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Australian Car Loan Calculator

Calculate your car loan repayments, compare scenarios side-by-side, and understand the true cost of your finance. Updated for 2026 Australian rates.

1
Enter your vehicle price, deposit and loan term โ€” our calculator shows instant repayments.
2
Review weekly, fortnightly or monthly options โ€” compare balloon vs standard loans.
3
Analyse total costs, benchmark your rate and compare two loans side-by-side.
โœ“ New & Used Cars โœ“ Balloon Payment โœ“ Extra Repayments โœ“ Loan Comparison โœ“ 2026 Rates
Car loan calculator Australia 2026 - calculating vehicle finance repayments
Reviewed by the carloancalc.com.au editorial team ยท Last reviewed: May 2026 ยท All rates current as of May 2026 Sources: RBA ยท ASIC MoneySmart
๐Ÿงฎ Calculate Repayment
๐Ÿ’ก What Can I Borrow?
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Car Loan Calculator โ€” Australia 2026

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$
Per RBA statistics, new secured car loans range 5โ€“12% p.a. Always compare the comparison rate.
Per ASIC MoneySmart, typical terms range 1โ€“7 years. Shorter terms save interest.
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Weekly
Fortnightly
Monthly
Include Balloon Payment?
A lump-sum due at end of term โ€” reduces repayments but increases total interest
Business / Work Use?
ATO deductibility notes will be shown in results

๐Ÿฆ Get Pre-Approved โ€” Rates from 5.99% p.a.

Compare car finance from Australia's top lenders in minutes. Get pre-approved before visiting the dealer so you know your budget and can negotiate with confidence.

Compare Car Loan Rates โ€” Free โ†’
We may earn a referral fee if you apply through our partner links. This doesn't affect the rates or terms you receive.
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Live RBA News & Rate Dashboard

RBA Cash Rate
4.35%
Updated 5 May 2026
Avg New Car Loan
8.40%
National average 2026
Best EV Rate
5.69%
Plenti green loan
Next RBA Meeting
8 Jul 2026
Rate decision date

Latest RBA Media Releases

📊 2026 Key Rate Events

5 MAY 2026
RBA hikes to 4.35% - third consecutive increase. 8-1 board vote. Inflation and energy prices cited.
17 MAR 2026
RBA hikes to 4.10% - Middle East conflict driving fuel and commodity price inflation.
APR 2026
Car loan rates rise 0.25-0.5% - major lenders pass on RBA hike to borrowers.
MAY 2026
EV rates remain competitive - Plenti maintaining 5.69% despite broader hike cycle.
NEXT RBA
8 July 2026 - Next RBA board meeting and rate decision date.

๐Ÿ“Š 2026 Key Rate Events

5 May 2026
RBA hikes to 4.35% โ€” third consecutive increase. 8-1 board vote. Inflation and energy prices cited.
17 Mar 2026
RBA hikes to 4.10% โ€” Middle East conflict driving fuel and commodity price inflation.
Apr 2026
Car loan rates rise 0.25โ€“0.5% โ€” major lenders pass on RBA hike to borrowers.
May 2026
EV rates remain competitive โ€” Plenti maintaining 5.69% despite broader hike cycle.
๐Ÿ“Š

2026 Car Loan Rate Comparison โ€” Top Australian Lenders

Rates current as of May 2026. Always confirm rates directly with lenders. Comparison rates shown where available.

LenderRate p.a.Comparison RateLoan AmountTermType
โญ RACQ Bank5.99%6.42%$5kโ€“$100k1โ€“7 yrsNew car
Horizon Bank6.09%6.54%$5kโ€“$80k1โ€“7 yrsNew car
Newcastle Permanent6.39%6.84%$5kโ€“$100k1โ€“7 yrsNew/Used
Teachers Mutual6.49%6.95%$2kโ€“$80k1โ€“7 yrsNew/Used
Bendigo Bank6.99%7.43%$5kโ€“$100k1โ€“7 yrsNew/Used
Westpac7.49%8.10%$10kโ€“$100k1โ€“7 yrsNew/Used
ANZ7.99%8.56%$5kโ€“$100k1โ€“7 yrsNew/Used
Commonwealth Bank8.49%9.07%$5kโ€“$100k1โ€“7 yrsNew/Used
โญ Plenti (EV)5.69%6.11%$10kโ€“$100k1โ€“7 yrsEV only
Wisr7.95%8.39%$5kโ€“$63k3โ€“7 yrsNew/Used

โš ๏ธ Rates indicative for good credit borrowers. Your rate depends on credit history, loan amount, vehicle age and lender assessment. โญ = best in category. Always compare comparison rates. Last verified May 2026.

๐Ÿ—บ๏ธ

Australian Car Loan Market Data โ€” By State

National car finance statistics sourced from ASIC, ABS lending indicators and lender data. Updated March 2026.

StateAvg Loan AmountAvg Rate p.a.Avg TermMarket Note
NSW$42,3008.4%5.1 yrsHighest loan values; strong EV uptake in Sydney
VIC$39,8008.2%5.0 yrsHigh lender competition; strong used car market
QLD$41,5008.5%5.3 yrsCommercial ute loans prominent; longer terms popular
WA$48,1008.2%5.4 yrsโญ Highest avg loan โ€” mining/regional vehicle demand
SA$36,2008.6%4.9 yrsCredit union lenders strong; slightly higher rates
TAS$32,4008.8%4.7 yrsSmaller market; fewer lender options
๐Ÿ‡ฆ๐Ÿ‡บ National Avg$41,2008.4%5.1 yrs~60% of loans for new vehicles nationally
๐Ÿ†• New Vehicle Loans
60%
of all Australian car loans. Lower rates (5.5โ€“8%), longer terms, secured.
๐Ÿ”„ Used Vehicle Loans
40%
Higher rates (7โ€“15%+), stricter age limits, often unsecured for older vehicles.

Why are car loan rates higher than the RBA cash rate?

The RBA cash rate (4.35% as of May 2026) is the base cost of funds between banks. Car loan rates sit higher because lenders add a margin for credit risk, operating costs and profit. On a $30,000 loan over 5 years, the difference between 7.5% and 8.5% is approximately $900 in total interest. ASIC MoneySmart car loans guide โ†’

๐Ÿฆ

Car Loan Types in Australia โ€” Secured, Unsecured, Dealer & More

Per ASIC MoneySmart, Australian borrowers have several car finance options โ€” each with different rates and structures.

Loan TypeSecurityTypical RateBest For
Secured Car Loan
Most common personal vehicle loan		Vehicle5โ€“9% p.a.New or near-new vehicles; best rate for most borrowers
Unsecured Personal Loan
No collateral required		None9โ€“18% p.a.Older vehicles that don't qualify as security; flexible use
Dealer Finance
In-house via dealership		Vehicle0โ€“9% p.a.*Promotional rates on new vehicles โ€” always compare total cost
Chattel Mortgage
Business / ABN holders		Vehicle5โ€“8% p.a.Business owners wanting to claim GST, depreciation and interest
Novated Lease
Via employer salary packaging		VehiclePre-tax savingsEmployees with salary packaging โ€” tax-effective for higher earners
Electric vehicle EV car loan Australia 2026 green loan rates from 5.69% per annum
๐ŸŒฑ EV Loans from 5.69% p.a.
Car loan approval Australia getting keys to new vehicle finance 2026
๐Ÿš— Get Pre-Approved First
Australian car finance comparison dealer vs bank car loan rates 2026
๐Ÿฆ Compare Before You Sign
๐Ÿ’ก

Car Finance Tips for Australian Buyers

Get Pre-Approved First

Pre-approval from a bank gives you a benchmark rate before visiting the dealer. Dealers often add margin to in-house finance โ€” knowing your rate gives you leverage.

New vs Used Rates

New car loans attract 1โ€“3% lower rates. Lenders see new vehicles as lower risk due to warranty and known condition. Factor this into your total cost comparison.

Balloon Payments โ€” Beware

Balloon payments reduce monthly repayments but increase total interest. Only use balloons if you plan to sell or trade the car before the balloon falls due.

EV Green Loans

Several lenders offer discounted rates for electric vehicles. Plenti, Bendigo Bank and others have EV-specific products below 6% p.a.

Comparison Rate Is Key

Per ASIC, the comparison rate includes fees and is the true annual cost. A low advertised rate with high fees can cost more than a slightly higher rate with no fees.

PPSR Check โ€” $2 Well Spent

Before buying used, run a PPSR check at ppsr.gov.au to ensure the car isn't under finance or listed as stolen. A $2 check could save you tens of thousands.

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Car Loan FAQ โ€” Australia 2026

What is the best car loan rate in Australia in 2026?
The most competitive car loan rates in 2026 start from around 5.5โ€“6.5% p.a. comparison rate for new vehicles with good credit. Used car loans typically start from 7โ€“8% p.a. Rates vary significantly based on your credit score, loan term, vehicle age and the lender. Always compare the comparison rate โ€” which includes fees โ€” rather than the advertised rate. Credit unions and smaller lenders consistently outperform the major banks on car loan rates.
How much can I borrow for a car loan in Australia?
Most Australian lenders offer car loans from $5,000 to $100,000 or more. The amount you qualify for depends on your income, credit score, existing debts and the vehicle's value. Lenders typically won't lend more than the vehicle's market value. For vehicles over 10 years old, many lenders restrict lending or charge higher rates โ€” an unsecured personal loan may be a better option.
Should I get a car loan from a dealer or a bank?
Bank and online lender finance is almost always cheaper than dealer finance in Australia. Dealers receive a margin from the lender built into your rate. The best approach: get pre-approved by a bank or online lender first, then ask the dealer to beat it. Some dealers access competitive rates, but you need a benchmark to negotiate. Don't judge on monthly repayment alone โ€” always compare the total cost over the full term.
What is a balloon payment and should I use one?
A balloon payment is a lump sum due at the end of the loan term โ€” typically 20โ€“30% of the vehicle's original value. It reduces your monthly payments during the loan but means you'll either need to pay a large sum at the end, refinance it, or sell/trade the vehicle. Balloon payments cost more in total interest. They suit buyers who plan to upgrade vehicles regularly, but are risky if you intend to keep the car long-term.
Can I get a car loan with bad credit in Australia?
Yes โ€” specialist lenders including Finance One, Savvy and CarLoans.com.au offer car loans to borrowers with poor credit, though rates are significantly higher (often 15โ€“25%+). A larger deposit, a co-borrower with good credit, or a secured loan can help. 6โ€“12 months of improved credit behaviour (on-time payments, reducing credit card limits) can meaningfully lower the rate you're offered. Check your free credit score at CreditSavvy before applying.
Can I pay off my car loan early in Australia?
Most variable rate car loans allow early repayment without penalty. Fixed rate loans often charge an early exit fee โ€” typically 1โ€“2 months' interest. Check the loan contract's early repayment clause before signing. If you plan to make extra repayments or pay out early, specifically search for loans with no early repayment fees. Even small extra repayments significantly reduce total interest.
Do I need comprehensive insurance for a car loan?
Most lenders require comprehensive car insurance for the life of the loan since the vehicle secures the loan. If the car is written off, the insurance payout reduces the loan balance. Some lenders also offer GAP insurance to cover any shortfall between the insurance payout and remaining loan balance โ€” particularly important for new cars that depreciate quickly in the first year.

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