Secured Car Loans

Use Mozo’s handy comparison table below to find a great secured car loan to fund your next set of wheels. Compare repayments now.

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secured car loans

Secured car loan comparisons on Mozo - last updated 19 March 2024

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  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.

    Compare
    Details
  • New Car Loan - Special

    Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.74% p.a.
    8.85% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Extra low rate for qualifying homeowners. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 7.74% would cost $37,153.94 including fees.

    Compare
    Details
  • Used Car Loan

    Fixed, Secured, No vehicle age limit

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $75,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.09% p.a.
    8.21% p.a.based on $30,000
    over 5 years

    Eligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers. Early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 7.09% would cost $36,598.64 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Used Car Loan

    Up to 5 years old, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.74% p.a.
    8.85% p.a.based on $30,000
    over 5 years

    Used Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 7.74% would cost $37,153.94 including fees.

    Compare
    Details
  • Clean Green Car Loan

    New or Used, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.29% p.a.
    8.41% p.a.based on $30,000
    over 5 years

    Get a 1% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 7.29% would cost $36,768.95 including fees.

    Compare
    Details
  • Clean Green Car Loan

    Home Owner, New or Used, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.09% p.a.
    7.21% p.a.based on $30,000
    over 5 years

    Get a 1% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.09% would cost $35,754.42 including fees.

    Compare
    Details
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^See information about the Mozo Experts Choice Car loans Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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Reviews, news, tips and guides to help find the best car loan for you.

Secured car loan must knows

Did you know you can use the vehicle you're purchasing as security for a car loan?

In return the lender will give you a better interest rate and lower fees, saving you big bucks over the life of your loan - this is called a secured car loan.

While it may sound like a great option, before you commit, here are a few things to keep in mind:

1. Secured loans put your assets at risk

The reason lenders  reserve their best car loan deals for borrowers who use their car as security for a personal loan is because they know if you fail to repay the loan, they can sell your car and get their money back.

That's why before you take out a secured loan you should always do your sums to
ensure the ongoing repayments won't be too much of a money drain on
your finances. Our car loan repayments calculator will help you figure out the right loan amount for your situation.

If you're not comfortable with putting your new car in direct risk, you can opt for an unsecured loan, which doesn't mean you have to legally give up your car to the lender if you default on the loan. But they could still chase you in court to regain their loss and your credit  rating will be impacted negatively.


2. The car will need to be fairly new

Generally speaking, if you want to use the car you're purchasing as security, the
lender will require the car to be no more than 5 years old. This is  because if the lender needs to sell the car, they will want to ensure that they get enough money back to cover their loss, which can be more difficult with older cars.

3. You can borrow larger amounts

Has that new Porsche 911 caught your eye? Well, if you own a property you
can also use this asset as security for a car loan and the provider will be more inclined to lend you a larger amount (with many offering secured car loans with maximum borrowing amounts of $100,000 and over), as you're deemed a lower risk.
But of course, just like using the car you are buying as collateral, using your home as security will put it at risk if you're unable to service the car loan.


4. Providers will require you to have comprehensive cover

Also keep in mind that many banks will require you to take out comprehensive
car insurance (which covers damage to your car, other people's car and
property etc) to be eligible for a secured loan. But when you consider
that you'll be covered for all those unforeseen mishaps on the road,
this isn't necessarily a bad thing.

Comprehensive car insurance

5. Once you’ve paid off the loan the collateral is lifted

The great thing is if you diligently repay your car loan on time each month
and in full, you will pay off the secured loan in the agreed timeframe,
the security over your asset will be removed and those new wheels are
officially all yours.

What should I look for in a secured car loan?

Now that you've read our secured loan must knows, here are some of the things you should consider when choosing a car loan.

  • Fixed vs variable: Car loans come with two different interest rates. A fixed rate will mean the interest rate stays the same over the life of the loan, giving you the security of set monthly repayments. On the other hand, a variable rate can change at any time so your repayments could go up or down. The reason many borrowers choose loans with variable rates is because they are generally lower than fixed.
  • Fee free extra repayments: While you might decide to take out a car loan for a lengthy period, with the handy feature of an extra repayments facility you could vastly reduce that timeframe by putting extra money towards your loan, for instance when you receive a sizeable tax return or work related bonus. On a $20,000 car loan with a 15% interest rate paid back over 5 years, if you made a monthly extra repayment of $200 you would save $3,418 in interest and reduce the life of your loan by 1 year and 10 months.
  • Redraw facility: Another feature that could come in handy is a redraw facility, allowing you to draw on any extra repayments you've made. However a word of caution applies here as any money you take out of your car loan will increase the length of the loan and the total interest you pay.
  • Flexible repayments: We would also recommend choosing a car loan that lets you select what your repayment cycle will be - weekly, fortnightly or monthly. Selecting the weekly or fortnightly option is a savvy way to get ahead on your repayments, as by dividing your monthly repayment into two fortnightly repayments or four weekly repayments you will effectively make an extra month's repayment each year without even noticing it.
  • What’s the difference between an unsecured and secured car loan?

    Car loans aren’t all alike, and it’s worth knowing the difference because it could save you money. Unsecured loans tend to come with higher interest rates because the loan isn’t secured against an asset, while secured car loans often have more competitive rates because they’re secured against the vehicle you’re purchasing or
    other asset like your property.   

    That means if you are in a position to take out a secured car loan to purchase your vehicle, you could end up saving money in the long run!

    How do I apply for a secured car loan?

    Found the right loan for you? Well not only is it fast to apply for a secured car loan online, it’s easy too. Whether you're looking for a new car loan or a used car loan just remember that you may need a few bits of information to complete
    a secured car loan application including personal, income and other
    financial details.

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JP Pelosi
RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs about secured car loans

Do secured car loans have fees?

Yes, here are some to watch out for:

Upfront fees: Many car loan providers will charge an application or upfront fee for processing your application, which will usually be from $100-$500.

Ongoing fees: Another fee that you may be charged is an ongoing fee every month that is generally from $5-$10. While it might be a small fee, over a 5 year period a $10 monthly fee will end up costing you $600. Thankfully, there are many car loans out there that charge no ongoing fees at all, so keep your eyes peeled when you start your comparison.

Breakcost fees: If you decide to lock in a fixed interest rate with your car loan, make sure you check that it is free of breakcost fees for paying out the loan early.

How do I compare secured car loan deals?

With Mozo's car loan tools and calculators of course, including our:

  • Secured car loan comparison table: If you’ve decided that a secured loan is the right pick for you, at the top of this page you’ll find a table that compares some of the top secured car loan deals around.
  • Car loan search tool: Or use our search tool, that allows you to compare our entire car loan database, including banks, credit unions and building societies here.
  • Switch & Save Calculator: Do you currently have a car loan you’re not happy with? If you sighed yes, have a play with our Switch & Save Calculator, which will show you how much you could save by refinancing to another deal.
  • Car loan comparison calculator: Once you’ve shortlisted a few car loans that tick the boxes for you, compare them side by side with our car loan comparison calculator. We’ll show you which one is better value for money in seconds!

Keen to jump in? Check and and compare car loan, or if you already have secured loan, maybe you'll want to suss out a car loan refinance.

Car Loan Reviews

ANZ Unsecured Personal Loan
Overall 7/10
The bank is very useful and helpful.

The bank is very useful and helpful.

Read full review

The bank is very useful and helpful.

Price
8/10
Features
8/10
Customer service
8/10
Convenience
8/10
Trust
8/10
Less
Leah, Victoria, reviewed 5 days ago
Pepper Money Secured Loan
Overall 4/10
Not been understanding

I have car loan, they are mostly terrible to deal with they have no empathy towards there customers, they not wanting to understand there customers, I care about is getting money

Read full review

I have car loan, they are mostly terrible to deal with they have no empathy towards there customers, they not wanting to understand there customers, I care about is getting money

Price
4/10
Features
2/10
Customer service
1/10
Convenience
3/10
Trust
2/10
Less
Pete, Tasmania, reviewed about 4 hours ago
Latitude Car Loan
Overall 1/10
Still waiting 4 months for them to update Experian

Paid $10k in advance payment on my car loan. 4 months later and Latitude STILL hasn't updated the correct figure with Experian so my ability to get business credit is restricted and potential reason for my credit rejection. Come on Latitude, your 4 months late. Bet you wouldn't wait 4 months for a payment.

Read full review

Paid $10k in advance payment on my car loan. 4 months later and Latitude STILL hasn't updated the correct figure with Experian so my ability to get business credit is restricted and potential reason for my credit rejection. Come on Latitude, your 4 months late. Bet you wouldn't wait 4 months for a payment.

Price
9/10
Features
7/10
Customer service
1/10
Convenience
1/10
Trust
2/10
Less
Lloyd, Queensland, reviewed about 2 hours ago

More car loan reviews