Question 1

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

Accepted Answer

Lenders on our panel finance new and used cars, motorcycles, recreational vehicles (RVs), boats, and caravans. Most will finance used vehicles up to around 10 years old at the time of purchase, with maximum loan terms that depend on the vehicle's age. Loan amounts and rates vary by lender and your circumstances — you can see current car loan rates from our panel on our Compare Rates page.

Question 2

Should I choose a secured or unsecured car loan?

Accepted Answer

Secured car loans use the vehicle as collateral, which generally means lower interest rates and higher borrowing amounts. Unsecured loans don't use the car as security — giving you flexibility to sell the vehicle at any time — but usually come with higher rates and lower maximums. Most borrowers choose secured loans for the rate advantage, especially for new or newer vehicles. You can compare current secured car loan rates on our Compare Rates page.

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, many lenders let you 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 — a number of lenders specialise in car loans for borrowers with credit challenges, though you may face higher interest rates or need a larger deposit. Factors that help include: stable employment, regular income, a reasonable deposit (15-20%), and choosing a reliable vehicle. We'll look at your full financial picture, not just your credit score, and target the lenders whose policy genuinely fits your situation.

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