Car loan rates forced lower

Subdued consumer spending and business investment has led lenders to cut car loan rates to under 5% per annum.

“Car sales are in the doldrums and car loan providers need to compete for each and every borrower out there. Loan rates have fallen significantly over the last year as lenders are under pressure,” said Vadim Taube, CEO of financial comparison website InfoChoice.

“Borrowers have great choice at the moment, with plenty of great low-rate car loans from the banks and credit unions.”

According to Vadim, even the major four banks are getting in on the action.

“While the credit unions have traditionally been a home to low-rate car loans, the big banks are also offering some competitive offers that are hard to ignore,” he explained.

NAB has personal loans suitable for purchasing a second-hand car with rates set at 10.69% pa (comparison rate 11.58% pa). ANZ has fixed personal loan rates set at 12.45% pa (comparison rate 13.32 %pa). CBA has secured car loans from 8.49% pa (comparison rate 9.45% pa). Westpac also has car loan rates starting from 8.49% pa (comparison ate 9.67% pa).

However, the four top, fixed-rate rate car loans currently listed on InfoChoice are much lower:

The five top variable rate car loans listed at the time of writing are: