Is this the lowest rate car loan in Australia?

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loans.com.au has launched what it claims is Australia’s lowest guaranteed car loan rate, with an advertised interest rate of less than 3%.

The loan interest rate for ordinary cars is 2.99% per annum (comparative rate of 3.53% per annum*).

For electric or green vehicles, the loan offers an interest rate 10 basis points lower at 2.89% per annum (comparative rate of 3.43% per annum*).

There are two main pitfalls with the loan that must be respected:

  • The car must be a 2022 model year, new or demonstrator with up to 5,000 km.
  • The borrower must have a home loan (not necessarily from loans.com.au).

Loans.com.au managing director Marie Mortimer said it was the lowest car loan rate on the market.

“Buying a car has been difficult for some over the past few years due to supply issues and tighter restrictions by some lenders,” Ms Mortimer said.

“We want to help borrowers buy a car and get their keys as quickly as possible.”

Rates are variable and customers can make additional repayments and redesign their loan.

There are no ongoing, monthly or annual fees – there is, however, a $400 loan setup fee.

The maximum loan amount is $100,000 and the minimum loan term is three years while the maximum is five years.

No lump sum payments are allowed.

In the interest of full disclosure, loans.com.au and Savings.com.au are both associates of Firstmac.


Advertising

Looking for a new car? The table below shows auto loans with some of the lowest interest rates on the market.



Lender

type of interest Vehicle type Maximum vehicle age Ongoing charges Registration fees Full refund Prepayment Instant Approval Online application

Fixed New 1 year More details

Fixed Green Car Loan

Fixed New, used 99 years old More details
APPLY ONLINE

Car loan

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options

Car loan

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
Fixed New 4 years More details
GET APPROVAL WITHIN 24 HOURS

New – Special Bounty (fixed)

  • Approval in 24 hours
  • No ongoing charges, no waiver fees
  • Flexible repayment options
Fixed New 2 years More details
FAST FREE APPLICATION PROCESS

Quick New Vehicle Loan Low Rates

  • Quick application process with no monthly fees
  • Low fixed interest rates with terms up to seven years
  • New car loans cover cars for up to 3 years

Quick New Vehicle Loan Low Rates

  • Quick application process with no monthly fees
  • Low fixed interest rates with terms up to seven years
  • New car loans cover cars for up to 3 years
Fixed New 1 year More details
No ongoing fees

Plenty car loan

  • Interest rates ranked in the top 20%
  • No ongoing fees
  • Can apply online

Plenty car loan

  • Interest rates ranked in the top 20%
  • No ongoing fees
  • Can apply online
Fixed New, used 7 years More details
No ongoing fees

Plenti car loan (refinancing)

*Comparative rates based on a loan of $30,000 for a term of five years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of February 26, 2022. See disclaimer.


Photo by Lazy Artist Gallery on Pexels

The entire market has not been taken into account in the selection of the products above. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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