5 refinance car loans to take a look at in 2021
From better interest rates to fewer fees, there are a number of different reasons why you might consider refinancing your current car loan - the common thread usually being to find a better deal.
Gone are the days where people would sign up for a car loan and stick it out with a crumby deal until the end of their term.
Nowadays, many Aussies are keeping a keener eye on the market and making the switch when something better comes along. And with a slew of new online lenders taking on the big banks now could be a great time to make your move.
Not to mention, we’ve seen car loan interest rates gradually drop over the past few years. For example, according to the Mozo database at the start of January 2019, car loan interest rates sat at 7.45% p.a. on average, compared to the current average of 6.75% p.a.
So, if you’re looking for a more competitive offer, then start your search with these 5 refinance car loans so you can get the ball rolling:
New Car Loan - Special (Including Demo, Fixed, Secured)
- Low 4.67% p.a. fixed interest rate (5.22% p.a. comparison rate*)
- Flexible repayment terms
- 2021 Mozo Experts Choice Award-Winner in the Car Loan category^
The details:
If you’re looking to lock in a fixed rate deal for your car loan refinancing needs then you might’ve just met your match! The Loans.com.au New Car Loan (Fixed) hits the ground running with a low fixed rate of 4.67% p.a. (5.22% p.a.comparison rate*) on loans from just $5,000 up to $100,000, with 3-5 year terms. In addition, the loan comes with a few flexible features, such as the choice of either weekly, fortnightly or monthly repayment options and the ability to make extra repayments. Not to mention, it even received a 2021 Mozo Experts Choice Award^ in the Car Loan category! Just be aware that this loan comes with a hefty $400 application fee and $700 early repayment penalty if you pay your loan out before the last year of the loan term.
Secured Car Loan (Fixed)
- Tiered fixed rates from 4.74% p.a. (5.01% p.a. comparison rate*)
- Extra repayments allowed
- Flexible weekly, fortnightly & monthly repayment options
The details:
If you have a spick and span credit history then the Wisr Secured Car Loan could be a great refinancing fit. This loan offers tiered interest rates based on your credit rating, so depending on the asset you’re refinancing and whether or not you’re eligible you could potentially score a fixed rate from as low as 4.74% p.a. (5.01% p.a. comparison rate*) - or as high as 16.01% p.a. (16.31% p.a. comparison rate*) if your credit score isn’t too crash hot. With this loan, you may be able to borrow amounts from $5,000 up to $63,000, with 3 to 7-year loan term options. The loan also offers weekly, fortnightly and monthly repayment options, the ability to make extra repayments to help you pay your loan off faster - plus, you won’t even need to use your vehicle as collateral since it’s a secured car loan. This loan doesn’t come with any ongoing monthly fees, however, it does charge a $195 upfront application fee and a $25 late payment fee should you miss a repayment.
Secured Personal Loan (Fixed)
- Competitive fixed rates from 4.45% p.a. (4.45% p.a. comparison rate*)
- Extra repayments allowed
- Tiered interest rates determined by your credit score
The details:
The NOW Finance Secured Personal Loan comes with competitive fixed interest rates which are determined by your credit score - so if you’ve kept your credit history up to scratch (and are eligible) then you could score a fixed rate from as low as 4.45% p.a. (4.45% p.a. comparison rate*). With this loan, you may be able to borrow amounts from $15,000 to $100,000 paid back over 2 to 7 years. In addition, the loan offers weekly, fortnightly and monthly repayment options, plus, the ability to make free extra repayments so you can get ahead of your loan. Be aware that this is a secured loan, so you’ll need to put an asset up as collateral against the loan - and the value of the asset must be at least 33% of the loan amount you intend to take out. And if you have a low credit score interest rates can be as high as 15.45% p.a. (15.45% p.a. comparison rate*). Keep in mind, this loan comes with a $35 late payment fee should you ever miss a repayment.
New Car Loan (Fixed)
- Competitive fixed rates from 4.89% p.a. (5.44% p.a. comparison rate*)
- Extra repayments allowed
- Tiered interest rates based on your credit score
The details:
The Plenti New Car Loan (Fixed) kicks things off with tiered interest rates tailored to your credit score from as low as 4.89% p.a. (5.44% p.a. comparison rate*) - so, if you’re eligible, then, the better your credit score the better the rate you could get. Customers can borrow amounts from as little as $10,000 to as much as $100,000 with 3-7 year term options. On top of this, the loan offers the ability to make extra loan repayments to help you pay it off quicker. Keep in mind that this is a secured loan, so you’ll need to put up your vehicle as a security asset should you ever default on the loan. This loan also comes with a $399 application fee and a $30 late payment fee if you miss a repayment.
Used Car Loan (Fixed, Secured, No vehicle age limit)
- Interest rates from 5.35% p.a. (5.65% p.a. comparison rate*)
- Ability to make extra repayments
- No penalties for early repayment
The details:
The online OurMoneyMarket Car Loan comes with competitive fixed interest rates starting from 5.35% p.a. (5.65% p.a. comparison rate*) depending on your credit score, on amounts from just $2,000 to $75,000 with 1 to 7-year loan term options for eligible customers. Interest rates are based on your credit score, so the better your credit score - the better the rate you could get. In addition, the loan offers a bunch of handy features, including, flexible weekly, fortnightly and monthly repayment options, the ability to make extra repayments so you can pay your loan off early - and, at no extra cost, being that there’s no early repayment penalty. Just remember that it’s a secured loan, so you’ll need to use your car as security against the loan. Also, this loan comes with a $35 late payment fee and a $250 application fee, (however, this is only charged once you’ve received your funds).
For even more options, head over to our car loan comparison tool where you can compare car loans to find a deal that could be right for you.
^Click here for more information about the 2021 Mozo Expert Choice Car Loans Awards.