Calculate your car loan repayments and compare different financing options
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A car loan is a financial product that allows you to borrow money to purchase a vehicle. In Australia, car loans typically range from 1 to 7 years, with interest rates varying based on your credit history, the loan term, and whether the vehicle is new or used.
As of 2024, competitive car loan interest rates in Australia typically range from 5% to 10% p.a. for secured loans and 8% to 15% p.a. for unsecured loans. The exact rate depends on your credit history, loan term, and whether the vehicle is new or used.
Most Australian lenders allow you to borrow between $5,000 and $100,000 for a car loan. The exact amount depends on your income, expenses, credit history, and the value of the vehicle you're purchasing.
Typically, you'll need:
A balloon payment is a larger final payment at the end of your loan term. It reduces your regular repayments during the loan term but requires you to pay a lump sum at the end. This option can be useful if you plan to sell or trade in your vehicle before the loan ends.
Most Australian lenders allow early repayment of car loans, but some may charge an early termination fee. It's important to check your loan contract for any penalties or fees associated with early repayment.
If you're struggling to make payments, contact your lender immediately. They may offer options such as a payment holiday, reduced payments, or restructuring the loan. If the vehicle is secured against the loan, the lender may repossess it if payments are not made.