Car loan repayments over 5 years
| Loan | Rate | Monthly repayment | Total interest |
|---|---|---|---|
| $20,000 | 7% | $396 | $3,761 |
| $30,000 | 7.5% | $601 | $6,068 |
| $40,000 | 8% | $811 | $8,663 |
| $60,000 | 8% | $1,217 | $12,995 |
No fees or balloon. Rates are examples only; your rate depends on the lender, the car and your credit history.
Should you use a balloon payment?
A balloon (or residual) is a lump sum you pay at the end of the loan. It lowers your regular repayments, but you pay interest on that amount for the whole term.
Example: a $40,000 car loan at 7.5% over 5 years costs about $802 a month with no balloon, and $8,091 in interest. With a $12,000 balloon, repayments fall to $636 a month, but interest rises to $10,164, and you still owe $12,000 at the end.
Interest rate vs comparison rate
Lenders in Australia must show a comparison rate next to the advertised rate. It rolls most upfront and ongoing fees into a single percentage, so you can compare loans fairly. The calculator shows an effective rate including the fees you enter, which works the same way.
Tips before you sign
- Get pre-approved so you can negotiate on the car's price, not the repayments.
- Dealer finance can include higher fees. Compare the comparison rate.
- Secured loans (using the car as security) usually have lower rates than unsecured personal loans.
- Novated leases can suit salaried workers, especially for electric cars. Check the full cost first.
See how repayments fit your budget with the pay calculator, or compare with a personal loan.
Common questions
How much is a $30,000 car loan per month?
At 7.5% over 5 years, about $601 a month, with roughly $6,068 in total interest. The exact amount depends on your rate, term and fees.
What is a balloon payment on a car loan?
A lump sum due at the end of the loan. It lowers your regular repayments, but increases the total interest you pay, and you need to pay or refinance it when the loan ends.
Is a longer car loan better?
A longer term lowers repayments but increases total interest. A 7-year loan can cost much more overall than a 5-year loan at the same rate.
What's the difference between a secured and unsecured car loan?
A secured loan uses the car as security, so the lender can repossess it if you don't pay. That lower risk usually means a lower rate than an unsecured loan.
General information only, not financial or tax advice. Speak to a registered tax agent or licensed adviser about your situation.