Pre-Owned Vehicle Finance
Used Car Loans
Used Car Loans at a Glance
- Rates 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
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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.
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 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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