Secure car loan rates
Below you can see a comparison of secured auto loans, both with fixed and variable interest payment terms, for a five-year $ 30,000 loan.
|Type of interest||Vehicle type||Maximum vehicle age||Ongoing charges||Registration fees||Total refund||Prepayment||Instant approval||Online application|
|Fixed||New||4 years||More details|
|FEATUREDOBTAIN APPROVAL WITHIN 24 HOURS|
Car loan (new and used dealer) (
|Fixed||New||2 years||More details|
|QUICK, NO-COST APPLICATION PROCESS||
Fast New Vehicle Loan Low Rate
Fast New Vehicle Loan Low Rate
|Fixed||New, used||99 years old||More details|
|Fixed||New, used||7 years||More details|
|No ongoing charges||
Plenti car loan (refinancing)
- 24 hour approval
- Balloon options to reduce refunds
- No ongoing charges, no discharge charges
Rates based on a $ 30,000 loan for a five-year term. Products sorted by advertised price. Prices correct as of November 4, 2021. See disclaimer.
With the Reserve Bank’s cash rate at historically low levels, some lenders are offering very low interest rates on auto loans. However, you might find that unsecured loans always carry higher interest rates. These are the risks that the lender assumes when taking the borrower as a customer. By securing the car against the loan, the lender is able to offer a lower rate.
What is a secured auto loan?
A secured auto loan uses the car as collateral against the loan. This means that if you do not repay the loan, the lender may have the right to repossess your car. For this reason, secured auto loans often have the advantage of having a lower interest rate and a lower comparison rate to boot.
What is an unsecured auto loan?
It is basically the opposite of an unsecured auto loan, which are really just personal loans under a different name. Unlike a secured loan, a lender cannot repossess your car if you don’t pay off an unsecured loan. On the contrary, they will try to be reimbursed by other means. As a result, an unsecured loan can have a higher interest rate than a secured loan.
Is an auto loan still a secured loan?
As you have probably understood, a car loan is not necessarily always a secured loan. While browsing, you may have discovered a personal loan disguised as a car loan. These are usually unsecured loans, just a personal loan meant to be used to buy a car.
The most important, and arguably the most obvious, way to distinguish between secured and unsecured auto loans is the interest rate. Suppose Auto Loan 1 has an interest rate of 5% per annum and Auto Loan 2 has an interest rate of 11% per annum. always be the case.
It pays to check the finer details of the car loan product you are considering.
Using your car as collateral for a loan: what you need to know
Using your car as collateral for a loan can be a good way to get the loan you want at a lower interest rate than other types of loans. However, one of the main things to be wary of when you have a loan against your car is that the vehicle can be taken away if you don’t pay off the loan.
So how long or how much would it take for a lender to repossess your car? Well, it varies by state. For example, in Queensland, a repossession cannot take place without a court order if less than 25% of the original debt or $ 10,000 (whichever is less) remains due. However, if it exceeds this limit, the lender can repossess your vehicle within 30 days of giving the notice of default.
However, having an unsecured loan does not allow you to escape the consequences of a default. You could still face legal action and be sued by a collection agency, while your credit history will have a black mark and your credit rating will be broken. Overall, it’s worth checking your own state’s laws to see what happens, with regards to repossession, if you don’t pay off your car loan.