How to Choose Car Loan vs Personal Loan

In weighing up the pros and cons of a specific car loan versus unsecured loan, the positives tend to outweigh the negatives for many buyers. The motor vehicle lending market is vast with variations across the sector in loan product features, lender criteria and interest rates. As vehicle lending specialists, our Secured Car Loans are specifically structured to suit vehicle buyers and sourced from a vast lender base. Ensuring that our buyers obtain a loan that is specifically suited to them and their vehicle and at the lowest rates.

Most vehicles will be accepted as suitable collateral for a Secured Car Loan, enabling buyers with little other assets, the ability to purchase a vehicle with finance. With the vehicle as collateral, lenders categorise this type of credit at lower risk and offer the lowest rates.

Flexible repayment terms are available on secured vehicle finance with up to 7 years approved for many buyers. Enabling buyers to achieve affordable repayments and possibly upgrade to a more expensive vehicle. Some lenders will have a maximum amount they will approve for vehicle loans. But with our extensive lender base, we can secure funding for all types of new vehicles across the price range. Some lenders are also offering special rates and conditions on secured loans for green cars.

Our secured vehicle funding is arranged with fixed low rates, fixed terms and fixed repayments to provide buyers with certainty in planning their budget and future finance decisions.

A negative for a secured credit product is if the borrower defaults on the loan, they risk having their vehicle repossessed. Insurance is required on vehicles acquired with secured credit, which is an additional cost to be taken into account.

To meet lender approval criteria, some buyers may be required to make a down payment. This may be an issue to be addressed by some buyers. To overcome this issue, buyers may select a lower priced vehicle to meet approval guidelines. Using our services, buyers have the right lender selected to suit their specific profile.

For a quote on a Secured Car Loan at the best rates contact Jade.

• Fixed rates, fixed terms, fixed repayments.
• Best rates on Secured Car Loans.
• Suits most vehicles and most buyers.

Unsecured personal loans can provide greater flexibility for some car buyers due to the lack of collateral required. This feature may allow funding for special vehicles and older cars which are not acceptable as collateral for a secured loan.

But the lack of collateral means this type of loan is rated higher risk and attracts higher interest rates than secured products. Interest rates on unsecured loans may be at variable interest rates which provide the prospect of possible reductions in interest rates and repayments over the term. Variable rate loans allow for early payout with no break fees applicable. This option may suit buyers that intend to finalise the loan before the scheduled end of the term.

Some unsecured loans are only offered over relatively short repayment periods and for limited amounts. This may suit buyers that only require a smaller loan amount but may not suit buyers looking for no deposit finance.

Buyers trying to decide when to consider a personal loan over a car loan can speak with our experts for guidance.

As personal lending experts, we can assist buyers with a detailed analysis of their options, providing quotes for both personal loans and car loans to compare and make an informed decision.

• Higher rates, but potential flexibility.
• Possible shorter terms, lower loan amounts.
• Specialists to guide buyers with decisions.