New Car Loans Australia

Getting a new car is one of the biggest financial decisions most Australians make. Whether you are buying your first car, upgrading the family SUV, switching to an electric vehicle or adding a new ute to your business, how you finance it matters. The difference between the right loan and the wrong one can be thousands of dollars over the life of your finance. At Australian Finance & Loans, we are an independent car finance broker with access to over 30 Australian lenders. We compare rates, structures and loan terms across the market so you get a genuinely competitive deal, not just the first approval your bank offers.

We arrange new car loans for private buyers, business owners, sole traders and first-time borrowers across Australia. Our Melbourne-based team handles the comparison, paperwork and lender negotiations on your behalf. You choose the car. We work to get you the finance.

Types of New Car Loans We Arrange

The right car loan structure depends on whether you are buying for personal use or business use, your tax position and how you want to manage repayments. Here is a plain-English explanation of each option.

Secured Car Loan (Personal Use)

The most common type of new car finance for personal buyers. The vehicle you purchase acts as security against the loan. Because the lender has a tangible asset as collateral, interest rates are lower than unsecured loans. You own the car, make fixed repayments over the agreed term and once the loan is repaid, the security is released and the car is fully yours.

Current market rates for secured new car loans in Australia range from approximately 5.99% per annum to 14.99% per annum depending on your lender and credit profile. As a broker, we compare rates across 50+ lenders to find the most competitive option for your circumstances.

Unsecured Car Loan (Personal Use)

An unsecured car loan does not use the vehicle as security. This means the lender takes on more risk, so interest rates are higher. Unsecured loans are typically used when the vehicle does not meet a lender's security criteria (usually vehicles older than 7 years), or when the borrower prefers not to have the car used as collateral.

Chattel Mortgage (Business Use)

If you are buying a new car for business use at least 51% of the time, a chattel mortgage is usually the most tax-effective structure available. Your business takes ownership of the vehicle at settlement, the lender registers a mortgage over it as security, and you can claim the full GST on your next BAS, deduct the interest component of repayments from your taxable income and depreciate the vehicle over its ATO effective life. This is the most popular structure for business owners, sole traders and ABN holders.

Finance Lease (Business Use)

Under a finance lease, the lender owns the vehicle and leases it to your business for the agreed term. Lease payments are fully tax deductible as a business operating expense. At the end of the lease you can purchase the vehicle at the agreed residual value, extend the lease or hand it back. This suits business buyers who prefer to upgrade vehicles on a regular cycle.

Novated Lease (Employee Salary Packaging)

A novated lease is a three-way arrangement between you, your employer and a financier. Your employer makes lease payments on your behalf from your pre-tax salary, reducing your taxable income. Running costs including fuel, insurance and registration can also be bundled in. Novated leases work well for new cars and can be especially beneficial for electric vehicles under current FBT exemption rules.

Green Car Loan (Electric and Hybrid Vehicles)

Several lenders offer dedicated green car loan products for new electric and hybrid vehicles, often at a discounted interest rate compared to standard car loans. If you are buying a new Tesla, BYD, Hyundai Ioniq, Kia EV or any other eligible new EV or PHEV, ask us about the green loan rates available to you from our lender panel.

New Vehicles We Finance

We arrange finance for all categories of new passenger and light commercial vehicles sold through franchised dealers and authorised importers across Australia, including:

• Hatchbacks, sedans and coupes for individuals and first-time buyers

• SUVs and crossovers for families needing space and versatility

• Utes and dual-cab 4WDs for tradespeople and business owners

• Vans and light commercial vehicles for small business operators

• Electric vehicles (EVs) across all major brands and models

• Plug-in hybrid electric vehicles (PHEVs) and standard hybrid vehicles

• People movers and 7-seater vehicles for larger families

• Sports cars and high-performance vehicles

• Luxury and prestige vehicles (see our dedicated luxury vehicle loans page)

• New demonstrator vehicles from franchised dealerships

Who Can Apply for a New Car Loan

We match applicants to the right lenders based on their individual financial situation. We work with:

• First-time car buyers with limited credit history

• Full-time, part-time and casual employees

• Self-employed borrowers and sole traders with an ABN

• Business owners purchasing vehicles under a company or trust

• Borrowers with good, average or impaired credit history

• Low-doc applicants who cannot provide traditional payslips (bank statements accepted)

• Recent graduates and young borrowers entering the workforce

• Borrowers receiving Centrelink payments (subject to lender criteria)

• Non-residents purchasing vehicles for Australian-based use

If you are not sure whether you will qualify, contact us before applying anywhere else. A declined credit application stays on your credit file and can make subsequent applications harder. We assess your situation first, identify the most suitable lenders and only lodge your application with lenders who are genuinely likely to approve it.

New Car Loan Details at a Glance

Loan Amount

Most lenders offer new car loans from $5,000 up to $100,000 to $150,000 for personal buyers. Business vehicle finance can go higher depending on the vehicle value and your business financials. Some lenders also allow you to include on-road costs, stamp duty and dealer accessories in the loan amount.

Loan Term

New car loans are available over 1 to 7 years. A longer term reduces your regular repayments but increases total interest paid. A shorter term costs more per month but you pay less overall and reach full ownership faster.

Interest Rates

Secured new car loan rates currently range from approximately 5.99% per annum to 14.99% per annum depending on your lender, credit profile and loan term. We compare across 50+ lenders to find the most competitive rate for your situation. Always compare the comparison rate, not just the headline rate, as it includes fees and gives a truer picture of the total annual cost.

Deposit

A deposit is not required for most new car loan applications with a solid credit profile. Some lenders allow borrowing 100% of the vehicle purchase price. A deposit of 10% to 20% can improve your rate and approval odds if your credit history is limited. A trade-in vehicle can sometimes be used in lieu of a cash deposit.

Repayment Frequency

Most lenders offer weekly, fortnightly or monthly repayments. Paying fortnightly rather than monthly results in 26 repayments per year instead of 12, which can meaningfully reduce your total interest paid over the term.

Balloon Payment

A balloon payment is a lump sum paid at the end of the loan term that reduces your regular repayments during the loan. You can pay it out in cash, refinance it, or under finance lease arrangements, hand the vehicle back. Balloon payments are more common in business finance structures than personal car loans.

Fixed vs Variable Rate

Most Australian car loans are fixed rate, meaning your repayment stays the same for the life of the loan. Variable rate loans are available from some lenders and allow extra repayments without penalty, but your rate can change with market movements.

Buying a New Car for Business: What You Need to Know

Buying a vehicle for business use unlocks a range of tax advantages that are not available on personal car loans. The key is choosing the right finance structure to maximise those benefits.

Chattel Mortgage for Business Car Buyers

A chattel mortgage is the most popular structure for business car buyers because it delivers the broadest range of tax benefits. Your business owns the vehicle immediately, the GST is claimable in full on your next BAS, and the interest component of repayments is deductible each year. You can also claim depreciation over the vehicle's ATO effective life. For eligible assets, the instant asset write-off may allow an immediate deduction of the vehicle cost in the year of purchase. Check current thresholds and eligibility with your accountant.

Finance Lease for Business Car Buyers

Under a finance lease, the lender owns the vehicle and leases it to your business. All lease payments are fully deductible as a business operating expense. At the end of the term you can purchase, re-lease or hand the vehicle back. This suits businesses that want to upgrade their cars every 3 to 4 years without dealing with the resale process.

Personal Car Loan Used for Business

If you use a personal car loan vehicle for business, you may still be able to claim a portion of the interest and running costs against your tax return, proportional to the percentage of business use. However, you cannot claim the full GST upfront as you would with a chattel mortgage. A business finance structure is almost always more tax-effective for business buyers.

Electric Vehicle Car Loans: What You Need to Know in 2025

Electric vehicles are becoming one of the most common new car purchases in Australia, and finance for EVs has some important differences to know about.

• Green car loan rates: Many lenders offer a discounted interest rate specifically for new electric and plug-in hybrid vehicles. Ask us which lenders on our panel offer EV-specific rates.

• FBT exemption: Electric vehicles provided to employees via a novated lease may be exempt from fringe benefits tax under current legislation. This can make a novated lease significantly more cost-effective for EV buyers than standard personal car finance. Confirm eligibility with your accountant.

• Clean Energy Finance Corporation (CEFC): Some lenders participate in a CEFC co-funding program that offers a further rate discount on eligible EVs. Ask us if your vehicle qualifies.

• Charging infrastructure: Some lenders will allow you to include the cost of a home EV charger in your car loan amount, subject to their lending criteria.

• Depreciation: EV depreciation rates and residual values vary significantly by brand. Some EVs hold their value well while others depreciate faster. This can affect the economics of a finance lease structure where residual value matters.

Frequently Asked Questions About New Car Loans in Australia

What is the difference between a secured and unsecured car loan?

A secured car loan uses the vehicle as collateral. If you default on repayments, the lender can repossess the car. Because the lender has security, interest rates are lower. An unsecured car loan requires no security but comes with higher rates because the lender takes on more risk. Most new car loans are secured because new vehicles hold their value well.

Can I get a new car loan with bad credit?

Yes. We have access to specialist lenders who consider borrowers with impaired credit, including defaults, missed payments or a discharged bankruptcy. Rates from specialist lenders are higher than prime rates, but approval is possible in most circumstances. The critical thing is applying to the right lender for your credit profile. Applying to a lender unlikely to approve you creates a credit inquiry that makes your situation worse. We assess your position first and match you to appropriate lenders.

Can I get a car loan as a casual or part-time employee?

Yes. Casual and part-time employees are eligible with most lenders on our panel. You will typically need to show three to six months of consistent income via payslips or bank statements. Lenders assess serviceability based on your actual income, not just your employment type.

Can I get a car loan if I am self-employed?

Yes. Self-employed borrowers and sole traders are eligible for both personal car loans and business car finance. If you cannot provide traditional payslips, a low-doc loan uses your bank statements, BAS returns or an accountant's letter as income evidence. We work with multiple lenders who specialise in self-employed applicants and understand that business income looks different to PAYG income.

How much can I borrow for a new car?

Most lenders offer new car loans up to $100,000 to $150,000 for personal buyers. Business vehicle finance can go higher. Your maximum borrowing amount depends on your income, existing financial commitments and the lender's criteria. We can give you a realistic estimate during your initial conversation with no cost and no impact on your credit score.

Do I need a deposit for a new car loan?

No deposit is required for most new car loan applications with a solid credit profile. Some lenders allow you to borrow 100% of the vehicle price plus on-road costs. If your credit history is limited, a deposit of 10% to 20% can improve your approval odds and interest rate. A trade-in can sometimes be used as an equivalent to a cash deposit.

How long does new car loan approval take?

Most applications submitted with complete documentation receive a conditional approval within 24 hours. Once formally approved, the loan typically settles within one to two business days, meaning funds are released to the dealership and you can collect your vehicle. Complex income situations or larger loan amounts may take slightly longer.

Does applying for a car loan affect my credit score?

Yes. A formal credit application creates an inquiry on your credit file. Multiple inquiries in a short period can reduce your score. This is why applying through a broker is more effective: we assess your situation and match you to the most appropriate lender before lodging a formal application, reducing unnecessary inquiries from declined applications.

Can I pay out my new car loan early?

Yes. Most car loans allow early repayment. Some lenders charge an early termination fee, typically calculated as a fixed number of months of interest remaining. We always disclose early payout conditions before you sign. If you think you may want to pay the loan out early, tell us and we will factor this into our lender recommendation.

Can I refinance my existing car loan to a better rate?

Yes. If your current car loan rate is no longer competitive, we can arrange refinancing through a lender on our panel. Refinancing can reduce your interest rate, lower your repayments or shorten your remaining loan term. We assess your current loan, the vehicle value and your credit position to confirm whether refinancing delivers a genuine saving after any break costs.

Can I include on-road costs, stamp duty and accessories in my car loan?

Many lenders allow you to include stamp duty, registration, CTP insurance and dealer-fitted accessories in the loan amount, subject to the total not exceeding their maximum loan-to-value ratio. Confirm what is includable at the time of your enquiry and we will check the specific lender's policy.

What documents do I need to apply for a new car loan?

For a standard application: a valid Australian driver's licence, proof of income such as recent payslips or three months of bank statements, a quote or purchase agreement from the dealer showing the vehicle details and price, and your Medicare card or passport as secondary identification. Self-employed borrowers typically provide tax returns, BAS statements or business bank statements. We tell you exactly what is needed once we identify the right lender for you.

Why Choose Australian Finance & Loans for Your New Car Loan

• Independent broker: we compare 50+ lenders and work for you, not the banks

• Access to rates across banks, credit unions, non-bank lenders and specialist financiers

• One application with multiple lenders assessed simultaneously

• Fast approvals: most applications receive conditional approval within 24 hours

• Melbourne-based team with national reach across all states and territories

• Specialists in personal car loans and business car finance including chattel mortgage and finance lease

• Low-doc options for self-employed and sole trader borrowers

• Transparent advice with all fees and conditions disclosed before you commit

• Pre-approval available so you can shop at the dealership with confidence

• Dedicated support from initial enquiry through to settlement and beyond