Secured Car Loan
Finance Monster – an online comparison service that covers all type of loans including secured and unsecured car loans.
Read on to find more information about secured car loans and how Finance Monster can help you find one of the best secured car loan for you and your situation.
What’s a secured car Loan?
Using a secured car loan is the most common way to purchase a car in todays market. Secured car loans are where funds are provided by a financial institution specifically for the purchase of a car. The car is collateral for the loan, meaning that the lender takes an interest in the car. If a borrower defaults on loan repayments the car may be repossessed to recover all or part of the loan.
The majority of secured car finance will provide similar terms and secured car loan rates. You will often have a fixed interest rate as well as a fixed payment plan over the life of the loan (for example, 5 years).
What are the advantages of a secured car loan?
Secured car loans can enable a borrower to enjoy the great secured car loan rates for a number of reasons:
Flexible Payment Terms – because the lender has an asset to balance the loan against, borrowers can enjoy flexibility in payment terms and how and when the loan is paid back.
Lower Interest Rates – Borrowers can often enjoy a much lower interest rate based solely on the fact the Lender has the car loan secured by the car itself which is available to them if the loan defaults.
Lower Income Requirements – Lenders will be less likely to hound borrowers for evidence of their income stream if they have secured collateral against the loan. This may be useful for borrowers with a freelance income or those without a fixed 12 month paycheck!
What are the disadvantages of a secured car loan?
The primary disadvantage of secured car loans is that if the borrower fails to make payments on their loan they will lose the new car itself (if this used as security for the car loan) and it will be repossessed. It’s also important to consider:
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Long Terms – A secured car loan on a longer term means the problem of inflation can take a tole. This can also mean payments are made over a long period of time, well after the car has retired.
The age of your car will affect its resale value – If your car is sold for less than you owe, you can end up having to pay the credit provider the difference.
Secured Car Loans with Finance Monster
Finance Monster is your one shop stop for comparing car loans across many of Australia’s top financial institutions and giving you the opportunity to find the best secured car loan rates for you! Finance Monster won’t be lending you any money, but we will do our best to find the right lenders with the most competitive secure car loan rates so you can sit back, relax and be assured that you’ve got the right loan for you.
Free Tank of Fuel*
Free Tank of Fuel valued at $75 AUD with every Car loan over $20,000. That should really get the motor going!
Free Finance Monster Tank of Fuel Reward Terms & Conditions
- Free Tank of Fuel is $75 dollars pre loaded onto a Fuel Card.
- Free Tank of Fuel is rewarded on Personal Loans or Car Loans over $20,000
- Fuel Card will be sent to customer after settlement of loan.