The real numbers — not “from 4.99%*” marketing rates that almost nobody qualifies for, but the actual ranges Australian borrowers are paying right now, broken down by credit profile and loan type.
“What rate will I get?” is the question everyone asks first. This page gives you the real numbers — not “from 4.99%*” marketing rates that almost nobody qualifies for, but the actual ranges Australian borrowers are paying right now, broken down by credit profile and loan type.
This page is updated quarterly with current market data. Rates on this page reflect mid-2026 market conditions.
Indicative ranges by credit profile and loan structure. Where you actually land depends on the lender, the vehicle, and the full picture of your application.
| Your credit profile | New car (under 2 years) | Used car (2–5 years) | Used car (5–8 years) | Older car (8+ years) |
|---|---|---|---|---|
| Excellent (score 750+) | 5.7% – 7.0% | 6.0% – 7.5% | 6.5% – 8.0% | Limited options — may need unsecured |
| Good (score 650–749) | 6.5% – 8.0% | 7.0% – 8.5% | 7.5% – 9.5% | Limited options |
| Average (score 550–649) | 8.0% – 10.0% | 8.5% – 11.0% | 9.0% – 12.0% | Unsecured likely required |
| Below average (score 400–549) | 10.0% – 13.0% | 11.0% – 14.0% | 12.0% – 15%+ | Unsecured or specialist only |
| Serious adverse (defaults, bankruptcy) | 12.0% – 15%+ | 13.0% – 16%+ | Specialist lenders only | Specialist lenders only |
| Your credit profile | Rate range | Notes |
|---|---|---|
| Excellent (750+) | 9.5% – 11.5% | Best unsecured rates. Still higher than secured. |
| Good (650–749) | 11.0% – 13.0% | Standard unsecured pricing. |
| Average (550–649) | 13.0% – 16.0% | Fewer lender options. |
| Below average / adverse | 16.0% – 20%+ | Very limited options. Secured usually better if car qualifies. |
All rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval.
| Structure | Typical rate range | Who it’s for |
|---|---|---|
| Chattel mortgage | 5.5% – 10.0% | ABN holders buying vehicles for business use (50%+) |
| Novated lease | Varies by salary packaging arrangement | PAYG employees whose employer offers packaging |
| Dealer finance | 8.0% – 16%+ | Convenient but typically most expensive option |
All rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval.
Every lender advertises a headline rate. Very few people actually qualify for it.
Every lender advertises a “from” rate — the lowest rate available to their absolute best applicants. In reality, very few people qualify for the advertised rate. It typically requires: a credit score above 800, a new car, a short loan term (3 years), a deposit of 20%+, and an existing customer relationship.
The average Australian car loan borrower doesn’t hit all of those criteria. That’s why the average secured rate across all borrowers is approximately 8.9% — materially higher than the “from 5.99%” headlines suggest.
When you see a rate advertised, ask: “What’s the rate for MY profile?” A broker answers that question by assessing your actual circumstances and telling you what rate you’d realistically receive — not the rate designed for marketing.
Six factors decide where you land in the ranges above. The first one matters more than all the others combined.
Your credit score is a numerical summary of your borrowing history. The higher the score, the lower the risk the lender perceives, the better the rate.
| Score range (Equifax) | What lenders see | Rate impact |
|---|---|---|
| 833–1,200 (Excellent) | Very low risk | Best rates available |
| 726–832 (Very good) | Low risk | Near-best rates |
| 622–725 (Good) | Acceptable risk | Standard rates |
| 510–621 (Below average) | Elevated risk | Higher rates, fewer lenders |
| 0–509 (Low) | High risk | Specialist lenders, significantly higher rates |
All rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval.
The difference between an 800 score and a 500 score on the same loan can be 5%–7% p.a. — that’s $5,000–$8,000 in extra interest on a $30,000 loan over 5 years. Options for borrowers with impaired credit.
Newer cars hold more value, giving the lender stronger security. Rates step up as cars age because the lender’s recovery position weakens. The biggest jumps typically occur at:
The structural difference is roughly 4% p.a. on average. On a $30,000 loan over 5 years, that’s approximately $4,000 in extra interest for unsecured. Always go secured if the car qualifies. The full comparison.
Rates are generally similar across 3–7 year terms from the same lender. But total interest increases with term length because you’re borrowing for longer. A shorter term means higher monthly repayments but less total interest paid.
Stable PAYG employment is assessed most favourably. Self-employed and contract workers may face a low-doc premium of 0.5%–2% above standard rates. Self-employed car loan rates.
This is the factor most people don’t consider — and it’s where a broker adds the most value. Different lenders price differently for the same borrower profile. Lender A might be cheapest for new cars with excellent credit. Lender B might be cheapest for used cars with average credit. Without comparing, you’re accepting one lender’s price when a better one may exist. How a broker compares across the market.
A percentage point sounds small. Over the life of a loan, it’s thousands of dollars.
| Rate | Monthly | Total interest | Total cost |
|---|---|---|---|
| 6.5% | $489 | $4,370 | $29,370 |
| 8.5% | $513 | $5,770 | $30,770 |
| 10.5% | $537 | $7,230 | $32,230 |
| 13.0% | $571 | $9,250 | $34,250 |
| Rate | Monthly | Total interest | Total cost |
|---|---|---|---|
| 6.5% | $783 | $6,990 | $46,990 |
| 8.5% | $821 | $9,230 | $49,230 |
| 10.5% | $860 | $11,570 | $51,570 |
| 13.0% | $913 | $14,800 | $54,800 |
All rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval.
The difference between 6.5% and 13% on a $40,000 loan is $7,810 in extra interest. That’s the cost of not comparing — and the potential saving from using a broker who finds the right lender for your profile.
Use the car loan calculator to model your scenario.
The cash rate sets the cost of funds for lenders. It filters through to the rates you’re offered — but not always evenly.
The RBA cash rate (currently 4.35% as of May 2026) influences the cost of funds for lenders, which filters through to the rates they charge borrowers. When the RBA raises the cash rate, car loan rates generally increase — though not always by the same amount, and not always immediately.
Fixed-rate car loans (which represent the majority of the market) lock in your rate for the loan term. This means once you’ve settled, RBA movements don’t affect your existing repayments. Variable-rate car loans do move with the cash rate, but they’re less common in Australia.
If you’re considering a car loan, the current rate environment is what matters — not where rates might go in the future. Lock in the best rate available now, and if rates drop significantly later, refinancing is always an option. When refinancing makes sense.
The average secured car loan rate for prime borrowers is approximately 7.4% p.a. in mid-2026. Across all borrowers (including those with credit issues), the average is closer to 8.9%. Unsecured rates average approximately 11.8%.
Advertised “from” rates represent the lowest rate available to the lender’s best applicants — typically excellent credit, new car, short term, and existing customer relationship. Your quoted rate reflects your actual credit profile, the vehicle, and the loan structure. Most borrowers pay above the advertised rate.
Directly, it’s difficult — lenders have pricing models they generally stick to. Indirectly, yes — a broker creates competition by comparing rates across multiple lenders for your specific profile. Having a strong application (clean credit, stable income, deposit, newer car) gives your broker the most to work with.
Rates adjust gradually in response to RBA cash rate movements, lender competition, and market conditions. Major shifts typically happen in the weeks following an RBA decision. The rates on this page are reviewed and updated quarterly.
We can’t predict future RBA decisions or market movements. What we can say is that the current rate you’re offered is based on today’s market — and if rates drop significantly after you’ve taken out a fixed-rate loan, refinancing can capture the improvement. Refinancing to a lower rate.
The tables above give you a realistic range. To find out exactly where you sit — based on your credit, income, and the car you’re buying — talk to a Novara broker. No cost, no obligation, no credit check to start.
This article contains general information only and has been prepared without taking into account your objectives, financial situation, or needs. You should consider whether the information is appropriate for your circumstances before acting on it. Consider seeking independent financial, tax, or legal advice. All finance applications are subject to lender criteria and approval. Rates mentioned are indicative and current as of June 2026 — individual circumstances vary. This page is reviewed and updated quarterly. Novara Finance Pty Ltd | AFSL 517192 | ABN 99 687 789 144.