New Car Loans Australia
Driving a brand new car is an exciting milestone. We help Australians finance new vehicles from dealerships across the country, comparing options from over 40 lenders to find competitive rates that suit your situation.
New cars typically attract our most competitive rates
Finance Your Brand New Vehicle
There's nothing quite like the feeling of driving a brand new car off the lot. The new car smell, the latest technology, full manufacturer warranty, and the peace of mind that comes with knowing you're the first owner.
At Your Lending Friend, we specialise in helping Australians finance new vehicles with competitive rates. New cars typically attract lower interest rates than used vehicles because they represent better security for lenders. We compare options across our panel of 40+ lenders to find the right finance structure for your needs - whether that's a standard car loan, chattel mortgage, or novated lease.
Benefits of Buying New
Why financing a new car could be the right choice
Lower Interest Rates
New cars typically attract lower interest rates than used vehicles due to better security value for lenders.
Full Manufacturer Warranty
New cars come with comprehensive manufacturer warranty coverage, giving you peace of mind for years to come.
Capped Price Servicing
Many new cars include capped price servicing programs, making maintenance costs predictable and affordable.
Latest Safety Features
New vehicles come equipped with the latest safety technology and features to protect you and your family.
New Car Finance Structures
Different ways to finance your new vehicle
Secured Car Loan
The most common option for personal buyers. The car acts as security for the loan, which helps keep rates competitive.
- Lower interest rates
- Terms from 2-7 years
- Fixed or variable rates available
- You own the car from day one
Best for: Personal buyers wanting the most competitive rates
Chattel Mortgage
Popular with business owners and ABN holders. The lender takes a mortgage over the vehicle while you retain ownership.
- Tax-deductible interest and depreciation
- GST can be claimed upfront
- Flexible balloon payment options
- Asset shown on your balance sheet
Best for: Business owners and ABN holders
Novated Lease
A three-way agreement between you, your employer, and the lender. Payments come from your pre-tax salary.
- Salary packaging benefits
- Potential tax savings
- Running costs can be included
- FBT exemption for eligible EVs
Best for: Employees with salary packaging benefits
Understanding Balloon Payments
A popular option for reducing monthly repayments
| Feature | Details |
|---|---|
| Lower Monthly Repayments | By deferring part of the loan to the end, your regular payments are reduced |
| Typical Balloon Range | Usually 20-40% of the vehicle's value, depending on loan term |
| End of Term Options | Pay the balloon, refinance it, trade in the car, or sell and pay out the loan |
| Important Consideration | The total interest paid over the loan term will be higher than a standard loan |
Balloon Payment Example
Without Balloon
$50,000 loan over 5 years at 7.5%
~$1,001/month
With 30% Balloon ($15,000)
$50,000 loan over 5 years at 7.5%
~$795/month
+ $15,000 final payment
*Example only. Use our car loan calculator for accurate estimates.
Buying from an Australian Dealership
Tips for getting the best deal on your new car
Get Pre-Approved First
Before visiting the dealership, get pre-approved with us. This gives you a clear budget and puts you in a stronger negotiating position. You'll know exactly what you can afford.
Tip: Pre-approval typically lasts 30-90 days depending on the lender.
Compare Dealer Finance
Dealers often offer their own finance through manufacturer programs or partners. These can sometimes include special promotional rates. Compare any dealer offer against your pre-approval.
Tip: Dealers earn commission on finance - they may be willing to match better rates.
Negotiate the Price
Focus on the total drive-away price, not just the monthly payment. A lower purchase price saves you interest over the life of the loan. Don't forget to negotiate on extras and add-ons.
Tip: Drive-away pricing includes all on-road costs - no hidden surprises.
Finalise Your Finance
Once you've agreed on a price, let us know and we'll finalise your finance. We coordinate with the dealership to settle the purchase, usually within 24-48 hours.
Tip: We handle the paperwork - you just need to sign and collect your new car.
How New Car Finance Works
Four simple steps from application to driving away
Apply Online
Complete our simple 5-minute application. Tell us about yourself, your income, and the type of car you're looking for.
Get Pre-Approved
We compare options from 40+ lenders to find competitive rates for your new car. Most applications receive a response within 24 hours.
Shop With Confidence
Visit dealerships knowing exactly what you can spend. Your pre-approval gives you negotiating power and a clear budget.
Drive Away Happy
Once you've chosen your car, we finalise the paperwork with the dealership. Settlement is typically within 24-48 hours.
Checking your options won't affect your credit score
Calculate Your Repayments
Use our car loan calculator to estimate your monthly repayments. Adjust the loan amount, interest rate, and term to find a payment that fits your budget - including balloon payment options.
Try the CalculatorNew Car Loan FAQs
Common questions about financing a new vehicle
Generally, yes. New cars hold their value better in the short term and represent better security for lenders. This typically translates to interest rates 0.5-2% lower than equivalent used car loans. However, rates vary by lender and your personal circumstances, so it's always worth comparing.
It depends. Dealership finance can sometimes include promoti...
It depends. Dealership finance can sometimes include promotional rates (like 0% finance offers), but these often come with conditions or are built into the car's price. Getting pre-approved independently lets you compare objectively. We recommend having both options to compare before deciding.
A balloon payment is a lump sum due at the end of your loan ...
A balloon payment is a lump sum due at the end of your loan term, typically 20-40% of the car's value. It reduces your monthly repayments but means you'll pay more interest overall and need to deal with the balloon at the end. It suits people who want lower repayments now or plan to trade in regularly.
Yes, many lenders allow you to finance dealer extras like ex...
Yes, many lenders allow you to finance dealer extras like extended warranties, paint protection, and window tinting as part of your car loan. However, consider whether these extras offer good value - sometimes aftermarket options are cheaper than dealer-installed products.
A novated lease is a salary packaging arrangement where your...
A novated lease is a salary packaging arrangement where your employer pays your car costs from your pre-tax salary. You enter into a lease with a finance company, and your employer agrees to make the payments. This can provide significant tax benefits, especially for eligible electric vehicles which may be FBT-exempt.
Typically you'll need proof of identity (driver's licence, p...
Typically you'll need proof of identity (driver's licence, passport), proof of income (recent payslips or tax returns for self-employed), bank statements showing your living expenses, and details of the car you want to buy. For pre-approval, we only need basic information initially.
Yes, although your options may be more limited and rates hig...
Yes, although your options may be more limited and rates higher. We work with specialist lenders who consider applications from people with defaults or poor credit history. A larger deposit can improve your chances. Check out our bad credit car loans page for more information.
Most applications receive a response within 24 hours. For st...
Most applications receive a response within 24 hours. For straightforward applications with complete documentation, same-day approval is often possible. Once approved and you've chosen your car, settlement with the dealership typically takes 24-48 hours.
Still have questions? Contact our friendly team