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LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkCompare
6.24% p.a.
7.36% p.a.
$916
Variable
New
1 year
$8
$400
$32,973
Featured
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
6.57% p.a.
7.19% p.a.
$920
Fixed
New
No Max
$0
$250
$33,135
Loan amounts from $2k to $75k
  • Available for any new motorised vehicle
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get quick decision. Funds in 24 hrs if approved
6.57% p.a.
7.19% p.a.
$920
Fixed
Used
No Max
$0
$250
$33,135
Loan amounts from $2k to $75k
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get quick decision. Funds in 24 hrs if approved
6.99% p.a.
8.11% p.a.
$926
Fixed
New
1 year
$8
$400
$33,342
Approval within 24 hoursEarly payout available
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
6.34% p.a.
8.36% p.a.
$917
Variable
New
1 year
$8
$400
$33,022
7.29% p.a.
8.00% p.a.
$930
Fixed
New
2 years
$0
$499
$33,491
7.74% p.a.
8.85% p.a.
$936
Variable
Used
3 years
$8
$400
$33,714
APPLY ONLINE
  • Unlimited extra repayments
  • Flexible repayment options
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
7.79% p.a.
8.90% p.a.
$937
Fixed
Used
3 years
$8
$400
$33,739
8.49% p.a.
9.21% p.a.
$947
Fixed
Used
No Max
$0
$499
$34,088
Credit Score +832
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
8.49% p.a.
9.38% p.a.
$947
Variable
New, Used
No Max
$13
$0
$34,088
More car loans
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

What is a secured car loan?

A secured car loan is a car loan where the lender uses an asset (the car you're buying) as security against the loan. This means that if you fail to meet your repayments, the lender has the right to sell or repossess the asset in order to recuperate its funds. Because of this, secured car loans often have lower interest rates, as the borrower is deemed to be less of a risk to the lender. 

You do have the option to use another asset as collateral if you wish such as term deposits, property, or high-cost items (e.g. jewellery) - it doesn't always have to be your car.

What happens if you default on your repayments?

Using your car as security for a loan can be a good way to get the loan you want with a lower interest rate compared to other loan types. However, one of the biggest things to be wary of when you have a loan against your car is that the vehicle can be taken away if you fail to repay the loan.

So, how long or how much would it take for a lender to repossess your car? Well that varies by state. For example, in Queensland, a repossession can’t take place without a court order if less than 25% of the initial debt or $10,000 (whichever is less) remains owing. However, if it’s over that limit, the lender can repossess your vehicle within 30 days after delivery of the default notice.

However, having an unsecured loan doesn’t let you escape the consequences of defaulting on it. You could still face legal action and be chased by a collections agency, while your credit history will have a black mark against it and your credit rating will drop considerably. Overall, it pays to check with your own state’s laws to see what takes place, in regards to repossession, should you default on your car loan.

How to compare secured car loan lenders and rates

If you're ready to apply for an unsecured car loan to buy your new set of wheels, here are a few things you should consider when looking at different lenders.

Interest rates and comparison rate

You'll need to decide whether you're opting for a fixed interest rate or a variable interest rate. With a fixed rate, your interest rate will stay the same for the duration of your car loan term, whereas a variable rate can fluctuate at any time so your repayments could go up or down.

The interest rate will determine what your repayments will be so it can be beneficial to take some time to compare the rates different lenders are offering for each loan type.

In addition to interest rates, comparison rates should also be looked at closely. The comparison rate reflects the loan interest rate plus fees and charges. Essentially, it gives you a better idea of the overall cost of the loan.

Loan term

Typically, the longer the loan term, the smaller the monthly repayments. However, this usually means you'll end up paying more in interest charges. If you want to save as much as you can on interest and also want to pay off the car loan as soon as possible, a shorter loan term may be a better option.

If you cannot afford higher monthly repayments, you may need to consider a longer term agreement.

Ultimately, choosing the right loan term for you all comes down to your personal circumstances.

Features

Some lenders offer handy features to help pay off your car loan sooner and thus pay less interest, such as the ability to make fee-free extra repayments. If you think you'll have the capacity to put some more money towards your loan, then make sure the lender you choose has this option available (without penalties incurred).

Another feature you may want is a redraw facility. This allows you to redraw your extra repayments from your car loan in the case of an emergency. Keep in mind that some lenders may charge fees associated with car loan redraws.

Fees

Depending on the lender, you may be charged car loan fees throughout the loan term. Some of the fees you could encounter include: establishment fees, annual fees, redraw fees, and early repayment fees.

What are the pros and cons of a secured car loan?

Pros

  • Lower interest rates: secured loans typically come with lower interest rates which can help you keep your repayments manageable. This is because the lender can repossess the asset in the case you default on your loan.
  • Easier to be approved: as the lender has reassurance i.e. the asset, the application and approval process can generally be a quick and easy process.

Cons

  • Age of car: some lenders only offer secured car loans for brand new cars, or used cars under a certain age (typically 5 years old).
  • Risk your vehicle: if you cannot make the loan repayments on time, you will lose your car.
  • Limited loan amount: you'll generally only be able to use the loan amount to purchase a vehicle e.g. you can't use the loan to pay for insurance, registration, or upgrades.

What's the difference between an unsecured and secured car loan?

There are quite a few differences between an unsecured and secured car loan. However, the most notable is using an asset as security.

With an unsecured car loan, you don't need to offer the car or any other asset as security on your loan. Without this security, you'll often find that your options are more limited and your lender will charge higher interest rates and fees than a secured loan. Unlike some secured car loans, you can purchase a used car and often borrow more than the car's value to pay for things like registration with an unsecured loan.

One way to tell unsecured and secured car loans apart is the interest rate. Say, Car Loan 1 has an interest rate of 5% p.a, and Car Loan 2 has an interest rate of 11% p.a. You could probably assume that Car Loan 1 is a secured car loan because of its lower interest rate, but this might not always be the case.

It pays to check the finer details of the car loan product you’re looking at.


Frequently Asked Questions

In most circumstances, a secured loan will make more sense than an unsecured loan.

In some cases, an unsecured loan may be a better option, especially if the car you’re looking to purchase doesn’t meet a lender’s eligibility criteria, such as being too old or in poor condition. An unsecured loan might also be preferred if the car is a gift for someone and you don’t want the recipient to be at risk of losing the car should you fail to meet the repayments.

Secured loans are generally easier to access as a borrower because the lender has the reassurance that if you default on the loan, the asset (often the car) can be repossessed.

Secured car loans are a win-win for you and your lender - you usually can access the car faster, and with a cheaper rate, while your lender has the reassurance it can recover any losses should you default.

The most common form of a secured car loan is where the car is listed as the security (a.k.a. collateral) on the loan. This means if you can’t make the repayments, the lender has the right to repossess the car.

Having this security lowers the risk of loss to the lender, which is why lenders generally offer lower interest rates on secured loans compared to unsecured loans.

Note that any car that’s used as security for a loan is recorded on the Personal Properties Securities Register (PPSR) as having an encumbrance over it. For $2, you can conduct a search on the PPSR using a car’s VIN or chassis number to see if the car has a debt attached to it.