Unsecured Car Loans
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Australia’s unsecured car finance experts
If you’re looking for a car loan to buy a new or used car, it’s important to explore all your finance options. One of those options is an unsecured car loan. Read on to find out everything you need to know about unsecured car loans, including their pros, cons and answers to FAQs.
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What Is An Unsecured Car Loan?
Advantages Of Unsecured Car Loans
Unsecured car finance has both pros and cons. Let’s look at the advantages first.
- The application process can be simpler and faster because the lender doesn’t have to register their interest in the vehicle on the Personal Property Securities Register (PPSR).
- You may be able to negotiate more flexible repayment terms and conditions.
- There may be less restrictions on the age of the vehicle you can buy because it’s not being used as security for the loan. You therefore may have a wider choice of used cars to buy if you take out an unsecured loan.
Disadvantages Of Unsecured Car Loans
- They have higher interest rates than secured loans because lenders view them as being higher risk.
- Not all lenders offer unsecured car finance.
Can I Buy The Unsecured Vehicle From A Private Individual?
If you are buying a used car privately from an individual rather than a car dealer, you should check the ppsr to make sure there is no money owing on the vehicle. do this before you hand over any money to the car seller.
If you don’t and you take out a loan to buy the vehicle, the seller’s lender can repossess the vehicle. they will do this if the seller doesn’t use the money you pay for the car to repay their loan.
The best way to avoid this scenario is to get a payout figure from the seller’s lender and to split the agreed selling price into two transfers – one to pay out the seller’s lender and the remainder to the seller.
Can I Get Unsecured Car Finance?
Not all lenders offer unsecured car finance, so it’s best to talk to an unsecured car finance broker to find out the ones you do. Our expert team of brokers at National Loans can save you time and hassle.
We have a panel of unsecured finance lenders, and we look for the best unsecured car loans Australia has to offer for our car buying clients. We can also help you with unsecured car loan comparisons.
The main concern of any lender when you apply for unsecured car finance is that you will make your repayments. The best way to convince a lender of that is to have a good credit score and to demonstrate that you can afford your repayments.
How Do I Apply For Unsecured Car Finance?
- Proof of employment / income (e.g. your most recent payslips or tax returns),
- Details of the amount you want to borrow,
- Details of the vehicle you want to buy (unless you get a loan pre-approval, see below).
- Knowledge of the value of your current assets (what you own) and liabilities (what you owe), and a budget of your monthly expenses to demonstrate that you can afford your repayments.
Use Our Unsecured Car Loan Calculator
You can use our unsecured car finance calculator to help you work out your regular repayments for different loan amounts over different loan terms at different interest rates.
If you want to reduce your regular repayments, you can increase your loan term (for example, from 5 to 7 years). You could also include a balloon payment (a single large payment) at the end of the loan term, provided that you budget for it.
If you want to own your car sooner, you can reduce your loan term by making higher regular repayments if you can afford them.
You can also save interest by dividing your monthly repayments by four and making them weekly instead.
Get Unsecured Car Finance Pre-Approval
Getting an unsecured car loan pre-approval before you start looking for a car can be a very smart move. It will let you know the value of the car you can afford, so you don’t waste time looking at any vehicles that are outside your price range. You can apply for an unsecured car loan pre-approval
Or if you’d like to find out more about different car finance options, you can read more about personal car finance here, commercial vehicle finance here, and classic car finance here.
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At National Loans, we make borrowing simple. As trusted experts in loans and asset finance, we partner with Australia’s leading lenders to secure low-rate loans and fast approvals.
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FAQs
Can you help me find a car ?
Yes, we have fantastic relationships with a large number of car dealers , giving us access to fleet pricing on new vehicles and a large selection of used cars.
Who can Apply ?
How long does the application take ?
This is dependant on your circumstances. After receiving any supporting documents we may need, in most cases we can have an approval in 1 hour.
What if I don’t want to apply for a loan online ?
That’s absolutely fine, give our friendly team a call on 1300 358 358.
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