Compare Car Loans

Secured Car Loans from 3.64%

Looking for a secured car loan? Using your car as security can help you obtain a lower interest rate to help you save on repayments.
Compare secured car loans, rates, lenders and more below.

Secured car loan rates

Below you can see a comparison of secured car loans, across both fixed and variable interest payment terms, for a $30,000 loan over five years.

Lender

FixedNew, Used99 yearsMore details
APPLY ONLINE
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
APPLY ONLINE

Car Loan

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
FixedNew2 yearsMore details
NO ONGOING FEES
  • No ongoing fees
  • No early exit penalty
  • Apply online
NO ONGOING FEES

New Car Loan

  • No ongoing fees
  • No early exit penalty
  • Apply online
FixedNew2 yearsMore details
QUICK APPLICATION PROCESS WITH NO FEES
  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
FixedNew1 yearMore details
No ongoing fees
  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
No ongoing fees

Plenti Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online

Base criteria: fixed and secured car loans for 'low emission' cars. Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Repayments are calculated based on advertised rates. *The Comparison rate is based on a $30,000 loan over 5 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 3, 2022. View disclaimer.


With the Reserve Bank’s cash rate at historic lows, some lenders are offering super low interest rates on car loans. However, you might find unsecured loans still carry higher interest rates. This is for the risks the lender assumes when taking the borrower on as a customer. By securing the car against the loan, the lender is able to offer a lower rate.

What is a secured car loan?

A secured car loan uses the car as security against the loan. This means that if you fail to pay the loan, the lender can have the right to repossess your car. Because of this, secured car loans often have the benefit of having a lower interest rate, and a lower comparison rate to boot. 

What is an unsecured car loan? 

This is essentially the opposite of an unsecured car loan, which are really just personal loans under a different name. Unlike a secured loan, a lender cannot take your car away if you fail to pay an unsecured loan. Rather, they will attempt to get repaid through other means. As a result, an unsecured loan can have a higher interest rate than a secured one.

Is a car loan always a secured loan?

As you’ve probably gathered, a car loan isn’t necessarily always a secured loan. When browsing around, you might have discovered a personal loan dressed up as a car loan. These tend to be unsecured loans, just a personal loan intended to be used to purchase a car.

The biggest, and arguably the most obvious 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.

Using your car as security for a loan: what to know

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 be smashed. 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.


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.