FAQs

Interest rates on collateral-free lending vary across the motor vehicle lending market. Buyers can engage the services of a specialist motor vehicle lending broker to source the best interest rate and offer from across many lenders.

Approval for vehicle finance can be granted without the borrower offering the vehicle or other assets as security for the funding. Approval is given based on the creditworthiness – the credit rating, score history and ability to meet the lending commitments.

Financing without collateral is approved based on a high credit score, good credit history and solid income to repay the debt. Approval criteria can vary across the lender market.

Financing a vehicle without collateral means that the vehicle or other assets are not offered as security against the credit borrowed. The lender cannot repossess the vehicle if the borrower defaults on the credit but can sue to recoup funds.

Secured funding typically uses the vehicle being bought as the collateral for the financing. Lending without security does not use the vehicle or any other assets owned by the borrower. Without security, applications are approved based primarily on the creditworthiness of the applicant and ability to repay the debt.