secured car loans

Secured Car Loans

With a secured car loan you can borrow against the asset (your car) and get a lower interest rate in return. With this built in ‘security blanket’, a secured car loan might also mean you can borrow a higher amount. Use Mozo’s handy comparison table below to find a great secured car loan to fund your next set of wheels. Compare repayments now.

Fact Checked

Secured car loan comparisons on Mozo - last updated 18 May 2022

Search promoted car loans below or do a full Mozo database search. Advertiser disclosure
  • New Car Loan - Prime Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    3.24% p.a.
    3.53% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Extra low 2.99% rate (3.53 comparison rate*) for qualifying homeowners. Personalised loan amounts between $5,000 and $100,000. Flexible repayment options. Choose between the 3 to 5 year loan terms.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 3.24% would cost $32,935.97 including fees.

    Compare
    Details
  • Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.
    5.65% p.a.based on $30,000
    over 5 years

    Available for all New and Used cars up to 7 years. A quick and easy, 100% online application with loans up to $75,000. No printing. No paper. No fuss. No monthly account keeping fees, no exit fees and no early repayment fees.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,507.61 including fees.

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    Details
  • Used Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    6.94% p.a.based on $30,000
    over 5 years

    Enjoy a quick application process and no monthly fees on NRMA used car loans. Finance also available motorcycles, caravans and motorhomes. Low fixed interest rates with terms of up to seven years. Plus, NRMA Blue Member benefits apply so you could enjoy even lower rates as an NRMA Member**.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,499.27 including fees.

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    Details
  • New Car Loan - Prime Special

    Home Owner Discount, Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.09% p.a.
    5.64% 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. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.09% would cost $34,442.49 including fees.

    Compare
    Details
  • Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.to 10.29% p.a.
    6.54% p.a.to 10.86% p.a.based on $30,000
    over 5 years

    Enjoy competitively low rate car loans from 4.89% (comparison rate 5.44% p.a.) between $10,000 and $100,000 for new, demo and used vehicles. Take advantage of flexible 3, 5 or 7 year loan terms. No early repayment or exit fees. You must be 21 years or over to qualify and earn above $35,000.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,189.67 including fees.

    Compare
    Details
  • Used Car Loan

    Dealer Only, Up to 5 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.59% p.a.
    7.14% 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.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.59% would cost $35,695.00 including fees.

    Compare
    Details
  • Clean Green Car Loan

    New or Used, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.89% p.a.
    6.44% p.a.based on $30,000
    over 5 years

    No monthly or ongoing fees. Get a 0.70% 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^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.89% would cost $35,107.05 including fees.

    Compare
    Details
  • Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    6.79% p.a.
    7.16% p.a.based on $30,000
    over 5 years

    Reach your goal sooner without being penalised with $0 early payout fee. $0 monthly fees. Choose to make either monthly, fortnightly or weekly repayments to suit your income and budget. Winners of Australia's Best Large Credit Union in 2020.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.79% would cost $35,729.09 including fees.

    Compare
    Details
  • Car Loan

    Up to 5 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    4.89% p.a.
    5.53% p.a.based on $30,000
    over 5 years

    Purchase or refinance a new or used vehicle, up to five years old. Choose a loan term from one to seven years. To be eligible you must be over 18, receiving a regular income and an Australian resident.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 4.89% would cost $34,377.58 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.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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FAQ

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
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

Pepper Money Secured Loan
Overall 1/10
Terrible Service, would never recommend.

Very difficult to deal with. Unreliable with debiting payments- they change dates randomly without notice. I am ahead on payments and yet they have taken extra payments randomly on more than one occasion- they admit to the mistakes but then don’t know how to fix it. This time they transferred me to 3 different people who all didn’t know. I felt they were just stalling hoping I would give up. Terrible service, looking forward to not using them in the future.

Read full review

Very difficult to deal with. Unreliable with debiting payments- they change dates randomly without notice. I am ahead on payments and yet they have taken extra payments randomly on more than one occasion- they admit to the mistakes but then don’t know how to fix it. This time they transferred me to 3 different people who all didn’t know. I felt they were just stalling hoping I would give up. Terrible service, looking forward to not using them in the future.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Lauren, Queensland, reviewed 3 months ago
RAC Car Loan
Overall 1/10
Don't do it! Worst finance I have ever used!

Applied for a car loan, got it. The day I went to sign they advised me that they had made a mistake and my car was a couple of months out of their age limit, and I'd have to do a personal loan instead. I had already removed my plates ready for my trade in and arranged everything so I felt like I still had to go ahead. This is now costing me an extra $110 a fortnight and I am LIVID. I called them once to arrange a new direct debit date, and was told it was done but they didn't change it, so I was charged a fee for a failed direct debit and they repeatedly spam called me and emailed me being very rude. Absolute joke of a company- AVOID AVOID AVOID!!

Read full review

Applied for a car loan, got it. The day I went to sign they advised me that they had made a mistake and my car was a couple of months out of their age limit, and I'd have to do a personal loan instead. I had already removed my plates ready for my trade in and arranged everything so I felt like I still had to go ahead. This is now costing me an extra $110 a fortnight and I am LIVID. I called them once to arrange a new direct debit date, and was told it was done but they didn't change it, so I was charged a fee for a failed direct debit and they repeatedly spam called me and emailed me being very rude. Absolute joke of a company- AVOID AVOID AVOID!!

Price
1/10
Features
3/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Tash, Western Australia, reviewed 3 months ago
Pepper Money Car Loan
Overall 10/10
Overall fantastic service

Fantastic service….very quick decisions and extremely great customer service A+++++

Read full review

Fantastic service….very quick decisions and extremely great customer service A+++++

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Robert, Victoria, reviewed 3 months ago

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