A brief guide to personal vehicle loans
Personal vehicle loans offer flexible options to help you purchase a new or used vehicle. Whether you’re looking to buy a car, motorcycle, or SUV, this type of financing can make it more affordable. You can borrow an amount tailored to your financial circumstances and pay it back over an agreed period.
Typically, personal vehicle loans involve fixed monthly payments with competitive interest rates. This financing solution enables individuals to own a vehicle while spreading out the cost. Before applying for personal vehicle financing, it’s important to assess factors such as your budget, credit score, and repayment capacity.
Here's an overview of what a personal vehical loan typically offers:
- Loan amounts from $5,000
- Flexible loan terms: 1 to 7 years
- repayment frequency: weekly, fortnightly, or monthly
- Fixed interest rates from 5.29%
- Variable interest rates from 5.74%
- Interest rates customized to your financial profile
Want to skip ahead?
This guide is broken down into the following sections. Click a link if you want to skip ahead.
- 1.What can I use a personal vehicle loan for?
- 2.How much can I borrow for a personal vehicle loan?
- 3.personal vehicle Loan Repayment Calculator
- 4.Am I eligible for a personal vehicle loan?
- 5.How to apply for a personal vehicle loan?
- 6.How to get the best personal vehicle loan for you?
- 7.Frequently Asked Questions
What can I use a personal vehicle loan for?
Personal vehicle loans are designed to help you purchase a car, motorcycle, or SUV. Whether it’s for commuting, road trips, or enjoying the convenience of personal transport, this type of loan allows you to spread the cost over time with manageable monthly payments.
Here are some common reasons people apply for personal vehicle loans:
Purchasing a New Car
Personal vehicle loans are commonly used to help finance the purchase of a new car, providing the necessary funds to acquire your desired vehicle.
Upgrading to a Larger Vehicle
This type of loan allows you to purchase a larger vehicle, such as an SUV or minivan, to accommodate growing needs and offer greater comfort.
Financing a Motorcycle
Motorcycle enthusiasts often use personal vehicle loans to fund their dream bike, enabling them to embark on thrilling rides on their preferred two-wheeled vehicle.
Funding a Recreational Vehicle (RV)
Personal vehicle loans can also be used to finance the purchase of recreational vehicles, such as motorhomes and campervans, making road trips and vacations more enjoyable.
Consolidating Debts
Some individuals use personal vehicle loans to consolidate high-interest debt. By paying off credit card balances or other loans, they can save on interest payments.
Buying a Used Car
Pre-owned cars are a popular choice for personal vehicle loans, giving buyers the opportunity to find a reliable car at a more affordable price.
Getting a Smaller, Fuel-Efficient Vehicle
Some borrowers prefer personal vehicle loans to purchase compact, fuel-efficient cars, which can help reduce fuel costs and lower their environmental impact.
Investing in a Classic or Vintage Car
Car collectors and enthusiasts may use personal vehicle loans to finance the purchase of classic or vintage vehicles, adding unique treasures to their collections.
Supporting Business Needs
Business owners may apply for personal vehicle loans to purchase vehicles for company operations, such as delivery vans or work vehicles, ensuring reliable transportation for their business.
Emergency Vehicle Replacement
In case of a breakdown or accident, personal vehicle loans provide the necessary funds to quickly replace a damaged or inoperable vehicle, ensuring you maintain your mobility.
How much can I borrow for a personal vehicle loan?
In Australia, the amount you can borrow for a personal vehicle loan depends on several factors. Lenders will evaluate your credit profile, income, and the vehicle you wish to purchase. Personal vehicle loans typically range from $5,000 to $100,000 or even more, covering the total cost of the vehicle, including taxes and fees.
Lenders may offer higher borrowing limits for new cars, potentially financing up to 100% of the purchase price. For used vehicles, the loan amount is usually between 60% and 80% of the vehicle's value. You may also be required to make a down payment, particularly when buying a used car.
Interest rates vary based on your credit history and the type of loan. Secured loans, which use the vehicle as collateral, tend to offer lower interest rates compared to unsecured loans. Loan terms typically range from 1 to 7 years; while longer terms can lower monthly payments, they may increase the total interest paid over the loan’s life.
To determine how much you can borrow for a personal vehicle loan, use our repayment calculators. It’s important to review your financial situation and make sure you are comfortable with the loan amount before applying. Be sure to carefully read and understand the loan terms and conditions to make an informed decision.
Personal Loan Repayment Calculator
To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.
Total amount to repay
$0.00
Your repayments
$0.00 /mo
Your repayment chart will appear here after calculation.
Am I eligible for a personal vehicle loan?
Understanding your eligibility can help you make informed financial decisions.
Lenders consider several factors when assessing your eligibility, including your credit score, income, debt-to-income ratio, age, residency, and required documentation.
While meeting the eligibility criteria doesn't guarantee loan approval, having a good credit score, stable income, and a positive financial profile significantly improve your chances.
You are eligible to apply for a personal vehicle loan if you:
- ✔Are over the age of 18
- ✔Are an Australian citizen or permanent resident
- ✔Have a regular source of income sufficient to meet the repayments
How to Apply for a personal vehicle Loan
Applying for a personal vehicle loan is straightforward and takes only a few minutes. Simply fill out our online form with some basic details, and you'll be on your way.
Once we receive your information, a representative will reach out to help you explore loan options from over 50 trusted Australian lenders.
If you're eligible for a personal vehicle loan and are satisfied with the initial quote, here's what you’ll need to prepare:
- ✔ Passport or driver’s licence
- ✔ Proof of income and expenses (e.g., payslips, bank statements)
- ✔ Details of any current debts or loans
How to Find the Best personal vehicle Loan for Your Needs
Choosing the right personal vehicle loan involves understanding key factors like interest rates, fees, and repayment terms. Each aspect can impact the total amount you'll pay, so it's vital to make an informed decision.
Interest Rate
Lower interest rates reduce the total cost of the loan. Take time to compare rates from various lenders to secure the best deal.
Comparison Rate
Unlike the interest rate alone, this includes fees and charges to give you a clearer understanding of overall costs.
Early Payout
Find out if your loan allows early repayments without penalties, as this can save you significant interest costs.
Fees
Pay attention to application, ongoing, and early repayment fees. Opt for a loan with competitive and transparent fee structures.
Loan Term
Shorter terms mean higher monthly payments but less interest overall, while longer terms reduce payments but increase total costs.
Still have questions about personal vehicle loan?
These helpful FAQs will help you find the answers you need. If you can’t find what you’re looking for, you can request a callback below.