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What is a car loan refinance?

If you’re paying too much interest on your car loan, refinancing could be a clever way to get a better deal.

Refinancing your car loan works by applying for a new car loan at a lower rate and using the funds to pay out your existing car loan. You'll then make repayments on your new car loan, but at a lower interest rate.

Switching to a car loan with no ongoing fees can also help you save. Your wallet will thank you later!

Why refinance your car loan?

Refinancing your car loan puts you on the fast-track to lowering your repayments and paying off your car loan sooner.

At Great Southern Bank, our loans go the extra mile for you. When you switch your car loan, you’ll get:

  • A competitive low interest rate.
  • $0 monthly account fee.
  • The freedom to make unlimited fee-free extra repayments.
  • Easy access to your additional payments with free redraw.5
  • No penalties for early payout.
  • Get your loan funded on the day you apply.7 See how it works
Secured loan vs unsecured loan: What’s the difference?

A secured car loan is a loan that is "secured" against your car. If you are unable to repay the loan, the lender can sell the car to cover their costs. The upside is that with an asset attached as security, the interest rate is usually lower than an unsecured loan.

An unsecured personal loan doesn’t require an asset as security. Your income and ability to repay the loan is still assessed, but you don't need an asset to be approved for a loan.

Great Southern Bank offers secured fixed car loans for vehicles under seven years old.

Unsecured fixed rate and unsecured variable rate car loans are available for vehicles of any age.

When should you refinance?

We want to tell you a little secret. When it comes to getting a good deal on car refinance, timing is everything.

When is the right time we hear you ask? Read on for our top tips and considerations to help you decide.

What to consider when refinancing your car loan

Your current loan contract

It’s time to double-check the fine print. Are there any early payout fees or penalties for cancelling your contract early? These fees won’t stop you from refinancing, but we recommend adding them to the cost of refinance to avoid paying more than you expected.Our personal loan calculators can help you calculate your repayments and compare.

The time left on your car loan

A lower interest rate is the most popular reason for refinancing, but to get the savings you’re seeking, it’s important to keep within your current loan term. A longer loan term may free up your cash now, but you won’t reap the benefits if you’re paying more in interest over the life of the loan.

Whatever your reason for refinancing, remember the golden rule, timing is everything.

The value of your car

Unlike houses, cars depreciate in value. If the value of your car is less than what you owe on your loan, a lender may deem it too risky. Particularly for a secured loan.

Car loan features

If you want to get ahead on your repayments, some extra helpful features will go a long way. How does unlimited extra repayments, free redraw, and no monthly fees sound? You’ll get all of this and more with a car loan from Great Southern Bank.

But don’t just take our word for it, take our personal loan calculators for a spin. They’ll help you compare car loans and find out if we can beat your current car loan today.

Test drive our car loans

Compare car loans and apply online.

Can I refinance my car loan?

You must be

  • At least 18 years of age
  • A permanent resident of Australia
  • Receive a regular income
  • Have not been bankrupt or insolvent in the last five years

You’ll need

  • An email address and contact number
  • Existing Great Southern Bank customer number (if you're already a customer)
  • Australian driver's licence, Medicare or passport details
  • Employment and income details
  • Details of your current car loan, other loans and expenses
How to refinance your car loan
1. Apply online
It should take less than 20 minutes.
2. Approvals
If approved, you will receive your loan contract to accept online. Get your loan funded on the day you apply. 7 See how it works.
3. Pay out your current car loan
We use the funds to pay out your existing car loan.
4. Repay your refinanced car loan
You’re now free to make repayments and view your loan in online and mobile banking. Just think of all the money you’ll save!
WHY CHOOSE US
We've been putting customers first for more than 75 years.
Flexible loan options
Pay it off your way.
Clever features to help you save money

Pay off your loan sooner without being charged a fee.

We’re customer owned

That means no shareholders. Our profits go back into new products and clever ways to help you manage your money.

Choose the right car loan for you
Secured Fixed Car Loan
Loans from $5,000 to $100,0003 for cars up to 7 years old.
Interest rate
6.79
%
p.a.
Comparison rate 1
7.16
%
p.a.
Used for:
Unsecured Fixed Personal Loan
Loans from $5,000 to $65,000.3
Interest rate
9.39
%
p.a.
Comparison rate 2
9.64
%
p.a.
Used for:
Unsecured Variable Personal Loan
Loans from $5,000 to $75,000.4
Interest rate
11.89
%
p.a.
Comparison rate 2
12.15
%
p.a.
Used for:
CALCULATOR

Calculate your repayments

Ready to refinance?
Set the wheels in motion and refinance your car loan online today.
Apply now

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Get in touch
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Sat: 8:00am - 4:00pm (AEST)

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Important Information

Loans are issued by Great Southern Bank, a business name of Credit Union Australia Ltd ABN 44 087 650 959, AFSL and Australian Credit Licence 238317. Lending criteria, limits, conditions and fees apply.

Rates current as at 22 June 2022 and subject to change.

Your loan contract will state the minimum monthly repayment amount. You can arrange with us to make repayments on a weekly or fortnightly basis.

1. Comparison rate accurate for $30,000 secured loan over 5 years. WARNING: Comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

2. Comparison rate accurate for $30,000 unsecured loan over 5 years. WARNING: Comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

3. $3,000 minimum loan amount in branch, $5,000 minimum loan amount online. Available loan term is 1 to 7 years.

4. $3,000 minimum loan amount and $100,000 maximum loan amount available in branch. $5,000 minimum loan amount and $75,000 maximum loan amount available online. Available loan term is 1 to 7 years.

5. A $200 minimum withdrawal amount applies for redraws conducted in-branch. Redraw facility is available for Great Southern Bank Personal Loan products on offer from 6 June 2017.

6. You will need to hold a Great Southern Bank everyday account when the loan is funded.