Explore secured car finance options, estimate your repayments and compare finance options that may suit your circumstances.
Securing a loan with the car you buy is one of the easiest ways to unlock lower interest rates and boost your borrowing power. Explore how secured it works, compare key features, and estimate your repayments to find the right finance option.
A secured car loan uses the vehicle you’re buying as security for the money you borrow. You repay the loan, plus interest and applicable fees, over an agreed term. If you don’t meet the repayments, the lender may be able to repossess and sell the vehicle to recover the money owed.
According to Mordor Intelligence, secured auto loans accounted for 48.76% of Australia’s automotive financing market in 2025, highlighting their significant role in vehicle finance.
At LoanCalculator.com.au, you can calculate your potential car loan repayments and explore personalised finance options. This can help you get a clearer idea of what your repayments may look like before choosing a loan.
With this type of finance, the vehicle is tied to the finance agreement, which means the lender has an interest in the car until the loan is paid off. Here’s what this means for your repayments, loan term and responsibilities:
Your borrowing amount depends on your income, expenses, the car’s value and the lender’s criteria. Car finance amounts can range from $5,000 to $200,000, depending on your circumstances.
Let’s say you find a car priced at $30,000 and deposit $5,000. You only need to borrow the remaining $25,000, provided you meet the lender’s approval requirements and lending criteria.
Before applying, running your figures through an online calculator can help you test different loan terms and interest rates to ensure the repayments fit neatly into your monthly budget.
Using your car as security may suit you if you are comfortable using your vehicle as security and want to finance a car purchase.
Here are some potential benefits to consider.
Spreading the cost of your car through regular repayments can make a vehicle purchase easier to manage. This can be useful when paying the full purchase price upfront would put too much pressure on your savings.
Regular repayments give you a set amount to plan for each week, fortnight or month. Knowing this cost upfront can help you balance your car finance with rent, bills and everyday expenses.
A secured loan may come with a lower interest rate because your car provides security for the lender. A lower rate could mean less interest paid over the life of the loan, depending on the offer and your circumstances.
Looking beyond the advertised interest rate can help you understand the real cost of borrowing. Checking fees, the comparison rate and loan term gives you a clearer view before committing.
Whether you are looking at a new family car or a reliable used vehicle, secured finance may be available for eligible cars. The vehicle's age, value and condition can influence the finance options available to you.
A loan term can be chosen based on the repayment amount that works with your budget and the lender's available options. Remember that extending the term may lower each repayment but increase the total interest paid.
When you’re comparing car finance, one of the main decisions is whether to use a secured or unsecured loan. The key difference is whether the car is used as security for the loan.
| Feature | Secured Car Loan | Unsecured Car Loan |
|---|---|---|
| Security | The car is used as security for the loan | No asset is used as security |
| Interest rate | May have a lower interest rate | May have a higher interest rate |
| Loan amount | Can depend on the value and eligibility of the vehicle | Generally assessed based on your financial situation |
| Vehicle requirements | The lender may have rules around the car’s age, value or condition | No vehicle is used as security |
| Risk | The lender may have rights over the car if you fail to meet your repayments | Your car is not directly tied to the loan |
| Flexibility | Usually intended for an eligible vehicle purchase | May provide more flexibility in how the borrowed money is used |
| Approval criteria | Based on your finances and the vehicle being financed | Mainly based on your income, expenses, debts and credit profile |
A secured loan may suit you if you are comfortable using your car as security, while an unsecured loan doesn’t tie the vehicle to the finance.
The right option depends on your circumstances, borrowing needs and affordable repayments. Use our car loan calculator to compare loan amounts and terms and explore personalised finance options.
Lenders have their own eligibility requirements, so there isn’t one set of criteria that applies to every car loan. Your application will generally be assessed based on your financial position as well as the vehicle you want to finance.
Finding car finance can feel overwhelming. A few simple steps can help you compare options and understand the potential cost.
Estimate the amount you need based on the vehicle price, deposit and what you can comfortably repay.
Review finance options from 40+ reputed lenders and compare rates, terms and repayments.
Provide the required details and documents to apply for finance.
The lender reviews your financial details and the vehicle you want to finance.
If approved, review and accept the loan terms, complete the required documentation and finalise your car purchase.
Comparing car loans shouldn’t mean jumping between bank sites or taking dealership quotes. We simplify the process by letting you look at tailored options across leading Australian lenders, right from home.
Get clear answers to common questions about secured car finance, repayments, eligibility and borrowing.
Generally, yes. Lenders face less risk because the car acts as collateral, allowing them to offer lower interest rates. However, the total cost still depends on the interest rate, fees, and loan term.
Yes, most lenders allow you to pay off your loan ahead of schedule. Just be sure to check your loan agreement first, as some lenders charge an early payout fee or exit fee to cover their costs.
Yes, secured finance may be available for used cars, subject to the lender’s requirements for the vehicle’s age, value and condition.
There’s no single credit score required. Lenders consider your credit history, income, expenses and other factors when assessing your application.
Depending on the lender, you may be able to choose weekly, fortnightly or monthly repayments. Choosing a frequency that matches how often you receive your income can make repayments easier to manage.
Yes. The car’s age, value and condition can affect your eligibility and the finance options available. Some lenders may have age limits or specific requirements for older vehicles.
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