Calculate monthly car loan repayments including stamp duty, CTP insurance, and registration for all Australian states. Compare balloon payment options.
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Australian car buyers can choose from secured car loans, dealer finance, or novated leases (salary packaging). Dealer comparison rates are often 8–14% p.a. — credit unions and online lenders typically offer 6–9% p.a.
Stamp duty on motor vehicles applies in all Australian states. Rates vary: NSW $3/100 (new), VIC $8.40/$200 (0–$67K), QLD $3/$100 (new). Always check your state's revenue office for current rates.
A car loan (secured personal loan) is money borrowed specifically to purchase a vehicle, with the car itself used as security. Australian car loans are typically offered by banks, credit unions, and car dealer finance divisions over 1-7 year terms at fixed or variable interest rates. The loan amount, interest rate, and term determine your monthly repayment using the standard amortising loan formula.
| Loan Amount | Rate | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $30,000 | 8.5% | 3 years | $946 | $4,056 |
| $30,000 | 8.5% | 5 years | $616 | $6,960 |
| $30,000 | 8.5% | 7 years | $475 | $9,900 |
| $50,000 | 7.5% | 5 years | $1,001 | $10,060 |
| $50,000 | 7.5% | 7 years | $772 | $14,848 |
When purchasing a vehicle, state governments charge stamp duty (motor vehicle duty) on the purchase price. This is payable upfront and is separate from the loan amount — though it is typically rolled into the total financed amount for new vehicles.
| State | Stamp Duty Rate (typical) | On $35,000 vehicle |
|---|---|---|
| NSW | 3% (vehicles under $45,000) | $1,050 |
| VIC | $8.40 per $200 of dutiable value | $1,470 |
| QLD | 2.0-4.0% (stepped) | ~$700-$1,000 |
| WA | 2.75% (vehicles under $25,000) | ~$963 |
| SA | 4% of purchase price | $1,400 |
| Option | Typical Rate | Advantages | Disadvantages |
|---|---|---|---|
| Secured car loan (bank) | 6–10% p.a. | Lower rate, structured repayments | Car used as security — repossession risk |
| Unsecured personal loan | 9–17% p.a. | No asset at risk | Higher rate |
| Dealer finance | 4–13% p.a. | Convenience, sometimes promotional 0% | Often higher cost when balloon/residual included |
| Novated lease (employer) | Lease structure | Pre-tax salary, fleet pricing | Requires employer participation, more complex |
What is a good interest rate for a car loan in Australia?
As of June 2026, competitive secured car loan rates range from 6-9% p.a. for buyers with good credit through banks and credit unions. Dealer finance ranges from promotional 0-2% (often with conditions) to 12-15% for standard terms. Credit score significantly affects the rate offered — check comparison rate, not just headline rate.
Should I finance a car through a dealer or bank?
Compare the comparison rate (not just the interest rate) of dealer finance vs bank/credit union before deciding. Dealer finance is convenient but often includes fees that inflate the true cost. Bank and credit union rates are frequently lower for buyers with good credit. Pre-approved bank finance gives you negotiating power with dealers.
How much car loan can I afford?
A common guideline is keeping total car costs (loan repayment + insurance + rego + fuel) under 15-20% of take-home pay. On a $5,000/month take-home, car costs should be under $750-$1,000/month. The loan repayment should be well within this with buffer for the other ongoing costs.
Is a balloon payment on a car loan a good idea?
A balloon (residual) payment reduces monthly repayments by deferring part of the principal to a lump sum at loan end. It is rarely financially advantageous — you pay more interest overall and must refinance, pay the lump sum, or sell the car at loan end. Balloon payments are common in dealer finance — always calculate the total cost including the balloon.