New Car Loans From 5.99% p.a.

New car loan rates in Australia typically range from 5.99% to 8.99% p.a. for borrowers with good credit. Your exact rate depends on several factors: loan amount (larger loans often get better rates), deposit size (20%+ deposits improve rates by 0.5-1%), loan term (shorter terms = better rates), and your credit score. New cars consistently attract rates 2-4% lower than used car loans because lenders view them as lower risk - they have full warranties, known service histories, and depreciate predictably. The lowest rates (5.99-6.99%) are typically reserved for loans over $30,000 with 20%+ deposits.

Most lenders prefer 10-20% deposits on new cars, though this isn't always mandatory. Deposit scenarios: $0 deposit (100% finance) is available for strong credit applicants, though rates are typically 1-2% higher. 10-15% deposit gives access to competitive mid-tier rates. 20%+ deposit unlocks the best rates (5.99-7.49% p.a.) and highest approval chances. Some lenders offer "drive away" finance covering the full purchase price plus on-road costs (105-110% of vehicle value). If you have a trade-in vehicle, its equity counts toward your deposit.

Yes, and we highly recommend it. Pre-approval for new car loans works like this: (1) Submit a loan application with your financial details, (2) Lenders assess your borrowing capacity and issue conditional approval for a specific amount, (3) Your pre-approval is valid for 90 days, (4) Once you find a car, provide vehicle details to your lender, (5) Final approval and settlement takes 3-5 days. Pre-approval gives you huge advantages at dealerships - you negotiate as a "cash buyer" with guaranteed finance, dealers take you more seriously, and you know exactly what you can afford before falling in love with a car.

It depends on your priorities. New cars cost more upfront but offer: significantly lower interest rates (save $2,000-$5,000 over loan term), full manufacturer warranties (save $1,500-$3,000/year in maintenance), longer loan terms available (lower monthly repayments), latest safety and technology features, and no hidden mechanical issues. Used cars have: lower purchase prices, slower depreciation (new cars lose 20-30% in first 2 years), but higher interest rates and potentially higher maintenance costs. Financially, new cars make sense if you: keep vehicles 7+ years (maximize warranty period), drive high kilometers (warranty covers major repairs), value reliability and minimal downtime, or can access salary packaging/tax deductions.

Most new car buyers choose 5-7 year loans to keep repayments affordable. Loan term considerations: 3-4 years = higher monthly repayments ($700-900/month for $40k loan) but pay less interest overall ($2,500-3,500 total interest). 5 years = balanced approach ($755/month for $40k loan), most popular term, reasonable total interest ($5,300). 6-7 years = lowest repayments ($625-660/month) but highest total interest ($7,000-10,000), good if you need cash flow flexibility. Consider this: longer terms make sense if you plan to keep the car beyond the loan term. If you upgrade every 3-5 years, shorter terms or balloon payments might be better.

Dealer finance is convenient but rarely competitive. Here's why using a broker like Kreddi is better: We compare 60+ lenders (dealers typically offer 1-3 options), our rates are often 1-3% lower (saving $1,500-$5,000 over loan term), we have $0 broker fees (dealers charge $500-$1,000 dealer fees), we include specialist lenders who approve complex situations (bad credit, self-employed), and you get independent advice not tied to the dealership's commission targets. That said, dealers occasionally run manufacturer-subsidized specials (like 0.9% p.a. finance deals) that can beat market rates - we'll tell you honestly if dealer finance is better in your situation.

Yes, many lenders allow you to finance "drive-away" amounts including registration, CTP insurance, stamp duty, and dealer delivery fees. Typical on-road costs add $1,500-$3,000 to the vehicle price. For example, a $35,000 car might have $37,500 drive-away price. You can finance up to 100-110% of the vehicle's value to cover these costs. However, financing on-road costs means: higher loan amount and more interest paid overall, but maintains your cash flow and avoids upfront out-of-pocket expenses. It's a trade-off between preserving cash vs paying less interest.

If your new car is written off (stolen, totaled in accident), your comprehensive insurance pays out the market value. However, new cars depreciate 15-25% in the first year, so insurance payout might be less than your loan balance. This is called "negative equity" or being "underwater." For example: buy a $40,000 car, 6 months later it's written off, insurance values it at $35,000, but you still owe $38,000 = $3,000 shortfall you must pay. Protection options: (1) Gap insurance (covers difference between insurance payout and loan balance, costs $400-$800), (2) New car replacement insurance (replaces with brand new vehicle in first 1-2 years), (3) Larger deposit reduces negative equity risk. Most lenders require comprehensive insurance but gap insurance is optional (though highly recommended).