Car Loans Made Simple.
Drive Away With Confidence.
Whether you are buying a new car from a dealership, purchasing a used vehicle from a private seller, or looking to refinance an existing car loan, AJP Finance helps you access competitive car loan options suited to your situation and budget.
We compare car loan options from a panel of lenders, help you understand the full cost of borrowing, and support you from application through to settlement — so you can focus on choosing the right vehicle, not stressing about finance.
Book Free Car Loan Consultation
Call 1300 100 019
✓ Dealer & Private Sales
✓ Car Loan Refinancing
Ready To Finance Your Next Car?
Tell us about the vehicle you have in mind and we will help you explore suitable car loan options.
- New car loans
- Used & demo vehicle loans
- Private sale car finance
- Car loan refinancing
- Balloon payment options
- Low doc car loans
Working in partnership with Outsource Financial – Australian Credit Licence 384324
What Is A Car Loan In Australia?
A car loan is a personal finance product that allows you to borrow money to purchase a vehicle and repay it over an agreed term — typically between one and seven years — with regular repayments that include both principal and interest.
Most car loans in Australia are secured against the vehicle being purchased, which means the lender uses the car as collateral. This typically results in lower interest rates compared to unsecured personal loans. Some lenders also offer unsecured car loans for borrowers who prefer not to use the vehicle as security, though these generally carry higher rates.
Interest rates, loan terms, fees and features vary significantly between lenders. Comparison rate, total cost of borrowing, balloon payment options and early repayment conditions are all important factors to consider — not just the advertised interest rate.
Types Of Car Loans Available In Australia
The right car loan type depends on whether you are an individual buyer or a business owner, and whether you are purchasing a new, used or demo vehicle.
New Car Loans vs Used Car Finance In Australia
The type of vehicle you are financing significantly affects what lenders will offer. New cars are typically easier to finance and attract more competitive rates. Used and older vehicles may face lender restrictions based on the vehicle’s age, kilometre reading and condition.
Most lenders apply age restrictions to vehicles used as security — for example, some lenders will not accept vehicles older than 12–15 years at the end of the loan term. Private sale purchases can be financed but may require additional verification compared to dealer purchases.
AJP Finance works with a panel of lenders who accommodate new, used, demo and private sale vehicles — helping you find a suitable option regardless of the vehicle type.
🚗 New Car Loans
- Generally lower interest rates
- Manufacturer warranty included
- Higher loan amounts available
- Dealer & broker sourced
- Longer loan terms available
🚙 Used Car Loans
- Age and km restrictions may apply
- Lender panel may be smaller
- Private sale finance available
- Loan amounts reflect vehicle value
- Independent inspection may be required
Is Dealer Finance Always The Best Option?
When buying from a dealership, you will often be offered in-house finance on the spot. While convenient, dealer finance is typically limited to one lender or a small panel — and the rate offered may not be the most competitive available to you.
🏪 Dealer Finance
- Convenient — arranged at point of purchase
- Limited to dealership’s lender panel
- Rate may be higher than market options
- Less flexibility on loan structure
- Pressure to decide quickly
🤝 AJP Finance (Broker)
- Access to multiple lenders and products
- Compare rates, fees and features
- Tailored to your financial profile
- Arrange pre-approval before visiting dealership
- Support from enquiry to settlement
What Affects Your Car Loan Interest Rate?
Car loan interest rates in Australia vary based on a range of factors. Understanding what lenders consider helps you prepare a stronger application and potentially access better rates.
Credit Score & History
A strong credit history with no missed payments typically results in more competitive rate offers. Recent defaults, arrears or multiple credit enquiries may affect your rate.
Vehicle Age & Type
New vehicles typically attract lower rates than used ones. Luxury, high-performance or older vehicles may be assessed differently by lenders.
Loan Amount & Term
The amount borrowed and length of the loan term both affect the rate offered. Shorter terms may attract better rates but result in higher monthly repayments.
Employment & Income
Stable PAYG employment typically makes the assessment straightforward. Self-employed applicants may need to provide additional documentation.
Deposit or Trade-In
Contributing a deposit or trade-in value reduces the loan amount required, which may improve your rate and reduce the total interest paid over the loan term.
Lender & Product Choice
Different lenders price risk differently. A broker like AJP Finance compares options across a panel to match your profile to lenders who are likely to offer competitive terms.
How To Get A Car Loan Through AJP Finance
Tell Us What You Need
Share details about the vehicle you want and your financial situation. We assess your borrowing position.
We Compare Lenders
We compare suitable car loan options from our lender panel based on your profile and vehicle details.
Application & Approval
We submit your application to the most suitable lender and manage the approval process on your behalf.
Funds Released
Once approved, funds are released to the seller or dealer. You drive away in your new vehicle.
What Is A Balloon Payment On A Car Loan?
A balloon payment is a lump sum amount deferred to the end of a car loan term. By deferring part of the principal, your regular repayments during the loan term are lower — making the car more affordable month to month. However, at the end of the loan term, you must either pay the balloon amount in full, refinance it, or sell the vehicle.
Balloon payments are common in Australia, particularly for people who plan to upgrade or sell their vehicle before the balloon is due. The balloon amount is agreed at the start of the loan and is expressed as a percentage of the vehicle’s purchase price.
It is important to consider whether the vehicle’s market value at the end of the loan term is likely to cover or exceed the balloon amount — particularly for vehicles that depreciate quickly.
Car Loan Mistakes To Avoid In Australia
Focusing Only On Monthly Repayments
A lower monthly repayment via a longer term or large balloon often means paying significantly more interest overall. Always consider the total cost of the loan.
Not Comparing Lenders
Accepting the first finance offer — often from the dealership — without comparing alternatives can result in a significantly higher rate than what is available elsewhere.
Multiple Credit Applications
Applying to multiple lenders at once creates multiple enquiries on your credit file, which can reduce your credit score and affect the rates you are offered.
Balloon Without A Plan
A balloon payment reduces monthly costs but creates a future financial obligation. Without a plan to pay, refinance or sell, the balloon can catch buyers off guard.
Ignoring Comparison Rate
The comparison rate includes interest and most fees, giving a more accurate picture of total cost than the advertised rate alone. Always review both figures.
Not Budgeting For On-Road Costs
Stamp duty on vehicles, registration, CTP insurance, comprehensive insurance and dealer delivery charges all add to the total cost of purchasing a vehicle.
Other Finance Services From AJP Finance
Common Car Loan Questions
Answers to questions we commonly receive from car buyers across Australia.
Can I get a car loan with bad credit?
Some lenders specialise in lending to borrowers with impaired credit histories. Rates may be higher and terms different. AJP Finance can discuss options suited to your credit profile.
Can I finance a private sale car purchase?
Yes. Many lenders finance private sale vehicle purchases, though additional verification of the vehicle (PPSR check, valuation, photos) may be required compared to dealer purchases.
How old can the car be for a secured car loan?
Most lenders apply age limits, typically requiring the vehicle to be no older than 12–15 years at the end of the loan term. Older vehicles may be financed under unsecured personal loan products.
What is the difference between a car loan and a personal loan for a car?
A secured car loan uses the vehicle as collateral, typically offering lower rates. A personal loan is unsecured — the vehicle is not used as security. Personal loans may suit buyers of older vehicles or those who want more flexibility.
Can I get pre-approval for a car loan?
Yes. Pre-approval gives you a clear budget before you visit a dealership or approach a private seller, giving you negotiating confidence and reducing delays.
Can I refinance my existing car loan?
Yes. If your current car loan rate is higher than what is available today, or your circumstances have changed, refinancing may reduce your repayments or improve your loan terms.
Do you help self-employed borrowers with car loans?
Yes. We work with lenders who accommodate self-employed borrowers, including low doc options for those without traditional income documentation.
Ready To Finance Your Next Car?
Whether you are buying new, used or refinancing an existing car loan, AJP Finance can help you find a competitive option suited to your situation.
1300 100 019 • ajpconnectionfinance@gmail.com
AJP Finance works in partnership with Outsource Financial – Australian Credit Licence 384324. Information provided is general in nature and does not take into account your personal objectives, financial situation or needs.