Loan Against My Car That Is Paid Off: Monzi Explains All

“I want to get a loan against my car that is paid off!”

“Can I use my boat to secure a loan?”

“I own my motorbike, and I want to get a personal loan with it.”

Do any of these comments sound like you? Look no further! Monzi is an expert lender-finder that is ready to help you find a lender who may offer you a loan against your car. Depending on your financial situation, our network of lenders may be able to offer you loans ranging from a handy $300 to a mega $10,000.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

About Monzi

Monzi is a lender-finder service working to help everyday Aussies find the lender they need when they need it most. We aim to find unsecured and secured personal loan providers who may offer quick and easy cash amounts from $300 and $10,000. The repayment period and terms depend on the amount you choose to borrow.

Whether you’re looking for secured or unsecured loans, you can complete our application in a matter of minutes. We’re 100% online, so you can quickly and easily apply on-the-go or from the comfort of your own home. So, wherever you are, Monzi just might be able to pair you with an available lender!

What is a secured personal loan?

A loan that is secured is guaranteed by one of the borrower’s assets. Our network of lenders generally accept vehicles as assets.

So, you may be wondering, can I get a secured loan against my car that is paid off? Yes, potentially! With Monzi, you could not only get a secured loan against your car that is paid off, but maybe even against your motorbike, caravan or boat.

This asset is used to guarantee the loan and reduce the risk posed to the credit provider, meaning that secured loans often attract lower interest rates and fees.

Therefore, secured loans may be a convenient way to cover a big-ticket expense, like a holiday or engagement ring.

There are two types of secured loans: medium and large. They generally consist of the following.

Medium personal loan:

  • $2,100 to $4,600
  • Secured
  • Repaid over a period of 13 to 24 months.

Large personal loan:

  • $5,000 to $10,000
  • Secured
  • 13 to 24 month repayment terms

However, if the borrower is unable to fulfil the required repayments, the lender may recover their losses by repossessing the nominated asset. Still, rest assured― credit providers view this as a last resort and there are a number of protocols that must be followed before repossession.

What about unsecured personal loans?

Unlike with secured loans, you do not need to attach security to an unsecured cash loan. As a result, however, unsecured loans may attract higher interest rates and fees than secured loans.

Generally, unsecured personal loans are smaller and are a short term commitment. We find lenders offering small, unsecured loans from $300 to $2,000 that can be repaid over a fixed 12-month period.

However, make sure that you calculate what you can afford to borrow, and compare loan options before selecting the right loan for you.

Why secured loans?

By using an asset as security to guarantee a personal loan, you reduce the level of risk posed to the lender.

However, you might be asking, why is the risk lower? Well, lenders are able to sell the asset nominated as security, in the event of a loan default.

As a result, the lender can recover some of the loss they incurred on the unpaid loan.

Therefore, because an asset is already being used as security against the loan, lenders may be able to offer lower rates on secured personal loans.

What can I use as security?

Typically, Monzi works with lenders that may be able to accept a car, caravan, boat or motorbike as security against a personal loan.

So, if you were wondering, can I get a personal loan against my car that is paid off? There is certainly a chance!

However, it is important to remember that borrowers must typically be the registered owners of the vehicle they wish to nominate as security.

Therefore, if you own a car, motorbike, caravan or boat, you might be able to apply for a secured personal loan between $2,100 and $10,000.

What happens if I fail to repay my secured loan?

Essentially, if you are unable to repay a secured loan, your lender has the legal right to repossess the asset used as security.

For example, if you borrowed a personal loan against your car that is paid off and are unable to repay it, your lender may choose to repossess the nominated car to recoup their losses.

While lenders can legally repossess assets, there are a number of laws that protect consumers during the process of repossession. Specifically, credit providers can only begin to repossess an asset if:

  • The borrower is behind on their repayments;
  • The credit provider has given the borrower a default notice, allowing 30 days to pay the overdue amount; and
  • The consumer has not paid the overdue amount, come to a resolution, nor lodged a request within the notice period to postpone the repossession.

For further details, check out Moneysmart’s guide to repossession.

What happens if a lender repossesses my asset?

Even if creditors seize your asset, consumers remain protected by Australian law. So, your credit provider must send you a written notice within a fortnight of the repossession, outlining:

  • The estimated value of the asset.
  • The cost of the repossession, as well as any additional costs.
  • A statement of the consumer’s rights and obligations according to the National Consumer Credit Code.

Generally, the credit provider cannot sell the asset within three weeks of the above notice. Within this three-week period, if the consumer pays the owed amount, the lender must return the asset/s.

Alternatively, you might be able to inform your lender of someone who is willing to buy the asset for its minimum estimated value.

How do I compare secured personal loans?

Above all, Monzi understands that everyone’s personal situation is different, and their personal loan should reflect that! So, potential borrowers should compare products before making a final decision on which online credit option is right for them.

When comparing your financial options, ensure that you take into account:

  • The amount you intend to borrow.
  • Your preferred repayment term.
  • The interest rate applied to your loan.
  • Additional fees and charges attached to your loan.
  • The features that apply to your personal loan.
  • The reviews of different lenders offering secured personal loans.

Additionally, it is important to note that these factors can vary depending on the lender you’re paired with and the type of secured personal loan you choose.

Secured vs. unsecured: what’s the difference?

Generally, the main difference between secured and unsecured loans is the need for an asset as collateral. However, other than this, there are a few key differences between the secured and unsecured personal loans that Monzi’s network of lenders might offer. For example:

Secured personal loansUnsecured personal loans
$2,001 to $10,000$300 to $2,000
13 to 24 month repayment term12 month repayment term
Security requiredNo security required
Bad credit consideredBad credit considered
Centrelink consideredCentrelink considered

Note: Lenders may differ in the terms they offer.

Is a secured personal loan right for me?

Whether you want to take out a loan against your car that is paid off or any other asset, Monzi can’t guarantee that a secured personal loan will be right for you. While we are the lender-finding experts, we can’t speak to everyone’s unique circumstances.

As a borrower, you should ensure that a secured loan is right for you, prior to applying. So before you begin, ask yourself the following:

  • Available asset: Do I have an available asset to offer as security for my secured loan?
  • Criteria: Will the lender accept my car as security? Have I paid off the loan? Do I have it registered in my name?
  • Repayments: Can I afford the repayments of a loan against my car that is paid off? If not, my vehicle could be repossessed.

Can I get a secured loan against my car that is paid off?

There is definitely a chance! While Monzi cannot guarantee that you will be approved for a secured loan, we can guarantee that we will do our best to pair you with an available lender who may offer the fast cash you need today!

How do I get a secured loan against my car that is paid off?

Essentially, you could obtain a secured loan against your car in the same way you could obtain any other loan: by applying! That’s it. We’ll take care of the rest.

So, what exactly do you need to do? Here are three easy steps to apply online with Monzi:

  1. You apply online: To apply, scroll up and you’ll find our loan calculator. Select how much you intend to borrow and for how long. Then, you’ll see an estimation of your weekly, fortnightly or monthly repayments. Of course, all costs are subject to individual lenders. Once you’re happy with the proposed loan terms, click the ‘Apply Now’ button, fill in your application, and submit!
  2. We get busy: After you submit your application, we’ll start searching for a lender that might be able to provide a secured loan. If we find a loan provider for you, we’ll let you know.
  3. Meet your lender: If we find you a lender, we’ll pass on your application and contact you directly. Then, your potential lender should be in touch shortly after. If your lender approves your application, they should send an electronic contract for you to review and return to them. If all goes well, you’ll have cash in your pocket quick-smart!

It’s potentially that easy to access credit now!

Is it a good idea to get a loan against my car that is paid off?

That’s really up to you! While Monzi does their best to make consumers aware of all the factors involved in applying for a secured loan, you must consider your own unique situation to determine whether a loan against your car suits you.

There are many factors to consider before deciding to apply for a secured personal loan. Some of these may include:

  • Your income, savings, and assets
  • Your day-to-day expenses
  • Any current debts you have
  • Any upcoming expenses you will face
  • Your credit history
  • Ways you might be able to minimise your overall costs, in order to reduce the amount you need to borrow
  • The cost of repaying a personal loan, which will likely come with interest and additional fees

Furthermore, it is also essential to check your suitability and eligibility for a personal loan by seeking out an estimate of your repayments prior to applying for a loan. This way, you will know if you can afford to repay what you intend to borrow. Once you have received an estimate of your repayments, compare the factors listed above with the value of this estimate, and assess whether a personal loan would still be a good choice for you.

It may even help to evaluate this information by checking your personal loan suitability with a financial adviser, prior to applying for the loan.

Am I eligible for a loan against my car that is paid off?

Monzi has certain criteria you must meet before you begin your application for a secured loan against your car. Specifically, make sure that you check off everything on the list below:

  • At least 18 years of age
  • An Australian Citizen or Permanent Resident
  • Have a personal email address and phone number
  • Have a personal bank account with three months of transactional history

Please note that your application may not progress if you fail to meet any of the above criteria.

loan against my car that's paid off shown here

Will a loan against my car that is paid off affect my credit rating?

No matter what you use as security for your secured loan, the factor most likely to affect your credit report is the nature of your repayments. In other words, missing repayments on your secured loan against your car will have the same impact on your credit rating as missing repayments on any other loan.

Overall, you can improve your credit score by displaying good borrowing and credit-related habits. Specifically, you may improve your credit score through the following:

  • Lowering credit card limits
  • Consolidating multiple debts
  • Limiting applications for new credit
  • Making repayments on time
  • Paying rent and other bills on time
  • Repaying credit cards in full each month

However, you may still be wondering, will a secured loan against my car that is paid off affect my credit report? In short, a secured loan against your car will probably impact your credit in some way, but not any more than any other secured loan would! What matters most is the way you manage your secured loan.

Where can I get a loan against my car that is paid off?

Though we try not to toot our own horn, Monzi is an easy and efficient lender-finding service that could help you find a loan against your car that is paid off.

If you want a loan against your car or any vehicle for that matter, scroll up to start your application with Monzi today!

Monzi and secured loans against cars

Have you recently found yourself Googling, ‘how to get a loan against my car that is paid off’?

Then look no further! Monzi is an expert lender-finder that just might be able to pair you with a lender offering a secured loan against your car.

Secured loans are loans that are ensured by one of the borrower’s assets. Our network of lenders generally accept vehicles as collateral, including your paid-off car!

This asset guarantees the loan and reduces the risk posed to the credit provider. As a result, secured loans often have lower interest rates and fees.

However, if the borrower is unable to fulfil the required repayments, the lender may recover their losses by repossessing the nominated asset. Still, this is usually the last resort for credit providers.

So, if you’re looking for a secured loan against your car, consider applying with Monzi today and potentially gain access to our network of lenders!

Can I get a secured loan against my car that is paid off Brisbane?

You sure can! Even though Brisbane is located in the ‘Sunshine State’, we know everything isn’t always sunshine and rainbows for Brisbanites, especially when financial stress is involved.

So, if you live in Brissy and are looking for instant cash to cover an immediate expense, consider applying with Monzi.

While Monzi can’t guarantee that we’ll be able to find you a lender willing to offer your preferred loan amount, we can guarantee that we’ll try our best!

Can I apply for a secured loan against my car that is paid off Melbourne?

Most definitely! Many call Melbourne the ‘Garden City’, but Monzi understands that Melbournians can’t always stop and smell the roses when experiencing financial stress.

Therefore, if you live in Melbourne and are on the lookout for a secured personal loan, consider applying with Monzi.

However, it is important to note that Monzi cannot make any promises about pairing you with an available lender. We can only promise we’ll do our utmost to help you find the right lender for your financial needs!

Can I get a secured loan against my car that is paid off Sydney?

Yes, possibly! We might know Sydney as the ‘Harbour City’, but that doesn’t mean Sydney-siders want to harbour any financial stress.

So, if you live in Australia’s biggest and busiest city and find yourself needing a loan today, don’t hesitate to reach out to Monzi.

Can I get a loan against my car that is paid off with bad credit?

It definitely shouldn’t stop you! At Monzi, we believe that all Aussies should have a chance to apply for the loan they need — bad credit and all.

In short, we aim to find lenders that look at more than just your credit score, also considering factors like income and expenses.

So, if a past default or two is looming over your head like a dark cloud, Monzi might be your ray of hope. If you’re in a comfortable financial position, lenders may still offer you the cash you require even with a few past credit mistakes.

What credit score do I need for a loan against my car that is paid off?

In short, Monzi cannot say for sure.

Lenders vary in their minimum credit score requirements. Furthermore, credit score is not the only factor that lenders assess when reviewing loan applications.

As a result, it’s possible for two individual borrowers with identical credit scores to experience completely different outcomes of their applications.

At the end of the day, lenders retain the right to approve or deny secured loan applications as required. Therefore, Monzi cannot say what specific credit score is required for a secured loan against a car.

I’ve got no job. Can I get a loan against my car that is paid off?

It’s not impossible! However, receiving approval can often be difficult.

Essentially, not only will you need to provide security, but you will also have to provide evidence of earning some form of regular income. For an unemployed individual, this might include Centrelink benefits.

Without regular income, lenders will likely deem your application ineligible and reject it. This is because lenders must ensure that you can repay the loan you borrow, prior to approval.

Finally, proof of income and security alone may not be enough to receive approval. As a result, the fate of your application lies in the hands of lenders. In short, nothing is certain.

I’m on Centrelink. Can I get a loan against my car that is paid off?

Potentially! If you receive Centrelink payments and are looking for a secured loan, we know that you may have been turned down by traditional lenders. If this sounds like you, we’re here to help!

Monzi may be able to find lenders that regard your regular Centrelink payments as income. However, this will only be the case if you’ve received these payments for at least three months.

So, if you are receiving Centrelink and find yourself searching Google for ‘secured loans against my car that is paid off’, look no further!

How to apply with Monzi

Monzi is always ready and willing to help Aussies find the funds they need to get by. Fortunately, applying with Monzi is pretty simple.

Once you’ve checked that you meet our eligibility criteria, you can begin your application with Monzi! All you need is a few spare minutes and the following details:

  • Personal contact details
  • The reason for your loan
  • Internet banking details
  • MyGov details (if applicable)
  • Employment information

If you already have the above information handy, you should be able to complete your secured loan application in a matter of minutes!

What can you use secured loans for?

Generally, you will only rely on a secured loan to cover a major life expense. As a result, some common reasons that borrowers apply for secured loans through Monzi include:

  • Car loans
  • Car repairs
  • Rental bond
  • Major household maintenance
  • New appliances

It is important to note that this is only a brief list. There could be numerous other reasons why you might need to apply with Monzi. If you do, we’re always ready and willing to pass on your application to available lenders!

Is it easy to get a secured loan against my car that is paid off?

Overall, it is usually easier to get a secured loan than an unsecured loan, regardless of what you use as security.

In most cases, lenders prefer to offer secured loans, given the additional security they provide. As a result, they could be an accessible option if you are a borrower with poor credit.

Having said this, approval is not certain. Your lender will assess your application to ensure that you will comfortably afford your repayments, and respond as they see fit.

Why choose Monzi to find personal loans?

Already dealing with a tight budget? The last thing you need is extra pressure! Monzi may be able to find lenders offering personal loans quick-smart.

Need a few more reasons to choose Monzi? No worries.

  • We’re 100% online
  • No paperwork necessary
  • Our service is free
  • Lenders in your pocket
  • Quality personal loans

Apply Now!

So, if you’re ready to apply with Monzi, simply click the ‘Apply Now’ button and you’ll find yourself at our loan slider.

Not ready to apply just yet? No worries! Stay in touch on Facebook, Instagram, Twitter and Pinterest.

Factor In

Costs

Two credit cards
Two credit cards

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Loan amount

$2,001 - $4,600

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.