No Asset at Risk

Unsecured Car Loans from 7.99% p.a.

Keep your car off the line. Unsecured car loans mean no vehicle security, no PPSR registration, and no risk of repossession. Perfect for older vehicles, lower-value purchases, or borrowers who value flexibility.

Comparison rate 9.15% p.a.* on a $20,000 unsecured loan over 5 years.

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Unsecured Car Loan Calculator

No vehicle security required

Loan Amount

$20,000

$2,000$75,000

Interest Rate (p.a.)

9.99%

7.00%18.00%

Loan Term

5 years

1 years 7 years

Monthly Payment

$424.84

Total Interest

$5,491

Total Repayment

$25,491

Principal (78.5%)Interest (21.5%)

Principal: $20,000

Interest: $5,491

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

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Unsecured Car Loans at a Glance
No vehicle security registered — your car cannot be repossessed by the lender
Finance any vehicle regardless of age, including cars over 15 years old
Rates from 7.99% p.a. — typically 1-3% higher than secured alternatives
Sell or modify your car at any time without needing lender permission
Ideal for older cars, lower-value purchases, or as a flexible personal loan for car purchase

When an Unsecured Car Loan Makes Sense

While secured car loans offer lower interest rates, there are several scenarios where an unsecured car loan is the smarter choice. Understanding when to use each type can save you money or provide valuable protection:

Older vehicles (10+ years old) — most lenders will not accept vehicles older than 10-12 years at the end of the loan term as security. An unsecured loan has no vehicle age restrictions at all.
Lower-value cars (under $8,000) — the cost of valuation, PPSR registration, and security documentation on a low-value vehicle can outweigh the interest rate saving of a secured loan.
Flexibility to sell quickly — if you may want to sell or trade the car within a year or two, unsecured finance avoids the process of arranging a payout with the lender and release of the PPSR registration.
Buying at auction — auction purchases often require fast payment. With an unsecured loan already approved, you can buy and pay immediately without waiting for lender valuations.
Peace of mind — some borrowers simply value knowing that even in a financial emergency, their car — which they may depend on for work — cannot be taken away.

How Unsecured Car Loans Differ from Secured

The fundamental difference is risk allocation. With a secured loan, the vehicle absorbs some of the risk, resulting in lower rates but the possibility of repossession. With an unsecured loan, you bear higher rates but retain full control of the asset.

Feature	Secured Loan	Unsecured Loan
Interest Rate (from)	5.49% p.a.	7.99% p.a.
Vehicle Age Limit	10-12 years at end of term	No limit
PPSR Registration	Yes	No
Repossession Risk	Yes	No
Can Sell Car Freely	No (must pay out loan first)	Yes
Maximum Loan Amount	Up to $150,000+	Typically up to $75,000
Approval Speed	Same day (needs vehicle details)	Same day (no vehicle details needed)

The Rate Trade-Off: Is It Worth It?

The interest rate premium for unsecured loans is real but often overstated in its impact. Consider a practical example:

Example: $15,000 Used Car Over 5 Years

Secured at 6.99%: $297/month, total interest $2,812
Unsecured at 9.49%: $315/month, total interest $3,888
Difference: $18/month more, $1,076 total extra over 5 years

For many borrowers, $18/month is a reasonable price for the flexibility and peace of mind that comes with unsecured finance.

Eligibility and Process

Because unsecured loans carry more risk for lenders, the eligibility criteria tend to be slightly stricter than secured loans:

Australian citizen or permanent resident
Aged 18+ with valid identification
Good to excellent credit history (preferred but not always required)
Stable employment for at least 3-6 months
Income sufficient to meet repayments and living expenses

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No vehicle details needed upfront. Apply based on the amount you need.

Get Approved

Approval based on your income and credit. No valuation or PPSR checks needed.

Funds to Your Account

Money deposited directly to your bank account. Use it for any car, any seller.

Buy Your Car

Purchase from a dealer, private seller, auction — wherever you find the best deal.

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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.

Unsecured Car Loan FAQs

What is an unsecured car loan?

An unsecured car loan is a personal loan used to purchase a vehicle where the car is not used as collateral. The lender has no security interest registered against the vehicle, meaning they cannot repossess it if you default. Instead, the lender relies solely on your creditworthiness and income to assess the loan. This makes unsecured loans more flexible but typically more expensive.

Why would I choose an unsecured car loan over a secured one?

Unsecured loans are ideal when buying an older car that does not qualify for secured finance (10+ years old), when the vehicle value is too low for secured lending (under $5,000-$8,000), when you want the freedom to sell the car at any time without lender involvement, or when you value the peace of mind that your car cannot be repossessed.

How much more expensive is an unsecured car loan?

Unsecured car loan rates are typically 1-3% higher than secured rates. On a $20,000 loan over 5 years, a 2% rate difference equates to approximately $1,100 more in total interest. However, for older or lower-value vehicles, the flexibility and protection of an unsecured loan can outweigh the extra cost.

Can my car be repossessed with an unsecured loan?

No. With an unsecured loan, the lender has no security interest in the vehicle. If you default, they can pursue you through standard debt recovery processes (calls, letters, default listing, legal action for judgment debt), but they cannot repossess the vehicle itself. This is one of the main advantages of unsecured car finance.

What is the maximum I can borrow unsecured for a car?

Most lenders cap unsecured personal loans at $50,000-$75,000, though some go up to $100,000 for well-qualified borrowers. The amount you can borrow depends on your income, existing debts, credit history, and the lender policies. For larger amounts, a secured loan will typically offer better terms.

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No vehicle security, no repossession risk. Apply in minutes and get funds to your account.

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