Pre-Owned Vehicle Finance

Used Car Loans from 5.99% p.a.

A quality used car delivers the best value per dollar. We compare used car loan rates from 50+ lenders so you can buy with confidence, whether it is from a dealer or a private seller.

Comparison rate 6.85% p.a.* on a $25,000 secured used car loan over 5 years.

Get Pre-Approved Vehicle Age Limits

Used Car Loan Calculator

Estimate repayments for your pre-owned vehicle

Loan Amount

$25,000

$5,000$100,000

Interest Rate (p.a.)

7.49%

5.00%15.00%

Loan Term

5 years

1 years 7 years

Monthly Payment

$500.83

Total Interest

$5,050

Total Repayment

$30,050

Principal (83.2%)Interest (16.8%)

Principal: $25,000

Interest: $5,050

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

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Used Car Loans at a Glance
Rates from 5.99% p.a. for secured used car loans — only slightly above new car rates
Finance vehicles up to 15 years old at the end of the loan term with select lenders
Dealer purchases and private sales both covered — PPSR checks included in our process
Secured loans offer the best rates; unsecured available for older or lower-value vehicles
Same-day pre-approval so you can shop with confidence and negotiate as a cash buyer

Vehicle Age Limits: What Lenders Accept

The age of the used car you want to buy is one of the biggest factors affecting your loan options and interest rate. Lenders set maximum vehicle age limits at the end of the loan term, not at the time of purchase. This means a 7-year-old car on a 5-year loan needs a lender that accepts vehicles up to 12 years old at maturity.

Vehicle Age at Loan End	Lender Availability	Typical Rate Impact
0-7 years	All lenders (widest choice)	Best rates
8-10 years	Most lenders	+0.25-0.50%
11-12 years	Select lenders	+0.50-1.00%
13-15 years	Specialist lenders	+1.00-2.00%
15+ years	Very few / unsecured only	+2.00%+

Our recommendation: if you are buying a car more than 7 years old, consider a shorter loan term to keep the end-of-term age within most lenders' thresholds. This opens up more competitive rates.

What Lenders Look for in Used Car Applications

Beyond the vehicle age, lenders assess several factors specific to used car finance that differ from new car loan assessments:

Vehicle condition and kilometres — higher mileage vehicles (150,000+ km) may attract rate loadings or be declined by some lenders. Ensure the car has a reasonable odometer reading for its age.
Purchase source — dealer purchases are generally preferred because they come with statutory warranties. Private sales are accepted but may require additional documentation like a PPSR check and independent valuation.
Market value vs. purchase price — lenders will check the purchase price against RedBook or Glass's guide values. If the price is significantly above market value, the lender may only finance up to the market value.
Loan-to-value ratio (LVR) — for used cars, lenders are more cautious about LVR because depreciation has already occurred. A 10-20% deposit strengthens your application considerably.
Encumbrance history — the vehicle must be clear of any existing finance, stolen car registers, and written-off vehicle registers. We run PPSR checks as part of our process.

Secured vs. Unsecured Used Car Loans

Choosing between a secured and unsecured loan for a used car involves weighing up rate savings against flexibility. Here is a practical comparison to help you decide:

Factor	Secured Loan	Unsecured Loan
Interest Rate	5.99% - 10.99%	7.99% - 14.99%
Vehicle Age Limit	Usually under 12 years at end of term	No restriction
Repossession Risk	Yes, lender can repossess the car	No, the car is not collateral
Approval Speed	Same day (vehicle details needed)	Same day (no vehicle details needed)
Best For	Newer used cars, maximising rate savings	Older cars, flexibility, cars under $10K

Pro Tip: Get Pre-Approved Before Shopping

Pre-approval gives you a firm budget and lets you negotiate with dealers and private sellers as a “cash buyer” — often unlocking better prices. Our pre-approval lasts 30-90 days and there is no obligation to proceed.

How to Buy a Used Car with Confidence

Get Pre-Approved

Know your budget before you shop. Our pre-approval gives you a firm spending limit and rate.

Find Your Car

Shop dealers and private sellers with confidence. Negotiate from a position of strength.

We Handle the Checks

PPSR check, valuation, and lender paperwork all managed by our team at no cost.

Drive Away

Settlement typically happens within 24 hours of final approval. Pick up your car and go.

Explore More Car Loan Options

Find the right finance for your situation.

New Car Loans

Finance a brand new vehicle

Private Sale Car Loans

Buy from private sellers

Secured Car Loans

Lower rates with security

Bad Credit Car Loans

Options for poor credit

Refinance Car Loan

Switch to a lower rate

No Deposit Car Loans

100% financing options

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.

Used Car Loan FAQs

How old can a used car be to get finance?

Most mainstream lenders finance used cars up to 10-12 years old at the end of the loan term. Some specialist lenders extend this to 15 years or even older for classic cars. For example, if you want a 7-year loan, most lenders would require the car to be no more than 3-5 years old at purchase. Newer used cars generally attract better interest rates.

Are used car loan rates higher than new car loan rates?

Generally yes, but the difference is often small. Used car rates typically start from 5.99% p.a. compared to 5.49% p.a. for new cars. The rate premium exists because used vehicles depreciate faster and carry more risk for the lender. However, the total cost of a used car plus interest is usually far less than buying new, making used cars excellent value.

Can I get a used car loan for a private sale?

Yes, many lenders finance private sale purchases. You will typically need the seller details, vehicle identification number (VIN), agreed purchase price, and the car must pass a PPSR (formerly REVS) check to confirm it is not encumbered. Some lenders also require an independent valuation for private sales.

Do I need a deposit for a used car loan?

Not necessarily. Some lenders offer 100% financing for used cars, especially if the vehicle is under 5 years old and you have good credit. However, a deposit of 10-20% will typically get you a better interest rate and lower monthly repayments. For older cars or borrowers with impaired credit, a deposit may be required.

Should I get a secured or unsecured loan for a used car?

A secured loan (where the car is used as collateral) typically offers lower interest rates — often 1-3% less than unsecured. However, if the car is older (10+ years) or worth less than $10,000, some borrowers prefer unsecured loans because the car cannot be repossessed if financial difficulty arises. The best choice depends on your priorities.

What checks should I do before buying a used car?

Before purchasing, run a PPSR check ($2) to confirm no money is owing on the vehicle, get an independent mechanical inspection, verify the odometer reading, check the service history, confirm the VIN matches the registration papers, and research the market value using tools like RedBook or CarsGuide to ensure you are paying a fair price.

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