Personal Car Loans

Yes, subject to your loan being approved. A pre-approved loan is a loan that is arranged right through to the approvals stage before a commitment is made on a car purchase. The common practice used to be to first find and buy the car and then source finance. But more and more people are realising the benefits of having their finance approved prior to committing to a purchase. A pre-approved loan is arranged based on an estimate spend. You provide your broker or lender with a rough idea of the loan amount you will need based on the car price you will be seeking. They arrange your loan and have it approved to that value so you can confidently proceed. When you finalise your purchase, the loan is finalised based on the exact figure.

The loan term can determine the repayments. The longer the loan term the lower the repayments but you pay more in total interest. The shorter the loan term the higher the repayments but the less you pay in total interest. You can use our car loans calculator to see how that works out while planning your loan. The usual term for a Secured Personal Car Loan is 4-5 years on most passenger cars. If you have a particular loan term that you want, you can discuss this with the lender when applying or requesting a quote. For high-priced cars, buyers may be looking for longer loan terms to spread the purchase price over a longer period. Discuss this with the lender to see what can be achieved for your purchase.

Borrowing 100% of the purchase price of a car can be referred to as a no deposit car loan. Many car buyers don’t want to use their existing cash reserves on a deposit and with interest rates so low on loans, it can make a lot of sense to borrow 100% of the purchase price of the vehicle. If that is your preference, you can apply for 100% of the purchase price in your loan. But with all loans treated on an individual basis, the outcome will depend on your loan application and in particular your credit profile. This is very often achievable for new cars but used cars may be assessed by lenders in regard to age and condition. If the ratio of purchase price to valuation of the vehicle does not meet the lender guidelines, they may request a deposit be paid to reduce the overall loan amount.

Personal Secured Car Loans are designed for the purchase of vehicles which are primarily for personal use. That can cover a wide range of vehicle types and categories. This would include sedans, hatch backs, wagons, SUVs, convertibles, 4WD vehicles and many others. Secured Car Loans are available for both new and used vehicles which are purchased through an authorised dealer, from a private seller or even through an auction house. A loan offer is assessed by individual lenders based primarily on aspects of the loan applicant rather than the vehicle itself. The vehicle does come into play with used cars. Some special vehicles such as vintage cars and possible racing cars may require specialist lenders.

The secured reference in Secured Car Loans refers the security or guarantee of the loan. With this type of loan, the lender who is giving you the loan, uses the car you are buying as security against what you are borrowing. The vehicle is the security which is why this is a secured loan. If the borrower defaults or fails to make the scheduled repayments, the lender holds the right to repossess the automobile and sell it to recoup what is owed to them. While the lender has security over the car, the borrower has full use of the vehicle and is responsible for all costs such as insurance, registration, fuel, repairs and maintenance. Once all the payments have been made and the loan finalised, the lender releases the security.