Used Car Finance: Drive Your Dream Car for Less
What is Used Car Finance?
Buying a pre-owned vehicle is one of the smartest financial moves you can make. You avoid the steep initial depreciation of a new car while still getting a modern, reliable vehicle. Used Car Finance is the engine that makes this purchase possible. It is a specialized personal loan secured by the vehicle you are buying, designed to spread the cost over a manageable term (typically 3 to 7 years).
Whether you are buying from a licensed dealership or picking up a bargain from a private seller on Carsales or Facebook Marketplace, a tailored used car loan gives you the cash to seal the deal. Unlike generic personal loans, our specialized automotive finance options often come with significantly lower interest rates because the loan is secured against the car itself.
Key Benefits: Why Finance a Used Car?
Smart buyers know that financing a used vehicle offers unique strategic advantages.
Bargaining Power: Walking into a dealership or private negotiation with pre-approved finance is like having cash in your hand. You can negotiate the price of the car confidently, knowing exactly how much you can spend.
Access the Best Rates: When you compare used car loans through a broker rather than accepting “dealer finance,” you force lenders to compete for your business. This is how you secure the best used car finance rates on the market.
Preserve Your Savings: Keep your cash buffer for registration, insurance, and on-road costs. Finance allows you to drive a better, safer car today without draining your bank account.
Flexible Terms: Choose a loan term that fits your budget. A shorter term saves you interest, while a longer term reduces your weekly commitment.
Who Needs Used Car Finance and Why?
This product is the backbone of the Australian car market, catering to every type of driver.
The First Car Buyer: You have your P-plates and a job, but not $15,000 in cash. A used car loan gets you into a safe, reliable first vehicle.
The Private Sale Hunter: You found the perfect car sold privately, where “dealer finance” isn’t an option. Our loans cover private sales, complete with vehicle history checks for your peace of mind.
The Growing Family: You need to upgrade from a hatch to an SUV to fit the baby seats. Trading in your old car and financing the difference is the most cost-effective way to upgrade.
The Business Owner: You need a work ute or van but don’t want to buy brand new. A used car loan (or chattel mortgage) can get your fleet moving with potential tax benefits.
The Process: From Search to Settlement
We make buying a used car seamless, handling the checks that keep you safe.
Get Pre-Approved: Before you test drive, apply online to establish your budget. We assess your income and give you a pre-approved limit.
Shop with Confidence: Find your car. Whether it’s at a yard or a private driveway, you know you have the money ready.
Vehicle Checks: Once you find the car, we perform a PPSR (Personal Property Securities Register) check to ensure it hasn’t been written off, stolen, or has existing finance owing on it.
Finalise Loan: We confirm the final price and loan details. You sign the digital contract.
Settlement: We pay the seller directly. You pick up the keys and drive away.
Eligibility & Application: The Green Light
To qualify for the most competitive used car finance, lenders look for specific criteria regarding both you and the car.
Vehicle Age: Most lenders prefer cars that will be no older than 12-15 years at the end of the loan term. (e.g., If you take a 5-year loan, the car should be under 7-10 years old now).
Income: You must be employed or self-employed with regular income to service the repayments.
Residency: Australian Citizen or Permanent Resident.
Comprehensive Insurance: You must organize full comprehensive insurance on the vehicle before the funds are released.
Don't Pay Dealer Prices for Finance
Dealers are great at selling cars, but their finance packages often come with hidden commissions and inflated rates. Don’t limit your options. Compare used car loans from over 40 leading lenders and lock in a rate that puts you in the driver’s seat. Check your borrowing power today.
Top 5 Relevant FAQs Used car finance
Can I get finance for a private sale car?
Yes, absolutely. While dealership finance is restricted to their yard, our used car finance covers private sales too. This allows you to shop the entire market for the best bargain. The process is slightly different; we will conduct a PPSR check to ensure the car has a clear title (no money owing on it) and may verify the seller's details to protect you from fraud.
Are interest rates higher for used cars than new cars?
Are interest rates higher for used cars than new cars?
Is there an age limit on the car I can buy?
Yes. Most secured car loans have an age limit. A common rule is that the car cannot be older than 12 to 15 years at the end of the loan. For example, if you want a 5-year loan, the car you buy today generally needs to be less than 7 to 10 years old. If you want to buy an older or classic car, you may need to use an Unsecured Personal Loan instead.
Do I need a deposit?
Not always. Many lenders offer "100% finance," covering the full purchase price of the car. However, putting down a deposit (even 10% or 20%) is highly recommended. It reduces the amount you borrow, lowers your monthly repayments, and demonstrates stability to the lender, which can help you qualify for a lower interest rate.
Should I get a secured or unsecured loan for a used car?
A Secured Loan (where the car is collateral) is almost always cheaper. It offers lower interest rates and higher borrowing limits. An Unsecured Loan is faster and allows you to buy any car regardless of age, but the interest rate is higher. For most buyers purchasing a modern used car, a secured loan is the smartest financial choice.
