Whether you’re buying your first car, upgrading your family vehicle, refinancing your current deal or adding one to your business, Savvy is here to help. We’re partnered with over 40 lenders and have secured more than 10,000 car loans for our customers nationwide since we opened our doors in 2010.
It’s simple: applying for a car loan has never been easier than it is with Savvy. With our experienced team of brokers based right here in Australia, we’re with you from start to finish to handle the heavy lifting throughout your application and ensure you drive away happy with minimal fuss.
What are car loans and how do they work?
A car loan is a credit product designed to help borrowers purchase a vehicle. A lender, after conducting responsible lending checks, will approve an applicant for a loan if they meet their eligibility criteria. This loan is then transferred directly to their dealer or seller. In return for this up-front advancement, the borrower must pay back their lender with interest and fees.
The amount you borrow is tied to your borrowing power, as well as the cost of purchasing your car. The loan must be manageable for you to repay on a weekly, fortnightly or monthly basis. You can also decide the term over which you repay your loan, which can range from one to seven years in length.
Additionally, the interest rate you’re offered on your loan will be dependent on several different personal variables, such as:
- Your job and income stability
- Your credit score and history
- Your savings
- Your assets and liabilities
- The type of car you purchase and its condition
- The Reserve Bank of Australia's cash rate
Car loans typically come with fixed interest rates, making them better for budgeting into the future as you’re protected against rate rises across your term. However, some lenders may allow you to choose variable rates.
Compare car loan interest rates
As of 7 July 2025, the cheapest car loan interest rates available through Savvy's partnered lenders are as follows:
| Lender | Interest rates from | Comparison rates from | Loan amount |
|---|---|---|---|
| Angle Auto | 5.50% p.a. | 6.56% p.a. | $5,000 – $150,000 |
| Automotive Financial Services | 5.99% p.a. | 7.76% p.a. | $5,000 – $130,000 |
| Firstmac | 6.09% p.a. | 7.22% p.a. | $5,000 – $150,000 |
| Liberty | 6.29% p.a. | 7.84% p.a. | $5,000 – $100,000 |
| Plenti | 6.45% p.a. | 8.00% p.a. | $5,000 – $100,000 |
| Bank of Queensland | 6.48% p.a. | 7.74% p.a. | $4,000 – $100,000 |
| Wisr | 6.54% p.a. | 8.04% p.a. | $10,000 – $150,000 |
| Pepper | 6.59% p.a. | 7.93% p.a. | $5,000 – $150,000 |
| Metro | 6.64% p.a. | 7.96% p.a. | $5,000 – $250,000 |
| Branded Financial Services | 6.80% p.a. | 8.06% p.a. | $5,000 – $250,000 |
| RACV | 7.29% p.a. | 8.00% p.a. | $5,000 – $150,000 |
| Now Finance | 7.70% p.a. | 8.41% p.a. | $5,000 – $100,000 |
| Note: rates are calculated based on a $30,000, five-year car loan for a new vehicle bought by an asset-backed applicant. | |||
The pros and cons of a car loan
Pros
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Immediate car ownership
As long as you're approved, a car loan can get you into a brand new car in as little as a few days. So, whether it's the need for an upgrade or your first car, you can make it happen sooner.
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Keep your savings intact
Pending the model, a brand new car can be expensive and eat into a significant proportion if not all of your savings. Financing a car can allow you to pay a percentage or none of the vehicle's sales price to buy it.
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Flexible loan options
You can take out a car loan up to seven years in length. You also get to pick the repayment frequency. This allows you to calculate your repayments and ensure they fit your budget.
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Peace of mind
A new vehicle is both more reliable than an old car and usually safer. While you do have your loan repayments, it could ensure you avoid an unexpected maintenance bill for an old car.
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Improve your credit score
As long as you make your repayments on time, you should be able to improve your credit score, which will improve your chances of getting low rate finance in the future.
Cons
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Interest repayments
Unfortunately, all loans attract interest. While it does make the upfront cost of the car far cheaper, you will repay more than the lifetime value of the car in the long run.
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Affects your borrowing capacity
If your financial plans in the immediate future include taking out another loan while you still have vehicle finance, your borrowing capacity will be reduced due to the loan-to-value ratio.
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Vehicle eligibility
While a new car is nearly always eligible for a loan, used cars (whether from a dealer or private seller) are judged differently. The lender will consider the type of vehicle and its age in order for it to qualify for a low rate secured car loan.
Why apply for a car loan with Savvy?
The best car loans in Australia
We scour the market to find the best rates available for your profile. As of 7 July 2025, the best car loan rate on offer through Savvy is 5.50% p.a. (6.56% p.a. comparison).
However, the best car loan is different for each individual. That’s why our team of car finance brokers is here to help. With their extensive knowledge of our diverse lender panel, they’ll connect you with the lender best suited to your needs.
The reality is that every person’s circumstances, as well as what they’re looking for in their loan, are different. Here’s what you should be thinking about when applying for your loan:
- Your budget: how much can you afford to pay? We can arrange for a longer loan term of up to seven years in cases where you’d prefer lower repayments, while shorter terms allow you to tackle your debt head-on.
- How you’re paid: we’ll help you find the most suitable pay schedule, with weekly, fortnightly and monthly instalments available.
- Your savings: if you have money in the bank that you could put towards the car purchase, it might be worth doing. Every dollar out of your savings is a dollar less that you’ll have to pay interest on.
- Your credit score and history with similar loans: the better your credit score and stronger your track record with other car loans, the more you’ll likely be able to borrow at a lower rate. We can help you out even if your score isn't the best, though.
Car Loan Lenders We Work With
Types of car loans
Secured car loans
The standard car loan. It uses the car being purchased as collateral, which equals higher borrowing limits and lower interest rates than other unsecured loans.
Fixed rate car loans
Fixed rates are more common on car loans. This means your rate is locked in from the start, protecting you against rate rises and giving you a solid budget to work with.
Variable rate car loans
The alternative to fixed rates. A variable rate can change throughout your loan term, meaning you could save on your loan if rates fall during your repayments.
Green car loans
If you’re buying an electric, hybrid or fuel-efficient car, you may qualify for a green loan. These reward environmentally friendly choices with discounted interest rates.
Car loan refinancing
If you want to switch from your current loan to another one, you may be able to refinance. This can be done either with a new lender or your current one.
Business car finance
For business owners, there’s a variety of commercial options available for car financing. You can buy with a chattel mortgage or choose to lease the car instead, for instance.
Unsecured car loans
These are personal loans that don’t use the car as collateral. You may look at one of these if your car is too old or not in good enough condition to be accepted by your lender.
How to apply for your car loan with Savvy
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Fill out our simple online application form
Start your application by telling us about yourself and the car and loan you’re after. This will include information about your income, employment and credit score. It helps us find the best available loan for you.
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Supply any required documents
After you complete your application, we may request further documentation to verify details such as your employment and income. These can be submitted online via our portal.
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Discuss your options with us
Once we have all the information we need, we’ll compare the offers available to you from our lending panel. Your consultant will reach out to you and talk you through your car finance options and process to get the all-clear.
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Find your ideal car
If you haven’t already decided on (or found) your ideal car, our in-house car broker team, Vehicles Direct, can search our national network of dealerships to find the best available model for you.
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Have your application prepared and approved
Once we have all the info we need, your consultant will get to work preparing your application for submission. You can receive formal approval as soon as one business day after it’s submitted.
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Sign on the dotted line
We’ll send through your final loan documents and other forms to sign electronically. Once settlement is complete (which we’ll also handle for you), you’ll be the proud owner of your new or used car!
What our customers say about their finance experience
Savvy is rated 4.9 for customer satisfaction by 4624 customers.
Car loan eligibility and documentation
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
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Income
You must be earning a stable income that is enough to comfortably support your repayments (this can start from as little as $20,000 to $26,000 per year)
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Employment
You must be employed and earning a consistent income from your job
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Credit score
You must meet your lender’s requirements related to your credit score
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Car
Your car must meet your lender’s requirements related to type, age and condition
Documents
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Driver's licence
Front and back (or another form of government-issued ID)
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Payslips
Your last two consecutive payslips (or your last tax return if you're self-employed)
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Savvy forms
Your Savvy application, consent form and credit guide (supplied by your consultant and completed online)
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Car details
Information about your car, such as its age, is handy to have
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Bank statements
90 days of bank statements may be requested, but not always
Electric vehicle purchase rebates and incentives
If you’re looking at buying an electric vehicle (EV), it’s worth knowing what incentives are on offer where you live. Here’s a rundown of what might be on the table for you:
| State / territory | Incentive |
|---|---|
| ACT |
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| Northern Territory |
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| Victoria |
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| Queensland |
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| Information correct as of July 2025. | |
As of July 2025, there are no active EV rebates or other incentives available in New South Wales, South Australia, Tasmania or Western Australia.
However, the Australian Government has made eligible EVs exempt from fringe benefits tax, or FBT, up to the (increased) luxury car tax threshold. This makes them an attractive choice for those looking to take out a novated lease for their next vehicle, as you could potentially save thousands of dollars in tax by doing so.
The other key benefit of buying an EV is that they can qualify for rate discounts through a green car loan product.
