ASIC Just Read 350,000 Car Loans. Here's What Every Australian Borrower Needs to Know Right Now.

The Report That Should Be on Every Australian's Dashboard

On 24 June 2026, the Australian Securities and Investments Commission (ASIC) released Report 832: Lifting the Bonnet — a deep-dive review of the car finance sector. This wasn't a small sample. ASIC examined data from over 350,000 loans across eight of Australia's largest car finance providers. What they found wasn't pretty.

The headline finding: lenders are failing to properly oversee the brokers and car dealers who sell their loans on their behalf — and everyday Australians are paying the price. As ASIC Commissioner Alan Kirkland put it directly: "Responsibility for consumer outcomes cannot be outsourced."

That's regulator-speak for: the dealership finance desk is not your friend, the lender behind it isn't watching closely enough, and the person getting hurt is you.

Why Does Dealer Finance Keep Getting Called Out?

Here's the dirty secret the industry doesn't advertise: dealer-integrated financing accounts for around 56% of all car loan originations in Australia. That means more than half of all car loans in this country are written at the dealership — the same place trying to maximise the sale price of the car you're buying.

Dealers and brokers earn commissions when they place you with a particular lender. That commission is often tied to the interest rate — higher rate, bigger cut for the dealer. ASIC's report found that lenders aren't doing nearly enough to monitor whether these distributors are actually acting in your best interest. In many cases, they're not.

Think about that the next time a finance manager slides a document across the desk and says, "I've found you a great rate."

The Rate Gap That's Robbing Australians

Here's a number worth sticking on your fridge: the Reserve Bank of Australia reports that the average fixed-term personal loan rate (including car loans) is 9.06% p.a. — yet lenders advertise teaser rates well below that. The gap between what's advertised and what most people actually pay is enormous.

And here's the human cost of that gap: research shows that nearly half (47%) of Australians who regretted their car loan said their main regret was relying on the salesperson at the dealership to guide them on finance, while more than a third (35%) didn't compare other lenders before deciding.

That's not bad luck. That's a system designed to make comparison feel unnecessary — right up until you're locked into a 5-year loan you can't get out of.

What ASIC's Report Actually Found: The Four Big Problems

1. Lenders Aren't Watching Their Distributors

ASIC found that some lenders have essentially set up car dealers and brokers to sell their products and then walked away. There was insufficient monitoring of whether distributors were recommending products suited to consumers, flagging hardship, or even following basic responsible lending obligations.

2. Big Variations in Loan Costs — for the Same Car

The report found significant variation in what consumers were charged, even for similar loan amounts on similar vehicles. This isn't market competition at work — it's inconsistency that disadvantages borrowers who don't know to push back or compare.

3. Hardship Requests Being Declined — Then Cars Repossessed

Perhaps the most disturbing finding: ASIC cited examples of lenders repossessing cars after declining hardship assistance requests, leaving consumers with large residual debts. You miss some payments, you ask for help, they say no, they take your car — and you still owe money. That's a catastrophic outcome for any family.

4. Some Improvement — But Nowhere Near Enough

To be fair, ASIC's intervention has already driven some changes. All eight lenders reviewed have improved their hardship processes, and many have strengthened product governance. But Commissioner Kirkland was blunt: "much more needed to be done." ASIC has made clear it will pursue lenders and intermediaries who fail to comply with their legal obligations.

What This Means Right Now: The June 2026 Market in Context

ASIC's report lands at an interesting moment for Australian car buyers. The RBA has been cutting interest rates through 2025–2026, easing from the painful highs of 2023–2024. That's good news — lower rates mean cheaper borrowing. But used car prices haven't yet moved sharply upward in response to cheaper money, which means mid-2026 is actually a reasonable window to buy if you're financially ready — provided you borrow smart.

At the same time, the used EV market is shifting fast. EV residual values softened through late 2025 as supply outpaced demand, but have been stabilising in 2026 — meaning the GFV (Guaranteed Future Value) equation on EVs is becoming more complex. If you're financing any vehicle right now, understanding what happens to its value at the end of your loan term is more important than ever.

The Standard Loan Nobody Talks Honestly About

Most Australians in 2026 are signing standard car loans or GFV products where, at the end of the term, they hand the car back and get nothing. All those weekly payments, all that interest paid — and zero equity to show for it. ASIC's report reinforces that the distribution of these products often lacks transparency about exactly what consumers are agreeing to.

You deserve to know: What will this car be worth when I return it? Who captures that equity — me, or the lender? With most standard GFV loans, the answer is the lender. That's the gap Milam was built to close.

5 Things You Should Do Before Signing Any Car Finance in 2026

• Get pre-approved before you walk into a dealership. Once you're sitting in the finance office, the psychological pressure is real. A pre-approval gives you a benchmark rate and a way out if the dealer's offer is worse.
• Ask for the comparison rate, not just the interest rate. The comparison rate folds in fees and gives you a more honest picture of what the loan actually costs per year.
• Always compare at least three lenders. Research shows over a third of Australians don't do this. Those are the people paying more than they need to.
• Read the hardship clause. ASIC's report shows this clause matters enormously. Know what happens if you lose your job or face a financial shock before you're committed to 5 years of repayments.
• Ask who gets the equity. When the car is returned at the end of the loan, does any upside value come back to you? With most products, it doesn't. Make sure you understand exactly what you're walking away with — or not — at the end of the term.

The Bottom Line

ASIC doesn't release reports like this for fun. REP 832 is a direct signal to every Australian car buyer: the system is not set up to protect you by default. Dealers earn commissions, lenders outsource responsibility, and borrowers are left holding the risk — and in the worst cases, a repossession debt.

Being informed is your first line of defence. Compare rates. Read contracts. Ask hard questions. And if you want a car finance structure where you actually benefit from the car's future value — not just the dealer — it's worth understanding what your options really are.

This article is general information only and does not constitute financial advice. Please speak to a financial adviser about your personal circumstances before making any finance decisions.