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Pre-owned vehicle finance

Used car loans and used car finance

A used car loan is usually a fixed-rate loan secured on the car, and the car’s age decides which lenders will take it: Westpac, CommBank and Great Southern Bank cap the car’s age at seven years, while NAB takes used cars up to 12 years old at application and 15 at the end of the term. Used car rates run a little above new ones: loans.com.au published 7.19% to 15.99% on used cars in September 2026, against 5.94% to 16.64% on new. For a car past every secured lender’s limit, an unsecured loan or a specialist lender is the route.

How much would a $30,000 used car loan be per month?

Monthly principal and interest repayments over 5 years, by loan amount and interest rate
Loan amountMonthly repayment at
7%p.a.9%p.a.12%p.a.15%p.a.
$10,000$198$208$222$238
$15,000$297$311$334$357
$20,000$396$415$445$476
$30,000$594$623$667$714
$40,000$792$830$890$952

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. The rates span the used car range loans.com.au published in September 2026 (7.19% to 15.99%); a newer car and a clean credit file sit at the low end. Run your own numbers.

Calculator

Used car loan calculator

Estimate repayments for your pre-owned vehicle

Loan amount$25,000
$5,000$100,000
Interest rate7.49% p.a.
5.00% p.a.15.00% p.a.
Loan term5 years
1 year7 years
Monthly repayment
$500.83
Total interest
$5,050
Total repayment
$30,050
Principal 83.2%Interest 16.8%
Get a personalised quote

Estimates only. Actual rate and repayment depend on your lender, loan structure and credit assessment.

Used car loan lenders a broker can compare

The lenders in our directory that write secured and unsecured car loans. The products column shows how each lender's car loan is listed in our directory; the broker checks each lender's used car and vehicle age rules against the car you want.

Used car loan lenders a broker can compare: each lender's type, the products it offers and its current rate
Commonwealth Bank of AustraliaMajor bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
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.
Westpac Banking CorporationMajor bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
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.
Liberty FinancialNon-bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
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.
MoneyMeSpecialistProducts:
  • Secured (new vehicle)
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.
Now FinanceSpecialistProducts:
  • Secured (new vehicle)
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.
PlentiSpecialistProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
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.
Australia and New Zealand Banking GroupMajor bankProducts:
  • Unsecured
Current rate: ANZ rate card (opens in a new tab)
National Australia BankMajor bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: NAB rate card (opens in a new tab)
BankSAMajor-bank brandProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: BankSA rate card (opens in a new tab)
ING AustraliaTier-2 bankProducts:
  • Unsecured
Current rate: ING rate card (opens in a new tab)
Show all 16 lenders
Used car loan lenders a broker can compare, continued
Bank AustraliaCustomer-ownedProducts:
  • Secured (used vehicle)
Current rate: Bank Australia rate card (opens in a new tab)
IMB BankCustomer-ownedProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: IMB rate card (opens in a new tab)
Newcastle Permanent (Newcastle Greater Mutual Group)Customer-ownedProducts:
  • Secured (new vehicle)
Current rate: Newcastle Permanent rate card (opens in a new tab)
Teachers Mutual BankCustomer-ownedProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: Teachers Mutual rate card (opens in a new tab)
Pepper MoneyNon-bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
  • Unsecured
Current rate: Pepper Money rate card (opens in a new tab)
Angle FinanceSpecialistProducts:
  • Secured (new vehicle)
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.

Used car loans at a glance
  • Secured used car loans are cheaper than unsecured, but only within each lender’s vehicle age limit
  • Age limits: seven years at Westpac, BankSA, CommBank and Great Southern Bank; NAB 12 years at application and 15 at the end of the term
  • Used car rates run a little above new: loans.com.au 7.19% to 15.99% used against 5.94% to 16.64% new (September 2026)
  • Dealer purchases and private sales can both be financed; a private sale needs a clear PPSR search
  • Pre-approval before you shop lets you negotiate the price like a cash buyer

Vehicle age limits: what lenders publish

The age of the used car is one of the biggest factors in which lenders will finance it and at what rate. The limits below are the ones each lender publishes on its car loan page; some are set at the time you apply and some at the end of the loan term, so a long term on an older car can push it past a limit.

LenderPublished vehicle rulePublished rate range
Westpac and BankSACar 7 years old or less at applicationSecured 6.49% to 12.99%
CommBankNew, or used under 7 yearsSecured 6.79% to 10.79%
Great Southern BankNew or used cars and motorbikes up to 7 years oldPersonalised
NABUsed cars up to 12 years old at application and 15 at the end of the termSecured, discounted 5.99% to 12.79%
loans.com.auNew, demo or usedUsed 7.19% to 15.99%; new 5.94% to 16.64%
Pepper MoneyNew, demo or used, from a dealer or a private seller; vehicle age and condition rules applyPersonalised; $499 establishment fee

If you are buying a car more than a few years old, a shorter loan term keeps the end-of-term age inside more lenders' rules, which opens up more competitive rates.

What lenders look for in a used car application

Beyond the car's age, lenders assess several things that matter more for a used car than a new one:

Condition and kilometres

High-kilometre cars can attract a higher rate or be declined by some lenders, so the odometer reading matters as much as the year.

Where you buy it

Dealer purchases come with statutory warranties. Private sales are accepted by many lenders but may need extra paperwork, such as a PPSR search and an independent valuation.

Price against market value

Lenders check the price against RedBook or Glass's Guide values. If you pay well over market value, the lender may only lend up to the value.

Deposit and loan-to-value

A used car has already depreciated, so lenders watch how much you borrow against its value. A deposit strengthens an application, especially on an older car.

A clear title

The car must be free of existing finance and not recorded as stolen or written off. Run a PPSR search before you pay.

Secured or unsecured used car loan?

The trade-off is rate against flexibility. Published ranges as at September 2026:

FactorSecured loanUnsecured loan
Published ratesCommBank 6.79% to 10.79%; NAB 5.99% to 12.79% (discounted)CommBank 7.25% to 22.25%; NAB 7.50% to 22.00%
Vehicle age limit7 years at most banks; 12 at application at NABNone; the car is not security
Repossession riskYes, the lender can repossess the carNo, the car is not collateral
Best forNewer used cars, the lowest rateOlder cars, cheaper cars, flexibility
Get pre-approved before you shop

A pre-approval gives you a firm budget and lets you negotiate with dealers and private sellers like a cash buyer. It does not commit you to the loan, but it does expire, so shop within its dates.

How to buy a used car on finance

1
Get pre-approved
Know your budget and rate before you shop, and which lenders will take a car of the age you are looking at.
2
Find your car
Shop dealers and private sellers, and negotiate the price separately from the finance.
3
Run the checks
PPSR search, an independent inspection, and the lender's valuation on a private sale.
4
Settle and drive away
After final approval the lender pays the dealer or seller directly.

A car loan broker can check which lenders will take the car before you commit to it, which matters most for an older car or a private sale.

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More car loan guides

Find the right finance for your situation.

Car loan interest rates
Published ranges by lender
Car loan broker
Who compares the lenders for you
New car loans
Finance a brand new vehicle
Private sale car loans
Buy from private sellers
Secured car loans
Lower rates with security
Unsecured car loans
For cars past the age limits
Bad credit car loans
Options for poor credit
Car loan refinance
Switch to a lower rate
No deposit car loans
100% financing options

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.

Used car loan FAQs

What is the best loan for a used car?
For most buyers, a secured car loan, because using the car as security gets a lower rate than an unsecured personal loan; Westpac and NAB both publish that as the reason their car loans are cheaper. The catch is the vehicle age limit: seven years at Westpac, BankSA, CommBank and Great Southern Bank, and 12 at application at NAB. For an older car, a specialist lender or an unsecured loan is the option. Compare the offers on the comparison rate.
What’s the smartest way to finance a car?
Get pre-approved before you shop, so you can negotiate the car’s price as a separate conversation from the finance, then compare the comparison rate on a secured loan from a bank or broker against the dealer’s offer. Keep the term to how long you will keep the car, be wary of a large balloon, and put down what deposit you can, because every dollar you do not borrow saves interest at your rate.
How old can a used car be to get finance?
It depends on the lender. Westpac and BankSA secure cars seven years old or less at application, CommBank new or used cars under seven years, Great Southern Bank cars and motorbikes up to seven years old, and NAB used cars up to 12 years old at application and 15 at the end of the term. An older car usually means a specialist lender or an unsecured loan.
Are used car loan rates higher than new car loan rates?
Usually a little. In September 2026 loans.com.au published 7.19% to 15.99% on used cars against 5.94% to 16.64% on new ones, and the banks that cap the car’s age at seven years price a late-model used car much like a new one. The premium reflects faster depreciation and more risk for the lender.
Can I get a used car loan for a private sale?
Yes. Pepper Money, for example, publishes that it finances used cars bought privately or through a dealership. You will typically need the seller details, the vehicle identification number (VIN), the agreed price, and a clear PPSR search showing no money owing on the car. Some lenders also require an independent valuation for private sales; the private sale car loans guide covers the paperwork.
Do I need a deposit for a used car loan?
Not necessarily. Pepper Money publishes finance of the full purchase price, from $5,000 to $150,000 for consumer applicants, with a $0 deposit, subject to eligibility and vehicle age and condition rules. A deposit lowers the amount you borrow and the interest, and it helps when the car is older or your credit file is not clean.
Should I get a secured or unsecured loan for a used car?
A secured loan is usually cheaper because the car is the lender’s security: in September 2026 CommBank published 6.79% to 10.79% secured against 7.25% to 22.25% unsecured. Unsecured suits a car too old for secured lending, or a buyer who does not want the car at risk of repossession.
What checks should I do before buying a used car?
Before purchasing, run a PPSR check ($2) to confirm no money is owing on the vehicle, get an independent mechanical inspection, verify the odometer reading, check the service history, confirm the VIN matches the registration papers, and research the market value using tools like RedBook or CarsGuide to ensure you are paying a fair price.
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