Question 1

What types of vehicles can I finance with a car loan?

Accepted Answer

Our car loans cover new and used cars, motorcycles, recreational vehicles (RVs), boats, and caravans. We finance vehicles up to 10 years old at time of purchase for used vehicles, and up to 7 years loan term for used vehicles depending on age. Loan amounts range from $5,000 to $150,000 with competitive rates starting from 6.9% p.a. for new vehicles.

Question 2

Should I choose a secured or unsecured car loan?

Accepted Answer

Secured car loans use the vehicle as collateral, offering lower interest rates (from 6.9% p.a.) and higher borrowing amounts. Unsecured loans don't use the car as security, providing flexibility to sell the vehicle anytime, but have higher rates (from 9.9% p.a.) and lower maximum loan amounts. Most borrowers choose secured loans for the rate advantage, especially for new or newer vehicles.

Question 3

Do I need a deposit for a car loan?

Accepted Answer

While not always required, a deposit of 10-20% is recommended. A larger deposit reduces your loan amount, lowers your interest costs, and may help secure better rates. Some lenders finance up to 100% of the vehicle's value, but this typically means higher interest rates and mandatory comprehensive insurance. We can discuss deposit options based on your financial situation.

Question 4

Can I include insurance and other costs in my car loan?

Accepted Answer

Yes, you can often roll additional costs into your car loan including Comprehensive Insurance (required for secured loans), extended warranty, registration, stamp duty, and dealer delivery fees. While this increases your loan amount and total interest paid, it can help with upfront affordability. We'll help you understand the trade-offs and structure your loan appropriately.

Question 5

How does balloon payment work on a car loan?

Accepted Answer

A balloon payment (residual) is a lump sum paid at the end of your loan term, reducing your regular repayments. For example, a 30% balloon on a $40,000 loan means you'll owe $12,000 at loan end. This suits buyers who plan to trade-in or sell the vehicle, but you'll need to refinance or pay the balloon amount. Balloons are common in novated leases but optional on standard car loans.

Question 6

Can I get a car loan with bad credit?

Accepted Answer

Yes, we work with borrowers who have less-than-perfect credit. While you may face higher interest rates or require a larger deposit, many lenders specialize in car loans for those with credit challenges. Factors that help include: stable employment, regular income, a reasonable deposit (15-20%), and choosing a reliable vehicle. We'll assess your full financial picture, not just your credit score.

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