Used car loans are ideal for borrowers looking to fund the purchase of a second-hand car. Whether you're buying your first car or upgrading to something a little bigger, CarLoans.com.au can help you find a competitive rate that suits your needs.
A used car loan is essentially the same as any other car loan, with the key difference that it is specifically to purchase a pre-owned car. The lender will provide the principle to purchase the vehicle under the agreement that you repay the loan amount (either weekly, fortnightly, or monthly) for a certain period of time.
Depending on the the individual lender's requirements, a used car loan typically covers vehicles between 12 months and 7 years old, and can be used for buying used vehicles either from a dealership, privately or at an auction.
Simple, fast online application
Competitive interest rates from a wide range of lending partners
Borrow from $5,000
Flexible repayment options
Buy from a dealership or privately
Loan options for borrowers with bad credit history
Apply online or over the phone with the help of one of our friendly loan specialists.
Once we know your story we’ll find you the ideal loan for your needs and handle the application for you.
We even arrange settlement so all you need to do is pick up your car!
Our experienced car loan specialist will find you the best value chattel mortgage for your situation.
Lenders on our panel are rigorously vetted to ensure they offer excellent value and service, and have high ethical standards.
Loans for anyone who needs a work vehicle including sales reps, tradies or anyone who is mainly using their vehicle for work purposes.
We take the hassle out of getting a chattel loan by doing the hard work for you.
Applying for a used car loan is a simple and easy process with the help of our expert brokers.
To start the application process we'll just need a few key details about the loan itself including how much you want to borrow, the make/model of the car you're looking to buy, the loan term etc, as well as some personal details like your income.
Once we have the right details and you're approved, we'll get to work finding you the best loan from a wide range of lenders and their approval criteria. Our brokers will take care of finding you a competitive used car finance interest rate, as well as the right type of loan to suit your needs.
The next step will be to compare a few options before submitting a formal application which may require additional documents. We'll handle the application, settle on your behalf and then send over the agreement for you to sign.
Different finance options come with different features such as:
The ability to make additional repayments - this can help you repay your loan balance earlier and save you in interest payments over time
Adding a redraw facility which can provide you with flexibility to claim back additional repayments you have made
Balloon payments - balloon payments can help reduce your monthly payments by deferring a portion of the original loan amount to the end of the term as a residual payment
Age restrictions for your preferred vehicle - it's important to double check any limits on how old the car can be, as most lenders will have an upper limit on the age of vehicle they are prepared to lend for
When it comes to used car loans, there's a few things you might want to keep in mind when comparing your options.
A secured car loan simply means the vehicle is the security for the loan, and if you're unable to repay it, the lender will take possession of the vehicle to recoup any losses. While a secured used car loan may have more restrictions, they generally have more competitive rates.
In comparison, with an unsecured used car loan the vehicle isn't used as the security. There also may be more flexibility in terms of the age of the vehicle you can get with an unsecured loan. However, the interest rates are generally higher.
Other factors to consider are the fees of the loan. For example, some used car loans have certain fees associated with them including service fees or additional charges if you pay back the principal too early.
This is why it's important to take note of both the headline interest rate as well as the comparison rate, which takes these additional fees and potential costs into consideration.
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