Car Loan Calculator — Australia
Estimate your monthly car-loan installment in AUD using Australia's typical auto-finance rates, and see the full interest cost. No signup, no account needed.
Enter a car price, a down payment of 0–90%, a rate between 0% and 100%, and a term above zero (up to 50 years) to see results.
Car finance rates in Australia (2026)
Car loans in Australia typically run about 6.5–9% p.a. for secured loans (10–14% unsecured). Secured loans (where the car is collateral) are cheaper than unsecured personal loans, and some dealer finance includes a balloon payment due at the end.
These are reference figures for 2026 - always confirm the current rate and the effective (reducing-balance) APR with the lender before you commit.
Where to get a car loan in Australia
Commonly used providers include CommBank, Westpac, Toyota Finance, Plenti and Pepper Money. Rates and terms vary by lender, your credit profile, and whether you are buying new or used - it pays to compare at least two or three offers.
Deposit and loan term
Deposit requirements vary by lender. Loan terms run up to about 7 years. A bigger deposit and a shorter term both cut the total interest you pay - use the calculator above to see the trade-off for your own numbers.
Worked example
For every $32,000 financed at 6.79% over 5 years:
- Monthly installment: $630
- Total repaid: $37,828
- Total interest: $5,828
Scale to your financed amount, and remember a bigger deposit and shorter term lower the total interest.
How to pay less interest on your car loan
- Put down a larger deposit - it reduces both the monthly payment and the total interest.
- Pick the shortest term you can comfortably afford; a longer term lowers the monthly cost but raises the total.
- Compare the effective reducing-balance rate, not a headline flat rate - a flat rate looks cheaper than it really is.
- A stronger credit profile usually earns a lower rate, so it is worth checking before you apply.
A named-lender rate check: CommBank's secured car loan (2026)
Commonwealth Bank of Australia (CommBank) publishes a Secured Fixed Rate Car Loan ranging from 6.79% p.a. to 10.79% p.a. (comparison rate 8.20%–12.16% p.a.), verified live on 16 September 2026 — the lower end is reserved for borrowers with strong credit histories. For comparison, Westpac's own car loan page (accessed 15 October 2026) lists fixed rates of 6.49%–12.99% p.a. (comparison rate 7.90%–14.34% p.a.) for petrol, diesel and LPG cars.
A more realistic example: financing A$30,000 at CommBank's lowest advertised rate of 6.79% over 5 years works out to about A$591/month, with total interest of roughly A$5,464 over the life of the loan.
Australian lenders must publish a "comparison rate" alongside the headline rate, folding in most fees into one annualised figure — always check both before comparing offers.
GST, and Luxury Car Tax if you're buying above the threshold
The standard 10% Goods and Services Tax (GST) applies to car purchases in Australia and is built into the retail price you're quoted. If the car's price is above the Luxury Car Tax (LCT) threshold, an additional 33% LCT applies on the amount over that threshold — for the 2026–27 financial year the ATO sets the threshold at A$91,661 for fuel-efficient vehicles and A$80,809 for other vehicles. So a A$100,000 non-fuel-efficient car would attract LCT of 33% on the roughly A$19,191 above the threshold, on top of GST — a cost that isn't obvious from the loan repayment alone, so factor it in before you finance a near-threshold vehicle.
ASIC, not APRA, is the regulator that actually oversees your loan terms
ASIC (the Australian Securities and Investments Commission) is Australia's national regulator for consumer credit and consumer leases under the National Consumer Credit Protection Act 2009, including the National Credit Code. Lenders and brokers arranging car finance must hold an Australian Credit Licence and comply with responsible-lending conduct obligations, which require them to assess whether a loan is suitable for the borrower before it's approved. APRA (the Australian Prudential Regulation Authority) separately supervises the financial soundness of banks and other authorised deposit-taking institutions that offer car loans, but it's ASIC that enforces the conduct and disclosure rules that directly protect a car-loan customer.
Secured vs. unsecured: the car itself is your collateral
Most bank car loans in Australia are “secured” loans, meaning the car itself is used as collateral, which is why secured rates run several points below unsecured personal-loan rates for the same borrower — the lender can repossess and sell the vehicle if you default, lowering their risk. Under the National Credit Code, the lender must give you a written credit contract clearly disclosing the annual percentage rate, the comparison rate (which folds most fees into a single annualised figure so you can compare offers on a like-for-like basis), and the total amount payable, before you're bound to the agreement.
Frequently Asked Questions
What is the typical car loan rate in Australia?
As a 2026 reference, car finance in Australia runs about 6.5–9% p.a. for secured loans (10–14% unsecured). Your actual rate depends on the lender, your credit profile, and whether the car is new or used.
How much deposit do I need for a car loan in Australia?
Deposit requirements vary by lender. A larger deposit lowers both your monthly payment and the total interest you pay.
Which lenders offer car loans in Australia?
Commonly used providers include CommBank, Westpac, Toyota Finance, Plenti and Pepper Money. It pays to compare two or three offers, since rates and terms vary by lender and by your credit profile.
How is the car loan installment calculated?
Using the reducing-balance formula P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1) on the financed amount. Dealers may quote a lower-looking flat rate; convert to the effective rate to compare.
Is car financing regulated in Australia?
Car finance conduct and consumer protection in Australia is regulated by ASIC (the Australian Securities and Investments Commission) under the National Consumer Credit Protection Act 2009; APRA separately supervises the prudential soundness of banks and lenders.
What car loan rate does CommBank offer in Australia?
CommBank's Secured Fixed Rate Car Loan ranges from 6.79% p.a. to 10.79% p.a. (comparison rate 8.20%–12.16% p.a.), with the lower end reserved for borrowers with excellent credit histories, as published on CommBank's own rates and fees page (verified 16 September 2026).
Why is the "comparison rate" different from the advertised interest rate?
Australian lenders are legally required to publish a comparison rate alongside the headline interest rate; it folds in most fees and charges into a single annualised figure, so it is usually higher than the advertised rate and gives a more realistic cost comparison between lenders.
How much do car loan rates vary between lenders in Australia?
Quite a lot — Westpac's own car loan page (accessed 15 October 2026) lists fixed rates spanning 6.49% p.a. to 12.99% p.a. at a single lender, reflecting differences in credit profile, vehicle age, loan security, and whether the loan is fixed or variable rate.
Does Luxury Car Tax apply on top of my car loan amount?
If the vehicle's price is above the ATO's Luxury Car Tax threshold (A$91,661 for fuel-efficient vehicles, A$80,809 for other vehicles in the 2026-27 financial year), a 33% LCT applies to the amount above that threshold, on top of the standard 10% GST already built into the price. This affects how much you need to finance, separately from the interest rate.
Is car finance in Australia regulated by ASIC or APRA?
Day-to-day conduct and disclosure rules for car loans (responsible lending, credit licensing, the comparison rate) are enforced by ASIC under the National Consumer Credit Protection Act 2009. APRA's role is prudential: supervising the financial soundness of banks and other lenders, not the terms offered to individual borrowers.
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Sources
Rates are compiled from each country's central-bank publications and the typical offerings of its major commercial banks, reviewed for 2026 and subject to change — always confirm the current rate with a lender before deciding. See our methodology and editorial policy for how we source and update this data.
Additional sources for this page
CommBank Secured Fixed Rate Car Loan rates and fees (verified 16 Sept 2026): Commonwealth Bank of Australia — Rates and Fees. Westpac, Car Loans and Car Loan Interest Rates (accessed 15 October 2026). See our methodology and editorial policy for how we source and update this data.
- Australian Taxation Office — Luxury car tax rate and thresholds (accessed 26 September 2026)
- Australian Taxation Office — GST and motor vehicles: purchasing a motor vehicle (accessed 26 September 2026)
- ASIC — Credit regulation (accessed 26 September 2026)