Service your clients with the Driva platform

We work with over 30 different car loan lenders to give you confidence that the options you’re seeing are a good fit for the vehicle you’re thinking about and your personal situation.

Not all car loan lenders were born equal, which means some have slower response times, bigger fees, worse support functions and higher rates than others. But we’ve hand-picked those that we work with to support our vision of a seamless customer experience, an effortless online finance application process and the lowest rates.

Car loans are a financial instrument that enable someone to buy a used/new car or similar type of vehicle (including a motorcycle or caravan). A lender or bank, after conducting responsible lending checks, will approve a customer for a car loan. This loan is either deposited to the customer’s bank account, given to them as a cheque, or wired directly to their dealer or seller. In return for this money, the borrower must pay back the lender (usually monthly repayments) the initial amount over several years (typically 5 years but this varies) with interest.

Fixed Rate Car Loan
Fixed rate car loans are loans where the interest rate charged on the loan amount is the same for the entire loan term. A fixed rate car loan will stay the same whether the Reserve Bank of Australia (RBA) cash rate goes up or down. The majority of new or used car loans are at a fixed rate.

Fixed rate loans make your car loan more reliable in terms of repayments. Your repayments will stay the same throughout the entire car loan term, so there’s no surprises if the interest rate fluctuates.

Variable Rate Car Loans
A variable rate car loan is as the name suggests, it has a variable rate of interest, so your repayments may fluctuate if the market interest rates change. This means your interest rate may increase or decrease over the course of the loan term, with the chance of averaging a low rate throughout the car loan term compared to a fixed rate.
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However, a variable rate car loan also comes with increased repayment flexibility when compared to a fixed rate car loan. Variable rate car loans usually don't have an early exit fee. This might be better if you're planning to make extra repayments and pay the car loan back early.

You can always pay out your existing car loan, but some lenders may charge you what's called an early termination fee in addition to the outstanding loan amount to do this.

Using Driva's online loan matching tool, you can find out which of your eligible lender options will penalise you for making an early repayment on your loan.

While we consider monthly repayments (inclusive of all fees) as the most important factor to consider when assessing your Driva quotes, it is also important to consider early termination fees if you intend to pay out your loan early. In some cases, it may be worth choosing a lender with a slightly higher monthly repayment to avoid early termination fees and charges if you want the flexibility of reducing your interest and paying off your loan early.