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Secured Car Loans

Carla Soto
Updated Jun 5, 2023
Fact checked

Looking for a new or used car loan with a low interest rate? Secured car loans can be a cost-effective way to bridge the gap between your savings and your next four-wheel purchase.

Check out options from top and authorised Australian lenders in the comparison table below. Our calculator also allows you to compare repayments, so your budget stays smart.

Loan Amount

$30,000

Term

5 months

Harmoney

Secured Personal Loan - Excellent Credit

EST Monthly Repayment
Advertised Rate
5.66%
Advert. Rate (p.a)
Comparison rate
Buy your car on your terms. Fast, easy & 100% online. Borrow up to $70,000. No hidden fees or early repayment penalties. Harmoney's secured interest rates range from 5.66% p.a. to 20.07% p.a.
OurMoneyMarket

New Car Loan | No Fee, Excellent Credit

EST Monthly Repayment
Advertised Rate
6.57%
Advert. Rate (p.a)
Comparison rate
Simple, fast, low-rate secured car loans from $2,001 to $75,000 for any new motorised vehicle. No monthly account-keeping fees, no exit fees, and no early repayment fees. Weekly, fortnightly, or monthly repayments are available.
Can be used to buy any used cars without vehicle age limit. Borrow from $2,001 to $75,000 with this simple, fast, low-rate secured car loans with fixed rates. No monthly account-keeping fees, no exit fees, and no early repayment fees. Weekly, fortnightly, or monthly repayments are available.
Pay ZERO fees on all loans with NOW Finance. That's right - no establishment fee, no monthly fees, no early payout fee on all loans between $15,000-$100,000. What's more, get your guaranteed, tailored interest rate in two minutes without impacting your credit score. Comparison rate can vary from 6.75% to 21.65% p.a.*
NRMA

NRMA New Car Loan (Credit Score +832)

EST Monthly Repayment
Advertised Rate
7.29%
Advert. Rate (p.a)
Comparison rate
There's nothing quite like the thrill of buying a car, but one of the biggest challenges is finance. Ideally you'll want a car loan that offers flexibility and a low competitive rate, and is easy to apply for.
Driva

Driva - Unsecured Car Loan

EST Monthly Repayment
Advertised Rate
7.65%
Advert. Rate (p.a)
Comparison rate
Use Driva's platform to compare rates and choose the best car loan option for you. Making car financing fast, simple & transparent with Jump Payments.
NRMA

NRMA Used Car Loan (Credit Score +832)

EST Monthly Repayment
Advertised Rate
8.49%
Advert. Rate (p.a)
Comparison rate
NRMA used car loans can help you get one step closer to owning your dream pre-loved car.
Arab Bank

Secured Personal Loan

EST Monthly Repayment
Advertised Rate
11.30%
Advert. Rate (p.a)
Comparison rate
An Arab Bank Australia Personal Loan is a great way to purchase the car you want or need now, if you currently don't have the savings or cash to make your purchase.
NAB

Variable Rate Personal Loan

EST Monthly Repayment
Advertised Rate
12.69%
Advert. Rate (p.a)
Comparison rate
Whether you're upgrading your ride or adding to your garage, a NAB Personal Loan gives you a great rate. If you are an existing customer and apply in- store by 2pm, you could walk away with your money that very same day
Beyond Bank

Flexi Car Loan

EST Monthly Repayment
Advertised Rate
13.45%
Advert. Rate (p.a)
Comparison rate
Make your dreams come true with a car loan that offers maximum flexibility. Our Flexi Car Loan is available for the purchase of new and used cars.
NAB

Fixed Rate Personal Loan

EST Monthly Repayment
Advertised Rate
13.49%
Advert. Rate (p.a)
Comparison rate
Whether you're upgrading your ride or adding to your garage, a NAB Personal Loan gives you a great rate. If you are an existing customer and apply in- store by 2pm, you could walk away with your money that very same day
Credit Union SA

Variable rate car loan

EST Monthly Repayment
Advertised Rate
13.60%
Advert. Rate (p.a)
Comparison rate
The variable rate personal loan is unsecured.
Macquarie Credit Union

Used Car Loan 5 years +

EST Monthly Repayment
Advertised Rate
13.90%
Advert. Rate (p.a)
Comparison rate
With all the great features of our new car loan, this loan is designed for used cars over 5 years old.

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Minimum and maximum loan periods vary between 6 months and 10 years. Comparison interest rates vary between 6.55% and 19.07% p.a. Total interest repayments vary between $4,290 and $14,531 over the life of the loan. *Comparison rate is based on an unsecured loan of $30,000 for a term of 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. These rates can change without further notice. All rates quoted are per annum. For more information regarding fees click on "View fees & additional info +" for each product or contact the provider.

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What type of car loan are you looking for?

Find secured car loans and get a lower interest rate

If shopping for a new ride is next up on your to-do list, you might need some extra cash before you can hit the road. A secured car loan not only expands your budget, but it also keeps interest costs minimal. Read BestFind’s guide to find the best info on secured car loans in Australia.

What makes a car loan secured?

As far as personal loans are concerned, secured car loans can be a win-win for both Aussie borrowers and lenders. First, the lender is willing to offer a “strings attached” deal where they have security over the vehicle you want to purchase. Besides your new buy, collateral can also be any other assets you own, such as property, stocks, and savings accounts.

That means there’s no financial risk involved since the lender has a right to sell the asset and regain any losses if you fail to make repayments. By agreeing to this and in return, you get to buy your dream ride at a lower interest rate.

Secured vs unsecured car loans

Typically, lenders view unsecured car loans as the “riskier” counterparts to secured car loans. Here’s a quick breakdown of unsecured car loans and what to expect if you choose this option:

  • No collateral. The borrowed money is not guaranteed against the car’s value. As a result, the lender can’t repossess the vehicle to recover their losses if you default.
  • Higher interest rate. The lender faces a greater financial risk if they can’t get their hands on your ride when you fail to repay. They, therefore, use a higher interest rate as a counterbalance.
  • More flexibility. With a secured loan, you borrow money that’s backed by collateral. Consequently, the amount is typically limited by the value of the asset used. However, unsecured loans have no such restrictions.

Are there any benefits to choosing a secured car loan?

Here are some significant advantages that come with a secured loan against car agreement:

  • Lower interest rates. By hanging onto your ride when you default, the lender won’t lose much. For this reason, they’ll charge a favourable rate.
  • Increased chance of approval. Due to less risk on the credit provider’s part, most borrowers are likely to get a nod when they apply. This goes for the self-employed, those with bad credit and others who can’t meet specific requirements.
  • Applicable as long as the vehicle is in good condition. That means you can still take the second-hand route if brand-new doesn’t work for your budget.

The risks and disadvantages of securing your car loan

Secured car loans may offer lower interest rates, but what’s the catch?

  • Greater risk for the borrower. If you slip up on your repayments, you risk losing the vehicle or your asset.
  • Less flexibility. Generally, the amount you can borrow tends to be confined within the boundaries of the car’s value. Furthermore, some lenders only offer secured deals for specific vehicle models under a certain age.

How to pick the best secured car loan

When you browse BestFind’s comparison table above, you’ll find a range of secured car loans from many Australian lenders. Use the following factors to refine your search and nail down an option that satisfies your budget and needs:

  • Borrowing costs. Compare the interest rate and comparison rate, which are displayed side by side in our product tables. While a low interest rate is superb, the comparison rate also shows the actual cost of your debt in terms of the interest rate plus other fees and charges.
  • Fixed vs variable interest rate. A fixed rate means you won’t have to switch up your budget. But, while variable rates come with fluctuating rates, a dip in market rates will boost your savings.
  • Loan amount and term. You can borrow as little as $1,000 or as much as $100,000. On the other hand, repayment periods vary between one and ten years. The goal is to find an offer that matches your preferred values for these two factors.
  • Monthly repayments. Use BestFind’s secured car loan calculator to estimate your repayments. All you have to do is enter your amount and term, then click calculate.
  • Other features. Depending on your objectives, check for secured car loans with features such as balloon payments, redraw facility, extra repayments, and more. These can score you a big win when it comes to paying off your debt comfortably and in a flexible manner.

Apply online and secure your new set of wheels

Have you found a secured car loan that speaks your language? Then your next step is clicking that green “Go to Site” button. Before you visit the lender’s website, keep in mind that you’ll generally need the following to qualify:

  • Driver’s licence;
  • Comprehensive insurance;
  • Proof of income; and
  • Details about the vehicle you want to buy.

Popular car loan searches

Carla Soto
Carla Soto

Carla is a skilled copywriter at BestFind with a background in marketing and communications. She specializes in reviewing personal loan and finance products to help readers navigate the complex world of personal finance.

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