Vehicle Loan Calculator for Australia
Total Loan Cost
Monthly Payment: $0
Total Interest Paid: $0
Total Cost of Loan: $0
* Comparison rate includes fees and charges as required by ASIC
Enter your loan details to see how different factors affect your total cost.
Compare between the banks listed in the article: ANZ, Westpac, NAB, Commonwealth Bank, and Suncorp.
If you're shopping for a new or used car in Australia in 2026, the difference between a 5.9% and 7.5% interest rate on your vehicle loan could save you thousands over the life of the loan. It’s not just about the monthly payment-it’s about how much extra you’ll pay in interest over three, five, or even seven years. So which bank actually offers the lowest interest on vehicle loans right now?
Who’s offering the lowest rates right now?
As of March 2026, ANZ is leading the market with its lowest advertised rate for new car loans at 5.79% p.a. (comparison rate 6.12%) for borrowers with excellent credit and a 20% deposit. But don’t rush to ANZ just yet. Rates vary wildly depending on your credit score, loan term, deposit size, and whether you’re buying new or used.
Westpac follows closely with 5.89% p.a. (comparison rate 6.21%) for similar profiles. NAB offers 5.99% p.a. (comparison rate 6.34%), while Commonwealth Bank’s best rate sits at 6.09% p.a. (comparison rate 6.45%). These are all variable rates, meaning they can go up or down after you sign up.
But here’s the catch: these advertised rates are only for people who meet very specific criteria. If your credit score is below 700, you’re putting down less than 15%, or you’re buying a car older than five years, you’ll likely pay 7% or more. And if you’re self-employed or on a contract, you might be looking at 8.5% or higher.
What really affects your car loan rate?
It’s not just which bank you pick-it’s who you are. Banks don’t just look at your income. They look at your entire financial footprint.
- Credit score: A score above 750 can drop your rate by 1-1.5 percentage points compared to someone with a 650 score.
- Deposit size: Putting down 20% instead of 10% can save you nearly $2,000 in interest over a five-year loan on a $35,000 car.
- Loan term: A seven-year loan might look cheaper monthly, but you’ll pay nearly $4,000 more in interest than a five-year loan on the same car.
- Car age and type: New cars get better rates. Used cars over five years old often cost 1-2% more. Electric vehicles (EVs) are now getting special deals-some banks offer 0.5% off for EVs to encourage adoption.
- Existing relationship: If you already have a savings account, home loan, or salary being paid into the bank, you might get a 0.3-0.7% discount just for being a customer.
One real-world example: Sarah, a 32-year-old teacher in Perth, had a credit score of 780 and saved $1,200 over three years by choosing ANZ over CBA because she’d been banking with them for seven years and had her salary direct-deposited. She didn’t even have to ask for the discount-it was automatically applied.
Comparison: Top 5 Banks for Vehicle Loans in 2026
| Bank | Best Advertised Rate | Comparison Rate | Minimum Deposit | Max Loan Term | Special Conditions |
|---|---|---|---|---|---|
| ANZ | 5.79% | 6.12% | 15% | 7 years | Auto discount for existing customers |
| Westpac | 5.89% | 6.21% | 15% | 7 years | 0.5% off for EVs |
| NAB | 5.99% | 6.34% | 20% | 7 years | Requires salary deposit |
| Commonwealth Bank | 6.09% | 6.45% | 20% | 7 years | No discounts for non-customers |
| Suncorp | 6.29% | 6.68% | 10% | 7 years | Best for used cars under 8 years |
Notice how ANZ and Westpac offer lower minimum deposits? That’s a big deal if you don’t have $7,000 saved up for a $35,000 car. But don’t get fooled by low deposits-paying less upfront means you’ll owe more, and interest adds up fast.
Why comparison rates matter more than advertised rates
Advertised rates are just the interest rate. Comparison rates include fees, charges, and the loan term. That’s why ANZ’s 5.79% rate has a 6.12% comparison rate-it includes a $200 application fee and $10/month account keeping fee.
Some banks advertise rates as low as 4.99%, but if they charge $1,000 in fees and only allow 5-year terms, your real cost could be higher than a bank offering 5.99% with no fees and 7-year flexibility.
Always check the comparison rate. It’s the only number that lets you truly compare apples to apples. The Australian Securities and Investments Commission (ASIC) requires banks to display this number right next to the advertised rate. If they don’t, walk away.
Don’t forget credit unions and online lenders
Big banks aren’t the only game in town. Credit unions like Heritage Bank and Beyond Bank often offer rates below 5.5% for members, especially if you’re buying a new car. They’re smaller, so they don’t have the same overhead. But you need to be a member first-usually by opening a savings account with them.
Online lenders like MoneyMe and Up are also pushing competitive rates. Up, for example, offers 5.65% for employed Australians with a clean credit history and no deposit required. They don’t care if you’ve banked with them for 20 years-they care if you’ve paid your bills on time for the last 12 months.
These lenders use alternative data: phone bills, rent payments, even your streaming service history to assess risk. If you’ve never had a credit card or loan, you might still qualify.
How to lock in the lowest rate
Here’s what actually works in 2026:
- Check your credit report for free via Equifax or Experian. Fix any errors. A 50-point boost can cut your rate by 0.8%.
- Save at least 15% for your deposit. Even $1,000 extra makes a difference.
- Get pre-approved before you visit the dealership. This gives you leverage to negotiate the car price, not just the loan.
- Ask for a rate discount if you’re an existing customer. Many banks will lower it by 0.3% just to keep you.
- Compare at least three lenders-don’t just take the first offer.
One last tip: avoid dealer finance unless it’s a 0% offer. Most dealers mark up the interest rate by 1-2% to make a profit. Even if they say “we’re giving you the best deal,” they’re not.
What about used cars?
If you’re buying a used car, rates are higher-but not always. Some banks now offer the same rates for used cars under five years old as they do for new ones. Westpac and ANZ both do this. But if the car is older than eight years, you’ll likely pay 7.5% or more.
Also, older cars mean higher insurance and maintenance costs. Make sure you’re not just saving on the loan-factor in the total cost of ownership.
Final advice: Don’t just chase the lowest rate
The lowest rate isn’t always the best deal. If the bank has terrible customer service, no branch access, or hidden fees, you’ll regret it later. Look for:
- No early repayment fees
- Flexible payment dates
- Online application and approval
- Clear communication
ANZ and Westpac both score high here. They’ve improved their mobile apps and customer service response times since 2024. If you need to skip a payment or change your due date, they let you do it online without calling.
And if you’re unsure? Talk to a financial counselor. Services like Financial Counselling Australia offer free advice. They don’t push products-they just help you understand what’s fair.
Which bank has the lowest interest rate on vehicle loans in Australia right now?
As of March 2026, ANZ offers the lowest advertised rate at 5.79% p.a. for borrowers with excellent credit, a 20% deposit, and an existing relationship with the bank. However, Westpac is very close at 5.89%, and both offer better terms than Commonwealth Bank and NAB. Always check the comparison rate, not just the advertised rate.
Can I get a car loan with bad credit?
Yes, but you’ll pay significantly more-typically between 8% and 14%. Some lenders like MoneyMe and Credible offer loans to people with credit scores as low as 550, but expect higher fees and shorter terms. Your best bet is to improve your credit score first by paying down debt and fixing errors on your report. Even a 50-point increase can drop your rate by nearly 1%.
Is it better to finance through a bank or a car dealer?
Always get pre-approved by a bank first. Dealers often mark up interest rates by 1-2% to earn commission. Even if they say they’re offering a special deal, it’s rarely the best rate. Only go with dealer finance if they offer 0% interest and you’re confident you can pay off the loan within the promotional period.
Do electric vehicles get lower interest rates?
Yes. Several banks, including Westpac and ANZ, now offer a 0.5% discount on vehicle loans for new electric vehicles (EVs) to encourage adoption. This applies only to brand-new EVs, not used ones. If you’re buying a Tesla, Hyundai Ioniq, or Nissan Leaf, ask specifically about this discount.
How much should I put down as a deposit?
Aim for at least 15-20%. Putting down 10% or less means you’ll owe more than the car is worth at first (negative equity), which is risky if you need to sell it early. A 20% deposit also qualifies you for the lowest advertised rates. For a $35,000 car, that’s $7,000-less than you might think when you factor in savings from lower interest.
Should I choose a fixed or variable rate loan?
For most people, a variable rate is better right now. Interest rates are expected to stay stable or drop slightly through 2026. Fixed rates are only worth it if you want certainty and you’re locking in for more than five years. But if rates fall, you won’t benefit. Variable rates let you make extra payments without penalty and often come with better features like offset accounts.
Next steps: What to do today
- Check your credit score-free tools like Credit Simple or Wisr can do it in 2 minutes.
- Calculate how much you can afford: use the ASIC MoneySmart car loan calculator.
- Get pre-approved from at least two lenders before you step onto a dealership floor.
- Ask about discounts if you’re already a customer.
- Don’t sign anything until you’ve read the fine print on fees and repayment terms.
Buying a car is a big decision. But with the right info, you can save thousands without sacrificing quality. The lowest rate isn’t hidden-it’s just waiting for you to ask for it.