Calculator Assumptions: Car Loan Calculator

The figures provided should be used as an estimate only, should not be relied on as true indication of your car loan repayments, or a quote or indication of pre-qualification for any car loan product. The figures are based upon the information you put into the calculator. We have made a number of assumptions when producing the calculations including:

  • Loan term, vehicle purchase price, and loan amount: We assume the loan term, vehicle purchase price, and loan amount are what you enter into the calculator.
  • Interest rates: We assume that the rate you enter, is the rate that will apply to your loan for the full loan term.
  • Interest and repayments: The displayed total interest payable is the interest for the loan term, calculated on the entered interest rate.
  • Payable over 3/4/5 years figure excludes any balloon payment

Car Loan Calculator FAQs

The formula for calculating car loan interest is:

Monthly interest charged = (outstanding balance x interest rate) / 12

0% car loans allow you to pay back only the loan amount you have borrowed, without being charged any interest. Sometimes, 0% would only be available for a limited time such as for a promotional period and then will revert to a higher interest rate.

0% car loans may not actually mean you save any money compared to a normal car loan. You may be charged with a higher vehicle price and other fees that can significantly increase your repayments.

The most common types of car loans are:

  • Secured car loans - this means your lender has the legal right to repossess the vehicle if you fall behind on repayments
  • Commercial hire auto loans - a financer purchases the car and hires it to the consumer over a set period, and once all payments are complete the vehicle will be transferred to the consumer
  • Finance Leasing - a financer purchases the car then leases it to the consumer giving an immediate use of it
  • Unsecured car loans - this is a loan with no collateral, meaning if you default on loan repayments, the lender cannot repossess the car you purchased
  • Redraw facility available
  • Approval in 24 hours
  • Flexible loan terms
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*Comparison rates based on a loan of $30,000 for a five-year loan term. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of 11 April 2024.

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