Car Loans
Compare car loans without hurting your credit score.
Noddle is a digital finance broker. We compare car loans across our lender panel, negotiate on your behalf, and find you the best deal we can, all from one online application that checks your fit before anyone runs a hard enquiry on your credit file. Noddle may charge a brokerage fee for arranging your loan, and may also receive a commission from the lender. The brokerage fee can be paid upfront or capitalised into your loan. All fees and commissions are disclosed in our Credit quote before you proceed.
- Australian Credit Licence 526746
- Member of AFCA
- Servicing Australia, 100% online
- One application, many lenders compared
The short version
If you’re financing a car, here’s what matters in thirty seconds.
- A car loan is finance secured against the vehicle, repaid over a set term, usually 1 to 7 years.
- Because the car is security, car loans generally carry lower rates than unsecured personal loans.
- The comparison rate, not the headline rate, is the honest read on the real cost, because it includes fees.
- Applying to multiple lenders yourself stacks hard enquiries on your credit file in a short window, which is a recognised negative signal.
- Noddle starts with an Access Seeker (soft) enquiry, which does not leave a hard enquiry on your file or affect your credit score.
- We arrange finance for cars bought from dealers and private sellers, new and used.
What is a car loan?
A car loan is finance used to buy a vehicle, where the car itself usually acts as security for the loan. You borrow a fixed amount, then repay it in regular instalments over an agreed term, commonly 1 to 7 years in Australia. Because the lender holds security over the car, car loans generally come with lower interest rates than unsecured personal loans.
You can use a car loan to buy:
- A new car from a dealer
- A used car from a dealer
- A used car from a private seller
- A vehicle you’re refinancing from an existing loan
Secured vs unsecured car loans
Secured car loans
Most car loans are secured against the vehicle being purchased. The security lowers the lender’s risk, which generally means a lower interest rate for you. The trade-off is that the lender can repossess the car if the loan isn’t repaid. Secured loans suit most borrowers buying a car in reasonable condition and within a typical age range.
Unsecured car loans
An unsecured car loan isn’t tied to the vehicle. This can suit older cars, private sales lenders won’t secure against, or situations where you want the car held in your name without the loan attached. Rates are generally higher because the lender has no security.
What is a balloon payment? A balloon payment is a lump sum left owing at the end of a car loan term. It lowers your regular repayments by deferring part of the loan to the end, but you still owe that amount, either as a final payment, by refinancing it, or by selling the car. Balloons can help cash flow but increase the total interest you pay. We’ll tell you straight whether a balloon makes sense for your situation, rather than using it just to make a repayment look smaller.
How does a car loan broker protect your credit score?
When you apply directly to a lender, it can record a hard enquiry on your credit file. Apply to several lenders while shopping around, which is exactly what comparing offers means, and you stack up multiple hard enquiries in a short period. Multiple hard enquiries in a short window are a recognised negative signal on your Australian credit file: to a lender, a cluster of recent applications can read as financial stress, even when you were only comparing.
This matters especially with cars, because it’s easy to apply for finance at a dealership and with your bank and online in the same afternoon, three enquiries in a day. Noddle works the other way around. We assess your situation and match you to lenders likely to suit you before any application goes in, so an enquiry only lands when there’s a real chance of approval. We start with an Access Seeker (soft) enquiry, which lets us see your credit file without leaving a hard enquiry on it or affecting your credit score.
Your repayment history and any defaults carry the most weight in your overall credit score. Enquiries are a smaller factor, but they’re the one most people don’t realise they’re damaging while they shop around.
Why use Noddle instead of the dealer’s finance?
Dealer finance is convenient, but convenient isn’t the same as competitive. The finance offered on the showroom floor is one option, often arranged to suit the dealer, not the whole market.
- You see the whole panel, not one desk. We compare car loans across our lender panel in one application, instead of taking the first offer in front of you.
- Your credit score is protected. We check fit before applying, so you’re not stacking enquiries at the dealership and the bank and online.
- You get negotiating weight you don’t have alone. A broker who places volume with a lender can surface options and pricing a single borrower rarely sees.
- It’s fully online. Sort your finance before you walk in, so you’re negotiating the car price as a cash buyer.
- Costs are clear upfront. No hidden fees, no pressure. Lenders pay our commission on settlement, disclosed in our Credit Guide.
- You’re assessed on your real situation. Your current circumstances, not just an old number on a file.
How it works.
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01
Tell us what you need
A short online application, the car, how much, and a picture of your situation. Just an Access Seeker (soft) enquiry at this stage, no hard enquiry on your file.
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02
We compare and match
We assess your fit across our lender panel and identify the options that suit you.
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03
You choose, we negotiate
We put our weight behind getting you a sharper deal, and you decide.
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04
Buy your car
Once you’re approved, you can buy from a dealer or private seller with your finance sorted.
Should I get pre-approved before I shop?
Yes, where you can. Pre-approval tells you how much you can borrow and what your repayments look like before you start looking, so you negotiate the car price knowing your budget, and as a buyer with finance ready, not someone still arranging it. We can help you understand your options before you commit to a vehicle, without putting an enquiry on your file at the assessment stage.
Am I eligible?
Lenders assess car loan applications on a few core factors. Generally, you’ll need to:
- Be 18 or over and an Australian citizen or permanent resident
- Have a regular, verifiable income
- Be able to comfortably afford the repayments alongside your existing commitments
- Be financing a vehicle that meets the lender’s criteria (age and condition can affect which lenders will lend and at what rate)
Eligibility criteria, rates, terms and conditions vary by lender and depend on your individual circumstances. Part of our job is telling you where you sit and what’s realistic.
Frequently asked questions.
No. We start with an Access Seeker (soft) enquiry to review your situation, which does not leave a hard enquiry on your file or affect your credit score. A hard enquiry is only recorded once you choose to proceed with a specific lender application, and we tell you before that happens.
Yes. We arrange finance for cars bought from dealers and from private sellers. Some lenders treat private sales differently, so we’ll match you to ones that suit how you’re buying.
Yes. Many lenders finance used cars, though the vehicle’s age and condition can affect which lenders will lend and at what rate. We’ll tell you what’s realistic for the car you’re looking at.
The interest rate is the cost of borrowing the principal. The comparison rate includes the interest rate plus most fees, giving you a truer picture of the total cost. Always compare car loans on the comparison rate, not the headline rate.
This depends on the lender, the vehicle, and your circumstances. We’ll tell you what’s realistic for your situation before you start shopping.
Secured loans generally have lower rates because the car acts as security, which suits most newer vehicles. Unsecured loans can suit older cars or private sales lenders won’t secure against. We’ll explain which fits your situation.
It depends on your full situation, not just your score. Some lenders on our panel assess your current circumstances rather than relying only on credit history. We’ll tell you honestly what your options look like.
Often, yes. If your current car loan has a high rate or a balloon payment coming up, refinancing may lower your repayments or restructure the loan. We can compare whether a better option exists.
See your car loan options in about five minutes.
- No impact on your credit score
- Apply now in as little as 5 mins
- We compare multiple lenders for you