JM Lending can help you get into your next vehicle at the most affordable rate. To find the right solution for you, we compare hundreds of secured car loan options from almost 30 lenders.

We have expert brokers available to assist you from the initial application through to settlement.

What is a secured loan for a car?

Secured car loans are secured against the vehicle you purchase with the borrowed money. The car is used as collateral by the lender. If you fail to make the agreed-upon payments, the lender can take the vehicle and have it sold to them to recover their money.

Secured car loans are the most popular type of car finance .

An “unsecured” loan against a car is, however, not secured to the vehicle. It is therefore the same as a personal loan. The lender can take you to court if you fail to pay your loan repayments. Lenders will charge higher interest rates for these loans and impose additional fees. They are also less flexible in granting loans to people they don’t like.

A secured car loan has many benefits

A secured car loan has the advantage of having a lower interest rate. This means that borrowing money to purchase a car will be cheaper.

Secured loans also have the following benefits:

• You may be approved for larger loans because of the lender’s lower risk.
• Secured loans may have a longer repayment period than unsecured loans.
• It may be easier to obtain approval for your car financing because of the collateral

Fixed vs. variable secured vehicle loans

Fixed Rate

Personal car loans come with a fixed rate. This ensures that your loan payments will not change for the agreed term, which is usually the entire car loan term. It is easier to budget because you know exactly how much you will pay each month. This type of loan is unaffected by unexpectedly rising interest rates.

Variable Rate

Variable-rate car loans have an interest rate that can change at the lender’s option. Variable-rate loans can be a great way to save money, but you may lose your savings if the interest rate rises. In this case, you will have to pay higher monthly payments. Variable rate car loans offer more flexibility than a fixed rate home loan. You can make additional repayments and pay the loan off early.

Fixed-Rate vs. Variable-Rate

How do you decide which one to choose? Your personal preferences and financial situation will play a major role in your decision.

A fixed-rate car loan is better if you don’t want the variable rate risk, which could rise, and you have higher loan repayments.

If you anticipate your income will be stable for the duration of the loan, it’s the best option. A variable car loan might be better for you if you anticipate a promotion or bonus.

How to Get a Secured Car Loan

There are many options for secured car loans from different lenders. Your financial situation and the amount of your loan will determine which secured vehicle loan is best for you. These are some things to keep in mind when assessing a loan.

The interest rate

The rates of secured car loans have an impact on your monthly payments. They can vary greatly between lenders. Before you apply, make sure to compare the rates for all the costs of the loan.

Fees

These fees can be one-time fees like establishment fees or recurring fees like loan service fees. Compare fees with interest rates and loan features to ensure you are getting a fair deal.

The loan term

You have the option to choose between a fixed-rate loan term of one to five years or a variable rate loan that lasts one to seven years. Lenders will typically specify a time frame. You should check to make sure you are able to repay the loan within your financial means.

Maximum and minimum amounts of the loan

Lenders can lend up to $5,000 on average. Some lenders do not have a maximum loan amount, and instead decide on a case by case basis. This is important to remember when deciding on the vehicle you want.

Additional payments

You may be able to make additional repayments with some lenders to help you pay down your debt quicker. Consider whether you are able to contribute more to your loan. Be aware that lenders may charge fees for early repayments. Look for loans that don’t have these fees.

Additional features

There are many features that can help you manage your loans more efficiently. Some lenders offer car-finding and cheap car insurance.

JM Lending Solutions
Our office locations:
Bankstown, Sydney and Chatswood

ABN: 71 639 785 103