How Do Lenders Determine Car Loan Interest Rates?

A car loan is a finance product where a lender provides funds for you to purchase a vehicle, which you repay over time with interest.

Secured loans use the car as collateral, often leading to lower interest rates. Unsecured loans don’t, but usually have higher rates.

Most car loans offer terms from 3 to 7 years. Find out what term suits you best.

Interest is based on the loan amount, term, and rate. Fixed-rate loans have predictable repayments, while variable rates can change.

Yes, many lenders accept private sellers. You’ll need to provide extra documents.

Yes — many lenders offer better rates due to your stable income. Explore finance options for government employees.

Yes. Many workers are approved during probation.

A score of 650+ is ideal, but lower scores may still be considered.

Yes, especially if you're full-time with strong income.

Yes, many government departments support novated leasing.

Yes, it's still possible to get a car loan with no credit history.

A broker can help restructure your application for better results.

Use Equifax, Experian, or Illion for a free check.

Yes, if your income supports both loans. A broker will assess your capacity.

Typically: ID, payslips, and bank statements.

Yes, if you’ve worked consistently for 6+ months.

Yes. Consider a low-doc loan.

Yes, when paired with PAYG income.

Most lenders prefer $30,000+ annually, but this varies.

Yes, especially if it’s government-backed.

Yes, most lenders allow used cars under 10 years old.

Absolutely

Yes

Yes. You may even qualify for green car loan discounts.

Yes you can.

It’s a lump sum due at the end of the loan term.

Yes, many lenders allow this without penalty.

Yes — ask if there’s an early payout fee.

Not always.

1 to 7 years is standard.

24–48 hours in most cases

Yes — most lenders and brokers accept online applications.

Often, yes. They can compare lenders for you.

Yes — and it gives you better negotiating power at the dealership.

Your documents are reviewed, and if approved, the lender issues funds to the seller.

Yes, in some cases. see finance for visa holders here.

Yes, but learners may qualify with a co-applicant.

Yes, joint applications are allowed.

Yes — it can lower your repayments or get you a better rate.

Yes, many lenders accept trade-ins toward the deposit.

Yes — see nurse-specific finance tips.

Yes. Read how to get approved.

Yes, in some cases. Your job security is a major advantage.

Yes — consistency in income matters more than job location.

Yes, especially if you’re returning to work. Here’s how.

Yes — just make sure the seller provides all required documents.

Yes, but only through select lenders. Ask your broker first.

Only if you apply to multiple lenders directly. Brokers help protect your score.

Yes — see bad credit car loan options.

You can sell the car, pay off the loan early, or refinance.