12 questions you should ask yourself when getting a car loan
There are plenty of questions to ask when buying a car. On one hand, there are those easy ones around the car’s make, model and colour. But what about the car's loan?
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Need a new car? Then you'll probably need a car loan. But with so many options, it can be a challenge to find finance that matches your needs. That's where we come in. We can help you choose from:
Whether you're looking to purchase your dream car, upgrade to something bigger for the family or refinance your existing loan, our team could help. We could even assist you in finding a car plus insurance.
View our full range of car loan options
A personal car loan is a finance product designed to provide funds for the purchase of a motor vehicle. Personal car loans come in a variety of types and can be used to finance a range of vehicles for personal use.
Get moving today and speak to a car loan specialist. Our 20+ years of experience, means we have access to a variety of loans to suit a broad range of financial situations. As a Rapid Finance customer, you'll receive a tailored service that includes:
Let us do the hard work. You just enjoy the ride.
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Please note: This is an estimate provided for illustrative purposes only, and is based on the accuracy of information provided. It does not constitute a quote. Additional fees and charges may apply dependent on your individual circumstances. Fees such as early repayment costs and establishment fees are not accounted for in the examples of weekly repayments. Interest rates may be subject to change throughout the term of the loan.
There are plenty of questions to ask when buying a car. On one hand, there are those easy ones around the car’s make, model and colour. But what about the car's loan?
Read moreChoosing between a personal loan and a car loan can be difficult and confusing. There are many things to consider and getting the right advice could save you a lot of money.
Read morePersonal car loans in Australia come in a range of different types. The most common types include secured car loans, bad credit car loans, and personal loans which are used to purchase a car. Each different type offers unique benefits and potential drawbacks.
For example, a secured car loan could offer the lowest interest rate of all three options. However, that secured car loan may not be available for those with bad credit. Whereas a bad credit car loan might have a higher interest rate but fewer restrictions on who can apply.
Which personal car loan type is right for you will, therefore, depend on your circumstances and car loan needs. Alternatively, if you're looking for a business car loan, such as a chattel mortgage or novated lease, you can find more information on our car loans for business page.
Secured car loans are one of the more popular finance options available in Australia today. Under a secured car loan, a lender provides a borrower with funds for the purchase of a new or used car. The borrower then repays the borrowed amount, plus interest, over the course of a loan term.
The car is considered security on the loan. If the borrower defaults on his or her repayments, then the lender could repossess and sell the vehicle to recover their costs. If the sale of the car does not cover all the debt, then the lender could pursue the borrower for the amount outstanding.
Bad credit car loans are typically similar to secured car loans. Under both a secured car loan and a bad credit car loan a lender provides a borrower with funds for a new or used vehicle. And, under both, the vehicle is considered security in the event that the borrower defaults on the loan.
The two loan types, though, differ on interest rate and loan flexibility. Bad credit car loans, generally speaking, have higher interest rates and less flexible loan options than secured car loans. This is because bad credit borrowers are considered to pose a higher risk of default than those with good credit.
A secured car loan, therefore, may seem like a more attractive option. However, they are not always available to those with bad credit. That's where bad credit car loans come in, they provide a potential option for those with less-than-perfect credit histories.
Refinancing simply means switching car loan or lender, usually to get a better deal. There are fees associated with refinancing, such as early exit or break fees. However, these costs may be offset by the savings you get with a new lower interest rate car loan.
Bad credit borrowers, for example, often chose car refinancing to get a lower interest rate once their financial position and credit history has improved. In other cases, a borrower may refinance to make repayments more manageable with a longer term and lower monthly repayments.
You can refinance at just about any time during your loan term. However, as stated above, there are associated costs. Therefore, you should consider all options, as well as your loan needs, before applying to refinance your car loan.
A car loan is a finance product specifically designed for the purpose of purchasing a vehicle. A personal loan, on the other hand, can be used for many purposes, including the purchase of a car. Depending on your situation and car loan needs, one or the other may be more suitable.
The benefit of a personal loan is that unlike a secured car loan the car purchased does not have to be used as security. And that means, should you wish to sell your car during the course of the loan term, you can do so without first having to pay out the loan.
The downside is that personal loans tend to attract higher interest rates than comparable secured car loans. They also may not be available to those with bad credit.
Not all lenders and personal car loans are the same. Some offer lower or higher interest rates. The best way to get a lower interest rate, therefore, is to shop around. By comparing options from multiple lenders, you may be able to find a loan with a lower interest rate or more flexible loan features.
Don't have time to shop around? Speak with a Rapid Finance personal car loan specialist. They can compare a range of personal car loans from a variety of lenders on your behalf. Whether you're after lower interest rates, more flexible terms, or a bad credit solution, they can help you find a better deal.
If you are already paying off a personal car loan and are looking to refinance to get a lower interest rate, we can help you with that too. There are fees associated with refinancing. However, these costs may be offset long term, should you secure a lower interest loan.
Yes. Personal car loans can be used to finance either a new or used vehicle. However, this may affect the interest rate for which you are eligible. This is because, with most personal car loans, the vehicle that is purchased is used as security on the loan.
As used cars are typically worth less than new cars the security is worth less. Therefore, should the borrower default on the loan, the lender will be able to recover less of their costs. That means their risk is higher. To compensate for this, lenders often charge a higher rate on personal car loans for used cars.
Approval times for personal car loans do vary. Exactly how long it will take for you to get a personal car loan will depend on a range of different factors. These factors will include choice of loan type and lender, the amount you wish to borrow, your financial position, and your credit history.
At Rapid Finance, we can arrange same day finance in some cases. However, typically, approval for personal car loans takes 1 - 2 working days. If you have a more complicated credit history, then it could take longer. Similarly, if additional documentation is required, then the process will be lengthier.
For the fastest possible turn-around, make sure you have all your details and documentation ready-to-go before applying. Unsure of which documentation you'll need to provide? Call us. Your personal car loan specialist can guide you through the entire process.
A Rapid Finance car finance broker could help you get a better deal on a personal car loan.
Whether you're after a lower interest rate, more flexible loan features, or a bad credit solution, our expert team can connect you with the right loan and lender. We have contacts with numerous Australian lenders and can compare and contrast a variety of personal car loans to find finance that is suitable for you.
Have you been turned down elsewhere? We may still be able to help. Our personal car loan specialists can help you build your case for finance. We focus on your financial strengths to find car finance that matches your needs and circumstances.
Applying with us is easy! You can submit your application online 24 hours a day, 7 days a week. There's no need for extensive documentation, we only need some personal details and information regarding the vehicle (or type of vehicle) you wish to purchase.
Alternatively, you can speak with a Rapid Finance loan specialist over the phone. Your specialist can answer any queries you may have, they can also guide you through the entire application process, from start to finish. Both online and over the phone, our process can be completed in as little as five minutes.
Get started today. Apply online here or call us on 1300 467 274
Can't find the answer you're looking for? Ask one of our car loan specialists. Call today 1300 467 274