Secured car loan

What is a secured car loan?

A secured car loan might suit you if:

• You use your vehicle predominantly for personal use

• You can’t qualify for a novated lease or a chattel mortgage

• You don’t want to (or can’t afford to) buy your vehicle outright

The product is flexible – you can pick your preferred loan term (from 12 to 84 months) and decide if you want a balance remaining at the end of your loan, to lower repayments (called the ‘residual value’). These levers can help you set your fixed monthly repayments to suit your budget.

How a secured car loan works

A secured car loan is fairly straightforward:

1. You borrow money from a lender (they purchase the vehicle for you) 

2. You take ownership of the vehicle from the outset, but the lender has the right to take the vehicle back if you don’t make the payments

3. Once you complete the term and pay off the loan amount, the car is yours to keep (and you have a few options – more on this below)

One way to save money with a secured car loan

As with novated leasing, if you’re looking to get a new vehicle, you can access wholesale pricing through our fleet network. We buy thousands of cars a year, and you can piggyback our buying power to access pricing a lot cheaper than the showroom ticket price – potentially saving you thousands. Whilst this doesn’t apply to used cars, the savings could be attractive enough for you to consider buying new – especially when a new car comes with full warranty and a stronger resale value.

The end of the lease

Once your lease is complete and you’ve paid off any outstanding balance, the vehicle is yours to keep. Where you sell your car and make a profit, it’s yours to keep, tax free.