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Lower-rate car finance

Secured car loans

Lower rates with the car as security.

A secured car loan uses the car you buy as security, registered on the PPSR, so the lender can repossess it if you stop paying, and in return it charges less than for an unsecured loan. In September 2026 CommBank published 6.79% to 10.79% on its secured car loan against 7.25% to 22.25% unsecured, and NAB 5.99% to 12.79% secured (discounted) against 7.50% to 22.00% unsecured. The car has to fit the lender’s rules: seven years old or less at Westpac, BankSA, CommBank and Great Southern Bank, and up to 12 at application at NAB.

What are the repayments on a $40,000 secured car loan?

Monthly principal and interest repayments over 5 years, by loan amount and interest rate
Loan amountMonthly repayment at
6%p.a.8%p.a.10%p.a.12%p.a.
$20,000$387$406$425$445
$30,000$580$608$637$667
$40,000$773$811$850$890
$50,000$967$1,014$1,062$1,112
$60,000$1,160$1,217$1,275$1,335

Scroll the table sideways for more rates

Illustrative monthly principal and interest repayments over 5 years, before fees and charges. Rates are examples, not offers; your rate depends on the lender and your circumstances. The rates span the secured ranges the major lenders published in September 2026, from around 6% to around 13%. Run your own numbers.

Calculator

Secured car loan calculator

Repayments at a secured rate

Loan amount$30,000
$5,000$150,000
Interest rate6.49% p.a.
5.00% p.a.12.00% p.a.
Loan term5 years
1 year7 years
Monthly repayment
$586.84
Total interest
$5,211
Total repayment
$35,211
Principal 85.2%Interest 14.8%
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Estimates only. Actual rate and repayment depend on your lender, loan structure and credit assessment.

Secured car loan lenders a broker can compare

The lenders in our directory that write car loans secured on the vehicle. Each sets its own vehicle age and value rules; the broker checks them against the car you want.

Secured car loan lenders a broker can compare: each lender's type, the products it offers and its current rate
Commonwealth Bank of AustraliaMajor bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate:
6.79%p.a.
8.20% p.a. comparison rate*
Personal Loan Secured (New Vehicle) · Secured Fixed Rate Car Loan, secured by the car being bought: from rate for excellent credit (rates up to 11.29% p.a.); comparison on a $30,000 loan over 5 years.
Westpac Banking CorporationMajor bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate:
6.49%p.a.
7.90% p.a. comparison rate*
Car Loan Secured · Car Loan for petrol, diesel or LPG cars, fixed rate, secured by the car: from rate; the rate offered depends on your credit assessment.
Liberty FinancialNon-bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate:
8.99%p.a.
10.65% p.a. comparison rate*
Liberty Drive Secured · Flexible car loan, secured, new and used cars: from rate; comparison on a $30,000 new-car loan over 5 years with no balloon.
MoneyMeSpecialistProducts:
  • Secured (new vehicle)
Current rate:
6.24%p.a.
7.13% p.a. comparison rate*
MoneyMe Secured Car Loan · Secured car loan, variable rate, new or used vehicles: from rate for excellent credit history (maximum 26.10% p.a.); $12.50 monthly fee.
Now FinanceSpecialistProducts:
  • Secured (new vehicle)
Current rate:
7.59%p.a.
8.43% p.a. comparison rate*
NF Secured Car Loan (Tier 1) · Vehicle Loan secured by the vehicle, new or used: from rate (rates up to 15.39% p.a.); establishment fee up to $595.
PlentiSpecialistProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate:
7.99%p.a.
9.78% p.a. comparison rate*
Plenti Car Loan (Tier 1) · Secured car loan, new or demo vehicle, homeowner with exceptional credit: from rate (rates up to 12.99% p.a.); comparison on $30,000 over 60 months including a $14.90 monthly fee.
National Australia BankMajor bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: NAB rate card (opens in a new tab)
BankSAMajor-bank brandProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: BankSA rate card (opens in a new tab)
Bank AustraliaCustomer-ownedProducts:
  • Secured (used vehicle)
Current rate: Bank Australia rate card (opens in a new tab)
IMB BankCustomer-ownedProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: IMB rate card (opens in a new tab)
Show all 16 lenders
Secured car loan lenders a broker can compare, continued
Newcastle Permanent (Newcastle Greater Mutual Group)Customer-ownedProducts:
  • Secured (new vehicle)
Current rate: Newcastle Permanent rate card (opens in a new tab)
Teachers Mutual BankCustomer-ownedProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: Teachers Mutual rate card (opens in a new tab)
Pepper MoneyNon-bankProducts:
  • Secured (new vehicle)
  • Secured (used vehicle)
Current rate: Pepper Money rate card (opens in a new tab)
Angle FinanceSpecialistProducts:
  • Secured (new vehicle)
Current rate: Angle Finance rate card (opens in a new tab)
MoneyPlaceSpecialistProducts:
  • Secured (new vehicle)
Current rate: Ask a broker
OurMoneyMarketSpecialistProducts:
  • Secured (new vehicle)
Current rate: Ask a broker

Inclusion is editorial reference, not a recommendation. Rates change often, so we only show a rate we captured from the lender's own page in the last 60 days, with a link to that page; otherwise we link to the lender's rate card where it publishes one. The broker you are matched with compares the lenders on their own panel.

See all 20 car loan lenders

* 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. Car loan comparison rates are based on a secured loan of $30,000 over 5 years.

Secured car loans at a glance
  • The car is the lender’s security, so the rate sits below an unsecured loan’s
  • Published secured ranges: CommBank 6.79% to 10.79%, NAB 5.99% to 12.79% (discounted), Westpac 6.49% to 12.99%
  • The lender registers a security interest on the PPSR until the loan is repaid
  • Vehicle rules apply: seven years at most banks, 12 at application at NAB
  • Mostly fixed rates over 1 to 7 years

How secured car loans work

A secured car loan ties the loan to the car you are buying. The lender registers a security interest on the Personal Property Securities Register (PPSR), so the car cannot be sold free of the loan until it is repaid and the interest is released.

The lender has an asset it can recover if you default, which lowers its risk, and it passes some of that on as a lower rate. For you that means lower repayments and less interest than the same loan unsecured.

When you make the final repayment, the lender removes its registration from the PPSR and you own the car outright.

Why secured rates are lower

Interest rates reflect risk. With an unsecured loan the lender's only recourse if you default is debt collection or court action; with a secured loan it can repossess and sell the car. Westpac and NAB both publish that as the reason their car loans are cheaper than their unsecured personal loans.

The value and condition of the security matter too. A new car holds its value better than an old one, which is why lenders cap the car's age for secured loans, and why loans.com.au, for example, prices used cars from 7.19% against 5.94% for new. A deposit lowers the loan against the car's value, which can also help the rate.

Pros and cons of secured car loans

Advantages
  • Lower interest rates than unsecured car finance
  • Lower monthly repayments
  • Larger loan amounts available
  • Terms of up to 7 years
Considerations
  • The car can be repossessed if you default
  • You cannot sell the car without paying out the loan
  • The car must meet the lender's age and value rules
  • An insurance payout may not cover the whole balance if the car is written off
  • A PPSR registration fee applies ($8 at Pepper Money, for example)

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
  • A car inside the lender's age limit (seven years at most banks; 12 at application at NAB)
  • A car that is registered or registrable in Australia
  • A clear title, with no existing finance owing on the car

The secured car loan process

1
Get pre-approved
Pre-approval confirms your rate and budget before you shop.
2
Choose your car
The broker checks it meets the lender's vehicle rules.
3
Formal approval
The car's details go to the lender, and the security interest is registered on the PPSR.
4
Settle and drive away
The lender pays the seller directly and you collect the car.

A car loan broker compares secured car loans across the lenders on their panel, which is how you find where you sit in each lender's range.

4.9 / 5 · 320+ reviews

More car loan guides

Car loan interest rates
Published ranges by lender
Unsecured car loans
No asset at risk
New car loans
Financing a new vehicle
Used car loans
Vehicle age limits
Car loan refinance
Switch to a better rate
Car loan broker
Who compares the lenders

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 calculated on a secured loan of $150,000 over 25 years for home loans, a loan of $30,000 over 5 years for car and personal loans, and $50,000 over 5 years for equipment finance, unless the lender states another basis.

Secured car loan FAQs

What does "secured" mean in a car loan?
A secured car loan uses the vehicle you are buying as collateral. The lender registers its interest on the PPSR (Personal Property Securities Register), and if you default it has the legal right to repossess and sell the car to recover the debt. Because that lowers the lender’s risk, secured car loans are priced below unsecured ones; Westpac and NAB both publish the car as the reason their car loans are cheaper than their personal loans.
How much lower are secured car loan rates compared to unsecured?
It depends most on your credit file. At the bottom of the ranges the gap is small (CommBank published 6.79% secured against 7.25% unsecured in September 2026); at the top it is large (10.79% against 22.25% at CommBank, 12.79% against 22.00% at NAB). On $30,000 over five years, 8% instead of 12% cuts the repayment from about $667 to $608 a month and saves about $3,542 of interest.
Can I sell my car while it still has a secured loan?
Yes, but the loan has to be paid out in full before or at the sale, because the lender holds a security interest over the car. You can pay it out from the sale proceeds, with the buyer paying the lender directly, or refinance the remaining balance. Selling a car with undisclosed finance owing on it is against the law, which is why buyers search the PPSR.
What happens if my secured car is written off in an accident?
The insurance payout goes to the lender first to clear the outstanding balance. If the payout is less than the balance, which can happen when the car has depreciated faster than the loan has been repaid, you owe the shortfall. Gap insurance is designed to cover it.
Do all cars qualify for a secured loan?
No. Each lender sets vehicle rules: Westpac and BankSA secure cars seven years old or less at application, CommBank new or used cars under seven years, Great Southern Bank up to seven years, and NAB used cars up to 12 years old at application and 15 at the end of the term. There are minimum loan sizes too ($4,000 at CommBank, $5,000 at Pepper Money, $10,000 at Westpac and NAB). Older, heavily modified or previously written-off cars may not qualify, which is where an unsecured loan comes in.
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