Rate City

Eligibility and documents for a car loan

Canstar’s terms require users to be at least 18. Eligibility to borrow is a separate decision made by the lender. There is no common RateCity minimum income, residency rule or credit-score threshold for every product shown.

Before applying, confirm the lender’s accepted residency status, income sources and vehicle restrictions. Ask which identity documents, payslips or other income evidence, bank statements, expense details and vehicle purchase documents it needs. Self-employed applicants should obtain the lender’s specific business-income checklist.

The lender considers your income, living costs, existing commitments and credit history. Appearing in comparison results does not establish eligibility. Moneysmart explains the financial and credit factors that can lead to rejection.

Who should use RateCity’s car loan comparison route?

This route suits buyers who want to shortlist car finance options before negotiating with a dealer or approaching a lender. Its value is in identifying alternatives worth checking against an actual quotation.

Borrowers needing an assessment of unusual income, adverse credit or an older vehicle should confirm acceptance directly before applying. For a car that does not meet a secured lender’s requirements, an eligible unsecured personal loan may be an alternative, although its pricing can differ. Include your own bank and providers outside the comparison results.

How the comparison and application work

From comparison to lender assessment

1. Open the RateCity car loans address, which currently leads to Canstar.
2. Review the loan inputs, filters and sorting. The page inspected had the Online Partner filter enabled; remove it to broaden the results to other products Canstar compares.
3. Check the selected provider’s own rates, fees, vehicle rules and application requirements. Identify any broker involvement before supplying documents.
4. Request a personalised quotation where available, then submit an application if the terms and eligibility fit.

Before entering personal information, read the collection notice and identify who will receive it. Canstar’s privacy policy covers its services; a linked lender or broker has its own policy.

Approval and settlement timing

There is no verified service-wide approval or funding timeframe. Ask the selected provider to distinguish an initial response, conditional approval, final approval and settlement. Do not treat a comparison result as permission to commit to a vehicle purchase.

Questions that can change the cost or suitability

• Is this my assessed interest rate or an advertised starting rate, and what conditions apply?
• What is the total repayable for my amount and term, including lender, broker and introducer fees?
• Does the repayment include a balloon payment, and how much remains due at the end?
• Is my vehicle and seller acceptable, and what insurance must remain in place?
• What would it cost to repay early, refinance or sell the car before the loan ends?
• Will this next step create a credit enquiry, and which organisation will receive my information?

Advantages and limitations

• Useful starting point: One comparison interface can help identify products to investigate without first submitting a borrowing application.
• Adjustable scope: Canstar lets users expand beyond its Online Partners to other products it compares.
• Commercial placement: Promoted products can occupy fixed positions regardless of price or rating. Their position is not evidence of a better deal.
• Incomplete personal assessment: Coverage is limited, and a displayed rate does not establish the price or approval available to you.

Canstar explains its referral and advertising arrangements and states that payments do not determine its Star Ratings.

Interest, fees, insurance and total repayment

Free comparison does not mean free finance. Obtain the lender’s current fee schedule and any broker quotation. Relevant charges can include establishment, ongoing, late-payment, introducer and early-repayment fees. If a fee is added to the borrowing, ask how much interest it attracts over the term.

The interest rate measures interest alone. A comparison rate combines interest with specified fees using stated assumptions; it does not capture every possible cost. Canstar’s table generally uses $30,000 over five years, unsecured, unless otherwise stated. Different amounts, terms and charges can change the comparison. Confirm the basis beside each result.

A secured loan puts the vehicle at risk if repayments are not maintained. A balloon payment reduces the amount repaid during the term but leaves a final lump sum and generally increases interest costs. See Moneysmart’s car loan guidance.

Confirm whether the lender requires comprehensive insurance and include the premium in your budget. Check the policy’s excess, exclusions and insured value: a claim payment may not cover the outstanding loan. Moneysmart’s insurance guide explains these distinctions.

Illustration: a longer term lowers repayments but adds interest

This is an original calculation, not a RateCity, Canstar or lender offer. Borrowing $30,000 at an assumed fixed 8% p.a. over five years produces repayments of approximately $608 a month and total repayments of $36,498, including $6,498 interest.

Over seven years at the same rate, repayments fall to approximately $468 a month, but total repayments rise to $39,277, including $9,277 interest. The longer term adds about $2,780 in interest. Calculations assume monthly repayments in arrears, interest calculated at 8% divided by 12, no fees, insurance, balloon or extra repayments. Figures are rounded.

Verdict on RateCity car loan comparison

RateCity’s current car loan route is useful for research through Canstar. Its strongest feature is the ability to build a shortlist; its main limitation is that the displayed selection and pricing do not establish your best available offer. Compare personalised total repayments over the same term, including fees, required insurance and any balloon.

RateCity car loan comparison FAQs

Why does RateCity redirect to Canstar, and who arranges the loan?

RateCity’s car loans address currently redirects to Canstar’s comparison service. You are comparing other providers’ products rather than applying for a loan issued by RateCity. Check whether your chosen result leads to a direct lender or a broker: that determines who handles the application and whether a separate broker fee applies. Canstar’s comparison service is free, but the finance arranged through a listed provider may carry charges.

Can I borrow $150,000, and will the same lenders finance a used or privately purchased car?

$150,000 is not a verified borrowing limit that applies across RateCity’s comparison route. A lender’s advertised maximum also does not establish that your particular vehicle qualifies. Before comparing prices, ask each shortlisted provider about its loan limit, maximum vehicle age at the beginning and end of the term, private-sale requirements and required insurance. For a larger purchase, establish whether the approved amount would cover the purchase price and financed fees or leave a cash contribution to pay.

How do I compare a low advertised rate with a personalised car loan offer?

Compare personalised quotations for the same borrowing amount, term and repayment structure. The lowest advertised rate may depend on your credit profile and vehicle. A comparison rate helps account for specified fees, but its calculation assumptions may differ from your loan. Include any broker fee and balloon payment in the total repayable; a smaller monthly payment can conceal a larger final balance. Moneysmart explains these car loan cost differences.

Can I compare personalised rates without several credit enquiries?

Browsing comparison tables is not a credit application. A personalised quote is a separate step, and its credit-reporting treatment depends on the provider. Before submitting details, ask whether the quote uses a soft check or records a credit application, and when a full enquiry occurs. If a broker is involved, establish which lenders it intends to approach and whether further applications require your approval. Credit application history can affect your score.

How should I compare lenders if I have defaults or a poor credit history?

There is no verified RateCity-wide policy accepting bad credit. Before applying, ask each provider whether it considers your particular circumstances, including whether a default is paid, how recent it is and whether you have current arrears or insolvency restrictions. Then compare the assessed rate and fees, not a headline rate intended for stronger applicants. A result appearing in the table does not mean that lender accepts your credit history; repeated applications can further complicate the search.

What should self-employed applicants and Centrelink recipients check before choosing a lender?

Confirm income acceptance before comparing advertised prices. Self-employed applicants should ask about minimum trading history and whether the lender requires tax returns, notices of assessment, business statements or other evidence. Centrelink recipients should check which payment types count and whether they can be the main income source or only supplement other earnings. The comparison service does not establish common rules for these circumstances. Two similarly priced loans may have materially different evidence requirements.

Does RateCity’s Canstar comparison show the whole market, and should I choose the highest-rated result?

No. Canstar says its tables initially display Online Partners; adjusting that filter reveals other products it compares, not every loan in Australia. Promoted positions are advertisements, while Star Ratings are a separate assessment. Canstar also warns that ratings use profiles that may differ from your circumstances and that current pricing can differ from what was rated. Broaden the filter, distinguish advertisements from ordinary results, then compare shortlisted offers against an outside quotation. See Canstar’s comparison disclosures and payment arrangements.

Which features matter if I expect to repay early, refinance or sell the car?

Compare costs over your expected ownership period as well as the full loan term. Ask each lender for an indicative payout calculation at your likely exit date, including any early-settlement or discharge charges. Also distinguish extra repayments from redraw: permission to pay more does not establish access to that money later. If refinancing, include the replacement loan’s fees and remaining term; reducing the monthly repayment by extending the debt may increase your total cost.

Who handles a misleading listing, a broker dispute or repayment difficulties?

Direct a comparison-listing complaint to Canstar at enquiries@canstar.com.au; retain the listing, date and quotation showing the discrepancy. Raise broker fees or application handling with the broker, and loan charges or repayment difficulties with the lender. Contact the lender’s hardship team early if repayments become unaffordable. Canstar’s Credit Guide identifies AFCA as an external complaints route; eligibility depends on the firm, dispute and AFCA’s rules.