Car loans
Car loan refinance: switch to a lower rate
Refinance your car loan when the saving beats the switching costs.
Refinancing a car loan means taking out a new loan, usually at a lower rate, to pay out the one you have, and it pays when the interest you save is bigger than the exit fee on the old loan plus the establishment fee on the new one. On $25,000 with four years left, moving from 11% to 7.5% cuts the repayment from about $646 to $604 a month and saves about $2,000 of interest before fees. The car also has to fit the new lender’s age limit, which is seven years at Westpac, CommBank and Great Southern Bank.
How much will I repay on a $40,000 car loan?
| Loan amount | Monthly repayment at | |||
|---|---|---|---|---|
| 6%p.a. | 8%p.a. | 10%p.a. | 12%p.a. | |
| $15,000 | $290 | $304 | $319 | $334 |
| $20,000 | $387 | $406 | $425 | $445 |
| $25,000 | $483 | $507 | $531 | $556 |
| $30,000 | $580 | $608 | $637 | $667 |
| $40,000 | $773 | $811 | $850 | $890 |
Illustrative monthly principal and interest repayments over 5 years, before fees and charges. Rates are examples, not offers; your rate depends on the lender and your circumstances. Refinancing to a lower rate moves you one or more columns to the left; weigh the monthly saving over the months you have left against the exit and establishment fees. Run your own numbers.
Car loan refinance lenders a broker can compare
The banks, non-banks and specialist lenders in our directory that write car loans, and so can take over an existing one. The broker checks each lender's switching costs and vehicle age rules against your loan.
| Lender | Products | Current rate |
|---|---|---|
| Commonwealth Bank of AustraliaMajor bank | Products:
| Current rate: 6.79%p.a. 8.20% p.a. comparison rate* Personal Loan Secured (New Vehicle) · Secured Fixed Rate Car Loan, secured by the car being bought: from rate for excellent credit (rates up to 11.29% p.a.); comparison on a $30,000 loan over 5 years. As at 30 Sept 2026 · Source: CommBank rates page (opens in a new tab) |
| Westpac Banking CorporationMajor bank | Products:
| Current rate: 6.49%p.a. 7.90% p.a. comparison rate* Car Loan Secured · Car Loan for petrol, diesel or LPG cars, fixed rate, secured by the car: from rate; the rate offered depends on your credit assessment. As at 30 Sept 2026 · Source: Westpac rates page (opens in a new tab) |
| Bank AustraliaCustomer-owned | Products:
| Current rate: 6.29%p.a. 6.29% p.a. comparison rate* Clean Energy Car Loan · Electric Vehicle Loan, fixed rate, secured, new electric vehicles; establishment fee waived for fully electric vehicles; comparison on a $30,000 secured loan over 5 years. As at 30 Sept 2026 · Source: Bank Australia rates page (opens in a new tab) |
| Liberty FinancialNon-bank | Products:
| Current rate: 8.99%p.a. 10.65% p.a. comparison rate* Liberty Drive Secured · Flexible car loan, secured, new and used cars: from rate; comparison on a $30,000 new-car loan over 5 years with no balloon. As at 30 Sept 2026 · Source: Liberty rates page (opens in a new tab) |
| MoneyMeSpecialist | Products:
| Current rate: 6.24%p.a. 7.13% p.a. comparison rate* MoneyMe Secured Car Loan · Secured car loan, variable rate, new or used vehicles: from rate for excellent credit history (maximum 26.10% p.a.); $12.50 monthly fee. As at 30 Sept 2026 · Source: MoneyMe rates page (opens in a new tab) |
| Now FinanceSpecialist | Products:
| Current rate: 7.59%p.a. 8.43% p.a. comparison rate* NF Secured Car Loan (Tier 1) · Vehicle Loan secured by the vehicle, new or used: from rate (rates up to 15.39% p.a.); establishment fee up to $595. As at 30 Sept 2026 · Source: Now Finance rates page (opens in a new tab) |
| PlentiSpecialist | Products:
| Current rate: 7.99%p.a. 9.78% p.a. comparison rate* Plenti Car Loan (Tier 1) · Secured car loan, new or demo vehicle, homeowner with exceptional credit: from rate (rates up to 12.99% p.a.); comparison on $30,000 over 60 months including a $14.90 monthly fee. As at 30 Sept 2026 · Source: Plenti rates page (opens in a new tab) |
| Australia and New Zealand Banking GroupMajor bank | Products:
| Current rate: ANZ rate card (opens in a new tab) |
| National Australia BankMajor bank | Products:
| Current rate: NAB rate card (opens in a new tab) |
| BankSAMajor-bank brand | Products:
| Current rate: BankSA rate card (opens in a new tab) |
Show all 16 lendersShow fewer lenders
| Lender | Products | Current rate |
|---|---|---|
| ING AustraliaTier-2 bank | Products:
| Current rate: ING rate card (opens in a new tab) |
| IMB BankCustomer-owned | Products:
| Current rate: IMB rate card (opens in a new tab) |
| Newcastle Permanent (Newcastle Greater Mutual Group)Customer-owned | Products:
| Current rate: Newcastle Permanent rate card (opens in a new tab) |
| Teachers Mutual BankCustomer-owned | Products:
| Current rate: Teachers Mutual rate card (opens in a new tab) |
| Pepper MoneyNon-bank | Products:
| Current rate: Pepper Money rate card (opens in a new tab) |
| Angle FinanceSpecialist | Products:
| Current rate: Angle Finance rate card (opens in a new tab) |
Inclusion is editorial reference, not a recommendation. Rates change often, so we only show a rate we captured from the lender's own page in the last 60 days, with a link to that page; otherwise we link to the lender's rate card where it publishes one. The broker you are matched with compares the lenders on their own panel.
See all 20 car loan lenders* 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. Car loan comparison rates are based on a secured loan of $30,000 over 5 years.
Car loan refinancing at a glance
- The new lender pays out your old car loan; you keep the car and start new repayments
- Worth it when the interest saved is bigger than the exit fee plus the new establishment fee
- Published switching costs vary: NAB waives its $350 establishment fee when refinancing; Pepper Money publishes an early termination charge of up to $750 on direct loans
- The car must fit the new lender’s age rules: seven years at Westpac, CommBank and Great Southern Bank; 12 at application at NAB
- Refinancing to a shorter term raises the repayment but cuts the interest
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 calculated on a secured loan of $150,000 over 25 years for home loans, a loan of $30,000 over 5 years for car and personal loans, and $50,000 over 5 years for equipment finance, unless the lender states another basis.
Car loan refinance FAQs
Is it a good idea to refinance your car?
It is when the interest you save is bigger than the cost of switching. On $25,000 with four years left, moving from 11% to 7.5% cuts the repayment from about $646 to $604 a month and saves about $2,000 over the term; take off the exit fee on the old loan and the establishment fee on the new one to get the real saving. It rarely pays with only a few months left, or if the new loan stretches the term so far that you pay more interest overall.
Which bank is best to refinance a car?
The lender that gives you the lowest comparison rate after assessment and the lowest switching costs, and that differs by borrower. Published features worth checking: NAB waives its $350 establishment fee when you refinance, Great Southern Bank publishes no establishment fee on applications until 23 February 2027 and $0 monthly fees, and Plenti publishes a $0 early repayment fee. The car must also fit the lender’s age limit. A broker can quote the switch across the lenders on its panel.
How do I pay off a 5 year car loan in 3 years?
Raise your repayment to the amount that clears the balance in 36 months: on $30,000 at 8% that is about $940 a month instead of $608, and the interest falls from about $6,498 to $3,843. Check the contract first: Westpac publishes a $0 extra repayment fee but a prepayment fee may apply, Pepper Money publishes an early termination charge of up to $750 on direct applications, and Moneysmart notes variable-rate car loans usually have no early exit fee. Refinancing to a lower rate on a three-year term does the same job in one step.
What is the monthly payment on a $35,000 car loan over 72 months?
About $614 a month at 8% over 72 months, with no balloon and before fees. At 6% it is about $580, at 10% about $648 and at 12% about $684. The six-year term keeps the repayment down, but at 8% the interest comes to about $9,184 against $7,580 over five years.
What to avoid when refinancing a car?
Five traps. Stretching the term so far that you pay more interest overall; ignoring the exit or discharge fee on the old loan and the establishment fee on the new one; comparing headline rates instead of comparison rates; a car that has aged past the new lender’s limit (seven years at Westpac, CommBank and Great Southern Bank, 12 at application at NAB); and applying to several lenders at once, which leaves a credit enquiry on your file each time.
When should I refinance my car loan?
When rates have dropped since you took out your loan, your credit score has improved, you are on a dealer finance rate above what the lenders publish, you need lower repayments, or you want to pay the loan off sooner. As a rule of thumb, if you can save at least 1% on your rate and have more than 12 months remaining, refinancing is worth pricing.
How much can I save by refinancing?
It depends on the balance, the rate gap and the time left. Refinancing a $25,000 balance from 9.99% to 6.49% with four years remaining cuts the repayment from about $634 to $593 a month and saves about $1,977 in interest before fees. A broker can run the numbers on your actual loan.
Are there costs involved in refinancing a car loan?
Usually two. The old loan may charge an early termination or discharge fee: Pepper Money publishes an early termination charge of up to $750 on direct applications, and BankSA a discharge fee of $150 in the first year or $100 after. The new loan may charge an establishment fee: $250 at CommBank, $350 at NAB but waived when refinancing, $499 at Pepper Money. Add them up before you count the saving.
Can I refinance a car loan with bad credit?
Yes, though your options may be more limited. If your credit has deteriorated since taking out the original loan, you may not qualify for a better rate. However, if you have been making consistent on-time payments on your current loan, this positive repayment history can work in your favour with specialist lenders.
How long does car loan refinancing take?
Usually a few business days once the new lender approves you. The new lender pays out the old loan directly, the old lender’s security interest on the PPSR is discharged, and the new lender registers its own. You keep driving the car throughout.
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