Finty

Compare variable rate car loans

Set your amount and term to see the repayment and total cost of 64 variable rate car loans side by side, so you know what you'd pay before you apply.

The rate can go up or down during the loan. In return, most let you make extra repayments or pay the loan off early without a break fee.

Written byDavid Boyd

What will it cost you?

Enter how much you want to borrow and for how long, and we'll show your monthly repayment and total cost on every loan below, at each one's lowest published rate.

59 loans

Showing 20 of 59

Repayments use each loan's lowest published rate and include any monthly fee. The total adds the establishment fee. The rate you are offered depends on your circumstances. Comparison rates are for the lender's own example loan, usually $30,000 over 5 years.

WARNING: A comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Variable rate car loans at a glance

Worked out from the 64 loans from 35 lenders we compare on this page.

Typical comparison rate

8.36%

Half the loans start between 7.32% and 10.21%.

Typical setup fee

$163

2 of 50 loans charge no setup fee.

No monthly fee

2 of 16

loans that state a monthly fee set it at $0.

Fixed or variable

8 fixed64 variable

Some loans offer both.

How starting comparison rates are spreadNumber of loans in each band. The most common is 7–9%.

The short version

  • A variable rate can rise or fall during the loan.
  • Variable car loans usually let you repay extra or early without a fee.
  • They're less common than fixed car loans.

Why choose a variable rate

The rate can rise or fall during the loan, usually after changes to the Reserve Bank's cash rate. In return, variable loans usually let you pay extra or pay the loan off early without a break fee.

That suits you if you might sell the car early or expect to clear the loan ahead of time.

Pros

  • Pay it off sooner. Extra repayments cut the interest you pay.
  • No fee to repay early on most loans.
  • Repayments fall if rates fall.

Cons

  • Repayments can rise.
  • Harder to budget, as the total cost isn't known.
  • Fewer lenders offer them.

Alternatives

  • A fixed rate car loan, for repayments that never change.
  • An unsecured personal loan. Nothing is secured against the car, so you can buy any car, at any age, though the rate is usually higher.
  • A novated lease, if your employer offers salary packaging. Payments come from your pre-tax pay, which can save tax, especially on electric cars.

How to apply

You can apply for a variable rate car loan before you've chosen the car. Pre-approval tells you your budget and lets you bargain like a cash buyer.

  • Get pre-approval. Many lenders approve you for an amount first, so you know what you can spend before you shop.
  • Check your rate. Some lenders give a quote with a soft check, which doesn't show as a credit enquiry.
  • Have the car's details ready. Lenders need the make, model, year, VIN and the seller's details before they pay out.
  • Compare the drive away price, not just the rate. A low rate can come with a higher price on the car.
  • Insure the car. Lenders usually need comprehensive insurance on a car that secures the loan.

What to check on a car loan

Look at the comparison rate as well as the interest rate. The comparison rate adds the lender's standard fees to the interest rate for an example loan, so it shows the cost of two loans on the same footing.

  • Whether there's a balloon payment, a lump sum left to pay at the end that lowers your regular repayments.
  • Any limit on the car's age, either when you buy it or when the loan ends.
  • Whether you can make extra repayments or pay the loan off early, and what that costs.
  • Whether the lender pays the dealer or private seller directly.

Questions people ask

What is car loan pre-approval?

It's a lender's conditional OK for an amount before you've chosen the car. It isn't final until the lender has the car's details, and it usually lasts for a few months.

Can I pay off a car loan early?

Usually. Variable rate loans rarely charge for it, while fixed rate loans may charge an early repayment fee. Check the contract if you might sell the car or pay it off sooner.

Should I take a balloon payment?

A balloon lowers each repayment by leaving a lump sum to pay at the end, but you pay more interest overall and need the money, or to refinance, when it falls due. It suits people who plan to sell or trade in the car then.