Lowest Rate Car Finance

Secured Car Loans from 5.49% p.a.

Secured car loans deliver the lowest interest rates because the vehicle acts as collateral. Save thousands in interest over the life of your loan compared to unsecured alternatives.

Comparison rate 6.12% p.a.* on a $30,000 secured new car loan over 5 years.

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Secured Car Loan Calculator

See how much you save with a secured rate

Loan Amount

$30,000

$5,000$150,000

Interest Rate (p.a.)

6.49%

5.00%12.00%

Loan Term

5 years

1 years 7 years

Monthly Payment

$586.84

Total Interest

$5,211

Total Repayment

$35,211

Principal (85.2%)Interest (14.8%)

Principal: $30,000

Interest: $5,211

This calculator provides estimates only. Actual rates and repayments may vary based on your circumstances and lender requirements.

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Secured Car Loans at a Glance
The lowest car loan rates available — from 5.49% p.a. — because the vehicle reduces lender risk
Typically 1-3% lower than unsecured alternatives, saving thousands over the loan term
Lender registers a security interest on the PPSR until the loan is fully repaid
Available for new and used vehicles that meet age and value requirements
Fixed and variable rate options with flexible terms from 1 to 7 years

How Secured Car Loans Work

A secured car loan ties the loan to the vehicle being purchased. When you take out the loan, the lender registers a security interest on the Personal Property Securities Register (PPSR). This registration means the car cannot be sold or transferred until the loan is fully repaid and the security interest is released.

This arrangement benefits both parties. The lender has a tangible asset they can recover if you default, which significantly reduces their financial risk. In return, they pass that reduced risk on to you in the form of a lower interest rate. For borrowers, this means lower monthly repayments and less total interest paid over the life of the loan.

When you make the final repayment, the lender releases their security interest on the PPSR, and you own the vehicle outright with a clear title. This process is automatic with most lenders and typically happens within 7-14 days of your final payment.

Why Secured Rates Are Lower

Interest rates reflect risk. When a lender provides an unsecured loan, their only recourse if you default is to pursue you through debt collection or legal action — an expensive and uncertain process. With a secured loan, they can simply repossess and sell the vehicle, recovering most or all of the outstanding balance. This fundamental difference in risk profile is why secured rates are consistently 1-3% lower.

The value and condition of the security also matter. A brand-new car holds its value better than a 10-year-old vehicle, which is why new car secured rates are typically lower than used car secured rates. Lenders assess the loan-to-value ratio (LVR) — the loan amount as a percentage of the vehicle's value — to determine the appropriate rate. A lower LVR (i.e., a larger deposit) generally means a better rate.

Pros and Cons of Secured Car Loans

Advantages
Lowest interest rates available for car finance
Lower monthly repayments compared to unsecured
Higher approval rates due to reduced lender risk
Larger loan amounts available
Longer terms available (up to 7 years)

Considerations

Vehicle can be repossessed if you default on repayments
Cannot sell the car without paying out the loan first
Vehicle must meet lender age and value requirements
Insurance payout may not cover full loan balance if written off
PPSR registration fee applies (usually included in loan)

Eligibility Requirements

Australian citizen, permanent resident, or qualifying visa holder
Aged 18+ with a valid Australian driver's licence
Regular income sufficient to meet repayments
Vehicle must meet lender age limits (typically under 10-12 years at end of loan)
Vehicle must be registered or registrable in Australia
Vehicle must have clear title (no existing encumbrances)

Secured Car Loan Process

Apply & Get Pre-Approved

Submit your details online. Pre-approval confirms your rate and budget before you shop.

Choose Your Vehicle

Find your car knowing exactly what you can spend. We verify it meets lender requirements.

Formal Approval

We submit the vehicle details to the lender. Security interest is registered on the PPSR.

Settlement & Drive Away

Funds settle directly with the seller. You pick up your car with everything sorted.

Explore More Car Loan Options

Unsecured Car Loans

No asset at risk

New Car Loans

Best rates for new vehicles

Used Car Loans

Finance pre-owned cars

Refinance Car Loan

Switch to a better rate

No Deposit Car Loans

100% financing available

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.

Secured Car Loan FAQs

What does "secured" mean in a car loan?

A secured car loan means the vehicle you are purchasing is used as collateral (security) for the loan. The lender registers their interest on the PPSR (Personal Property Securities Register). If you default on repayments, the lender has the legal right to repossess and sell the vehicle to recover the outstanding debt. In exchange for this lower risk, lenders offer significantly lower interest rates compared to unsecured loans.

How much lower are secured car loan rates compared to unsecured?

Secured car loan rates are typically 1-3% lower than unsecured personal loan rates. For example, a secured new car loan might start at 5.49% p.a. while an equivalent unsecured loan could start at 7.99% p.a. On a $30,000 loan over 5 years, that 2.5% difference saves approximately $2,100 in total interest.

Can I sell my car while it still has a secured loan?

Yes, but you must pay out the loan in full before or at the time of sale, as the lender holds a security interest over the vehicle. You can either pay out the loan from the sale proceeds (the buyer pays the lender directly) or refinance the remaining balance into a new loan. It is illegal to sell a car with an undisclosed encumbrance.

What happens if my secured car is written off in an accident?

If your car is written off, the insurance payout goes to the lender first to cover the outstanding loan balance. If the insurance payout is less than the loan balance (which can happen with rapid depreciation), you are responsible for the shortfall. Gap insurance can protect against this scenario.

Do all cars qualify for a secured loan?

Most cars qualify, but lenders typically have age and value restrictions. The vehicle usually needs to be under 10-12 years old at the end of the loan term and worth at least $5,000-$8,000. Very old cars, heavily modified vehicles, or those with salvage titles may not qualify for secured finance.

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Secured car loans from 5.49% p.a. Compare 50+ lenders in minutes.

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