Finty

Compare secured car loans

Set your amount and term to see the repayment and total cost of 156 secured car loans side by side, so you know what you'd pay before you apply.

A secured car loan uses the car as security, so the lender can take it back if you stop repaying. In return, rates are usually lower than on an unsecured loan.

Written byDavid Boyd

What will it cost you?

Enter how much you want to borrow and for how long, and we'll show your monthly repayment and total cost on every loan below, at each one's lowest published rate.

143 loans

Showing 20 of 143

Repayments use each loan's lowest published rate and include any monthly fee. The total adds the establishment fee. The rate you are offered depends on your circumstances. Comparison rates are for the lender's own example loan, usually $30,000 over 5 years.

WARNING: A comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Secured car loans at a glance

Worked out from the 156 loans from 82 lenders we compare on this page.

Typical comparison rate

7.99%

Half the loans start between 6.95% and 9.64%.

Typical setup fee

$258

8 of 134 loans charge no setup fee.

No monthly fee

20 of 67

loans that state a monthly fee set it at $0.

Fixed or variable

95 fixed49 variable
How starting comparison rates are spreadNumber of loans in each band. The most common is 7–9%.

The short version

  • A secured car loan uses the car itself as security, which usually means a lower rate.
  • The lender can take the car back if you can't repay.
  • Most lenders limit the car's age and need comprehensive insurance.

How a secured car loan works

The lender registers its interest in the car on the Personal Property Securities Register until the loan is repaid. If you stop repaying, it can repossess and sell the car.

Because the lender carries less risk, rates are usually lower than on an unsecured loan. You may need comprehensive insurance on the car for the whole loan.

Pros

  • Lower rates. The car secures the loan, so lenders charge less than for unsecured loans.
  • Higher limits. You can usually borrow the full price of the car.
  • Easier approval, as the car lowers the lender's risk.

Cons

  • The car is at stake. The lender can repossess it if you can't keep up.
  • Rules on the car. Many lenders limit how old it can be and need comprehensive insurance.
  • The lender registers its interest on the PPSR until the loan is paid off.

Alternatives

  • An unsecured personal loan. Nothing is secured against the car, so you can buy any car, at any age, though the rate is usually higher.
  • Dealer or carmaker finance. Carmakers sometimes offer very low rates on particular models, so compare the drive away price and the comparison rate.
  • A novated lease, if your employer offers salary packaging. Payments come from your pre-tax pay, which can save tax, especially on electric cars.

How to apply

You can apply for a secured car loan before you've chosen the car. Pre-approval tells you your budget and lets you bargain like a cash buyer.

  • Get pre-approval. Many lenders approve you for an amount first, so you know what you can spend before you shop.
  • Check your rate. Some lenders give a quote with a soft check, which doesn't show as a credit enquiry.
  • Have the car's details ready. Lenders need the make, model, year, VIN and the seller's details before they pay out.
  • Compare the drive away price, not just the rate. A low rate can come with a higher price on the car.
  • Insure the car. Lenders usually need comprehensive insurance on a car that secures the loan.

What to check on a car loan

Look at the comparison rate as well as the interest rate. The comparison rate adds the lender's standard fees to the interest rate for an example loan, so it shows the cost of two loans on the same footing.

  • Whether there's a balloon payment, a lump sum left to pay at the end that lowers your regular repayments.
  • Any limit on the car's age, either when you buy it or when the loan ends.
  • Whether you can make extra repayments or pay the loan off early, and what that costs.
  • Whether the lender pays the dealer or private seller directly.

Questions people ask

What is car loan pre-approval?

It's a lender's conditional OK for an amount before you've chosen the car. It isn't final until the lender has the car's details, and it usually lasts for a few months.

Should I take a balloon payment?

A balloon lowers each repayment by leaving a lump sum to pay at the end, but you pay more interest overall and need the money, or to refinance, when it falls due. It suits people who plan to sell or trade in the car then.

Can I pay off a car loan early?

Usually. Variable rate loans rarely charge for it, while fixed rate loans may charge an early repayment fee. Check the contract if you might sell the car or pay it off sooner.