Best Car Loans in Australia (2025): How to Pick the Right Deal for You
Looking for the best car loans in Australia? Whether you’re buying new, used, or for business, knowing how to spot the right offer can save you thousands. In this article, you’ll learn:
- What “best car loans” really means
- How to compare interest rates, fees, and features
- Which car loan types work best for your situation
- Tips to increase your chances of approval
By the end, you’ll be armed with the knowledge to choose a car loan that fits your budget and goals.
What Does “Best Car Loan” Mean?
Calling something the best car loan doesn’t just mean the lowest interest rate. A truly great car loan balances:
- Low interest and comparison rates
- Reasonable fees and charges
- Flexible repayment options (extra payments, redraw, early payoff)
- Good eligibility flexibility (for self-employed, bad credit, ABN holders)
- Trustworthy lenders and clear terms
Australia’s leading comparison sites show that advertised rates are only part of the story — fees, lending criteria, and loan features matter just as much. Money.com.au.
Top Car Loan Options Right Now (2025)
Here are some of the car loan products currently rated as strong contenders:
| Lender / Product | Key Features | Why It’s Considered Among the Best |
|---|---|---|
| OurMoneyMarket (secured) | Fixed rates from ~6.28% p.a. Mozo | No monthly fees, no exit penalty, flexible terms |
| IMB Bank New Car Loan | Fixed rate from ~5.99% p.a. Mozo | Fast conditional approval, no monthly account fees |
| Loans.com.au New Car Loan | Variable rate from ~5.99% p.a. Mozo | Good for new/demo vehicles, 1–7 year terms |
| Police Credit Union Better Car Loan | Fixed ~5.99% for new/used cars Mozo | No monthly or annual fees, no early repayment penalties |
| RACV Green Car Loan | Fixed from ~5.09% p.a. (for eligible EVs) Money.com.au | Great rate for electric / environmentally friendly cars |
These are examples — your best loan may differ depending on your credit, location, and type of car you’re buying.
How to Compare Car Loans Like a Pro
When evaluating car loans, don’t just focus on the interest rate. Here’s a checklist:
1. Check the Comparison Rate
The comparison rate includes many fees and shows the real cost of the loan annually. Always compare comparison rates, not just the headline rate. Canstar
2. Look at All Fees
Watch for:
- Establishment / application fees
- Monthly account keeping fees
- Early repayment / exit fees
- Balloon payments (large lump sum at the end)
A loan with a slightly higher rate but zero fees and no penalties could be cheaper overall.
3. Term & Repayment Options
Longer term = lower repayments, but more interest.
Check if you can:
- Make extra payments
- Redraw or access surplus
- Pay off early without penalty
4. Secured vs Unsecured Loans
- Secured Loans: Use the car as collateral → lower interest
- Unsecured Loans: No collateral → higher interest, more risk for lenders
If you have a solid credit profile, a secured loan is often the better deal.
5. Eligibility & Flexibility
Some loans are more forgiving for:
- Self-employed / ABN holders
- Borrowers with bad credit
- Applicants who can’t produce full financial statements
Zoom Car Loans specialises in matching you with lenders who accept diverse financial situations.
| Situation | Recommended Loan Type | Notes |
|---|---|---|
| Low credit score / past credit events | Bad credit car loan or specialist option | Expect higher interest, but possible with the right lender |
| Self-employed / ABN holder | Low-doc or ABN car loan | Use BAS, bank statements instead of full financials |
| Buying EV / green vehicle | Green car loan | Special rates and incentives may apply |
| Buying a used car | Secured used car loan | Ensure loan supports older vehicles |
| Want flexibility | Loan with redraw / extra repayments | Helps reduce interest over time |
How to Secure the Best Car Loan for You
Here’s a step-by-step approach to help you land the best car finance:
- Check your credit report first — fix errors that may drag you down
- Set a realistic loan budget — don’t overextend
- Gather financial docs — income, bank statements, business income
- Shop around — compare 3–5 lenders using comparison tools
- Use a car finance broker like Zoom Car Loans — they know lenders and can help you access better deals
- Apply selectively — unnecessary credit checks can hurt your score
Why Zoom Car Loans Can Help You Find the Best Car Loan
At Zoom Car Loans, we specialise in helping Australians secure great finance even when others have declined them.
What makes us effective:
- Access to 30+ lenders across Australia
- Specialist solutions for bad credit, ABN holders, low-doc applications, and more
- Personal, trustworthy service — not just an algorithm
- A focus on making sure your loan is affordable and transparent
If you’ve struggled to find a “best car loan” for your situation, let us do the heavy lifting and match you with offers you actually qualify for.
FAQs: Best Car Loans
Q1: What is a “best car loan” for my credit profile?
A “best car loan” is one you qualify for that balances interest, fees, flexibility, and lender reliability.
Q2: Can I get a low rate with bad credit?
Yes — but expect higher interest and stricter terms. Specialist lenders and brokers like Zoom can help.
Q3: How long should my car loan term be?
Between 3–7 years is common. Shorter improves cost, longer improves affordability.
Q4: Are EV car loans better?
Sometimes. Green car loans often come with lower interest rates or incentives.
Q5: Should I refinance my car loan later?
Yes, if rates drop or your credit improves — you can reduce your expenses over time.
Conclusion & Next Steps
The best car loan isn’t one-size-fits-all — it’s the one that works for you. Focus on your credit, realistic repayments, fees, and lender reputation.
Want help comparing and applying for the best car loan you qualify for? Apply with Zoom Car Loans today — we’ll match you to lenders that suit your financial profile and get you behind the wheel sooner.