Is the rate higher on a used car loan?

Sometimes. Lenders may price by the car’s age, so older vehicles can attract a higher rate. Comparing the comparison rate shows how options differ.

Is there an age limit on the car?

Many lenders set a maximum vehicle age, measured either when you buy or when the loan ends. For an older vehicle, the limit can decide whether a lender will fund it.

Can I finance a used car bought privately?

Many lenders allow it, usually with a PPSR check confirming the car isn’t already under finance. See our private sale car loans table for options.

What does pre-approval change?

Pre-approval sets the budget and lets a buyer negotiate as a cash-ready buyer, rather than working out finance after you’ve found the car.

Are used car loans secured?

Most are secured against the car, which keeps the rate lower. Unsecured options exist but typically cost more.

Used Car Loans

Buying second-hand often means a slightly higher rate than a new car, and some lenders cap the vehicle age they'll finance. Compare used car loans from 6.39% (7.17% comparison rate*) p.a. with Defence Bank's Used Car Loan, and check the age limit before you apply.

Rates checked against every provider’s own published data on 19 Oct 2026

			Actions
Defence Bank	Advertised rate6.39%	Comparison rate7.17%	Monthly repayment$390/mo	Compare Defence Bank Used Car Loan, Variable	VariablePrincipal & interestFeatures:	Whether it’s your first car, a second car, motorcycle or a total change of the type of vehicle, there’s nothing quite like the feeling of being given the keys to your new set of wheels.
Central West Credit Union	Advertised rate7.70%	Comparison rate7.92%	Monthly repayment$403/mo	Compare Central West Credit Union Classic Car Loan - Used Vehicle no more than 7 years old, Variable	VariablePrincipal & interest	Includes Cars, Boats, Caravans & Motorbikes
Horizon Bank	Advertised rate7.74%	Comparison rate7.96%	Monthly repayment$403/mo	Compare Horizon Bank Green Car Loan - Used, Fixed	FixedPrincipal & interestFeatures:	Reduce your fuel costs and your carbon footprint with Horizon's Green Used Car Loan
Bank First	Advertised rate7.79%	Comparison rate9.13%	Monthly repayment$404/mo	Compare Bank First Used Car Loan Personal Lending 1-5 Years Fixed Unsecured, Fixed	UnsecuredFixedPrincipal & interestFeatures:
Woolworths Team Bank	Advertised rate7.94%	Comparison rate8.39%	Monthly repayment$405/mo	Compare Woolworths Team Bank Used Car Loan, Variable	VariablePrincipal & interest
Southern Cross Credit Union	Advertised rate8.24%	Comparison rate10.61%	Monthly repayment$408/mo	Compare Southern Cross Credit Union Motor Scout Used Vehicle Loan, Fixed	FixedPrincipal & interestFeatures:	Personal Loan to finance the purchase of a used vehicle through Motor Scout Car buying service
Northern Inland Credit Union	Advertised rate9.49%	Comparison rate10.32%	Monthly repayment$420/mo	Compare Northern Inland Credit Union Used Vehicle Loan, Fixed	FixedPrincipal & interestFeatures:	A fixed personal loan, taken over 1 to 5 years depending on your circumstances. Secured by a vehicle up to 10 years old.
Bank First	Advertised rate10.79%	Comparison rate12.16%	Monthly repayment$433/mo	Compare Bank First Used Car Loan Personal Lending Variable Unsecured, Variable	UnsecuredVariablePrincipal & interestFeatures:
First Option Bank	Advertised rate10.99%	Comparison rate11.24%	Monthly repayment$435/mo	Compare First Option Bank Used Car Loan, Variable	VariablePrincipal & interestFeatures:
TMCU	Advertised rate9.39%	Comparison rate9.70%	Monthly repayment$157/moInterest-only period	Compare TMCU Fastroad Used Car Loan, Variable	VariableInterest onlyFeatures: Extra repayments

Financing a used car

Financing a used car isn't quite the same as financing a new one. Lenders often price by the car's age, set a maximum vehicle age, measured at purchase, at the end of the term or both, and may treat dealer and private purchases differently. All of that feeds into the rate you're offered.

What lenders look at

The age, kilometres and condition of the car all matter, and most used car loans are secured against the vehicle. For private sales, lenders usually run a PPSR check confirming the car isn't still under finance. Older cars can attract a higher rate or a shorter maximum term.

How they compare

The comparison rate comes first, then the establishment and ongoing fees, the term, and whether extra repayments are allowed. Finance arranged before shopping sets the real budget, and separates the car negotiation from the loan. Car loans can be compared side by side.

CompareThat is a comparison service, not a lender or broker. We show the products and let you decide. We don't include every provider in the market, and each lender's own terms are the final word. Browse the full car loans range or compare loans side by side.

Glossary

The key terms you’ll meet when comparing these products, reading product disclosures or talking to a provider.

Term	What it means
Secured loan	A loan backed by an asset (often the car or item you are buying). The security usually means a lower rate, but the lender can repossess the asset if you fall behind.
Comparison rate	A single rate that folds the advertised interest rate together with most standard fees, so loans can be weighed on a like-for-like basis rather than headline rate alone.
PPSR check	A search of the Personal Property Securities Register that confirms a used car is not still under finance to someone else.
Loan-to-value ratio (LVR)	The size of the loan compared with the value of the asset securing it, expressed as a percentage.
Establishment fee	A one-off fee charged to set up the loan, sometimes called an application or upfront fee.
Loan term	The length of time you have to repay the loan. A longer term lowers repayments but usually increases total interest paid.
Fixed rate	An interest rate locked for the life of the loan, so repayments stay the same regardless of market movements.
Balloon payment	A larger lump sum owed at the end of some car loans. It lowers monthly repayments but leaves a sizeable amount to pay or refinance at the end.

Term

What it means

Secured loan

A loan backed by an asset (often the car or item you are buying). The security usually means a lower rate, but the lender can repossess the asset if you fall behind.

Comparison rate

A single rate that folds the advertised interest rate together with most standard fees, so loans can be weighed on a like-for-like basis rather than headline rate alone.

PPSR check

A search of the Personal Property Securities Register that confirms a used car is not still under finance to someone else.

Loan-to-value ratio (LVR)

The size of the loan compared with the value of the asset securing it, expressed as a percentage.

Establishment fee

A one-off fee charged to set up the loan, sometimes called an application or upfront fee.

Loan term

The length of time you have to repay the loan. A longer term lowers repayments but usually increases total interest paid.

Fixed rate

An interest rate locked for the life of the loan, so repayments stay the same regardless of market movements.

Balloon payment

A larger lump sum owed at the end of some car loans. It lowers monthly repayments but leaves a sizeable amount to pay or refinance at the end.

Common questions

Rates and fees are sourced from each provider’s CDR Product Reference Data as of the date shown. They are general information only. Not credit advice. CompareThat is not a credit provider. Payment can change where a product appears, never which products we show.