Is 5% a good interest rate for a used car?

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What is a good interest rate for a car loan in Australia?

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Compare low rate car loans - last updated 8 October 2022
What is the best car loan rate available right now?
3 tips to getting a low car loan rate
What is a good interest rate on used car?
Is 5 Apr good for a car loan?
Is 5% a good interest rate?
What is a good interest rate for a car for 72 months?

Need a car loan to help you fund your first or next set of wheels? But don’t know what a good interest rate looks like?

We’re here to help.

Right now on the Mozo database, the average new car loan rate is 5.97% and the average used car loan rate is 6.58%. So, if you are receiving a rate that is below average then you are getting a solid deal.

In saying that, there are plenty of lenders that offer low rate car loans well below those numbers, both fixed and variable options. Take these for example …

Compare low rate car loans - last updated 8 October 2022

Search promoted car loans below or do a full Mozo database search . Advertiser disclosure

New Car Loan - Special
Home Owner Discount, Including Demo, Fixed, Secured
Interest rate comparison rate
Monthly repayment

5.99% p.a.
6.54% p.a.based on $30,000
over 5 years
Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,190.67 including fees.
Interest rate comparison rate
Monthly repayment

6.25% p.a.
6.87% p.a.based on $30,000
over 5 years
Available for all New and Used cars up to 7 years. A quick and easy, 100% online application with loans up to $75,000. No printing. No paper. No fuss. No monthly account keeping fees, no exit fees and no early repayment fees.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.25% would cost $35,258.67 including fees.
Clean Green Car Loan
Home Owner Discount, New or Used, Fixed, Secured
Interest rate comparison rate
Monthly repayment

5.29% p.a.
5.84% p.a.based on $30,000
over 5 years
No monthly or ongoing fees. Get a 0.70% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^.
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.29% would cost $34,607.89 including fees.
Used Car Loan
Fixed, Secured
Interest rate comparison rate
Monthly repayment

7.99% p.a.
8.60% p.a.based on $30,000
over 5 years
Enjoy a quick application process and no monthly fees on NRMA used car loans. Finance also available motorcycles, caravans and motorhomes. Low fixed interest rates with terms of up to seven years. Plus, NRMA Blue Member benefits apply so you could enjoy even lower rates as an NRMA Member**.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.99% would cost $36,987.90 including fees.
Used Car Loan
Home Owner Discount, Dealer Only, Up to 5 years old, Fixed, Secured
Interest rate comparison rate
Monthly repayment

7.19% p.a.
7.75% p.a.based on $30,000
over 5 years

Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 7.19% would cost $36,203.73 including fees.
Used Car Loan
Dealer Only, Up to 5 years old, Fixed, Secured
Interest rate comparison rate
Monthly repayment

8.19% p.a.
8.75% p.a.based on $30,000
over 5 years
Used Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application.
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 8.19% would cost $37,061.41 including fees.

What is the best car loan rate available right now?

By best, we are going to assume you mean lowest. Currently on the Mozo database the lowest car loan interest rates on offer are as follows:

New car loan (variable and fixed):

loans.com.au New Car Loan (Prime Special- homeowner discount), 2.99% p.a. (3.53% p.a. comparison rate*)

Used car loan (variable):

loans.com.au Used Car Loan (up to 5 years old - homeowners discount), 3.59% p.a. (4.13% p.a. comparison rate*)

Used car loan (fixed):

Auswide Bank Fixed Car Loan, 4.49% p.a. (6.31% p.a. comparison rate*)

Green car loan:

loans.com.au Clean Green Car Loan, 4.39% p.a. (4.93% p.a. comparison rate*)

3 tips to getting a low car loan rate

Getting a low car loan rate can save you money by slashing the amount you pay in interest over the life of the loan. So here’s three ways you can better your chances of securing a competitive rate …

1. Shop around:

By comparing car loans and weighing up different options, you are bettering your chance at finding a competitive rate on a loan that suits you. When shopping around for a car loan, get all the details from interest rates, to fees and repayment features. Be careful though, it’s important that you don’t apply for multiple loans at once as this can put a negative mark on your credit rating. Look at it as window shopping, and only commit to applying to the loan you like best (and are likely to be approved for).

2. Consider an online lender or smaller bank: While it might seem like the easy option to stick with a big bank when applying for a car loan, by doing that you may not receive a low rate. Right now many credit union, small bank and online loans come with lower rates than those offered by bigger banks. Plus, CommBank and Westpac are the only two of the big four to offer car-specific loans to customers, so there’s more choice if you go with smaller lenders.

3. Get your credit history in check:

Some car loan lenders offer products that come with a risk-based pricing model. Essentially, this means rates are calculated according to an applicant’s credit rating, so the better the credit score the lower the rate. So by ensuring that your credit rating is healthy, you'd better your chance at receiving a lower rate. You can do this by being responsible with your current debt and always making repayments on time.

Want to compare more car loan options? Head to our car loan comparison table for some other top lenders!

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

What is a good interest rate on used car?

The average auto loan rate is 4.33% for new cars and 8.62% for used cars, but shop around to get the best deal. ... Average car loan interest rates..

Is 5 Apr good for a car loan?

An interest rate of 5% is pretty good for a car loan! Generally, to qualify for that rate, you must have good credit, meaning a score in the range of 700-749.

Is 5% a good interest rate?

Right now, a good mortgage rate for a 15-year fixed loan is in the low 5% range, while a good rate for a 30-year mortgage is generally in the low-to-mid 6% range. At the time this was written in Oct. 2022, the average 30-year fixed rate was 6.66% according to Freddie Mac's weekly survey.