Australia’s cheapest car loans in 2022

A car loan is essential to allow you to finance one of life’s biggest purchases without going bankrupt.

“Cheap” is the word at the top of the car loan wish list. After all, with fuel, registration, car insurance and mechanic bills, it already costs quite a bit to keep a car on the road. Moreover, when you take out a loan, you are already paying at least a little more than if you were buying a vehicle, because there is interest to be paid back and potentially additional costs. If you’re looking for a great value auto loan, our list of winners may have what you’re looking for.

To help you narrow down your options, our team of expert researchers scoured the fees and features of car loans tracked in the Mozo database to reveal the list of Australia’s cheapest car loans. The most advantageous options were crowned winners in various categories for the Mozo Experts Choice Personal Loan Awards 2022. These categories included:

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

Pricing for 2022 was announced last November. If you’re on the hunt for a car loan this year, you might want to consider the award-winning cheap car loans below, and you can read further for more details on how we picked the winners in different categories.

Cheapest auto loans

If you’re looking to buy a shiny new car that’s driven no further than its place in the sales lot, the winners of this award might be for you. Indeed, this category is specially designed to find the cheapest car loan for customers who buy a new car. While there isn’t one specific loan or lender that’s the cheapest for everyone, our judges went through a rigorous research process to identify the auto loans that are among the cheapest.

For that price, we took a $30,000 loan scenario, paid back over five years, and calculated the overall cost, including interest, fees, and charges. “We found the total price to pay for each loan and rewarded what we considered to be the cheapest auto loans,” said Mozo expert judge Peter Marshall.

The winners were:

Australian Military Bank also won a separate award for best excellent credit car loan. It’s for customers with excellent credit, who are looking to buy a new car.

Cheapest used car loans

If new isn’t your style, then finding a quality used car might be a great option. These products each earned a Mozo Experts Choice Award for the cheapest used car loan.

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

“This includes the amount of the principal loan, interest payable over that period, and any accompanying fees and charges.”

As with the new car loan, the results were ranked from cheapest to most expensive, before our judges awarded the winners.

The winners were:

Additionally, Pepper Money’s Secured Personal Loan and Wisr’s Secured Car Loan won awards for the cheapest used car loan by excellent credit. This price category is designed for customers who are looking for a used car loan and who already have an excellent credit rating.

Winner of the cheapest green car loan

As you might have guessed, this final award category aims to recognize Australia’s cheapest car loans for ‘greener’ cars. Of course, green is a little vague, so let’s break that down.

“The Green Car Loan award only considers loans that offer special rates or fees aimed at encouraging Australians to buy low-emission vehicles,” Marshall said.

After identifying loans that met these criteria, the research team calculated the overall cost of a $30,000 loan, repaid over five years. The experts were particularly impressed by Clean and green car loan from (detailed above), which was the only car loan to win the award this year and also won the title last year.

Why Choose a Mozo Experts Choice Award Winner?

Like many things in finance, car loans can be confusing. First you need to think about the interest rate. Next, you need to make sure there are no sneaky fees. And finally, you’ll want to research if there are any loan features that could help you save money or pay off your debt sooner.

This can all be a bit overwhelming, but that’s where we come in. Mozo is dedicated to comparing financial products so they’re easier to find and evaluate for yourself — and we’ve been doing it for over a decade.

Marshall says the research team knows where to start and what to consider when looking at loan costs.

“For the car loan category – which only takes into account loans for customers buying new cars – we evaluated 83 different personal loans, to see which had the most competitive prices,” he said.

That’s just the tip though. To account for possible price changes over time, the team performed calculations on three different dates over a three-month period. This took into account the applicable interest rate and any mandatory fees (such as application, service or exit fees) for each loan assessed.

As you can see, a lot of work goes into comparing these financial products so that we can accurately highlight the best personal loan products on offer in Australia. We don’t take this responsibility lightly and every year we re-calculate so that Australians always have the most up-to-date information on the most competitive personal loan products.

See more information and the methodology report for the 2022 Mozo Experts Choice Awards for Personal Loans and the 2022 Mozo People’s Choice Awards for Banking Services.

DISCLAIMER: The comparison rate combines the lender’s interest rate, fees and charges into one rate to show the true cost of a personal loan. The comparative rates displayed are calculated on the basis of a loan of $30,000 with a term of 5 years or a loan of $10,000 with a term of 3 years as indicated, on the basis of repayments monthly principal and interest payments, on a secured basis for secured and unsecured loans. basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal fees or prepayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may affect the cost of the loan.

^ See Mozo Experts Choice Personal Loan Awards information

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