Secured Car Loan
Today’s Best Rate:
Car loan rates from
5.90% Fixed
With a low
6.33% Comparison*
What is a secured car loan?
A secured car loan, also known as a consumer car loan, is the most common way to finance a vehicle purchase when you work for wages. This loan functions like any ordinary loan. You use the funds to buy a car and repay the loan through regular payments over a set time frame.
What makes it “secured” is that you back the loan with an asset, typically the car itself. If you can’t make your car loan repayments, the lender can repossess and sell the car to recover the loan amount. Securing the loan gives the lender more confidence in providing you with car finance.
What are the benefits of a secured car loan?
A secured car loan offers several advantages:
1. Lower interest rates – Since a secured car loan is less risky for the lender, they typically offer reduced interest rates. This results in lower costs for you over the long term.
2. Fixed interest rates – The interest rates and loan repayments remain fixed for the term of the loan. This allows you to plan your budget without worrying about fluctuating rates. You can choose repayment schedules—weekly, fortnightly, or monthly—based on your circumstances. For example, if you are paid fortnightly, we can set up direct debit payments to align with your payday.
3. No Deposit – You can finance up to 100% of the car’s purchase price, including accessories and insurance. This means you may not need a deposit and can start driving your car right away without needing cash upfront.
4. Pay Off at Any Time – If you get a pay rise or come across extra money, you can pay off your secured car loan early. The sooner you pay it off, the cheaper the loan becomes for you.
5. Ownership – Once you finalize the purchase, the vehicle is yours. You can drive it and use it as you wish, even while paying off the loan. If necessary, you can sell the car at any time, even if you haven’t fully paid it off. The proceeds from the sale go toward clearing the debt.
How much will a secured car loan cost me?
Think you might be interested but aren’t sure if you can manage the repayments? It’s always smart to look at the numbers. Our easy-to-use car loan calculator helps you explore your options and see how much car finance will cost. Simply enter the amount you need, how long you want to take to pay it off, and the interest rate.
I want in!
Feel like you’re ready to sign up or have you more questions regarding a secured car loan? Then we are here to help. Our team of friendly, knowledgeable car loan specialists are ready to give you a hand. Call today on (07) 5493 1222.
You can also apply for a pre-approved loan. This option allows you to know your finances are approved and fit into your budget before you start shopping around.
Useful Link
If you are after a step by step guide to buying a used car check out the Choice Used Car Buying Guide.
Disclaimer
* Your actual interest rate will be based on a number of factors, including the type and age of the asset you are seeking to purchase; the information you provide during your application and the term of the loan. This rate may be different from our lowest advertised rates. The Comparison Rate is calculated on a Secured Loan of $50,000 fixed for a term of 5 years, effective 08/04/2025 and subject to change. The Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate.
