Spank the Banks in 2026!
With interest rates on the way back up in 2026, it has never been more important to ensure your car finance has the sharpest rate possible.
It is a common misconception that the big banks are the place to go for the best rates.
Well, this week’s customer story will prove otherwise.
And the difference is big enough for you to never look at your bank the same way again.
A Bank’s Dream Customer
This customer had a strong credit score (>800) an income over $130,000, and lived in a metro area (Sydney).
Despite all of this, their bank wouldn’t give them a secured finance option for the vehicle they wanted.
Which is strange, because on paper they are a strong applicant and not far off the perfect borrower.
Instead, they offered an unsecured personal loan at 9.99%.
While that’s a good rate for a personal loan, a secured loan is always going to be more competitive.
Especially when financing a mainstream vehicle (Toyota Hilux).
The point is, he is a prime customer buying a top selling vehicle, and he can access a prime interest rate.
But his bank wasn’t going to tell him that.
Luckily, he decided to get a second opinion and spoke with the team at Gusto.
Secured Non-Bank Alternative
We could tell instantly that there was room to do much better.
After matching his application with the best lender on our 40+ panel, and shifting from a standard bank personal loan to a secured car loan, we were able to secure an interest rate that better aligned with his strong credit profile.
- Bank Offer: 9.99% p.a. (Unsecured)
- Gusto Finance Result: 7.24% p.a. (Secured)
In dollar terms, it was a saving of ~$2.5k over the life of the loan. Which is nearly 30% lower than the bank’s original offer.
| Loan Parameter | Bank Offer | Gusto Offer | Difference |
|---|---|---|---|
| Interest Rate | 9.99% | 7.24% | - 2.75% |
| Monthly Repayment | $679.75 | $637.27 | - $42.48 |
| Total Cost | $8,784.88 | $6,236.08 | - $2,548.80 |
The Takeaway
A high credit score gives you leverage, but you only benefit from that leverage if you’re looking in the right place.
Don’t assume your bank is giving you their best rate just because they have your savings account.
Check out the full blog post for a detailed comparison of the repayments and savings over the loan term.