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Secured Car Loans

A secured car loan is a smart way to finance your dream car while keeping your interest rates low. Enjoy competitive rates and flexible terms that make owning a car more affordable.

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Home Car Finance Secured Car Loan

What is a secured car loan?

A secured car loan is a type of financing where the car you’re purchasing is used as collateral for the loan. This setup gives lenders added security, allowing them to offer lower interest rates compared to unsecured loans. With a secured car loan, you’ll get the funds you need to buy your car, plus the peace of mind of manageable repayments.

Secured Car Loan Calculator

What are my repayments?

How much can I borrow?

At today's lowest car finance rate of 5.90%,

you will pay approximately ...

$142.49
Apply Online Now

At today's lowest car finance rate of 5.90%,

you can borrow approximately ...

$28,128.85
Apply Online Now

The information which you calculate from this Calculator is intended for use by you as a guide only. See more in our Disclaimer.

It is not an offer and has no legal effect on any contracts entered into by you ‘ the client’. This simulation and the resulting calculations do not constitute a loan application or offer. The figures and formulae used within this calculator may change at any time without notice.Should you apply for any Credit One product, we will make our own calculations and we will not necessarily take your calculations into account. All Interest rates are displayed ‘are guides ONLY’, repayments as a result of this simulation have no legal offering.Credit One accepts no responsibility for any losses arising from any use of or reliance upon any calculations or conclusions reached using the calculator.Information provided on this calculator does not constitute an offer of finance. Any loan request is subject to assessment against normal lending criteria. Fees and charges may apply. This calculation does not take into account any fees, charges or government taxes which may apply to either the calculation of the loan amount or the monthly repayments, such as GST or Luxury Car Tax (where applicable).

How does a secured car loan work?

With a secured car loan, the lender provides the funds to purchase your car, and the vehicle itself is used as collateral. Once the loan is approved, you can buy the car and start making regular repayments. The lender holds an interest in the car until the loan is fully paid off.

This structure reduces the risk for the lender, which is why secured loans typically come with lower interest rates. Our team will guide you through the process, ensuring your loan is set up to suit your budget and lifestyle.

What are the benefits of choosing a secured car loan at Credit One?

A secured car loan from Credit One offers a range of advantages to make your car-buying journey easier:

  • Lower Interest Rates: By using your car as collateral, you can access some of the most competitive rates available.
  • Flexible Terms: We work with you to tailor the loan term and repayment schedule to suit your budget and financial goals.
  • Fast Approval: Our streamlined process means you can get approved quickly and hit the road sooner.
  • Wide Lender Network: With access to Australia’s leading lenders, we’ll find the best loan option for your needs.

At Credit One, we’re here to help you get the car you want with a loan that fits your life. Let us make the process simple and stress-free.

Why Choose Credit One

Convenience

We compare your financial needs with all of the lenders on our extensive panel to find the best option for you and your individual circumstances.

We compare your financial needs with all of the lenders on our extensive panel to find the best option for you and your individual circumstances.

Choice

We have established relationships with over 40 of Australia's most trusted lenders, including major banks and lenders not available directly to the general public.

We have established relationships with over 40 of Australia's most trusted lenders.

Flexibility

Our premium finance solutions incorporate low establishment fees, no ongoing fees, bank-beating interest rates. We can tailor a finance package to suit your needs.

Our finance solutions incorporate low establishment fees, no ongoing fees, bank-beating rates.

No Waiting

Credit One offers 60 Seconds Online Finance Quotes as well as same day approvals using our simple, obligation-free Online Finance Applications.

Credit One offers 60 Seconds Online Finance Quotes and same day approvals.

Service

Our Finance Consultants are available 7 days a week for your convenience, give us a call today on 1300 CREDIT (1300 273 348) or request a call back.

Our Finance Consultants are available 7 days a week for your convenience.

Confidence

We provide independent and unbiased service to get the best finance solution for you, that's why Credit One have been named "Broker of the Year" 3 years in a row.

We provide independent and unbiased service to get the best finance solution for you with a 25 year history of providing great low rate finance packages. You're in good hands!

Car Finance Options at Credit One

Couple buying red car

Secured Car Loan

A secured car loan is a type of financing where the lender provides funds to purchase a vehicle and uses the car as collateral for the loan. These often have the lowest interest rates due to the reduced risk for the lender.

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Couple buying red car

Unsecured Car Loan

An unsecured car loan allows you to borrow funds without offering the car or any other asset as collateral. This allows flexibility on what car you would like to purchase without any collateral guidelines form the lender. Credit One works with lenders to help you secure an unsecured loan with competitive rates tailored to your needs.

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Salesman selling a car

Private Sale Car Loan

Credit One can help you find a financing solution for all private sale purchases! We won't discriminate if you have found a great deal with a private seller, and what's more, we provide you with great rates and excellent service. We can do secured or unsecured finance for Private Sales.

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Blue car driving inside tunnel

Personal Loan

Need a new car, a much-needed holiday, funding for your dream wedding, or to take control of your finances by consolidating your debts? Credit One can assist with a personal loan to help you get what you want without waiting.

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Man in suit opening black car

Chattel Mortgage

A chattel mortgage is a business finance product where the financier provides funds for the customer who takes ownership of the vehicle at the time of purchase. The financier takes security “mortgage” over the vehicle. Once the loan is completed, the financier releases the security over the vehicle.

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Couple buying new car

Novated Lease

A novated lease is an agreement between you, your employer, and a lender that allows you to finance a car using your pre-tax salary. Save on tax while simplifying car ownership through bundling of running costs.

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Couple buying new car

Hire Purchase

A hire purchase agreement allows business owners to rent the goods through regular instalments with an option to purchase at the end of the hire period. Ownership transfers to the business after the final payment/purchase.

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Common Questions about Secured Car Loans

How is a secured car loan different from an unsecured car loan?

A secured car loan uses the car you’re purchasing as collateral, which lowers the lender's risk and often results in lower interest rates. An unsecured car loan doesn’t require collateral, making it more flexible but typically more expensive in terms of interest rates.


How does a secured loan impact my credit score?

Making regular, on-time payments on a secured car loan can positively impact your credit score by showing responsible borrowing behaviour. However, missed payments or defaults could negatively affect your credit score, so it’s important to choose a repayment plan that fits your budget.


What happens if I can’t make my loan repayments?

If you’re struggling to make repayments, it’s important to contact your lender as soon as possible. They may be able to adjust your loan terms or provide temporary relief. Ignoring repayment issues could result in late fees, a negative impact on your credit score, or even repossession of your car.


Can the lender repossess my car if I default on the loan?

Yes, if you default on a secured car loan, the lender has the right to repossess the car to recover the outstanding debt. This is a last resort, and most lenders will work with you to find a solution before taking this step.


Is the car the only asset being used as collateral for a secured car loan?

Yes, in most cases, the car you’re purchasing is the only asset used as collateral. This means that other personal assets, like your home or savings, are not at risk with a secured car loan.

Will I own the car outright during the loan term, or only after repayment?

While the car is yours to use during the loan term, the lender holds an interest in it until the loan is fully repaid. Once you’ve made your final repayment, ownership of the car is completely yours.


What happens if the car is damaged or written off while the secured car loan is still active?

If the car is damaged or written off, your insurance policy should cover the repair or replacement costs. However, you’re still responsible for repaying the loan. It’s important to have comprehensive car insurance in place to protect yourself and the lender in the event of an accident.


Are there restrictions on the type or age of car I can buy with a secured loan?

Yes, most lenders have restrictions on the type and age of the car for secured car loans. Typically, the car must meet specific criteria, such as being under a certain age (e.g., less than 10 years old) and in good condition. At Credit One, we’ll help you find lenders that match your needs and vehicle choice.


Does a secured car loan have lower interest rates compared to unsecured car loan options?

Yes, secured car loans generally offer lower interest rates because the car is used as collateral, reducing the lender’s risk. This makes secured loans a cost-effective choice for financing your vehicle.


Can I pay off a secured car loan early without penalties?

Many lenders allow early repayments, but some may charge a fee for paying off the loan early. At Credit One, we’ll ensure you’re aware of any potential penalties and help you choose a loan with terms that work best for you.

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