Car Loan Interest Rates

A car loan is a type of finance that you can use to purchase a car or any other motorised vehicle. In most cases, you will be able to use the car you are purchasing as security against your loan. Therefore, a lender may be able to offer you lower car loan interest rates.

At Jacaranda Finance, we can provide affordable car loans from $5,000 to $35,000 entirely online. We’re upfront with our rates, and if you use our loan slider at the top of the page you’ll be able to see an estimate of your repayments on a potential car loan!

When you are taking out a loan, an institution like a bank or a private lender is offering you the amount of money you need to purchase a car. The car loan interest rate is a percentage of your loan that you pay in addition to your principal loan amount. As a result, it can contribute considerably to the overall cost of a loan in its lifetime. Typically, interest will be automatically added to your loan repayments by a lender, so you won’t have to think about adding it on top.

In contrast to car loan interest rates, a car loan comparison rate includes additional costs such as an establishment fee or account fees that may come with a loan. Every lender will have to make their comparison rate public as it gives a good indication how much a loan will actually cost you.

You can review Jacaranda’s comparison rate for car loans over on our costs page.

Yes! Some lenders may consider you for a car loan, even with a poor credit ranking. However, it may result in a higher car loan interest rate.

Here at Jacaranda, we know getting a loan with bad credit can be tough. So, we take a fresh approach to assessing our customers. When you apply, we’ll look at a range of factors beyond your credit ranking when considering your application. So, don’t let bad credit deter you from applying!

Car loan interest rates depend on a few factors and your credit score is one of them. If you have a high credit score, lenders may be able to offer you a lower interest rate. However, you may also be able to save some money by choosing shorter loan terms. Needing less time to repay also means spending less money in interest.

At Jacaranda, we’re responsible lenders. So, while we’ll never claim to offer ‘low interest car loans’ we work hard to provide affordable loans to Aussies across the country every day.

Like other interest rates, car loan interest rates change over time. Interest rates react to changes in the market, including economic growth and financial policy making. They reflect the demand in loans and the availability of funds that lenders can use to meet this demand.

Fortunately, if you secure a car loan with Jacaranda your interest rate will be fixed. So, you won’t be affected by changes to our rates in the future.

Yes, they are! At Jacaranda, you will need to secure your car loan. This could be a caravan, motorbike, car or boat. In some cases, you’ll be able to use the car that you purchase as security against your loan. Ultimately, we require our car loans to be secured so that we can offer bigger loans and better car loan interest rates.

Of course! It doesn't matter if you want to buy a brand new car or if you are going for a preloved alternative – we may be able to help you out either way. The only difference a used car might make to your loan application is in the amount you’re able to borrow. This is because used cars are typically cheaper than brand new vehicles.