Car Loans Brisbane
Compare a range of car finance deals with fast approvals, low rates and flexible repayments in Brisbane through Savvy today!
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Looking to save on your new car purchase in Brisbane? Savvy can help you finance your car quickly and easily, all from the comfort of your home. We’ve partnered with over 40 trusted Australian vehicle financiers to help you compare and choose from the widest range of car loans.
You can customise your car loan to your liking with competitive interest rates and a number of flexible features potentially available to you, such as 100% finance, added deposits, flexible repayment schedules, free additional repayments and no early termination fees.
With over ten years of experience in the industry, our online car finance consultants can help source the best quotes available to you through our lending partners no matter where you live in Queensland, from Brisbane to Toowoomba to the Sunshine Coast and all the way up the east coast to Townsville and Cairns. Get a free, no-obligation quote today to get your application started!
How do I qualify for a car loan in Brisbane?
Qualifying for a car loan in Brisbane is the same as in any other city or town in Australia. Lenders will set a range of minimum criteria which must be met by all applicants before applications proceed any further. Although these can vary depending on your lender, the following will appear across all lenders:
- You must be at least 18 years of age to apply for a car loan. This is the case for all loans in Australia.
- You must be an Australian citizen or permanent resident in most cases, although some lenders may offer finance to eligible temporary visa holders.
- Your income must be enough to support your loan repayments. Depending on the lender, this may include full-time, part-time or stable casual employment income, income from your business, investments, government benefitsor other sources of regular income. There will often be a minimum salary requirement, which may start as low as $20,000 to $26,000 with some lenders.
- Standard lenders will require you to meet a minimum credit score. In many cases, they’ll require your score to be good and no have any defaults or bankruptcies. However, there are options available for those with bad credit.
- Your car will also need to satisfy their eligibility requirements, typically relating to the age and condition of the vehicle.
When you apply with Savvy, we’ll only consider lenders whose criteria you and your vehicle meet to save you from any unnecessary loan rejections, which would otherwise show up on your credit file. We’ll do the heavy lifting to find the most suitable loan product and lender for your profile.
What factors impact the cost of car loans in Brisbane?
Brisbane is the cheapest capital city in the country for car loans, with the average resident paying $208.67 per week and $10,851 per year on vehicle finance, according to the Australian Automobile Association (AAA) Transport Affordability Report for Q1, 2024. However, the cost of a car loan will be different for each individual, as it’s determined by a wide range of variables. These include:
Interest rates
It goes without saying that higher interest will lead to a higher overall loan cost. However, you can see just how much extra you can expect to pay with a higher interest rate in the table below:
| Loan cost | 7.00% p.a. | 8.00% p.a. | 9.50% p.a. | 11.50% p.a. |
|---|---|---|---|---|
|
Monthly |
$595 |
$609 |
$631 |
$660 |
|
Overall |
$35,643 |
$36,498 |
$37,804 |
$39,587 |
Calculations based on a $30,000 car loan repaid monthly over five years.
As you can see, receiving a rate of 7.00% p.a. instead of 8.00% p.a. on the above loan terms would lead to a saving of over $850, while this increases to more than $1,150 for 9.50% p.a.
Fees
It’s also crucial to consider the additional fees charged on top of your interest. Establishment fees are one-off charges which are included in your loan amount, ranging from $150 to $200 up to $600 or more with certain lenders. Ongoing fees can also add up over time, with these ranging from $5 to $15 in many cases. For example, a five-year loan with a $10 fee per month means you’d pay $600 extra.
Loan terms
The length of your loan term will also have an impact on the interest charged. That’s because interest is calculated based on your outstanding balance, so the longer it takes to decrease, the more interest you’ll have to pay. The table below demonstrates how this works:
| Loan cost | Six years | Five years | Four years | Three years | Two years |
|---|---|---|---|---|---|
|
Monthly |
$519 |
$602 |
$726 |
$934 |
$1,350 |
|
Overall |
$37,347 |
$36,069 |
$34,818 |
$33,595 |
$32,400 |
Calculations based on a $30,000 car loan repaid monthly at 7.50% p.a.
Shortening your loan term will increase the amount you pay each month, but it can potentially save you hundreds, if not more, in interest overall.
Loan amounts
Because interest is calculated on your ongoing loan balance, the greater the sum you borrow, the more you can expect to pay. For instance, in the table above, you’d pay $6,069 in interest on a $30,000 loan repaid monthly over five years at 7.50% p.a. However, increasing this amount to $40,000 results in your interest rising to $8,092.
Repayment flexibility
Some lenders may allow you to make free additional repayments and don’t charge early payment fees, which can allow you to clear your debt much sooner and save money in the process. For example, on a $30,000, five-year loan at 7.50% p.a., you could save over $1,000 and have your loan paid off ten months earlier by simply paying an extra $100 per month on top of your regular repayments.
Balloon payment
A balloon or residual payment can be an effective way to reduce your monthly repayments, but adding one of these to your loan will increase the interest charged overall. The following table demonstrates how residual payments of different sizes can impact the cost of your loan:
| Balloon payment | Repayments | Total interest | Total saving |
|---|---|---|---|
|
$6,000 |
$519 |
$7,105 |
N/A |
|
$3,000 |
$560 |
$6,587 |
$519 |
|
$1,500 |
$581 |
$6,328 |
$777 |
|
$0 |
$602 |
$6,069 |
$1,037 |
Source: How to Pay Off Your Car Loan Faster – Savvy. Calculations based on a $30,000 car loan repaid monthly over five years with a 7.50% p.a. interest rate.
What other costs will I have to consider when buying a car in Brisbane?
On top of your car purchase and loan, there are several other costs, including Queensland-specific charges, that you’ll need to be aware of. These include:
- Vehicle registration duty: in Queensland, vehicle registration duty is based on the type of vehicle you’ve purchased, its engine and power and its price. As of May 2024, the cost can range from $2 to $6 for each $100 (or part of $100). You can use the Queensland Government’s vehicle registration duty calculator to estimate what you may have to pay.
- Vehicle registration: the cost of car registration also depends on the type of vehicle you own in Queensland, as well as the number of cylinders or axles. You can use the Government’s registration quote tool for an indication of what you’re likely to be charged.
- Compulsory Third Pary (CTP) insurance: CTP insurance is a type of cover which protects policyholders from being held financially liable for injury or death to another person caused by them. This type of cover is mandatory and is paid for alongside vehicle registration. It’s regulated by the Motor Accident Insurance Commission (MAIC) and is offered by Allianz, QBE and Suncorp.
- Comprehensive car insurance: if you’re taking out a car loan, comprehensive car insurance will always be a key condition of your agreement. The average Brisbane resident pays $3,127 on car insurance premiums each year, according to the AAA’s report, which is second only to Melbourne ($3,373) among all capital cities.
- Maintenance: of course, if you own a car, you’ll need to be able to look after it. Meeting regular servicing intervals, as well as organising repairs if you’re involved in a minor or major accident, should be factored into your budget.
- Fuel: another important expense to budget for is fuel. The Queensland Government’s Department of Energy and Climate has published a list of fuel price apps and websites which can be used throughout the state and allow you to compare prices and hopefully save.
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How to compare car loans
Interest rate
As mentioned, it’s crucial to take the time to find the best available interest rate. Even small differences in your rate can result in a major saving across the life of your loan. When you apply with Savvy, we’ll analyse the options available to you to find the best rate on offer for your profile.
Comparison rate
Of course, it isn’t just about your interest rate. A comparison rate includes the main fees charged on your loan, such as establishment and ongoing costs, as well as your interest to provide a more accurate indication of your loan’s cost. Comparison rates are the most effective way to compare different deals.
Minimum and maximum loan amount
Not all lenders will have the same minimum loan amount. Some may set it as low as $5,000, while it may be at $10,000, $15,000 or even more with other lenders. Additionally, while many lenders don’t have an upper limit for car loans, some set this at $100,000. Your Savvy consultant will only consider loans with lenders who offer the loan sum you need.
Minimum and maximum loan term
The same applies to loan terms. While the general range is between one and seven years, not all lenders will offer terms as short or as long as this. Therefore, if you’re in the market for a particularly short or long repayment period, it’s important to double-check what’s available to you.
Repayment flexibility
Another area to keep in mind during the car loan comparison process is how flexible different lenders are when it comes to additional repayments. While some may offer you the ability to pay above the minimum and clear your debt early without charging any fees, this isn’t the case for many lenders.
Eligibility criteria
Of course, you’ll need to ensure your profile and car satisfy the lending criteria set in place by your financier. There’s little point blindly applying for loans without knowing if you’re actually eligible. This is where Savvy helps out: we know our lenders’ criteria inside and out, so we’ll look for the best fit for your profile.
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