Personal Car Loan
A Personal Car Loan is also known as a Unsecured Car Loan. As the name suggest, this type of loan does not use the car as security against the loan. Therefore, if the borrower defaults on the loan there is no car for the lender to sell to recoup the loan amount. Consequently this type of loan has a higher risk to the lender. Hence the interest rates are slightly higher than that of a consumer or secured car loan.
On the other hand, a secured or consumer car loan uses the car as security for the loan. If the loan is not paid back then the lender can sell the car and use those funds to pay out the loan.
Why choose a personal car loan?
There are a number of reasons to use a personal car loan as opposed to a secured car loan.
The first reason is that some lenders will not use an older car as security. Personal car finance may be the only option available to you when purchasing a vehicle over certain age limits. Most lenders do not want the vehicle to be older than 15 to 20 years at the end of the life of the loan. The second instance is when the car you want is not just an ordinary car. For instance, a hot rod, imported vehicle or collectable car do not usually meet lender guidelines for a secured car loan. The final reason is that some people like having cash in hand when purchasing a vehicle. Cash can add to a persons negotiating power and helps when purchasing privately.
What are the terms of a personal car loan?
A Personal Car Loan is a simple agreement between you and the lender. Some of the loan terms are detailed below.
- Interest rates are usually fixed.
- Car loan terms range from 2 to 7 years.
- Money is paid into your bank account for you to purchase the car of your dreams.
- Additional repayments can be made at any time throughout the life of your loan.
- You can pay out your car loan at any time.
- Repayments can be made weekly, fortnightly or monthly depending on your lifestyle and pay cycle.
How can I estimate my personal car loan repayments?
You can use our personal car loan calculator to estimate your repayments. Simply determine the finance amount, loan term in years and an approximate interest rate. Your interest rate is based on your credit history, personal circumstances and the type and age of the car being purchased. The car loan calculator lets you gauge your fortnightly or monthly repayments. Knowing your new purchase will fit into your budget is very important for peace of mind.
Why use AAA Finance
AAA Finance has a team of professional finance brokers who work for you and not the banks! We will save you both time and money.
1. Quick loan approvals
In fact, most loans are approved within 24 to 48 hours of receiving all the requested information.
2. Easy application
An over the phone application takes only 5 to 10 minutes. So call today to drive away on (07) 5493 1222. Our experienced car finance experts are ready to discuss your new car loan.
Alternatively, get in touch using one of our online enquiry forms. One of our friendly finance specialists will call you at a time convenient to yourself.
3. Competitive Interest Rates
Our team has access to over 40 lenders. Consequently, we have a lender to suit your circumstances. We then select the lender who has the most competitive interest rates with terms to suit your individual needs.
4. AAA customer service
We aim to provide exceptional AAA customer service. Both our google and Facebook reviews are testament to our commitment to our clients and their finance needs.
5. Experience and professional finance brokerage
Our qualified team has over 100 years of finance experience behind them. Lenders are constantly changing their lending guidelines. Hence our brokers are constantly being updated on new policy and procedures. This depth and breathe of knowledge ensures we get the best outcome for you!
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Useful personal car loan link
Drive has some great tips when buying a used vehicle.