Question 1

What is the best car loan interest rate in Australia?

Accepted Answer

Car loan rates in Australia typically range from 5.99% p.a. to 18% p.a. depending on your credit history, the lender, and whether the vehicle is new or used. New vehicles generally attract lower rates because they hold their value better as security. As a broker, ClariFi compares rates across 50+ lenders to find the most competitive option for your specific situation. The rate you see advertised by a single lender is rarely the best available.

Question 2

Does applying for a car loan affect my credit score?

Accepted Answer

A full credit application does create a hard enquiry on your credit file, which can have a minor short-term impact. However, ClariFi's initial comparison process uses a soft check, so we assess your eligibility across our lender panel without affecting your score. A hard enquiry only happens when you proceed with a chosen lender and formally apply.

Question 3

Can I get a car loan for a private sale?

Accepted Answer

Yes. Many of the lenders on our panel offer car loans for private sales, not just dealer purchases. You will typically need to provide a roadworthy certificate and the vehicle's registration details. The lender may also require a valuation for older vehicles. We'll match you with lenders who specifically cater to private sale purchases.

Question 4

How much can I borrow for a car loan in Australia?

Accepted Answer

Most of our lenders offer car loans from $5,000 up to $150,000. The amount you can borrow depends on your income, employment status, credit history, and the value of the vehicle. We can give you a reliable borrowing estimate before you commit to any application.

Question 5

What is the difference between a secured and unsecured car loan?

Accepted Answer

A secured car loan uses the vehicle as collateral, which allows lenders to offer lower interest rates. If you default, the lender can repossess the car. An unsecured car loan carries higher rates because the lender takes on more risk. For most car purchases, a secured loan is the more cost-effective option, and it's what the majority of our lender panel offers.

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Car Loans — common questions

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