Australia’s cheapest car loans in 2021

If, like many of us, you don’t have the cash up front to buy a car, you are probably considering taking out a loan.

Now, it would be quite understandable if “cheap” was at the top of your car loan wish list. With a loan, you’ll already be paying at least a little more than you would up front, so you want to minimize that extra cost as much as possible.

To help you narrow down your options, we’ve put together a list of Australia’s cheapest car loans in 2021.

How did we choose these cheap auto loans you are asking for? Well, these particular products received a 2021 Mozo Experts Choice personal loan award in the categories:

  • Car loan
  • Excellent credit car loan
  • Used car loan
  • Excellent used car credit credit
  • Green car loan

Judged in September 2020, the winners include:

Cheapest auto loan winners

If you want to buy a shiny new car that drives no further than its place in the auction lot, you might want to check out the winners of this award. This is because this category is specially designed to find the cheapest auto credit for customers who are buying a new car.

“For that price, we took a scenario of a $ 30,000 loan, paid off over five years and calculated the overall cost. This includes both principal and interest, as well as all applicable fees and charges, ”said Mozo expert judge Peter Marshall.

“We then ranked the loans from the lowest cost to the highest cost and awarded awards to what we considered to be the cheapest auto loans. ”

The winners were:

Australian military bank also won a separate award for the cheapest best credit car loan. It is for customers with an excellent credit rating, who are looking to buy a new car.

Winners of the cheapest used car loan

The next pit stop on our list of Australia’s cheapest auto loans are used car loans. These products have each won a Mozo Experts Choice Award for the cheapest used car loan. This is a loan that could be used to buy a car that is at least five years old.

“To identify the winners of this award, our research team compared the total cost of a loan of $ 15,000, repaid over five years. ” Marshall said.

This includes the principal amount of the loan, the interest payable over that period, and all related fees and charges. “

As with the new car loan, the results were ordered from the most expensive to the least expensive. The winners were:

Again, Australian military Auto loan from the bank was the sole recipient of the cheapest Excellent Credit Used Car Loan. This loan is intended for customers with an excellent credit rating, looking for a used car loan.

Cheapest green car loan winner

As you may have guessed, this latest award category aims to recognize Australia’s cheapest auto loans for “greener” cars. Of course, green is a bit vague, so let’s break that down.

“The Green Car Loan Award examines loans that offer special rates or fees, with the aim of encouraging Australians to purchase low-emission vehicles,” Marshall said.

After identifying the loans meeting these criteria, the research team calculated the overall cost of a loan of $ 30,000, repaid over five years. Experts were particularly impressed with Clean green car loan from, which was the only car loan to win the award.

Why choose a winner of the Mozo Experts Choice award?

Like many banking products, auto loans can be confusing. You need to think about the interest rate first, and then you need to make sure that there aren’t any sneaky hidden charges that you don’t know about.

Now for the everyday Australian who has a lot of other things to worry about, it can all be a bit overwhelming. This is where we come in. Mozo has a dedicated financial product comparison website and we’ve been doing it for over a decade.

Marshall says the research team knows where to start and what to consider when considering costs.

“For the Mozo Experts Choice Award for New Auto Loans, we evaluated and compared 89 different personal loans, to see which had the most competitive prices,” he said.

This is only the tip of it though. To account for price changes over time, the team performed calculations on three different dates over a three-month period. The calculations in question took into account the applicable interest rate and all mandatory fees for each loan assessed. These mandatory fees could be administration fees, service fees and exit fees that apply.

As you can see, a lot of work goes into comparing financial products. The main purpose of these awards is to highlight the personal loan products offered in Australia that are truly the leaders in the market. We don’t take this responsibility lightly and every year we re-do the math so Australians always have the most up-to-date information on the most competitive personal loan products.

Want to know more about the rewards? See the Mozo Experts Choice Awards for Personal Loans page for the full list of winners. Or read our Auto Loan Grant Methodology report for more information on how grants are made.