Will paying off my car loan early save me money?

Paying off your loan early can save on interest, but some lenders charge fees that may reduce your savings.

Are there fees for paying off a car loan early?

Some lenders charge early repayment fees, so review your loan agreement to understand any potential costs.

Can I partially pay off my car loan early?

Many lenders allow partial early repayments, which can reduce your interest costs and shorten the loan term.

Can you pay off your car loan early?

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Car loans generally require you to make repayments over a set period of time. However, some may allow you to make additional repayments or pay off your entire loan early. If you're considering a car loan and want the ability to pay it off early, read our guide to see which loans allow you to do so.

Which car loans allow early repayment?

Brand	Car loan(s)	Fees that apply
Aussie	Aussie Car Loan	Fees are determined by the lender. The amount will depend on how much you have left on your loan term and how much you still owe.
Bankwest	Bankwest Car Loan	An early repayment fee applies if the loan is paid off in the first 24 months.
BankSA	BankSA Secured Personal Loan	$150 if paid off within first 12 months, $100 if paid off after first the first 12 months and before the end of the term. Break costs also apply as determined by BankSA.
Bendigo Bank	Bendigo Bank Secured Car Loan	$20 fee for paying your loan back early.
Beyond Bank	Beyond Bank Special Low Rate, Low Rate, Fee Free and Flexi Car Loan	No fee applies.
CommBank	CommBank Secured Car Loan	You will be charged an early repayment adjustment if you repay your loan early.
CUA	CUA Fixed Rate Car Loan	No fee applies.
Esanda	Esanda Car Loan	$50 administration fee plus $680 pro rata for unrecovered costs of providing the loan. Break costs may also apply.
Gateway Bank	Gateway Bank New Car Loan, Car up to 5 years and over 5 years	No fee applies.
IMB	IMB New Car Loan, IMB Secured Personal Loan	No fee applies.
loans.com.au	loans.com.au Car Loan	Early repayment fee applies if the loan is paid off before the last 12 months of the loan term.
NRMA	NRMA Car Loan	$200 or 2% of the outstanding balance (whichever the greater) at the time the final payment is made. Applies for the first 75% of the original loan term only.
RACQ	RACQ Car Loan	2% or minimum $200 if paid before 75% of the loan term, otherwise $0.
RACV	RACV Car Loan	The fee is $160 or 1.25% of your remaining loan amount, whichever is greater.
Westpac	Westpac Car Loan	$175 fee applies if you choose a term greater than 2 years and pay it out in less than 2 years. This fee is waived if you pay out your car loan by refinancing to another Westpac personal loan.

How do early repayments work?

There are a few different types of early repayments:

Additional or lump sum payments. These are made during the loan term and do not result in your loan being repaid in full. Lenders still may place restrictions on these payments, especially with fixed rate loans. On variable rate loans, you will find fewer restrictions and you may also be able to redraw additional payments using a redraw facility.
Repaying your entire loan on a variable rate loan. You will find fewer restrictions with a variable rate loan on repaying your entire loan amount before the end of the loan term. In this situation, you repay the loan balance on a variable rate loan or you will be out of your fixed rate period. Break fees are not likely to apply as lenders do not lose as much from letting you repay early.
Repaying your entire loan amount during a fixed rate period. This is where you will find the most restrictions applied. Repaying your entire loan early in this scenario involves paying whatever the loan balance is due to the lender during a fixed rate period, or where a fixed rate already applies to a loan. Here, break costs and administration fees are likely to apply to help the lender cover costs lost to them.

What is the benefit of paying your loan off early?

Repaying your car loan early can help lower the cost of your loan by limiting the amount of interest you pay. However, if you are in a position to repay your car loan early, you should always consider if any penalties or fees will apply, as the cost of these may be bigger than the savings you would make from repaying the loan early.

What else should I know about car loan repayments?

Your car loan repayments will affect how you deal with your loan, so examine them carefully. Before you send through an application, make sure you have considered:

How often you make repayments. Lenders usually give you the option of making weekly, fortnightly or monthly repayments. This lets you line them up with your budget.
The flexibility of the repayment options. Check whether you are able to make additional repayments without penalty or if there is a cap on how many additional payments you can make.
How you need to make repayments. Repayments are usually direct debited out of your account automatically, but you may be given other options to pay off your loan. BPAY, electronic transfer and even in-branch deposits may be available.

Making additional repayments on your car loan can be a helpful option that can help you save down the track, but it's not the only feature that lenders have on offer. Remember to compare car loans across all fees, features and rates to find the right one for you.

Compare car loans

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Name	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
IMB New Car Loan Fixed1 - 7 Years $2,000 - $125,000	Interest Rate (p.a.) 6.24%	Comp. Rate (p.a.) 6.59%	Application Fee $274.78	Monthly Fee $0	Monthly Repayment $619.01	Go to site More info Compare	Borrow up to $125,000, pay no account-keeping fees and repay with fixed repayments while having the ability to repay early.
Stratton Finance New Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.52% to 18%	Comp. Rate (p.a.) 6.95% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $625.27	Go to site More info Compare	Your own personal car loan broker can help you borrow up to $300,000 for your new car by choosing from a range of finance options.
loans.com.au - New/Demo - Variable Rate Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 5.99% to 7.14%	Comp. Rate (p.a.) 7.12% to 8.27%	Application Fee $400	Monthly Fee $8	Monthly Repayment $628.52	Go to site More info Compare	Borrow up to $150,000 with rate discounts for electric and hybrid vehicles, flexible terms, early repayment options, and a 3-month pre-approval period.
Great Southern Bank Fixed Rate Car Loan Fixed1 - 7 Years $5,000 - $100,000	Interest Rate (p.a.) 6.29% to 12.99%	Comp. Rate (p.a.) 6.75% to 13.48%	Application Fee $325	Monthly Fee $0	Monthly Repayment $621	Go to site More info Compare	You'll receive a fixed rate of 6.29% p.a. A secured loan with a high maximum borrowing amount up to $100,000. Redraw facility and no monthly fees.
OurMoneyMarket New Car Loan ($5,000-$100,000) Fixed1 - 7 Years $5,000 - $100,000	Interest Rate (p.a.) 6.57% to 18.99%	Comp. Rate (p.a.) 7.19% to 21.78%	Application Fee 1.5% - 6%	Monthly Fee $0	Monthly Repayment $622.82	Go to site More info Compare
Driva Car Loan Fixed or Variable1 - 7 Years $2,001 - $300,000	Interest Rate (p.a.) 6.57% to 36%	Comp. Rate (p.a.) 6.78% to 36%	Application Fee $0 - $500	Monthly Fee $0	Monthly Repayment $613.62	More info Compare	You'll receive a fixed rate from 6.57% p.a. Borrow up to $300,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
RACV New Car Loans Fixed1 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 6.99% to 17.99%	Comp. Rate (p.a.) 7.69% to 18.77%	Application Fee $499	Monthly Fee $0	Monthly Repayment $632.86	Go to site More info Compare	You'll receive a fixed rate from 6.99% p.a. A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
loans.com.au - Variable Rate Used Car < 5 years Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.14% to 7.14%	Comp. Rate (p.a.) 8.27% to 8.41%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.2	Go to site More info Compare	Buy a used car up to 12 years old with a loan of up to $150,000 and pay off up to one year early without paying early repayment fees.
Stratton Finance Used Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.52% to 18%	Comp. Rate (p.a.) 6.95% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $625.27	Go to site More info Compare	You'll receive a fixed rate loan from 6.52% p.a. with a comparison rate of 6.95% p.a. A used car loan of up to $300,000 with quick approval times and balloon payment options.
OurMoneyMarket Used Car Loan ($5,000-$100,000) Fixed1 - 7 Years $5,000 - $100,000	Interest Rate (p.a.) 6.57% to 18.99%	Comp. Rate (p.a.) 7.19% to 21.78%	Application Fee 1.5% - 6%	Monthly Fee $0	Monthly Repayment $622.82	Go to site More info Compare
RACV Used Car Loans Fixed1 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 8.19% to 17.99%	Comp. Rate (p.a.) 8.9% to 18.77%	Application Fee $499	Monthly Fee $0	Monthly Repayment $644.16	Go to site More info Compare	You'll receive a fixed rate from 8.19% p.a. Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.
loans.com.au - New/Demo - Fixed Rate Fixed3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 6.59% to 7.79%	Comp. Rate (p.a.) 7.72% to 8.92%	Application Fee $400	Monthly Fee $8	Monthly Repayment $634.08	More info Compare	You'll receive a fixed rate of 6.59% p.a. based on your risk profile Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.
loans.com.au - Variable Rate Used Car < 3 years Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.14% to 7.14%	Comp. Rate (p.a.) 8.27% to 8.41%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.2	Go to site More info Compare
loans.com.au - Fixed Rate Used Car < 3 years Fixed3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.29% to 8.49%	Comp. Rate (p.a.) 8.42% to 9.76%	Application Fee $400	Monthly Fee $8	Monthly Repayment $640.6	More info Compare
loans.com.au - Fixed Rate Used Car < 5 years Fixed3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.39% to 8.59%	Comp. Rate (p.a.) 8.52% to 9.86%	Application Fee $400	Monthly Fee $8	Monthly Repayment $641.54	More info Compare
loans.com.au - Fixed Rate Used Car Loan (6 to 7 years) Fixed3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 8.69% to 9.89%	Comp. Rate (p.a.) 9.82% to 11.16%	Application Fee $400	Monthly Fee $8	Monthly Repayment $653.78	More info Compare
loans.com.au - Fixed Rate Used Car Loan (8+ years) Fixed3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 12.39% to 13.59%	Comp. Rate (p.a.) 13.51% to 14.86%	Application Fee $400	Monthly Fee $8	Monthly Repayment $689.38	More info Compare
NAB Personal Loan Unsecured Fixed Fixed1 - 7 Years $5,000 - $55,000	Interest Rate (p.a.) 7.49% to 20.49%	Comp. Rate (p.a.) 8.53% to 21.38%	Application Fee $0	Monthly Fee $15	Monthly Repayment $637.03	More info Compare	You'll receive a fixed rate between 7.49% p.a. and p.a. (8.53% p.a. to p.a. comparison rate) based on your risk profile Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
loans.com.au - Variable Rate Used Car Loan (6 to 7 years) Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.14%	Comp. Rate (p.a.) 8.27%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.2	More info Compare	You'll get a variable rate of 7.14% p.a. Borrow up to $150,000 for a used car for 6+ years, with no monthly fee.
loans.com.au - Variable Rate Used Car Loan (8+ years) Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 12.09%	Comp. Rate (p.a.) 13.2%	Application Fee $400	Monthly Fee $8	Monthly Repayment $686.45	More info Compare	You'll get a variable rate of 12.09% p.a. Borrow up to $150,000 for a used car for 8+ years, with no monthly fee.

Showing 20 of 22 results

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Elizabeth Barry

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Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024. See full bio

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2 Responses

OliverOctober 9, 2017

Hi I’ve just paid off my car loan three years earlier and now I received final payment paperwork with a admin fees add in to it and it’s over $500.00.my question is; was I supposed to pay that admin fee when I pay my loan off early?

DanielleOctober 10, 2017

Hi Oliver,

Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

That would depend on your lender. As you can see on the table above, different lenders have different policies. You may review your loan policy or contact your lender directly to verify.

I hope this helps.

Cheers,
Danielle

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