A brand-new car is the one time secured finance really earns its keep.
Because a new car holds strong value, lenders treat it as good security — which is exactly why a secured car loan usually sits well below an unsecured personal loan for the same purchase. The catch is that a new car also loses value fastest in its early years, so how you set the deposit, term and any balloon matters just as much as the rate. We compare car lenders across our panel and structure the loan around both.
Secured against the car, or not tied to it at all.
On a new car you generally have a choice: a secured car loan, where the vehicle backs the loan, or an unsecured personal loan, which isn't. The security is what pulls the rate down. These are indicative market ranges on a 0–30% p.a. scale — not a quote, and not the rate you'll be offered.
Indicative ranges only, as at July 2026, sourced from published market averages and medians (Money.com.au). They are not a quote, an offer of credit, or a prediction of your rate — your actual rate depends on your credit profile, the vehicle, the deposit, the term and the lender, and is confirmed in writing. Rates move with the RBA cash rate. An advertised interest rate and a comparison rate differ; always compare the comparison rate.
Owing more than the car is worth — and how to avoid it.
A new car loses value fastest in its first couple of years — commonly around 10–15% in year one and roughly a quarter to 40% across three years. If the loan comes down slower than the car's value, you can briefly owe more than it's worth. This illustrative chart plots a $40,000 new car over a five-year secured loan.
Illustrative only. Assumes a $40,000 new car, a five-year principal & interest secured loan with no deposit, and a typical depreciation curve — not a quote or a prediction. In the first year the two lines run closest, so with no deposit you can briefly owe about what the car is worth (or more, right after purchase). A deposit shifts the loan line down, a shorter term makes it fall steeper, and a balloon/residual keeps it high — which is why those choices matter as much as the rate. Depreciation varies by make, model and condition.
Three things that shape a new-car loan.
Secured against the vehicle
The lender takes the car as security, which lowers their risk and, in turn, the rate. It's why a new car — with its strong resale value — tends to attract the sharper end of car-finance pricing.
Terms up to seven years
New-vehicle loans commonly run from one to seven years. A longer term lowers the monthly repayment but you pay more interest overall and pay the balance down slower — the trade-off the chart above illustrates.
Deposit & balloon options
A deposit isn't always required, but it lowers what you borrow and keeps you clear of negative equity. A balloon (residual) cuts the monthly figure by deferring a lump sum to the end — handy if you plan to trade up, costly if you don't.
◇ Dealer or manufacturer finance, or a broker-sourced loan
The finance offered at the counter — including manufacturer promotions like a low advertised rate on a specific model — can be convenient, but it's usually one product. Promo deals often come with conditions: set models, shorter terms, a higher drive-away price, or a balloon. It's worth comparing the total cost, including the comparison rate, against a broker-sourced loan before you sign.
We compare products from our panel of 50 lenders; we don't compare every product or lender in the market, and we can't promise you'll qualify for any particular rate.
▤ Private sale or from a dealer
A brand-new car almost always comes through a dealer, and secured finance is straightforward — funds typically settle to the dealer. If you're buying a demo or near-new through a private sale, some lenders apply extra checks or age limits, and pricing can shift. We'll tell you upfront which lenders are comfortable with how you're buying.
Any figures shown are indicative estimates only and are not an offer of credit, a quote, or a guarantee of approval or a particular rate. Your options depend on your circumstances and are confirmed in writing.
A deep, competitive new-car market — which works in your favour.
Australians bought over 1.2 million new vehicles last year. A big, competitive finance market rewards shopping it properly rather than signing the first form on the desk.
Sources: FCAI VFACTS (calendar year 2025, reporting brands); RBA Cash Rate Target (4.35%, as at 17 June 2026). The cash rate is set by the RBA and can change — car and asset loan pricing moves with it.
Three steps, and your credit score stays intact to start.
Tell us about the car and you
A few minutes online — the new car you're eyeing, your income, deposit and rough credit picture. No credit check to begin.
We match it across the panel
We line your profile up against the car lenders who'll price a new vehicle well, and weigh the comparison rate, term and any balloon — not just the sticker rate.
You review real options
We come back with indicative options structured around what you'll actually repay, and how the deposit and term keep you clear of negative equity. You decide before anything is lodged.
New car loans, answered straight.
Is a secured car loan better than a personal loan for a new car?
For a brand-new car, a secured car loan is usually the cheaper structure. The car backs the loan, which lowers the lender's risk and the rate — indicatively the median secured car rate is around 12.2% p.a. versus roughly 15.4% p.a. for an unsecured personal loan, and prime secured pricing runs lower again (source: Money.com.au, July 2026). These are indicative only and move with the cash rate; your rate is confirmed in writing.
How do new-car loan rates and terms work?
New-car loans are typically fixed-rate and secured against the vehicle, with terms commonly from one to seven years. A longer term lowers the monthly repayment but means more interest overall and a slower fall in the balance. Advertised rates and comparison rates differ, so we always weigh the comparison rate, which rolls in most fees.
Do I need a deposit for a new car loan?
Not always — many lenders offer 100% finance on a new vehicle where your credit and income profile is strong. A deposit isn't required to apply, but it lowers what you borrow, can improve the rate, and helps keep you from owing more than the car is worth in the early years.
What is a balloon or residual payment?
A balloon (or residual) is a lump sum deferred to the end of the loan, which lowers your monthly repayment. It suits buyers who plan to trade up or refinance at the end, but you pay more interest overall and still owe the lump sum — so it's a trade-off we'd talk through, not a default.
Why does a new car lose value so fast, and does it matter?
New cars typically lose around 10–15% of value in the first year and roughly a quarter to 40% over three years (illustrative, varies by make and model). It matters because if the car depreciates faster than you pay the loan down, you can briefly owe more than it's worth. A deposit, a shorter term and avoiding an unnecessary balloon all reduce that risk.
Should I use dealer or manufacturer finance?
It can be convenient, and a manufacturer promotion may genuinely suit you — but it's usually a single product, sometimes with conditions like set models, a shorter term or a higher drive-away price. It's worth comparing the total cost, including the comparison rate, against a broker-sourced loan before committing.
Know the real number before you drive away.
Tell us about the new car and your deposit — we'll come back with indicative options and structure the term so the numbers work over the life of the loan. No credit check to start.
Check my options →