Car Loans Sydney: New & Used Car Finance, Fast Approval, $0 Broker Fee in Sydney

Whether you're buying a brand-new SUV from a dealership, a used ute from a private seller, refinancing your current car loan to a lower rate, or financing your first electric vehicle, RyRo Loan Centre helps Sydney borrowers access competitive car finance from over 50 lenders — including major banks, non-bank lenders, credit unions, and specialist providers.

We compare car loan rates, structures, terms, and lender eligibility criteria on your behalf — then handle the application from start to finish. Our service costs you nothing. We're paid by lenders, not by you.

This page covers everything you need to know about car loans in Sydney: current rates, new vs used car loan differences, secured vs unsecured structures, pre-approval, balloon payments, EV loans, self-employed options, how to apply, and how to avoid overpaying for dealer finance.

A car loan is a fixed-term loan used to purchase a motor vehicle — a car, ute, SUV, 4WD, van, motorcycle, or similar. You borrow a set amount, agree to a fixed interest rate and repayment schedule, and repay the loan over a term of typically 1 to 7 years.

Most car loans in Australia are secured — meaning the vehicle you're purchasing is used as collateral. If you default on the loan, the lender has the right to repossess and sell the vehicle to recover what is owed. Because this reduces the lender's risk, secured car loans consistently offer lower interest rates than unsecured alternatives.

Key car loan facts (Australia, 2026):

• Average car loan balance across all vehicle types: $34,282
• Average new car loan: $46,055
• Average used car loan: $28,658
• Average car loan interest rate: 8.92% p.a.
• Average loan term: approximately 5 years
• Australia's new car loan market reached a record $4.96 billion borrowed in the September 2025 quarter
• New South Wales accounts for 31% of all car loan requests nationally — the highest of any state

Car loan rates in Australia as of February 2026:

The advertised lowest rates are reserved for borrowers with excellent credit purchasing newer vehicles. Your actual rate will be personalised based on your credit score, income, employment stability, deposit, loan-to-value ratio, vehicle age and type, and the lender's pricing model.

The comparison rate is the most important number to check — it includes the interest rate plus most fees and charges. Always compare comparison rates, not advertised rates alone.

Fixed vs variable: Most car loans in Australia are fixed rate — your rate and repayments stay the same for the entire term. Variable rate car loans are less common but allow unlimited extra repayments without penalty and may include a redraw facility.

Secured car loans (most common): The vehicle you're purchasing is used as collateral. The lender registers a financial interest — if you default, they can repossess and sell it. Because the lender carries less risk, secured loans offer significantly lower interest rates. The vehicle typically must be registered in your name, meet age requirements (most require no older than 7–12 years at end of loan term), not be a declared repairable write-off, have comprehensive insurance, and not be modified for motorsport.

Unsecured car loans: No collateral. Approval is based on your creditworthiness alone. If you default, the lender cannot directly repossess the vehicle. Unsecured car loans carry higher interest rates. They are used for older vehicles that don't meet secured age requirements, private sale high-mileage cars, or borrowers who prefer not to have the vehicle as security.

New car loans: Finance the purchase of a brand-new vehicle from a dealership. Most lenders offer their most competitive rates for new cars. Key features: lower interest rates, some lenders allow up to 100%+ of value (on-road costs, accessories, EV charging equipment), 1–7 year terms, access to green car loan rates for eligible EVs and hybrids.

Used car loans: Cover second-hand vehicles from a dealership or private seller. Rates are typically slightly higher; most lenders impose vehicle age restrictions (e.g. car no older than 12 years at end of loan term — so for a 5-year loan, no older than 7 years at purchase). Key features: slightly higher rates, vehicle age and km restrictions, available for dealer and private sales, lender requires vehicle details (VIN, make, model, year, odometer), comprehensive insurance typically required.

Private sale car loans: Most lenders can finance private purchases. The lender typically pays the seller directly once the loan settles. You'll need the vehicle's registration certificate and confirmation the vehicle is not encumbered. A PPSR check confirms whether any existing finance is registered against the vehicle.

Indicative repayment figures. Your actual rate will depend on your profile and lender.

New car: $35,000 over 5 years

Used car: $20,000 over 5 years

Car loan: $50,000 over 7 years

The difference between a 6% and 10% rate on a $50,000 car loan over 7 years is over $8,000 in extra interest. Comparing lenders — and using a broker to access rates you may not find directly — makes a meaningful financial difference.

• Secured car loan (standard): The most common structure. The vehicle is collateral, giving access to lower rates. Available for new and used vehicles.
• Unsecured car loan: No collateral. Higher rates. Best for older vehicles that don't meet secured criteria or borrowers who prefer no lien on the vehicle.
• Low doc car loan (self-employed): For self-employed, sole traders, and small business owners. Bank statements or accountant's declaration instead of payslips. Secured or unsecured. Rates typically slightly higher.
• Bad credit car loan: Specialist lenders assess current income stability. Rates higher; approval possible even with significant credit history issues.
• Green car loan / EV loan: For electric vehicles, plug-in hybrids, or low-emission vehicles. Discounted rates — as low as 5.09% p.a. (Feb 2026). Can include home charging unit in the financed amount.
• Car loan with balloon payment: Lower monthly repayments; larger lump sum at end. You don't fully own the vehicle until the balloon is paid — from savings, selling, or refinancing.
• Car loan pre-approval: Conditional commitment to finance up to a specified amount before you've found your car. Typically 30–90 days. Strengthens negotiating position with dealers.
• Car loan refinancing: Refinance to a lower rate or better terms. Can save thousands in interest if you took out dealer or high-rate finance.

Getting pre-approved before you visit a dealership is one of the smartest things a Sydney car buyer can do.

• You know your real budget. Pre-approval tells you exactly how much a lender will finance based on your current profile — before you fall in love with a car that's out of reach.
• You have negotiating power. Walking in with confirmed finance shifts the dynamic. Dealers can't pressure you into in-house finance. Dealers often discuss repayments, not rates — which can obscure true cost. A pre-approved loan removes that leverage.
• You can move fast. In Sydney's competitive market, popular models sell quickly. Pre-approval means settlement can happen in days rather than weeks.
• You can compare dealer finance. With pre-approval in hand, you can compare — if the dealer beats your rate, you can take it; if not, you already have finance ready.

Pre-approval typically lasts 30–90 days and may involve a soft or hard credit check. A RyRo broker can arrange pre-approval through the most appropriate lender — without multiple hard enquiries on your credit file.

When you buy from a dealership, the sales team will almost always offer in-house or dealer finance. Dealerships earn commission on the finance they arrange. The rate offered is often not the lowest — it's the rate that earns the dealer the most commission or is easiest to arrange. Car dealers are trained to talk in repayments, not interest rates. "Only $189 per week" sounds manageable — but over 7 years at a high rate it could cost you thousands more.

Using a car loan broker: A broker like RyRo compares rates across 50+ lenders to find the most competitive option for your profile. We don't earn more for recommending higher-rate products. We're obligated to act in your best interest. Getting an independent car loan arranged before visiting a dealership gives you the knowledge and confidence to either use your pre-arranged finance or negotiate the dealer to beat it.

Car loan — key facts: You own the vehicle from the day of purchase (subject to the loan). Repayments from post-tax salary. No employment dependency — if you change jobs, your loan is unaffected. Flexible terms 1–7 years. Optional balloon. No restrictions on kilometres. Running costs paid separately. Available to employees, self-employed, and retirees.

Novated lease — key facts: Three-way arrangement between you, your employer, and a finance company. Repayments from pre-tax salary (salary sacrifice). You save GST on the vehicle (up to ~$6,334 for FY 2025/26). Running costs can be bundled and paid pre-tax. You don't own the vehicle until you pay the residual at the end. Terms typically 1–5 years. FBT applies — but eligible battery electric vehicles (BEVs) under $91,387 are FBT-exempt, making EVs significantly cheaper via novated lease. If you leave your job, the lease transfers or converts to a standard loan. Only available to PAYG employees whose employer offers novated leasing.

Which is better? A novated lease is generally better if you're PAYG on $80,000+ salary, financing a new vehicle (especially an EV), and your employer supports salary packaging. A standard car loan is better if you're self-employed, your employer doesn't offer novated leasing, you want to own the vehicle outright from day one, or the vehicle doesn't qualify for FBT exemption. A RyRo broker can run both scenarios and give you a clear cost comparison.

EVs represented approximately 13% of new car sales in Australia in 2025 and are projected to reach over 15% in 2026.

Green car loan rates: Many lenders offer special rates for eligible EVs and hybrids — from 5.09% p.a. as of February 2026. These are among the most competitive car loan rates in Australia.

Borrow more than the car price: Many lenders allow you to include the cost of a home EV charger in your car loan.

LCT threshold for EVs: The luxury car tax threshold for fuel-efficient vehicles (including EVs) is $91,387 for FY 2025/26 (vs $80,567 for standard vehicles). EVs below this do not attract LCT.

FBT exemption for EVs (novated lease): Eligible battery electric vehicles under $91,387 financed via novated lease are FBT-exempt (first held after 1 July 2022, no LCT applied). Note: from 1 April 2025, plug-in hybrids (PHEVs) no longer qualify for the FBT exemption on new leases. Self-employed EV buyers should compare green car loan options; RyRo can identify the most competitive across our panel.

Age and residency: You must be at least 18 and an Australian citizen or permanent resident. Some lenders consider certain visa holders (e.g. skilled worker visas with 12+ months remaining); terms are typically more conservative.

Income and employment: Lenders assess your ability to service the loan. Most require stable employment (ideally 3–6 months in current role, past probation). PAYG: recent payslips (2–3). Self-employed: 1–2 years tax returns and ATO Notices of Assessment. Casual/part-time: bank statements showing consistent income over 3–6 months.

Credit score: Excellent (800+): prime rates. Good (625–799): competitive rates, broad choice. Average (500–624): options available, slightly higher rates. Poor/bad credit (below 500): specialist lenders, higher rates.

Vehicle requirements (secured loans): Registered in borrower's name; no older than 12 years at end of loan term (most lenders); not a declared write-off; not modified for motorsport; comprehensive insurance required with lender noted as financier.

Having documents ready speeds up approval.

• Personal ID: Driver's licence (front and back), plus passport or Medicare card.
• Proof of income: PAYG: last 2–3 payslips (no older than 60 days) or 3 months bank statements showing salary. Self-employed: last 1–2 tax returns + ATO Notices of Assessment + profit & loss. Casual/contract: 3–6 months bank statements.
• Bank statements: 90 days of main transaction account.
• Existing debts: Credit card limits, other loan balances, HECS/HELP.
• Vehicle details: For a specific vehicle: make, model, year, VIN, odometer, registration. For pre-approval: not required.
• Proof of insurance: Many lenders require comprehensive insurance before releasing funds for a secured loan.

Being self-employed doesn't disqualify you. The key is demonstrating sufficient income stability.

Standard self-employed car loan: 1–2 years personal tax returns, ATO Notices of Assessment, and potentially a business profit & loss statement.

Low doc car loan: If tax returns aren't up to date or you've been self-employed less than 12 months, low doc may be more accessible — bank statements or accountant's letter. Rates typically slightly higher.

Business car loan / chattel mortgage: If the vehicle is used primarily for business (51%+), a chattel mortgage may offer better rates and tax advantages (GST claim, depreciation). Discuss with your accountant. RyRo can connect you with commercial finance specialists if relevant.

Tradies and contractors: Many Sydney tradies finance work vehicles through personal car loans and commercial finance. We work with lenders who understand variable income and can structure finance to fit your cash flow.

Sedan and hatchback: Standard secured car loans — the most commonly financed category.

SUV and 4WD: SUVs are Australia's most popular vehicle type. Finance terms are standard secured — 1 to 7 years.

Ute loans (tradie): Utes for personal use are financed as standard car loans. Utes for business (Hilux, Ranger, BT-50, Colorado) may qualify for chattel mortgage or business car loan with tax benefits. Ask a RyRo broker.

Luxury car loans: Vehicles above the LCT threshold attract luxury car tax. Some lenders specialise in prestige finance. Terms and eligibility may differ.

Hybrid and EV: Hybrids (non-plug-in) typically get standard rates. PHEVs may access green rates from some lenders. Note: FBT exemption for PHEVs on novated leases ended 1 April 2025 for new leases. EV loans — see EV section; most competitive rates in Australia for electric vehicles.

Classic or older vehicles: Most mainstream lenders won't finance vehicles older than 7 years as secured — specialist classic car lenders exist, often requiring independent valuation. A RyRo broker can identify appropriate lenders.

Refinancing to a lower rate or better terms can save you real money.

When to consider: Your credit score has improved; you're paying a high dealer rate and your balance is still substantial; interest rates have fallen; you want to change loan term (extend to reduce payments or shorten to pay off faster); you want to remove a balloon that's approaching; your current lender has poor service or inflexible terms.

How it works: You apply for a new car loan with a different lender. If approved, the new lender pays out your existing balance and you begin repayments at the new rate and terms. The vehicle remains as security. Most refinancing is processed within a few business days.

Watch for exit fees: Some lenders charge an early termination fee on fixed rate loans. Check your current contract before refinancing so savings outweigh any exit cost. RyRo can compare refinancing options and run the numbers on your current loan vs what's available.

A balloon payment (or residual) is a larger lump sum due at the end of your car loan term, after all regular monthly repayments.

Adding a balloon reduces your monthly repayment — but you don't fully pay off the vehicle until that final sum is settled.

Example: $40,000 over 5 years at 7% p.a. with no balloon = $792/month. With a $10,000 balloon = ~$668/month, but you owe $10,000 at the end.

At the end you can: pay the balloon from savings and own the car free and clear; refinance the balloon into a new loan; or trade in the vehicle and use sale proceeds to cover the balloon. Balloons are optional on most bank car loans and are more common in dealer finance and commercial chattel mortgages.

When you buy a car in NSW you must pay motor vehicle duty (stamp duty) to Service NSW. This is separate from your car loan but is often factored into your total budget and can sometimes be included in the loan amount.

NSW motor vehicle duty rates (2025/26):

• Vehicles up to $45,000: $3.00 per $100 of dutiable value
• Vehicles $45,001–$134,999: $1,350 plus $5.00 per $100 above $45,000
• Vehicles $135,000 and over: $5,800 plus $7.00 per $100 above $135,000

Example: A $35,000 used car incurs duty of approximately $1,050. A $60,000 new SUV approximately $2,100. Some lenders will include stamp duty in the total financed amount — ask your RyRo broker.

• Check your credit score before applying. Free checks via Equifax, Experian, or Illion.
• Don't apply with multiple lenders at once. Each application is a hard enquiry that can temporarily reduce your score. A broker pre-assesses before submitting any application.
• Save a deposit if you can. Even 10–20% reduces LVR and can unlock better rates.
• Reduce existing credit card limits. Lenders count your full limit as potential debt.
• Wait past your probation period. Most lenders prefer at least 3 months in your current role.
• Know your vehicle before applying. Make, model, year, and price speed up the process.
• Use a broker. A broker matches you with lenders whose criteria fit your profile before any application, avoiding unnecessary hard enquiries.

• 50+ lenders compared. We access car loan options from over 50 banks, non-bank lenders, credit unions, and specialist providers.
• $0 broker fee. Our service is free to you. We're paid by lenders upon settlement.
• Local expertise, Sydney Hills District. Based in Norwest — we service Castle Hill, Baulkham Hills, Rouse Hill, Kellyville, Bella Vista, Winston Hills, and all of greater Sydney and NSW.
• Car loan pre-approval available. Ideal for buyers who want to shop with confidence and avoid dealer finance pressure.
• All borrower types. PAYG, self-employed, casual, part-time, bad credit, low doc, private sale, classic cars, EVs.
• Fast turnaround. Pre-approvals typically within 24–48 hours. Most formal applications settle within 1–3 business days.

Book a free consultation. No obligation. No credit score impact.

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