Following the RBA rate rise, buyers may find the best car finance rates using finance broker services to cover more lenders without affecting their credit score. With the Reserve Bank (RBA) raising the cash rate by 0.25% on 3 February, buyers will likely see some lenders increasing their rates on motor vehicle loans. But those increases and those lenders that do increase their rate, will vary across the market. Presenting buyers with a predicament. A time-consuming and, for some, a confusing process working through the extensive motor vehicle lending market to find which lender is offering the best rate.
The process involves not only finding the lowest interest rate, but the lending product and the lender that suit the buyer’s requirements and credit profile. In carrying out this process – requesting quotes and applying for loans to compare, buyers risk damaging their credit score.
Seeking expert, professional help from a broker can be an extremely advantageous decision for buyers to quickly find the most affordable loan. We explain why rates have been increased so soon after the last RBA rate cut and how buyers can still find their most affordable motor vehicle loan.
Why did the RBA increase interest rates?
Just 6 months after the Reserve Bank announced a cut to the cash rate in August 2025, the bank announced a 0.25% rise to 3.85% on 3 February 2026. The first increase since 2023. The decision was highly anticipated due to the recent uptick in the rate of inflation and the latest unemployment figures.
In announcing the Board’s February decision, RBA Governor Michele Bullock said that Board members considered the rate of inflation was likely to stay above the Bank’s target of 2-3% for a while yet. Ms Bullock said that conditions in the labour market remained tight, with a lower than expected unemployment rate. Uncertainties were noted re the outlook for economic activity and inflation domestically and on the global scene.
The pick-up in the rate of inflation started in late 2025 and while temporary factors were initially thought to be responsible, it has become evident that demand is increasing faster than expected. Leading the Board to their assessment of inflation remaining above target for some time and hence the reason for the rise in the cash rate. The rate increase decision was unanimous.
The RBA’s Monetary Policy Board next makes its decision on the cash rate on 17 March.
What lenders offer the best car finance rates?
When the RBA lifts the cash rate, there is an expectation that all interest rates will increase by a similar amount. That is not necessarily the case. The cash rate is an overnight lending rate between lenders and not the rate that applies to any specific lending product. Lenders are not compelled or obliged to pass on RBA rate cuts and increases to their loans.
While home loan lenders typically do pass on RBA rate decisions to mortgage holders, this does not necessarily occur in other markets. Not all motor vehicle lenders will automatically follow RBA decisions. Some may anticipate an RBA decision and change their rate prior to the announcement. Some may follow the RBA lead and increase their rate by the amount of the cash rate rise, higher or lower. Some may prioritise being competitive and leave their rate as low as possible.
The task for buyers is to find out which lenders are offering the best rate in the market following February’s decision. When comparing rates advertised by lenders, buyers should ensure that the loan product is right for them. That may include considering the maximum and minimum loan amounts, the terms available and that lender’s approval criteria.
The rate will be different not only from different lenders but on different loan products. Personal Secured Car Loans will have a higher rate than business vehicle loans – Lease, Chattel Mortgage and Commercial Hire Purchase.
Also note that advertised rates are for new vehicles and for applicants with a good credit score. To find the rate an individual buyer will be offered can require a quote request. Making multiple applications for the same loan may result in a negative impact on the credit score.
Buyers can also use a finance broker. Brokers cover off quickly on many lenders, both banks and non-bank lenders, to find not only the best rate available, but the best rate on the loan product that meets the buyer’s requirements.
Will a broker secure the best car finance rates?
Securing the best rate will depend on an individual’s credit score, the amount being borrowed and other factors. Our brokers focus on achieving the lowest possible rate by finding the right lender and loan product, using our leverage in the market and structuring the loan to deliver affordable monthly payments.
We advise buyers on how they may improve their prospects by reducing debt to improve the credit score and making a deposit to reduce the loan required. When using a broker, buyers may find their best rate without damaging their credit score.
The interest rate outlook is uncertain. Some in the financial markets predict just the one increase this year while others are anticipating a second. The outcome will depend on how the inflation figures from the ABS guide the RBA Board.
Be confident that despite movements in the rate market you are securing your best car finance rates by using our broker services.
To secure your best car finance rates, contact Jade Car Loans on 1300 000 003.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
