Car loan interest rates explained
Every car loan lender publishes a rate range rather than a rate, and the one you get is set on your credit history, the car's age and whether the loan is secured. This guide lists the ranges, comparison rates, fees, loan sizes and vehicle rules the banks, mutuals and online lenders publish, what a $30,000 and a $40,000 loan cost across them, the green-car discounts, and the six things that move your rate inside the range.
- Secured fixed ranges: Westpac and BankSA 6.49% to 12.99% (comparison 7.90% to 14.34%); NAB discounted 5.99% to 12.79%; CommBank 6.79% to 10.79%; loans.com.au new cars 5.94% to 16.64%
- Westpac publishes a median rate of 8.49% (comparison 9.67%) and that about half its customers receive it or lower
- Unsecured car loans run higher: NAB 7.50% to 22.00%, CommBank 7.25% to 22.25%, ANZ personalised on $5,000 to $75,000
- EV discounts: CommBank 5.79% special rate for eligible EVs and PHEVs to $55,000; Plenti 0.5% off new EVs to $90,000; NAB, Westpac and Great Southern Bank publish green car rates
- Fees: establishment $250 CommBank, $350 NAB, $499 Pepper Money; $0 establishment at Great Southern Bank until 23 February 2027; compare on the comparison rate
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
How car loan rates are set
Almost every Australian car loan is a fixed rate for a term of one to seven years, and the lender quotes you a rate inside a published range after a credit assessment. Westpac describes it directly: a rate range from 6.49% to 12.99%, a median of 8.49% that about half its customers receive or beat, and a comparison rate range of 7.90% to 14.34% once the establishment fee is counted. CommBank adds that rates at the lower end of its range may be offered to customers with an excellent credit history. What moves you within the range is your credit file, the security (a car seven years old or less at most banks), whether the car is new or used, whether it is electric, and the loan size and term. The comparison rate is the number to compare, because it includes the compulsory fees; Moneysmart notes that lenders must give it to you and that dealer-arranged loans can carry fees to several parties.
What do lenders publish?
Checked against each lender's published car loan page on 20 September 2026; "Not published" means the page does not state it, and "personalised" means the lender quotes a rate only after an assessment. Comparison rates are on a $30,000 loan over five years unless the lender states otherwise.
| Lender | Secured car loan rate as published | Comparison rate | Loan size and term | Fees as published | Vehicle and other rules |
|---|---|---|---|---|---|
| Westpac | Fixed 6.49% to 12.99%; median 8.49% | 7.90% to 14.34%; median 9.67% | $10,000 to $130,000; weekly, fortnightly or monthly | Establishment fee added to the loan; $0 extra repayment fee; prepayment fee may apply | Car 7 years old or less at application; no balloon; income of $25,000 recommended; separate EV and hybrid rates |
| BankSA (Westpac Group) | Fixed 6.49% to 12.99% | 7.90% to 14.34%; total payable on $30,000 over 5 years $36,404 to $42,188 | $10,000 to $130,000; 1 to 7 years | Establishment fee deducted from the loan; PPSR fee; discharge fee $150 in year one, $100 after | Car 7 years old or less; no balloon; conditional approval in 60 seconds |
| NAB | Discounted 5.99% to 12.79%; standard 6.74% to 13.54%; fixed | 7.55% to 14.29% discounted; 8.29% to 15.03% standard | $10,000 to $100,000; up to 7 years, monthly | $350 establishment, waived when refinancing | Used cars up to 12 years old at application and 15 at the end of the term; comprehensive insurance before settlement; EV and PHEV rewards; unsecured alternative $5,000 to $55,000 at 7.50% to 22.00% |
| CommBank | Secured fixed 6.79% to 10.79%; EV or PHEV special 5.79% | 8.20% to 12.16%; EV special 7.21%; total payable $36,614 to $40,098 | $4,000 to $120,000; 1 to 7 years | $250 establishment | New, or used under 7 years; EV special for under 75g CO2/km and loans to $55,000; up to $400 cashback via Cars for CommBank for Yello customers; 60-second response; unsecured 7.25% to 22.25% |
| ANZ | Unsecured only; personalised fixed or variable | Personalised | $5,000 to $75,000; 1 to 7 years | Loan approval fee; early repayment charges on fixed | No security taken over the car; extra repayments and redraw on variable |
| Great Southern Bank | Personalised secured fixed; green car loan for EVs and hybrids | Personalised | Not published on the page | $0 monthly fees; no establishment fee on applications until 23 February 2027 | New or used cars and motorbikes up to 7 years old; rate in about 60 seconds |
| loans.com.au | New car 5.94% to 16.64%; used car 7.19% to 15.99%; fixed or variable | New 7.07% to 17.76%; used 8.32% to 17.11% | $10,000 to $150,000; 3 to 7 years | Not published on the page | New, demo or used, petrol, diesel, EV or hybrid; approval within 24 hours; balloons no longer offered on new loans |
| Plenti | Personalised in 60 seconds; 0.5% off new EVs to $90,000 (CEFC) | Personalised | Up to $100,000 | $0 early repayment fee | Funds in as little as 24 hours; income over $32,000 net; quote without a credit score impact |
| Pepper Money | Fixed, personalised | Personalised | Up to $150,000; $0 deposit | $499 establishment; no ongoing monthly fees | Balloon options: 50% on 1 to 3 year terms, 45% on 4, 40% on 5, none on 6 or more, for new, demo or under-one-year cars; private, sole trader and company applicants |
| Police Credit Union | Better Car Loan (over $20,000) and Fixed Car Loan (over $5,000); rates not server-rendered | Not server-rendered | From $5,000 | Not published on the rates page | Mutual; member eligibility |
What a car loan costs at each rate
Monthly repayments over five years with no balloon, before the establishment fee; the total interest is the figure to compare against a dealer's offer.
| Rate | $30,000 monthly | $30,000 total interest | $40,000 monthly | $40,000 total interest | Where it sits |
|---|---|---|---|---|---|
| 6.0% | $580 | $4,800 | $773 | $6,400 | Bottom of the secured ranges (loans.com.au new, NAB discounted, Westpac, CommBank) |
| 7.5% | $601 | $6,070 | $802 | $8,090 | Good credit, secured, near-new car |
| 9.0% | $623 | $7,370 | $830 | $9,820 | Around Westpac's median of 8.49% |
| 11.0% | $652 | $9,140 | $870 | $12,180 | Older car, thinner file, or top of CommBank's secured range |
| 15.0% | $714 | $12,820 | $952 | $17,090 | Upper secured ranges at NAB and loans.com.au; mid unsecured |
| 20.0% | $795 | $17,690 | $1,060 | $23,580 | Upper unsecured ranges at NAB and CommBank |
The spread between the top and bottom of one lender's range is the point: on $30,000 over five years it is the difference between about $5,200 and $10,900 of interest at Westpac's 6.49% and 12.99%. That is why a broker's quote across lenders, or a pre-approval before you walk into a dealership, is worth more than the headline rate on any one website.
What moves your rate inside the range
| Factor | Effect | Published evidence |
|---|---|---|
| Credit history | The largest lever; the bottom of the range is for excellent files | CommBank: lower-end rates may be offered to customers with an excellent credit history; Westpac: half of customers at or below the 8.49% median |
| Secured or unsecured | Secured is cheaper because the car is collateral | Westpac and NAB both publish the car as the reason for the lower rate; NAB unsecured runs to 22.00% against 12.79% secured |
| Vehicle age | Older cars fall outside secured products or price higher | Westpac, BankSA, CommBank and Great Southern Bank cap at 7 years; NAB at 12 years at application; loans.com.au prices used cars from 7.19% against 5.94% new |
| Electric or hybrid | Discounted at most lenders | CommBank 5.79% special; Plenti 0.5% off; NAB rewards; Westpac and Great Southern Bank green loans |
| Fees | Raise the comparison rate by up to about 1.5 points on a $30,000 five-year loan | Westpac 6.49% becomes 7.90% comparison; NAB $350, CommBank $250, Pepper Money $499 |
| Balloon | Lowers the repayment, raises total interest | Pepper Money publishes balloons to 50%; Westpac and BankSA publish no balloon; loans.com.au has withdrawn them |
How to get the low end of the range
Secure the loan on a car under the lender's age limit, get a personalised quote from more than one lender without stacking credit enquiries (Plenti publishes a quote without a credit score impact; a broker does the same across its panel), take the EV or hybrid discount if the car qualifies, keep the term to what you will actually own the car for, and compare comparison rates rather than headline rates, especially against a dealer's offer, which the dealer finance guide covers. Your Finance Guide refers you to one licensed broker partner who prices your file across lenders; we do not lend or set rates.
Car loan guides
Where the rate comes from, and the calculators.
Car loan interest rate FAQs
What is a good interest rate for a car loan?
What is the current interest rate for a car loan?
What are the repayments on a $30,000 car loan?
How much is a $40,000 car payment for 60 months?
Why is a secured car loan cheaper than an unsecured one?
Do car loan rates follow the RBA cash rate?
What fees come with a car loan?
Are there cheaper rates for electric vehicles?
Find out where you sit in the range
Tell us the car, its age and the amount, and we refer you to one licensed broker partner who prices your file across lenders and brings back the comparison rates. Free for borrowers, no obligation.