Secured Car Loans

What is a secured car loan?

A secured car loan is also known as a consumer car loan.  This type of loan is a common way to finance a vehicle purchase when working for wages. A secured car loan works very much like any ordinary loan. That is, the funds are used to purchase a car and then you pay off the loan by making regular repayments over a set time frame.

What makes it 'secured', is the fact that you back up the loan with an asset,  usually the car itself.  This means that if for some reasons you cannot make your car loan repayments, the car would be repossessed by the lender and sold to repay the loan.  Having the loan secured gives the lender more confidence when providing you with car finance.

What are the benefits of a secured car loan?

There are many advantages to taking out a secured car loan.

Lower interest rates - Because a secured car loan is less risky for the lender, they usually offer reduced interest rates on the loan. This results in a lower cost to you in the long run.

Fixed interest rates - The interest rates and loan repayments are fixed for the term of the loan. This makes it easier for you to plan your budget without worrying about unpredictable, changing rates. Repayments can be set up to be weekly, fortnightly or monthly depending on your circumstances. For example, if you are paid fortnightly we set up the direct debit payments to come out a day or two after your payday.

Cover - Up to 100 per cent of the buy price, accessories and insurance can be covered under finance. This means you might not need a deposit and can hit the ground running without needing cash on hand.

Ownership - The moment the purchase goes through, the new vehicle is yours. This means even as you pay it off, you'll have it to drive around and use to your heart's content. It will stay yours for as long as you can make the repayments. Also, because the car is yours, you can sell it at any time - even if you haven't finished paying for it yet. The sale proceeds are used to clear the debt.

Pay off at any time - Get a pay rise? Come across some extra money? Unlike many other types of loans, a secured car loan can be paid off early. And the sooner your loan is paid off, the cheaper it is for you.

Secured Car Loan

What are the potential disadvantages?

There are certain disadvantages you should be aware of before taking out a secured car loan:

Impulse buy - As a secured car loan can help finance the entirety of your purchase, the borrower won't feel the pinch of the buy immediately. Without having to put down a deposit, it's easy for someone to make an impulse decision without taking into account other variables. If something unexpected happens to the borrower, like a loss of job or a rise in expenses, the repayments could be tricky to manage.

Losing your car - On the rare occasion you can't make the repayments, the vehicle will be sold off to pay off the debt. If the asset's sale isn't enough to cover the remaining loan, the borrower will have to fork out the rest. This is something to keep in mind before choosing a secured car loan.

We have the solution ...

Loan protection insurance is a cover that protects you from both of the possible scenarios above.  Talk to one of our friendly team to learn how to avoid the unexpected.

How much will a secured car loan cost me?

Think you might be interested, but your not sure whether you'll be able to make the repayments? It's always good to have a look at the hard numbers. Our easy-to-use car loan calculator is a great tool to examine your options and see how much it will cost to get car finance.  Just enter how much money you think you'll need, how long you want to take to pay it off and an 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.

Insurance options

Once you have your new car, you'll want to make sure its protected. There are a wide range of insurance products, including comprehensive car insurance, tyre and rim insurance, loan protection insurance, as well as extended warranties.

Useful Link

If you are after a step by step guide to buying a used car check out the Choice Used Car Buying Guide.


* 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 9/11/2023 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.

John Shanahan
John Shanahan
3 May 2023
We worked with Jason to arrange finance for our Austrack van. Jason's service, knowledge and understanding was fantastic. Great outcome and can't wait to get into our van! Thanks Jase.
Robbie Amhaz
Robbie Amhaz
10 March 2023
I Have been with AAA for many years now and they have always been my go too broker for personal loans. Peter & Jason always go the extra mile for me as a client and their rates & fees are competitive. We recently purchased a brand-new car and AAA got us the loan we wanted and at the right interest rate. Excellent service and industry knowledge. Thanks Again Robbie Amhaz
Paul Mansell
Paul Mansell
18 August 2022
These guys go above and beyond. I would recommend them to anyone.
Wayne Jones
Wayne Jones
27 July 2022
Warwick provided a very simple platform to execute our business with him,nothing was a issue and he was very prompt getting back to us or returning calls,highly recommend AAA Finance
11 July 2022
The team at AAA made the finance application process incredibly smooth and stress-free, handling all of the otherwise difficult paperwork with the lender and seller. We have used them multiple times now and have never been disappointed!
Lyndon D
Lyndon D
9 December 2021
We had Jaime as our broker and wow! She did such a great job. 10/10 customer service! Answered every question, gave us all the advice we needed. Can’t fault anything at all. Thank you Jaime !
Bianca Bloomfield
Bianca Bloomfield
9 November 2021
These guys were fantastic ! - Jaime was prompt, professional and kept me in the loop while the finance boxs were ticked in the background. This was all done very quickly and they were super competitive in the market, which was awesome, when there was additional requirements she was straight on the phone-Highly recommend !!
Larna Kerswell
Larna Kerswell
14 October 2021
Warwick at AAA Finance was so easy and great to deal with. He was patient and helpful with us every step of the way. We would recommend them to anyone looking around for finance. Thank you so mauch Warwick and AAA Finance.
Donna Joy
Donna Joy
23 September 2021
I was very happy with the excellent service given by Sam Sharpe. He was helpful, polite and easy to understand. Thanks Sam 😃
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