Car Loans for PAYG people

(Employed)

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.

Advantages

  • Cheaper interest rate, as the car is secured the rates are sometimes half of that of a personal loan.

Disadvantages

  • Penalty for early payout.
  • Bank takes security over the car; If a bank takes security over the car and the customer fails to pay it, the bank will then take the car back and sell it to recoup its costs.

Personal Loan

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.

Contact your qualified lending experts today, to guide you through your lending journey.