With interest rates showing early signs of easing and lenders adjusting to new borrower trends, getting a car loan in 2025 looks a little different than it did even a year ago. Here’s what’s happening… and how to make the most of it.

1. Rates are starting to shift

After a few years of steady hikes, 2025 has finally brought a little relief. Some lenders have started to reduce their fixed-rate car loan offerings, particularly for new vehicles and green loans. According to Canstar, average secured car loan rates have dipped slightly, especially for borrowers with strong credit histories.

Good news? If you’ve been waiting for the right time to apply.. this could be it.

2. Lender appetites are changing

Lenders are still cautious, but they’re adapting. With increased competition in the non-bank sector and more flexible digital loan options available, some lenders are broadening their policies, especially for self-employed applicants, regional borrowers, and those with alternative income streams. However, credit assessment remains tight, and presenting your application the right way matters more than ever.

That’s where a strong broker makes all the difference.

3. Used cars are still hot

New car supply has improved, but demand for second-hand vehicles remains strong. High prices haven’t dropped as quickly as many expected, meaning used cars, particularly utes, SUVs and 4WDs, are still a smart choice in 2025. Many lenders have now expanded their age and kilometer limits to better support buyers in the second-hand market.

Check out Drive.com.au’s recent market update for more on the trends.

4. Pre-approvals are giving buyers the edge

Buyers who walk into a dealership pre-approved in 2025 are negotiating better prices and moving faster. With lenders offering quicker digital assessments and brokers managing the paperwork, there’s no reason to wait until you’ve found the car to start the loan process.

If you’re serious about buying, get serious about pre-approval.

How we help

At Legend Lending, we match everyday Aussies with the right lenders; whether you’re buying a ute, SUV, first car, or something for the weekend. We work fast, handle the legwork, and help you navigate interest rates, approval criteria, and timing to get you the best possible deal.

✅ Competitive car loan rates
✅ Pre-approvals in 1–2 business days
✅ Low-doc & bad credit options
✅ Loans for used and new vehicles

Thinking of buying soon?
Click here to get started with a quick pre-approval Apply Now