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Used car loans comparison

Buying a used car doesn't have to be any more difficult than buying a new one!

What is the cheapest used car loan on Finder?

  • Right now on Finder, the cheapest used car loan comparison rate starts from 6.6% p.a. and is offered by Simplify Used Car Loan.

Compare used car loans

$
years
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Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
Simplify Used Car Loan
Simplify Finance logo
Fixed1 - 7 Years $10,000 - $300,000
Interest Rate (p.a.)
6.19%
to 18%
Comp. Rate (p.a.)
6.6%
to 23%
Application Fee
$395
Monthly Fee
$0
Monthly Repayment
$622.21
Go to siteMore Info
loans.com.au - Variable Rate Used Car < 5 years
loans.com.au logo
Variable3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.74%
to 7.74%
Comp. Rate (p.a.)
8.85%
to 8.99%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$644.82
Go to siteMore Info
OurMoneyMarket Used Car Loan ($5,000-$100,000)
OurMoneyMarket logo
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
$250
min.
Monthly Fee
$0
Monthly Repayment
$622.82
Go to siteMore Info
Stratton Finance Used Car Loan
Stratton Finance logo
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 siteMore Info
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.
RACV Used Car Loans
RACV logo
Fixed1 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
8.49%
to 16.99%
Comp. Rate (p.a.)
9.21%
to 17.77%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$647.01
Go to siteMore Info
You'll receive a fixed rate from 8.49% p.a.
Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.
Revolut Unsecured Personal Loan
Revolut logo
Fixed1 - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
6.56%
to 24.99%
Comp. Rate (p.a.)
6.56%
to 21.79%
Application Fee
$499
Monthly Fee
$0
Monthly Repayment
$628.83
Go to siteMore Info
loans.com.au - Fixed Rate Used Car < 3 years
loans.com.au logo
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
7.59%
to 8.79%
Comp. Rate (p.a.)
8.7%
to 10.04%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$643.41
Go to siteMore Info
Latitude Variable Rate Personal Loan
Latitude Financial Services logo
Variable2 - 7 Years $5,000 - $70,000
Interest Rate (p.a.)
9.49%
to 29.99%
Comp. Rate (p.a.)
10.37%
to 30.69%
Application Fee
$0
Monthly Fee
$13
Monthly Repayment
$653.57
Go to siteMore Info
Special Finder offer: $395 establishment fee waived for approved personal loan applications submitted through Finder. Latitude may withdraw offer at any time. T&Cs apply.
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Showing 8 of 8 results

Types of used car loans

There are different types of finance that you can choose from when you're buying a secondhand car.

Secured

Secured car loans

The vehicle you're buying is held as collateral against the loan. You'll get a lower interest rate, but you put your vehicle at risk if you can't make repayments.

Unsecured

Unsecured car loans

Your vehicle will not be used as collateral against the loan, but this means interest rates are higher as there's more risk for the lender. You also get more flexibility around the car you buy, because the lender is less concerned about recouping the costs.

Dealer

Dealership finance

Used car dealerships can offer some attractive rates with their chosen finance partner. However, these agreements often have hefty deposits and balloon payments, which require you to make a final payment of several thousand dollars. The repayments seem smaller and cheaper than they really are.

What should I look for in used car loans?

  • Interest rate. The higher the interest rate the more expensive your loan becomes, and for an older used car you might end up with a higher rate.
  • Loan term. Some used car loan lenders require the car to be under a certain age by the end of the loan agreement.
  • Vehicle criteria. Make sure the lender is prepared to offer you a used car loan for the age and model of vehicle you're looking at.
  • Pre-approval. Conditional pre-approval is great when buying a used car, because you know how much you have to spend while you're shopping around.
  • Security. Check if the loan requires the car to be used as security. Some lenders won't allow the car to be used if it's a certain age. If it's a newer used car, you might not want to use it!

How old can a car be for a used car loan?

If you're buying a used car with a secured car loan, your lender has the right to sell your car to recover its costs if you can't repay the loan. This means the lender cares about the age of the car you're buying.

Many lenders only offered secured car loans for cars that are less than 7 years old. Some lenders accept cars up to 12 years old. The older the car, the higher your interest rate may be.

An unsecured car loan doesn't require the vehicle as security. So the age of the car is not an issue.

Maximum ages of used cars accepted by different lenders in Australia

LenderProduct nameMaximum age of carLoan amountFind out more
Beyond BankBeyond Bank Low Rate Car Loan8 yearsFrom $5,000Details
Beyond BankBeyond Bank Flexi Car Loan8+ yearsFrom $5,000Details
CommBankCommBank Secured Car Loan7 years$4,000 to $120,000Details
Great Southern BankGreat Southern Bank Fixed Rate Car Loan8 yearsFrom $5,000Details
loans.com.auloans.com.au - Variable Rate Used Car Loan5 yearsFrom $5,000Details
IMBIMB Secured Personal Loan6 years$2,000 to $75,000Details
NRMANRMA Used Car Loan10 years$5,000 to $130,000Details
OurMoneyMarketOurMoneyMarket New Car Loan ($5,000-$100,000)No limit$5,000 to $100,000Details
People's Choice Credit UnionPeople's Choice CU Discounted Personal Loan (Car Loan)7 years$20,000 to $120,000Details
RACVRACV Used Car Loans20 years old at end of loan termFrom $5,000Details
St.George BankSt.George Secured Personal Loan - Fixed Rate7 years$3,000 to $100,000Details
WestpacWestpac Car Loan7 years$10,000 to $100,000Details

Pros and cons of buying a used car

Pros

  • Value. You can get a used car for a cheaper price than a similar, brand-new vehicle. Let someone else pay for the first few years' depreciation (according to RACQ, it could be as much as $299.12 per week).
  • Avoid salespeople. Buying a used car means avoiding professional salespeople using high-pressure selling strategies. Buying privately means you don't have to pay the extra that a dealer puts on top.
  • No wait. There's often a long wait for new cars. Sometimes the dealer only has a display model and you have to wait weeks or months for your car to be built and shipped.
  • More options. Buying second-hand means you have more options, and can possibly get a higher-end model than you would if buying brand new.
  • Insurance. A lower value can mean lower car insurance costs.

Cons

  • You need to do more research. Buying used, there's a chance you end up buying a car that's in worse shape than it looks. You really need to take a good look at the car, and spend time researching online. A test drive is also essential.
  • Out of warranty. Depending on the age of the car you're buying, you might miss out on warranty protections.
  • Paperwork. Certain used vehicles might need a roadworthiness certificate or safety inspection
  • Tighter financing conditions. It is harder to get a used car loan compared to a loan on a new car. But this really depends on the age and condition of the vehicle. You may just need to shop around a bit more for a suitable car loan, or accept a slightly higher interest rate.

Used car buying money-saving tips

As well as shopping around for a great used car loan deal, you can save yourself even more money with these tips.

new car

Consider less popular brands and models

Well-known cars and best-sellers will undoubtedly go for a higher price than something less known. If you know you want that particular model, great! But if you have more flexibility and want to save on cash, a less popular car is the way to go.

new car

To save money, buy privately

Used car dealers might offer attractive things like short-term warranties, but in reality, the cars can be more expensive to cover their costs.

Consider buying privately and bring along a car enthusiast to check over the car for you. If you don't know a car expert, consider paying for a pre-purchase inspection.

new car

Haggle

I know, I know, most people don’t like the thought of haggling. But it can go a long way and many dealers or sellers will expect you to try. Remember, this is a business transaction, so stay friendly, a bit cheeky, and emotionally detached from the car.

Tips for haggling:

  • Stay friendly and maybe even a bit cheeky!
  • Don't get emotionally attached to the car.
  • Don't request a discount, ask them how much they're willing to knock off first.
  • Research the market value of the car beforehand.
  • Point out any flaws, like worn tyres or chipped paint.
  • Never reveal your budget.
  • new car

    Consider a previous generation model

    If the car you're after has recently received a facelift or been replaced with an updated model, the previous generation might drop in value. That means you can cash in by purchasing the older car.

    new car

    Step down a trim level or two

    It's tempting to want every creature comfort on offer in a used car, but if you're willing to step down a trim grade or two, you can save hundreds, if not thousands of dollars.

    new car

    Be flexible on the odometer

    Don't discount a car with higher mileage over one with lower mileage. Modern engines work better when up to full operating temperatures.

    AIf Car A has covered 20,000km, but it was short around-town trips, then it’s likely the car didn’t get up to full temperature or faced urban problems like potholes. Car B might have done 50,000km, but with a lot of motorway driving and excellent maintenance, and could potentially be in just as good (if not better) mechanical condition.

    How do I apply for a used car loan?

    Once you've found a suitable used car loan, you can apply. Most lenders accept online applications. You will need:

    • Your personal identification details.
    • Evidence you can repay the loan (employment information, recent payslips).
    • Details of the car you're buying (make, model, year, registration details).

    Can you afford a used car loan?

    Fill in our used car loan calculator to see how much your used car loan could cost you. You'll need to enter:

    • Loan term. How long you want the loan to be in years (between 1 and 7 years is the norm).
    • Rates and fees. Put in the loan interest rate and any loan fees.

    Then you can see see how much you'll end up paying.

    Your loan details

    Loan amount
    $
    Term
    Repayment type
    Interest rate
    %
    Interest only period
    Payment frequency
    Extra monthly repayments
    $

    Overview of your loan

    Once the interest only period ends, your estimated repayments will be
    (including extra )
    Total loan repayments:
    Total interest payable:
    Compare car loans
    By making extra monthly repayments of
    Your loan term could reduce by:
    You could pay less interest, saving:
    Years remaining Principal remaining
    Calculator Assumptions: The above calculations are worked out assuming you’re paying off a principal and interest loan where the interest rate remains the same over the life of the loan. The repayment amounts do not take into account any additional fees or charges that may be charged to your loan (e.g. application fees).
    Disclaimer: Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as indication only. They are neither a quote nor a pre-qualification for a loan.

    Which used car should I buy?

    There are hundreds of different models on the used car market, so you might find things overwhelming.

    Here's how to narrow the decision down.

    Body style

    The first and most important decision is, what kind of vehicle are you looking for? Each have their own merits and downsides.

    Car body typeProsCons
    Light car
    Light car body type
    • Great for new and young drivers
    • Easy to handle and park
    • Ideal for cities and towns
    • Extremely economical
    • Limited rear passenger space
    • Small boots
    • Small engines have to work hard on motorways
    Small car
    Small car body type
    • Great for new and young drivers
    • Still easy to park and drive
    • Decent in towns and metro areas
    • Very economical
    • Hot hatch versions available
    • Hybrids and electrics available
    • Practical boot size for everyday living
    • Sedan or hatch variants on offer
    • Some luxury models on offer
    • Some models have cramped second row of seats
    • Boot might not be big enough for family trips
    Medium car
    Picture not described
    • Offers a great all-round practicality
    • Decent size for families of four
    • Luxury models on offer
    • Electric and hybrid models available
    • Should be comfortable for four adults, five at a push
    • Wagon models have impressive boots
    • Less economical than smaller vehicles
    • Not great for large families
    Large car
    Large car body type
    • Plenty of room for up to five adults
    • Many luxury models available
    • Practical size for carrying, especially as a wagon
    • Optimum comfort for long-distance driving
    • Less economical
    • Market dominated by higher-end models
    • Cumbersome around town
    Sports car
    Sports car body type
    • Fun weekend toy, with the option for daily driving for a couple
    • Soft-tops available
    • Fast and exciting
    • Prestigious brands
    • Thrilling looks
    • Boots vary widely but aren't typically generous
    • Seating for four is usually a big ask
    • Can be low to ground, not great over speed humps
    • Firm suspension can be jarring
    Small SUV
    Small SUV body type
    • Extremely popular, with plenty of choices
    • Some hybrid models and a few electrics
    • Practical all-rounders
    • Higher up seating position
    • Proportions can mean more interior room
    • Economy has improved over the years
    • Easier to get in than lower cars
    • Still usable around the city
    • Not as much room as larger models
    • Fuel economy might not be as good as a smaller car
    • Handling might not be as sorted as cars
    Medium SUV
    Medium SUV body type
    • Great all-rounder
    • Electric and hybrids available
    • Reasonable for towing
    • Seven seater models available
    • Good for families
    • Prestige models available
    • Third row seats could be short on space
    • Less economical
    • Larger body might be more clunky in town
    Large SUV
    large suv type
    • Electric models and hybrids available
    • Good for towing trailers
    • Some off-road capable models
    • Larger interiors
    • Seating for up to eight
    • Luxury models available
    • Lots of passenger comforts
    • Some rugged, ute-based models
    • Large boots
    • Less economical
    • Cumbersome size for multi-storey and tight car parks
    People mover
    People mover body type
    • Seats for up to nine
    • Sliding doors on some models make entry and exiting easier
    • Higher up seating position
    • Doubles up as a van
    • Highly practical
    • Large, van-like proportions not great for street parking
    • Smaller used market
    Utility
    Ute body
    • Large payloads
    • Great for business
    • Hard-wearing
    • Off-road capability
    • High towing capacity
    • Seats up to five
    • Premium interior models available
    • High seating position
    • Practical
    • Beefy engine and boxy shape not great for fuel economy
    • Cargo space needs securing
    • Restricted interior storage
    • Higher maintenance requirements
    Van
    Van body
    • Large, covered cargo space
    • Decent payloads
    • Solid towing capacity
    • Ideal for tradies
    • Crew cabs available with five seats
    • Can be converted into a temporary or permanent camper
    • Lots of bodywork for advertising
    • Panel van has limited visibility
    • Economy not amazing, but not as bad as a full-size truck
    • Often have workhorse spec interiors

    Why compare used car loans with Finder?

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    It's 100% free

    You won't be charged for clicking through to one of our car finance partners. We get paid out of their pocket – not yours.

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    We're here to help

    We've helped tens of thousands of Australians find a car loan by keeping things simple and free of complicated jargon.

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    It's quick and easy to use

    Our side-by-side car loan comparison makes it easy to find a car loan that is a good fit.

    More questions about getting used a car loan

    Icons made by Vectors Market, Freepik from www.flaticon.com is licensed by CC 3.0 BY

Richard Whitten's headshot
To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.
Rebecca Pike's headshot
Written by

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

Rebecca's expertise
Rebecca has written 197 Finder guides across topics including:
  • Home loans
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  • Budgeting

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40 Responses

    Default Gravatar
    SteveSeptember 28, 2018

    I am looking to secure a $50,000 car loan. I have been told that you can pay off lump sums without penalties with some finance companies, but I am a little skeptical of this. Please clarify.

    Regards.

    Steve

      AvatarFinder
      JeniOctober 1, 2018Finder

      Hi Steve,

      Thank you for getting in touch with finder.

      Repaying a car loan early without penalty is another common feature of variable rate car loans, however it is still best to check if you are able to make extra or lump sum repayments as well as if an early prepayment or early termination fee applies.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    JadeMarch 30, 2018

    I’m currently bankrupt and have gained casual employment and need a car am I able to apply for a loan somehow

      Default Gravatar
      JoelMarch 30, 2018

      Hi Jade,

      Thanks for leaving a question on Finder.

      You can get a loan if you are discharged bankrupt or even if you are currently bankrupt. You will be more limited in terms of the lenders you have to choose from, and the fees and rates will also be higher on bankrupt loans. You may also be required to attach an asset as security or apply with a guarantor. You may click the link above to find out about your loan options and see what you might be eligible for.

      You may click the name of the lender to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button if available and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Cheers,
      Joel

    Default Gravatar
    jj93February 7, 2018

    I am a PhD student and am struggling to find a car loan as most places aren’t accepting of the scholarship as a wage – is there any places I should try applying for?

      AvatarFinder
      MayMarch 1, 2018Finder

      Hi jj93,

      Thanks for your inquiry.

      When getting a car loan and you’re a student, it’ll be worth doing your homework on which lender would accept your form of income whether it be from casual work, permanent part-time work, or Centrelink payments. Not sure though for scholarship wages. Also when getting a student car loan, you may need to have a guarantor or co-borrower who can take on the legal and financial responsibility for the debt incurred with your car loan if you default or fail to make the repayments.

      While we can’t recommend a specific lender to you and are not sure of your approval, you may like to check the guide on student car loans. On the page, is a comparison table you can use to see which lender suits you.

      When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Cheers,
      May

    Default Gravatar
    MichaelFebruary 7, 2018

    Hi Im looking at purchasing a 1986 Van for work, I have owned and operated a company since 2012.

    What is my most affordable options

      Default Gravatar
      AshFebruary 17, 2018

      Hi Michael,

      Thank you for reaching out to us.

      If you are looking for a used Van, you may refer to the above list of lenders that offer used car loans. If you’ve chosen a brand and you think you are eligible, please click on the ‘Go to site’ button to be redirected to the lender’s official site and apply from there. Otherwise, some other car loans you may consider and compare are on these pages:

      I would suggest that you review the features and details of the loan and the eligibility requirements and consider whether the loan is right for you. You can also contact the lender to discuss your options.

      I hope this helps.

      Please do not hesitate to reach out to us again if you have additional questions.

      Cheers,
      Ash

    Default Gravatar
    nurse31August 2, 2017

    i want to borrow enough to paid off my existing car loan and buy two more cars one for me and one for my fiance . The two of us will be making the repayments

      AvatarFinder
      DeeAugust 3, 2017Finder

      Hi there,

      Thanks for your question.

      If you are looking to borrow jointly to pay for your existing car loan and to have extra money, you may compare joint account personal loans and find the best one for you.

      Cheers,
      Anndy

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