How to Use This Car Finance Calculator
-
1
Enter the vehicle price — the drive-away price of the car you're looking at. This is the starting point for all calculations.
-
2
Add your deposit or trade-in — the more you put down, the less you borrow. A 20% deposit is recommended to avoid negative equity.
-
3
Select your state — stamp duty rates vary significantly. Our calculator uses your state's current rate for an accurate on-road cost estimate.
-
4
Toggle on-road costs for the full picture — stamp duty, CTP (greenslip), registration and dealer delivery are estimated and added to the total.
Worked Examples — Real Australian Car Finance Scenarios
Example 1 — New Toyota RAV4: $45,000 over 5 Years
A new RAV4 priced at $45,000 with a $7,500 deposit (16.7%), secured loan at 6.99% p.a. over 5 years. NSW stamp duty estimated at 3%.
| Detail | Amount |
|---|---|
| Vehicle price | $45,000 |
| Deposit | $7,500 |
| Loan amount | $37,500 |
| Interest rate | 6.99% p.a. |
| Monthly repayment (5yr) | $742 |
| Total interest paid | $7,020 |
| Stamp duty (NSW ~3%) | $1,350 |
| CTP + rego + ORC | ~$1,800 |
| Total cost (incl. on-road) | ~$55,170 |
Example 2 — Used Mazda CX-5: $28,000 over 3 Years
A used CX-5 at $28,000 with $5,000 trade-in. Used car rates are typically higher at 8.99% p.a. A shorter term means higher repayments but far less interest.
| Detail | Amount |
|---|---|
| Vehicle price | $28,000 |
| Trade-in value | $5,000 |
| Loan amount | $23,000 |
| Interest rate | 8.99% p.a. |
| Monthly repayment (3yr) | $731 |
| Total interest paid | $3,316 |
| Total cost over 3 years | $26,316 |
| Saved vs 5-year term (interest) | ~$2,800 saved |
Notice how a shorter term saves over $2,800 in interest despite the higher rate? This is because interest accrues over fewer years. A 5-year term on this same loan would cost ~$483/month but total interest would be ~$5,140 — nearly $2,000 more.
Example 3 — Fortnightly vs Monthly Repayments
A $30,000 car loan at 7.5% over 5 years. Switching from monthly to fortnightly payments saves real money:
| Frequency | Repayment | Total Interest | Loan Term |
|---|---|---|---|
| Monthly | $601/month | $6,060 | 5 years |
| Fortnightly | $300/fortnight | $5,800 | 4 years 9 months |
| Savings | ~$260 | 3 months sooner |
Fortnightly payments effectively make one extra monthly payment per year (26 fortnightly payments = 13 monthly equivalents). This is a simple strategy that many Australian borrowers use to reduce interest and pay off loans faster.
Understanding Car Finance in Australia
Secured vs Unsecured Car Loans
A secured car loan uses the vehicle as collateral. If you default, the lender can repossess the car. Because the lender's risk is lower, secured loans offer significantly lower interest rates — typically 1–3% below unsecured equivalents. Most car buyers in Australia choose secured loans since the car is the intended collateral anyway.
An unsecured car loan doesn't use the car as security. Rates are higher, but you won't lose the car if you fall behind on payments. Unsecured loans can be a better option if you're buying an older vehicle (most lenders won't secure loans on cars over 7–10 years old) or if you want the flexibility to sell the car before the loan is fully repaid.
New vs Used Car Loans
New car loans typically attract lower interest rates because the vehicle's value is higher and depreciation is more predictable. Used car loans often have higher rates, especially for vehicles over 5 years old. Some lenders also have maximum age limits — a car older than 10 years at the end of the loan term may not qualify for secured financing. The gap between new and used car rates in Australia is typically 1–3%.
Understanding On-Road Costs
The drive-away price of a car includes more than just the vehicle cost. Stamp duty is a state government tax — in NSW it's $3 per $100 of the vehicle's value (up to $45,000). CTP (Compulsory Third Party) insurance, also called a greenslip in NSW, covers you for injury to others. Registration fees vary by state. Dealer delivery and other on-road costs add another $1,000–$3,000. These costs are often included in the financed amount, which means you're paying interest on them too.
Balloon Payments and Residual Values
Some car loans, especially for new vehicles, offer a balloon payment (a large final payment that covers a percentage of the vehicle's residual value). This lowers monthly repayments but means you'll either need to pay the balloon at the end, refinance, or return the car. Balloon payments are common in novated leases and some dealer finance packages. Typically, the balloon is set at 30–50% of the vehicle's purchase price.
Novated Leases vs Car Loans
A novated lease is a salary packaging arrangement where your employer facilitates the lease and payments come from your pre-tax salary. This can save tax if you're in a higher bracket, but you don't own the car until the lease ends (if you choose a residual payment). Car loans are simpler — you own the car from day one, and there's no ongoing employer involvement. For most people buying a single personal car, a straightforward car loan is more cost-effective than a novated lease after accounting for all fees.
Frequently Asked Questions
Disclaimer: Car finance figures are estimates only. Actual interest rates, stamp duty, CTP, registration and on-road costs vary by lender, vehicle, state and individual circumstances. Stamp duty calculations use approximate state rates. Always verify current rates with your state's revenue office and compare multiple lenders before committing to a car loan.
Related Finance Calculators
Use these tools together for a complete picture of your finances:
- Loan Repayment Calculator — Calculate any personal loan, not just car loans
- Mortgage Calculator Australia — Home loan repayments, amortisation and total interest
- Compound Interest Calculator — See how your savings grow
- Income Tax Calculator — Understand your net income and loan serviceability
- Salary After Tax Calculator — Check your take-home pay before committing to repayments
- Stamp Duty Calculator NSW — Detailed property stamp duty calculations