 With interest rates climbing, it’s understandable that you’d be looking to secure the best car loan that you can. Interest rates have seen a steady rise across the board, and that’s making it a little trickier to buy that dream car. Show
If you are in the market for a car, the good news is that the rise in car loan interest rates has been fairly gradual. The average rates in the Mozo database are now 6.47% for a new car loan and 7.22% for a used car loan. Rates starting with a ‘3’ are all but extinct, the few exceptions limited to variable rates on green car loans. But with so much competition around, how can you narrow down your choices to find a great car loan match? Features like a low interest rate, low fees and payment flexibility might tick a lot of boxes, but there’s no simple answer when it comes to finding the best car loan - that will come down to your own needs and financial situation. Below we have rounded up a range of different loan options. These include some of the best car loan winners from our 2022 Mozo Experts Choice Awards^, plus winners from our 2022 Mozo People’s Choice Awards for Banking and a few of the car loans which have recently caught the eyes of the Mozo editors. Best car loans for September 2022
Expert recommendations: Mozo Experts Choice Award-winning best car loansThroughout last year our team of in-house experts assess a range of banking and financial products as part of the Mozo Experts Choice Awards^, including car loans. For the 2022 Mozo Experts Choice Personal Loan Awards our judges analysed 338 personal loan products from 82 Australian financial institutions based on data in Mozo’s product database, naming winners in categories such as best New Car Loan, best Used Car Loan and best Green Car Loan. Here are some of those award winners: Best Used Car LoanOurMoneyMarket - Car Loan
Online lender OurMoneyMarket’s Car Loan impressed our judges enough to be named a best Used Car Loan winner in the 2022 Mozo Experts Choice Awards^. Borrowers will be able to access fixed rates from 6.25% p.a. (6.87% p.a. comparison rate*) depending on their credit history, and they won’t need to worry about forking out any monthly service fee. There is an application fee that can vary from $250 to 1.5% of the loan size. Loans can be taken out over a 1-7 year period with a borrowing range of $2,001 and $75,000, and OurMoneyMarket customers can make extra repayments towards their loan. Heritage Bank - Car Loan
Find out more Heritage Bank’s Car Loan was named by our judges as a 2022 Mozo Experts Choice Award^ winner for best Used Car Loan - and with a competitive fixed interest rate of just 5.39% p.a. (6.03% p.a. comparison rate*), it’s not hard to see why. With amounts from $5,000 - $100,000 available, the loan could be used to fund vehicle purchases big and small, and loans can be taken out over 1-7 years. Borrowers will also be able to make extra repayments towards their balance to pay it off faster. The loan does come with a $200 application fee and $5 monthly service fee, but it was judged as one of the best value loans in our database even with those costs. Best Green Car LoanBest Excellent Credit Used Car LoanWisr - Secured Car Loan
Find out more One of just two winners in our Excellent Credit Used Car Loan^ category, the Secured Car Loan from Wisr features fixed rates starting from 7.09% p.a. (7.93% p.a. comparison rate*) for borrowers with a top-notch credit history. Car buyers can borrow $5,000 to $79,000 with loan terms of 3, 5 and 7 years. One of the benefits of the loan is that there’s no ongoing service fee to add to your costs, though the upfront establishment fee is $605 for refinance and dealer sale, or $655 for private sale. Wisr also offers its Secured Car Loan customers the flexibility to make their repayments on a weekly, fortnightly or monthly basis, and extra repayments can also be made. Customer Favourites: Best car loans from Mozo People’s Choice Award winnersFor the Mozo People's Choice Awards, we ask everyday Australians about their own banks, energy providers and insurance companies in order to help reveal the country’s favourite financial and household service providers. Participants are asked to rate their providers on everything from trust, satisfaction, customer service and whether or not they’d recommend them to friends or family. Take a look at some of the 2022 winners for Banking and the car loan options they have on offer: Bendigo Bank Secured Personal Loan
Find out more Bendigo Bank was named a three-time winner in our 2022 Mozo People’s Choice Awards, taking out wins in the Outstanding Customer Satisfaction, Excellent Customer Service and Highly Trusted categories. This loan comes with a fixed rate of 7.79% (8.51% comparison rate*), with eligible car buyers able to borrow amounts from $2,000 and up over terms of 1-7 years. There is a $250 application fee to budget for, as well as a $5 monthly service fee. You can select your repayment schedule, as this loan offers weekly, fortnightly or monthly instalments. Bendigo Bank also gives customers the option of making extra loan repayments, and there’s even a redraw facility available. Heritage Bank Car Loan
Find out more Heritage is popular with its customers, winning 2022 Mozo People’s Choice Awards for Excellent Customer Service and Highly Trusted. Heritage Car Loan may also prove a hit with new car buyers, as it offers a competitive fixed rate of 5.39% p.a. (6.03% p.a. comparison rate*) for a $5,000-$100,000 loan with terms between 1-7 years. There is a $200 application fee and a $5 service fee, though. Extra repayments and redraws are both available, and borrowers can choose between weekly, fortnightly or monthly payments. Editor’s pick of the month: best car loan deals on Mozo in AugustIf you’re interested in comparing even more options, our editors have wrapped up a selection of car loan deals from our partners which really stood out to them. Of course, you can also expand your search further on our car loan comparison hub where you’ll be able to browse through the 180+ car loans being tracked in the Mozo database. Special home owner ratesSpecial member offerUsed Car Loan (Fixed, Secured)
For members with NRMA, this second-hand car loan might be worth a look. Fixed rates from 7.99% p.a. (8.60% p.a. comparison rate*) are determined using risk-based pricing, and can be even more appealing to NRMA members, who can receive 1% p.a. off the applicable interest rate. Loans start at $5,000 and loan terms can be between 1-7 years. There is a $499 application fee to keep in mind. There is also a $325 early repayment fee (no fee payable in the last 6 months of the loan term) to consider if you were thinking of paying off your loan early. Most common FAQs about car loansWhat kind of car loan can I get?When comparing loans you’ll notice that there are different types of car loans available based on the type of car you’re buying and how you want to secure the loan. These distinctions are important - not only so you can identify the type of loan that’s right for your situation, but because they can impact the interest rate you receive.
When searching for a loan it can help to identify the car loan features which will help you best achieve your goals. Aside from actually buying a vehicle, these could include making sure that your loan costs are as low as possible, or paying off your loan as quickly as you can. To do that, you may want to find a loan that offers:
The best type of interest rate to opt for with a car loan will depend on your own needs. For instance, if you want to know exactly how much you’ll need to make in terms of loan repayments then a fixed rate may be a good choice. Otherwise if you’re happy to be more flexible and make the most of any interest rate drops that come about, a variable rate may be what you’re after. Of course, interest rates can always jump higher too. Which bank has the best car loan rates?Because of the fluctuating nature of interest rates it’s difficult to highlight any one loan which has the lowest (or ‘best’) interest rate. After all, lenders can change their interest rates at any time, so a rate that’s competitive one week may not be the next. And not every borrower will have access to some of the lowest rates on offer. For example, many lenders offer personalised rates based on a customers’ credit history, which is why you may see an interest rate range, rather than a single rate, next to a car loan. Can I refinance my car loan to a better rate?Yes, in many situations you will be able to refinance your car loan to another lender. However, you’ll have to weigh up whether it’s worthwhile. While you may be able to reduce your repayments by switching to a loan with a lower rate, you’ll need to factor in the costs of switching, including any exit or break fees with your existing lender or application fees with your new lender. If you are interested in making the switch, check out our dedicated refinance car loan comparison table to compare offers. How can I get the best deal on a car loan?There’s no single best car loan deal out there - it’s all about what you want as a borrower. That’s why taking the time to figure out which type of loan you need, the features you want, and then comparing a range of options can be a good way of finding the ‘best’ loan for you. As the team at ASIC’s Moneysmart says, “Most people shop around before they choose a car. You should also shop around before you choose a car loan. It can save you thousands in interest and help you pay off your car faster.” Comparing award-winning car loans - like the ones we’ve laid out above - could be one place to find a great value loan, otherwise if you’re ready to cast your eyes over even more offers then why not head on over to the Mozo car loan comparison hub where you can compare over 180 different car loans. Are these car loans best for me?We have provided some of our editor’s picks and information about products which have got Mozo’s tick of approval through the Mozo Experts Choice and Mozo People’s Choice Awards. At the end of the day though, you will need to consider your own priorities and financial needs in order to identify which options are best for you. Be sure to read the information provided on a product issuer’s website before making a decision. * WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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. ^See information about the Mozo Experts Choice Personal Loan Awards Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice. While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo. What is the easiest dealership to get financed by?1. Auto Credit Express. More than 1,200 U.S. auto dealers partner with Auto Credit Express to find car loan options for applicants who have bad credit. And since Auto Credit Express is a lending marketplace, it shops your single application to several partner lenders to find the best deal for you.
What is the easiest car to get with bad credit?20 Best Cars to Own If You Don't Have Great Credit. 2019 Hyundai Elantra SE. ... . 2019 Mitsubishi Mirage G4 ES. ... . 2019 Nissan Versa Sedan S Plus. ... . 2019 Ford Fiesta S. ... . 2019 Hyundai Accent SE. ... . 2019 Mitsubishi Mirage ES. ... . 2019 Chevrolet Spark. ... . 2019 Nissan Versa Sedan S. Monthly payment for good credit: $202.. What is the easiest way to get a car loan?How to Get a Car Loan. Check your credit report.. Apply for auto loans from multiple lenders.. Get preapproved for an auto loan.. Use your loan offer to set your budget.. Find your car.. Review the dealer's loan offer.. Choose and finalize your loan.. Make payments on time.. What is the lowest amount a dealership will finance?Generally, most lenders adhere to a minimum amount for auto financing of $5,000 if you're taking out a bad credit car loan. However, this doesn't mean the car you're buying has to be that expensive – just that the loan amount has to reach the threshold.
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