As we enter the new financial year and the second half of 2025, it’s the perfect time to review the latest market developments and car loan trends.
From an oversupply of used cars to a wider range of low-interest auto financing options, we cover the most important updates for people thinking about Perth car finance.
The Australian car market in 2025
1. Positive sales results
July 2025 delivered the strongest new vehicle sales results the month has ever experienced. The Federal Chamber of Automotive Industries attributes this achievement to growing consumer confidence, partly due to declining interest rates. SUVs remain the most popular vehicle type, while Toyota was the market leader for sales volume, followed by Mazda and Ford.
2. Electric vehicle interest
While plug-in hybrid vehicles (PHEVs) have seen a massive rise in popularity, electric vehicle (EV) sales growth has stalled. In WA, this result is likely in part due to the end of the Zero Emissions Vehicle (ZEV) Rebate Scheme in May 2025, reducing incentives to purchase new EVs.
3. Competitive prices
After years of Covid-related supply chain aftershocks, the new vehicle market is well and truly back on track. Not only is this good for new car prices, but it also means that used car prices are likely to drop substantially due to a growing oversupply. This will only continue as people become more inclined to buy affordable new cars and sell their old cars.
Auto Loan Trends in 2025
1. Interest rates down
After remaining at a ten-year high of 4.35% for over a year, Australia’s cash rate finally began to decrease in early 2025. The Reserve Bank of Australia (RBA) has made three cuts so far, one in February, one in May, and the most recent in August, with the cash rate now sitting at 3.60%. While there’s scepticism about the prospect of rapid-fire cuts, experts predict that RBA rate cuts will continue, albeit periodically.
As lenders pass these lower interest rates onto consumers, loan terms should become increasingly attractive. Make sure to bear this in mind when deciding what type of financing is right for you. For example, the current downward trend in interest rates may influence whether you choose a variable or fixed rate loan.
2. Car loans online
Digitalisation has become increasingly popular in car loan applications. For example, at Yes Loans, you can apply online in minutes to access the best car finance deals, based on your unique circumstances. This trend looks set to continue, with AI emerging as a way to further streamline risk assessments and the calculation of personalised interest rates.
3. Regulatory review
In March 2025, the Australian Securities and Investments Commission (ASIC) announced a review of the motor vehicle finance sector. The goal of the review is “to improve the experiences of consumers” who are taking out car loans. ASIC is expected to share their initial findings in the second half of 2025, with a more comprehensive report to follow soon after.
Best car finance deals with Yes Loans
As both interest rates and used car prices trend downwards, it’s a great time to explore low interest car loans with Yes Loans.
Our online application process is quick and simple and our expert team are always here to help.
Contact us today. We say YES more often.
