, but your car must be used at least 50% of the time for business purposes.

Can I buy my car from a private seller?

Yes – our car loan deals aren’t just limited to cars bought from dealerships. Our lenders are open-minded when it comes to where you purchase your car from, so we can help you out with approval from whatever or wherever your seller is, including private sales.

Should I get pre-approved for my car loan?

Yes – there are a number of benefits to getting pre-approved for a car loan. This provides you a defined ceiling on the amount you’re able to borrow, giving you more power in the negotiation process with your dealer or seller. If they know you won’t be approved for a loan beyond $25,000, for instance, they won’t try to force your agreed price far beyond that.

What other costs will I have to budget for with my car loan?

Cars can also come with stamp duty, vehicle registration, insurance and extended warranties on top of your existing payments. Fortunately, you can speak to your Savvy consultant about extending your loan amount to cover these costs in addition to that of your car.

What happens with my loan if my car is written off under finance?

If you’re involved in an accident and your car is written off, you’ll be required to pay out the remainder of your loan. Your car will always be covered by a comprehensive insurance policy for this reason, so this will help ease the financial burden in many cases and prevent you from paying the full amount upfront.

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