Car & vehicle finance
Car loans that beat what's offered in the showroom
Secured and unsecured vehicle finance for new, used, dealer and private-sale purchases. Arrange it before you start negotiating and you buy as a cash buyer.
Sort the finance before you pick the car
Walking into a dealership with finance already arranged changes the conversation. You negotiate on the price of the vehicle rather than on a monthly figure that quietly bundles the car, the finance margin, the extended warranty and the paint protection into one number that's hard to unpick.
The main options
Secured car loan. The vehicle is the security. Lowest rate for most borrowers. Age and condition limits apply — commonly a maximum of around seven years old at application.
Unsecured personal loan. No security taken, so no restriction on the vehicle's age or condition. Useful for older cars, project vehicles, or private sales that won't meet a lender's security criteria. Higher rate.
Chattel mortgage. For business use. The business takes ownership from the start and the lender holds security over the vehicle. Often the most tax-effective structure for a business vehicle — check with your accountant.
Novated lease. Arranged through your employer from pre-tax salary. Whether it beats a straight loan depends heavily on your marginal tax rate and how much you drive.
Check the PPSR before you buy privately
A Personal Property Securities Register check confirms there's no finance still owing on a used car. If there is, and you buy it, the financier can repossess the vehicle from you. It costs a couple of dollars and it's non-negotiable on a private sale.
Car loan repayment estimate
Move the sliders to see how the numbers change.
- Total interest
- $6,500
- Total repayable
- $31,500
FAQ
Car finance questions
Is a secured car loan cheaper than a personal loan?
Generally yes. Using the vehicle as security lowers the lender's risk, and secured car finance in Australia typically prices below an equivalent unsecured personal loan. The trade-off is that the lender can repossess and sell the car if you default.
Can I buy privately, or does it have to be a dealer?
Both are possible. Private sales involve an extra step — the lender will usually run a PPSR check to confirm there's no existing finance owing on the vehicle, and will often pay the seller directly at settlement rather than paying you.
Does the car's age matter?
Yes, quite a lot. Most lenders cap the vehicle age at security — commonly around seven years at the time of application, and often a maximum age at the end of the loan term as well. Older vehicles may only be financeable unsecured, at a higher rate.
Is dealer finance a good deal?
Sometimes, and it's worth comparing rather than assuming. Dealer finance is convenient and occasionally subsidised by the manufacturer. It can also be priced well above the market with the margin buried in the monthly figure. Get an independent comparison before you sign in the showroom — you're generally under more time pressure there than you need to be.
What about a balloon payment?
A balloon leaves a lump sum owing at the end of the term. It lowers the monthly repayment but increases total interest, and you need a plan for the balloon itself — refinance, sale or cash. Common in commercial vehicle finance, and worth thinking carefully about for a personal purchase.
Get your car finance sorted first
Know your budget and your rate before you walk into a dealership.
Checking your options does not affect your credit score. A credit check is only done if you decide to apply with a lender.