Car Loans for PAYG people
Secured Car Loan
A secured car loan is very similar to home loan where the bank/lender takes security of the car you are buying in exchange for a cheaper interest rate.
All car loans are fixed rate loans and terms that vary from 1 to 7 years but are typically 5 years.
This is the most common car loan product for people on wages.
If the car you are purchasing is older than 7 years or less than $10,000 the loan would typically be a personal loan.
A personal loan is not secured and therefore attracts a higher interest rate but has the freedom of not being secured.
Personal loans can be fixed or variable rates loans therefor extra repayments can be made without penalty.