Australian Car Loan Calculator
Calculate your car loan repayments with Australia’s most comprehensive car finance calculator.
Compare scenarios, get smart insights, and understand your car loan in detail with 3 simple steps.
Enter Your Loan Details
Enter your car price, deposit amount, loan term, and interest rate. Our calculator will automatically compute your repayments based on these inputs and show you how much you'll pay over the life of your loan.
Review Your Repayment Options
See your monthly, fortnightly, or weekly repayment amounts. Compare different loan scenarios by adjusting the term length or deposit to find the most affordable option that fits your budget.
Analyze Total Loan Costs
View a complete breakdown of your car loan including total interest payable, total amount to repay, and how your payments are distributed over time with our interactive chart and amortization schedule.
Car Loan Calculator
Calculate your auto finance
5Advanced Options
Reduces monthly payments but requires lump sum at end.
Monthly Repayment
$590
over 60 payments
Summary
Your Car Loan Summary
Cost Breakdown
Australian Car Loan Rates (Dec 2025)
New cars: 5.5% - 9% | Used cars: 7% - 12% | Dealer finance: 8% - 15%. Banks and credit unions typically offer the best rates for borrowers with good credit.
Loan Balance Over Time
See how your loan balance decreases year by year.
Year-by-Year Summary
Compare Loan Terms
See how different terms affect your total cost.
New vs Used Car Financing
New cars: Lower rates, longer terms available (up to 7 years). Used cars: Higher rates (+1-2%), shorter max terms, consider age + term ≤ 10 years for best rates.
Smart Car Loan Insights
Personalized advice for your car financing.
Effective Rate
7.5%
LTV Ratio
85.7%
$/Day Interest
$6.16
Interest %
18%
Recommendations
General information only. Compare rates from banks, credit unions, and dealers.
Disclaimer: This calculator provides estimates only and does not constitute financial advice. Actual loan terms and rates will vary by lender. Always compare multiple offers before committing.
New Car vs Used Car Loans: What's the Difference?
| Feature | New Car Loan | Used Car Loan |
|---|---|---|
| Interest Rates | 5.99% - 8.50% p.a. | 6.49% - 10.50% p.a. |
| Loan Terms | Up to 7 years | Up to 7 years (5 years common) |
| Deposit Required | 10-20% (sometimes 0%) | 20% typical minimum |
| Maximum LVR | Up to 100% | 80-90% typical |
| Vehicle Age Limits | Brand new only | Usually max 10-12 years at loan end |
| Balloon Payments | Often available | Less common, smaller amounts |
| Approval Speed | 1-3 business days | 1-5 business days |
| Documentation | Purchase contract, ID | Purchase contract, vehicle inspection, PPSR check |
Australian Car Loan Data
Overview for Australian Car Loan Market(2024 Data)
Highest Avg. Loan
$0
State
Lowest Avg. Rate
0%
State
Busiest Market
0
State
Total Financed
$0B
Across Australia
National Avg. Term
0
Months
State-by-State Comparison
Market Overview: Loan Amount vs. Rate
Bubble size represents the total number of new loans in the market.
Market Composition
National New vs. Used Car Loans
Data Overview
| State | Avg. Loan | Avg. Rate | Avg. Term | Total Loans |
|---|
Money-Saving Car Loan Tips
Expert strategies to save thousands on your car finance
Before You Apply
Improve Your Credit Score First
Raising your score from 650 to 750+ can reduce your rate by 1-2%, saving $1,500-3,000 on a $30,000 loan. Pay bills on time, reduce credit card limits, fix errors on credit report.
Before You Apply
Save a Bigger Deposit
Every extra $1,000 deposit saves ~$150-200 in interest over 5 years. Target 20% deposit for best rates and to avoid any additional fees.
Before You Apply
Choose Shorter Loan Terms
5 years vs 7 years on $30,000 at 7.5% saves $3,242 in interest. Monthly payment is $140 higher but you're debt-free 2 years sooner.
Before You Apply
Get Pre-Approved with Multiple Lenders
Apply to 3-5 lenders within 14 days (counts as single credit inquiry). Compare actual approved rates, not advertised rates which you may not qualify for.
During Purchase
Negotiate Purchase Price, Not Payments
Dealers extend terms to lower monthly payments while increasing total cost. Negotiate the car's price first, then arrange finance separately.
During Purchase
Avoid Dealer Finance Unless Rate Matched
Dealer finance often 1-3% higher than bank rates. Only use if dealer matches or beats your pre-approved rate. Dealers earn commission on finance.
During Purchase
Say No to Add-Ons
Extended warranties, paint protection, gap insurance = high-profit items for dealers. Cost $3,000-8,000 financed. Buy separately if needed (much cheaper).
During Purchase
Avoid Balloon Payments
Lower monthly payments but you owe large lump sum at end (30-50% of car value). Most people refinance = more interest. Only use if you'll sell the car.
After Approval
Make Extra Repayments
Extra $50/week on $30,000 loan saves $1,847 interest and finishes 16 months early. Even $20/week helps significantly. Check loan allows this without penalties.
After Approval
Pay Fortnightly Instead of Monthly
52 weeks ÷ 2 = 26 payments yearly = 13 monthly payments instead of 12. Shaves months off loan and saves hundreds in interest with no budget impact.
After Approval
Refinance If Rates Drop
If rates drop 1%+, refinancing can save thousands. Compare current rate to market every 12-18 months. Refinancing costs $300-600 but can save $2,000-4,000.
After Approval
Round Up Repayments
$566/month → pay $600 or even $650. Small increases compound significantly. $50 extra monthly saves ~$850 in interest and cuts 9 months off 5-year loan.
Car Loan Policy News & Updates
The latest developments in Australian car finance regulations, consumer protections, and lending policies.
ASIC Drives Car Finance Providers to Improve Consumer Outcomes
ASIC's review of Australia's motor vehicle finance sector has exposed significant issues with loan establishment fees up to $9,000 and nearly half of consumers defaulting within 6 months of taking out car finance.
Key Findings
- High Fees: Loan establishment fees as high as $9,000 on loans of $49,000
- Early Defaults: Almost half of consumers who defaulted did so within 6 months
- Repossession Impact: 90% of repossessed vehicles had owners still owing more than half their loan
- Lenders Reviewed: 8 major lenders including Toyota Finance, Nissan Financial Services, Pepper, Plenti
ASIC Recommendations
Better training and oversight of finance distribution channels, stronger product review frameworks, and improved hardship communication.
Action for Consumers
Compare loan establishment fees before signing. Free resources available at moneysmart.gov.au/loans/car-loans.
Federal Court Rules in Money3 Responsible Lending Case
The Federal Court delivered judgment in ASIC's proceedings against Money3 Loans, finding limited contraventions of responsible lending laws when providing car finance to borrowers reliant on Centrelink payments.
Key Details
- Contraventions Found: Money3 failed to make reasonable inquiries about borrower living expenses based on bank statement data
- Claims Rejected: Court rejected ASIC's claims that Money3 entered borrowers into unsuitable loans
- Vulnerable Consumers: Case focused on borrowers largely or solely reliant on Centrelink payments
- ASIC Priority: Used car finance sold to vulnerable consumers remains an enforcement priority for 2025
What This Means
Lenders must still verify borrower expenses. ASIC continues to prioritise protecting vulnerable consumers from unsuitable car loans.
Get Help
If you have an unsuitable loan, contact AFCA at http://www.afca.org.au or National Debt Helpline: 1800 007 007.
Luxury Car Tax: Fuel-Efficient Definition Tightened to 3.5L/100km
From 1 July 2025, the definition of a "fuel-efficient vehicle" for LCT purposes has changed from 7L/100km to 3.5L/100km, meaning many hybrids and efficient petrol vehicles will now pay higher LCT.
Key Changes
- New Definition: Fuel-efficient vehicles must now consume ≤3.5L/100km (was 7L/100km)
- Fuel-Efficient Threshold: $91,387 (unchanged from 2024-25)
- Other Vehicles Threshold: $80,567 (unchanged from 2024-25)
- LCT Rate: 33% on amount above threshold
- Impact: Many hybrids now fall into "other vehicles" category with lower threshold
Who Qualifies
Only EVs and plug-in hybrids typically qualify for the $91,387 threshold. Most petrol/diesel hybrids now face the $80,567 limit.
Impact on Car Loans
LCT increases total vehicle cost, affecting loan amounts. Check if your chosen vehicle triggers LCT before financing.
Car Depreciation Limit for 2025-26: $69,674
The car limit for calculating depreciation deductions remains at $69,674 for the 2025-26 financial year. This is the maximum cost you can use when working out depreciation on a business vehicle.
Key Details
- Car Limit 2025-26: $69,674 (same as 2024-25)
- Maximum GST Credit: $6,334 (1/11 × $69,674)
- Applies To: Passenger vehicles carrying <1 tonne and <9 passengers
- Note: Limit includes GST if not GST-registered
For Business Owners
Even if your car costs $100,000, you can only claim depreciation on $69,674. Plan your vehicle purchase accordingly.
Novated Leases
The Luxury Vehicle Limit affects lease charges. Cars over $69,674 may attract a Luxury Car Charge in novated leases.
$20,000 Instant Asset Write-Off Extended to 30 June 2026
The government has extended the $20,000 instant asset write-off for small businesses for another 12 months. Eligible businesses can immediately deduct the cost of assets under $20,000, including work vehicles.
Key Details
- Threshold: $20,000 per asset (GST-exclusive if registered for GST)
- Period: Assets first used between 1 July 2025 and 30 June 2026
- Eligibility: Small businesses with aggregated turnover under $10 million
- Car Limit: Still applies - passenger vehicles capped at $69,674 for depreciation
Practical Use
Buy a used work ute for $18,000? Write off the full business portion immediately instead of depreciating over years.
Passenger Cars
Passenger vehicles cannot be fully written off - the car limit still applies regardless of purchase price.
FBT Exemption for Plug-in Hybrids Ends: Only Full EVs Now Qualify
From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) no longer qualify for the FBT exemption. Only battery-electric and hydrogen fuel cell vehicles remain eligible for the electric car FBT exemption.
Key Changes
- PHEVs Excluded: No longer considered "zero or low emissions vehicles" for FBT
- Transitional Rule: Existing PHEVs with pre-1 April 2025 financially binding commitments may continue exemption
- Still Exempt: Battery-electric vehicles (BEVs) and hydrogen fuel cell vehicles
- Price Limit: Must be below LCT threshold ($91,387 for fuel-efficient) at first retail sale
Novated Lease Impact
New PHEV novated leases after 1 April 2025 will attract FBT. Consider full EVs for maximum tax savings.
Existing Arrangements
If your PHEV lease started before 1 April 2025 with a binding commitment, the exemption may continue until lease ends.
ASIC Launches Major Review of Motor Vehicle Finance Sector
ASIC announced a comprehensive review of the car finance industry, focusing on outcomes for regional consumers and First Nations communities, with misconduct in used car finance a key enforcement priority.
Review Scope
- 7 Major Lenders: Initially reviewing practices of 7 car finance providers
- Focus Areas: Loan assessment, responsible lending, hardship support, dispute resolution
- Vulnerable Consumers: Particular focus on regional, remote and First Nations communities
- Brokers: Will identify intermediaries to include as review progresses
Enforcement
ASIC will take enforcement action where appropriate. Current proceedings against Money3 and Diamond Wheels dealership.
Consumer Resources
Free car loan comparison tools at moneysmart.gov.au. Indigenous consumers: 1300 365 957.
Electric Car FBT Exemption: LCT Thresholds Updated
The FBT exemption for eligible electric cars continues, with updated LCT thresholds. Vehicles must be below $91,387 (fuel-efficient) or $80,567 (other) at first retail sale to qualify.
Eligibility Requirements
- Vehicle Type: Battery-electric, hydrogen fuel cell, or plug-in hybrid (PHEVs until March 2025)
- First Used: Must be first held and used on or after 1 July 2022
- Price Limit: Below LCT threshold at first retail sale
- Car Definition: Must carry <1 tonne load and <9 passengers
What's Exempt
Private use of eligible EV and cost of charging (including home electricity). Benefit is still reportable.
Home Charging Rate
ATO shortcut: 4.20 cents per km for calculating home electricity costs (PCG 2024/2).
ASIC Takes Action Against Swoosh Finance for Responsible Lending Breaches
ASIC filed civil penalty proceedings against Swoosh Finance alleging breaches of responsible lending obligations when providing credit contracts secured against vehicles, with interest rates of 47%.
Key Allegations
- Interest Rate: 47% annual interest on loans typically $2,000-$3,000
- Upfront Fees: More than $400 charged on small loans
- Vulnerable Borrowers: Many had multiple loans, buy-now-pay-later commitments, signs of financial stress
- Security: Borrowers used their cars as security for loans
Warning Signs
Be cautious of lenders who don't thoroughly check your financial situation or charge very high interest rates.
Need Quick Cash?
Check Moneysmart for alternatives. Free financial counsellor advice: 1800 007 007.
Deferred Sales Model: 4-Day Cooling Off for Add-on Car Insurance
ASIC's deferred sales model requires a 4-day pause between car purchase and the sale of add-on insurance products at dealerships, protecting consumers from pressure sales tactics.
How It Works
- 4-Day Deferral: Dealers cannot sell add-on insurance until 4 days after you agree to buy a car
- Products Covered: Gap insurance, loan protection insurance, extended warranties sold at dealerships
- Consumer Information: Must be provided online information before making purchase decision
- Purpose: Give consumers time to consider if they actually need the product
Your Rights
Use the 4-day period to research. Compare standalone products from other insurers - they're often cheaper.
Past Problems
ASIC secured $130+ million in refunds from past add-on insurance misconduct. You may be entitled to refunds.
Frequently Asked Questions
Tax Related Questions
- Your income: Lenders typically allow borrowing up to 100% of vehicle value
- Your credit score: Higher scores = larger amounts approved
- Your existing debts: Car payment + other debts shouldn’t exceed 40-45% of gross income
- Vehicle type/age: Newer cars allow higher LVRs (loan-to-value ratios)
You can get approved with various credit scores, but rates vary significantly:
- Excellent (800+): Best rates (5.99-7%), easy approval, largest loan amounts
- Very Good (700-799): Competitive rates (6.5-8%), good approval odds
- Good (650-699): Standard rates (7.5-10%), approval likely with stable income
- Fair (600-649): Higher rates (9-13%), may need larger deposit
- Poor (500-599): Specialist lenders, rates 12-15%+, 20%+ deposit required
- Very Poor (<500): Difficult to impossible, consider improving score first
It depends on your situation. Here’s the breakdown:
Buy with Loan – Better if you:
- Drive more than 15,000-20,000 km/year (leases have km limits)
- Want to own the vehicle long-term
- Modify or customize vehicles
- Have stable income but want eventual ownership
- Drive in harsh conditions (off-road, trades)
Lease (Novated or Finance) – Better if you:
- Are high income earner (tax benefits)
- Always want new cars (upgrade every 3-4 years)
- Drive low km (under 15,000/year)
- Want predictable costs (lease includes maintenance)
- Are self-employed (tax deductions)
Cost comparison (5 years, $40,000 car):
- Loan: $40,000 + $6,500 interest – $18,000 resale value = $28,500 net cost
- Novated Lease: Effective $25,000-32,000 depending on tax bracket and km driven
Leases can be cheaper for high earners but require returning car. Loans cost slightly more but you own asset.
Banks/Credit Unions are usually better for these reasons:
- Lower rates: Typically 0.5-2% lower than dealer finance
- No dealer commission: Dealers mark up rates to earn commission
- More flexible terms: Better early repayment options
- Independent negotiation: Separate car price from finance discussions
Dealer finance CAN be good if:
- 0% promotional rate (read fine print – often requires forgoing discounts)
- Dealer matches or beats your pre-approved bank rate
- Manufacturer-subsidized low rate (real 2-4% deals, verify it’s genuine)
Standard documentation required by Australian lenders:
Identification (100 points):
- Driver’s License (primary ID)
- Passport or Birth Certificate (if no license)
- Medicare card (supporting ID)
Proof of Income:
- Employees: 2-3 recent payslips + employment letter
- Self-employed: 2 years tax returns + accountant letter + BAS statements
- Casual/Contract: 6+ months payslips proving consistent income
- Pensioners: Centrelink statement showing payments
Financial Statements:
- 3-6 months bank statements (shows income deposits, spending patterns)
- Credit card statements if using for deposit
- Savings account statements
Vehicle Documentation:
- New car: Purchase contract/invoice from dealer
- Used car (private): Purchase agreement, PPSR certificate, REVS check, inspection report
- Used car (dealer): Purchase contract, dealer warranty info
Residential Information:
- Current rental agreement OR rates notice if homeowner
- Proof of address (utility bill if recent mover)
Credit History:
- Lender checks automatically, but you can provide your own credit report
- If bad credit: Letter explaining circumstances + evidence of improvement
Additional (sometimes required):
- Insurance quote (comprehensive cover usually required)
- Guarantor documents (if using family guarantor)
- Business financials (if loan for business use)
Pro tip: Organize documents BEFORE applying. Complete applications process 2-3x faster than incomplete ones.
Common car loan fees in Australia include:
Upfront Fees:
- Application/Establishment Fee: $0-$600 (one-time). Shop around – some lenders waive this
- Valuation Fee: $0-$150 (for used cars). Lender values vehicle
- PPSR Registration: $8-$25. Secures lender’s interest in vehicle
Ongoing Fees:
- Monthly Account Fee: $0-$10/month ($0-$120/year). Avoid if possible
- Late Payment Fee: $20-$50 per occurrence. Never be late!
Exit Fees:
- Early Repayment Fee: $0-$800 or 1-2 months interest. Check before extra payments
- Discharge Fee: $150-$350. Charged when loan fully repaid
Total fee impact example: $400 establishment + $10/month account fee × 60 months + $300 discharge = $1,300 in fees. On $30,000 loan, this adds ~0.5% to your effective rate.
Calculator Related Questions
This calculator provides estimates for educational purposes. Interest rates and fees vary by lender and are subject to approval. Rates shown are indicative only and updated regularly but may not reflect current market conditions. Always verify rates directly with lenders before making decisions.
No, all calculations are performed locally in your browser. We don’t store, transmit, or share any of your transaction data or personal information. Your privacy and data security are important to us.
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About this calculator
This calculator provides estimates for educational purposes. Interest rates and fees vary by lender and are subject to approval. Rates shown are indicative only and updated regularly but may not reflect current market conditions. Always verify rates directly with lenders before making decisions.