Car loans

Low rate car loans from 4.69% p.a. (comparison rate 6.03% p.a.)* for up to $100,000 for new and used cars.

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Low Rate Personal Loans

Everything you want from a car loan and nothing you don’t

  • We reward your good credit history with even better rates ensuring the loan you end up with has been tailored for you in every way.
  • Flexible loan terms from 3, 5 or 7 years for loans between $10,000 and $100,000. Use funds to buy new, demo and used cars.
  • No early repayment fees or exit fees help you save more and pay off your loan faster. Because nobody has ever said ‘yes please’ to fees.

Getting a loan is as easy as 1, 2, 3, 4.

Get your personalised rate

Get your quote

Discover your personalised interest rate and repayments in 1 minute (without impacting your credit score) with our quick and easy online quote.

Apply for a personal loan

Apply in minutes

Finalise your application in 5 minutes, then complete our simple online identity verification and bank statement upload process.

Get your personal loan funds

Settle your loan

After receiving your pre-approval and arranging your car purchase, complete our simple online self-service settlement process.

Enjoy your car

After your loan settlement has been processed and you accept your loan, your funds will be transferred same day (if accepted before 2pm).

You’ve got questions we’ve got answers.

What is a car loan?

A car loan offers you a flexible way to acquire or upgrade a motor vehicle, whether that’s a car, a ute, a motorcycle, or an alternative form of transport.

Ordinarily, a car loan is a secured loan: that is, the car you intend to purchase is used as collateral for the loan. This means that if you fail to meet your repayment obligations, the lender could repossess and sell the vehicle to cover their losses. If you apply successfully for a secured loan, you may need to take a number of additional steps, such as:

  • Informing the loan provider of your new vehicles chassis number, vehicle identification number (VIN), registration number, make, model, year, and colour
  • Providing the lender with a copy of the vehicle registration papers
  • Getting the vehicle inspected by an inspection agent (if a private sale)
  • Adding the lender to your vehicle insurance policy as an interested party

If you’re looking for a more flexible alternative, you should know that it’s also possible to use an unsecured personal loan to finance your vehicle (new or used). Indeed, this is a popular option among many RateSetter customers because it offers more flexibility and doesn’t require you to guarantee the loan with collateral, with an attractive interest rate. With an unsecured car loan, you have complete control over how you spend the loan amount so you can use it to purchase the vehicle and cover associated costs, such as insurance, registration, tyres, and maintenance.

An unsecured loan works like a personal loan: the lender finances the purchase of your vehicle and you, in return, commit to repaying the debt, with interest, at regular intervals over the lifetime of the loan.

All in all, car loans can be as straightforward as other personal loans and provide you with the flexibility you need to purchase a vehicle now and then pay for it in a way that suits your financial circumstances.

What can I use a car loan for?

You can use a car loan for a number of different purposes, including:

We’ll pay funds into your nominated bank account on the next business day following your loan acceptance. This gives you the flexibility to manage and pay for your car costs any way you like.

How much does a car loan cost?

If you’re considering a car loan, you may be unsure of how much it will cost. Most car loans comprise of three main factors that impact the total cost over the life of the loan:

  • the interest rate (this may be fixed or variable)
  • a one-time establishment fee
  • ongoing fees (such as account maintenance fees, late payment fees, and other charges)

These costs are often combined to create a comparison rate that represents the total price of a loan. This allows you to compare different loans to find the one that best suits your needs.

For an overview of fees and charges (including interest rates) associated with RateSetter’s car loans, see the table below:

Car Loan Rates, Fees & Charges
Term3 Year5 Year7 Year
Loan Type3 year car loan (fixed)5 year car loan (fixed)7 year car loan (fixed)
Interest Ratefrom 4.69% p.a.from 4.69% p.a.from 5.19% p.a.
Comparison Rate*from 6.50% p.a.from 6.03% p.a.from 6.31% p.a.
Credit Assistance Feefrom $499 from $499from $499
Monthly Fees$9$9$9
Early Repayment Fees$0$0$0

*Comparison rates for 3 year loans are based on an secured car loan of $30,000 over a 36 month term. Comparison rates for 5 year loans are based on an secured car loan of $30,000 over a 60 month term. Comparison rates for 7 year loans are based on an secured car loan of $30,000 over an 84 month term. Comparison rates shown assume a customer with an excellent credit history. Rates current as at 02/08/2019. Warning: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Am I eligible for a car loan?

Save time before applying by making sure: 

  • You are aged 21 or over
  • You are an Australian citizen or permanent resident
  • You have a regular source of income that you can demonstrate
  • You have a good credit history
  • You are on at least a provision driver licence or full driver licence
  • The car you wish to purchase is no older than 7 years

To see if you may qualify for a RateSetter car loan, you can get a quote, it only takes 1 minute and won’t affect your credit score. If you request a RateEstimate, we will ask you a few questions so we can calculate an initial estimate of your borrowing potential, and the rates, fees and charges that may apply to your loan.

In processing your loan application, we consider a number of factors, including your credit file as provided to us by Equifax or Illion, our credit bureau partners. If you would like more information regarding your credit file, you should contact Equifax and Illion directly.

What do I need to apply?

To apply for a RateSetter car loan, you will need to complete our identity verification process successfully. To complete identity verification you will need to provide one or more of the following documents:

To complete identity verification you will need to provide one or more of the following documents:

  • Australian State or Territory-issued drivers licence
  • Australian or foreign passport
  • Address verification document such as a utility bill or tenancy agreement

These details can either be entered on our website during the application process and automatically verified online or you can upload as part of the application process.

When assessing your application, we are looking for evidence of how suitable a loan is to your current circumstances. Among other things, we’ll assess your:

  • Employment stability;
  • Income;
  • Expenses;
  • Repayment history;
  • Credit bureau information; and
  • Other details you communicate to us.

You will also be asked to verify your income and expenses, and may be asked to provide supporting documentation such as bank statement information or payslips. The documents you will need to provide will be displayed to you during the application process.

*Car loan comparison rate based on a secured, 5 year, $30,000 loan for a new vehicle and a customer with an excellent credit history. Rates current as at 9pm, 18 November 2019. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.