What are the options and differences in car loans

There are two types of car loans available for personal use;

• secured

• unsecured

For either car loan we'll organise the amount you require which is repaid over a period of up to 7 years.

Scheduled fortnightly or monthly car loan  payments can be made by direct debit, cheque, BPAY, internet banking, direct payroll and cash where applicable.

We can add the following to the car loan:

• Insurance

• loan protection

• gap cover

A deposit is not required in most cases, but should your application approval be questionable a deposit can be benefical.

Most car loans are daily reductible,meaning the interest is calculated on the unpaid balance each day, jsimilar to a home loan.

Extra or additional payments will shorten the term and reduce interest charges.

Most secured loans are fixed for the term of your loan, so your payments won't go up in a rising market.

A balloon payment  is also an option that many people are now choosing. By setting a larger balloon payment for the end of the term, which can vary according to circumstances, you can reduce your fortnightly (or monthly) payment to better balance your budget. At the end of the term, you can either pay out the full amount in one hit or re-finance the balloon amount and continue paying off the car over a new loan period.

Most personal use loans in Australia for cars, boats, bikes, caravans etc.. are secured. As an individual, you're borrowing money to purchase a tangible item like a new or used car, which will be used as security for the loan. When you trade-in or sell the vehicle or goods you must then payout your loan held over the goods. Secured loans generally have a lower interest rate that unsecured loans.