Need a car loan to finance your first or next set of wheels? But you don’t know what a good interest rate looks like?
We are here to help you.
Currently on the Mozo database, the average new car loan rate is 6.14% and the average used car loan rate is 6.64%. So if you get a lower than average rate, you get a good deal.
In saying this, there are many lenders who are offering low rate auto loans well below these numbers, both fixed and variable options. Take these for example …
What is the best auto credit rate currently available?
By best, we’ll assume you mean the lowest. Currently, in the Mozo database, the lowest interest rates offered for auto loans are:
New car loan (variable and fixed):
3 tips for getting a low-rate auto loan
Getting a low car loan rate can save you money by reducing the amount you pay in interest over the life of the loan. Here are three ways to improve your chances of obtaining a competitive price …
1. Shop around: By comparing auto loans and evaluating different options, you increase your chances of finding a competitive rate on a loan that is right for you. When shopping for a car loan, get all the details, from interest rates to fees and repayment features. Be careful, however, it is important not to apply for several loans at the same time as this can have a negative impact on your credit rating. Think of it as window shopping and only commit to applying for the loan you prefer (and for which you are likely to be approved).
2. Consider an online lender or a small bank: While it might seem like the easiest option to stick with a big bank when applying for a car loan, by doing this you might not be benefiting from a low rate. Today, many credit unions, small banks and online loans are offered at lower rates than those offered by the big banks. Additionally, CommBank and Westpac are the only two of the Big Four that offer car-specific loans to customers, so there is more choice if you go with smaller lenders.
3. Check your credit history: Some auto lenders offer products with a risk-based pricing model. Essentially, this means that the rates are calculated based on the applicant’s credit rating, so the better the credit rating, the lower the rate. So, by making sure that your credit rating is healthy, you will increase your chances of receiving a lower rate. You can do this by being responsible for your current debt and always making payments on time.
Want to compare more car loan options? Head over to our auto loan comparison chart for other major lenders!
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While we pride ourselves on covering a wide range of products, we do not cover all products on the market. If you decide to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.