Drive away in your car today with a new car loan. Fund the purchase of your vehicle with loans up to $100,000. Keen to know more? Monzi’s here. Our comprehensive guide will run you through all the key details to help you decide if the product is right for you. Let’s go.
The loans offered by our network of lenders may include car loans or personal loans. Unlike traditional car finance, you may not be able to use the car you intend to buy as security against some loans. Instead, you will need to nominate one of your existing assets as collateral, depending on the loan type.
New car loan
A car loan is exactly what you would expect. It’s a loan that you can use to fund the purchase of a new vehicle. Simple, right?
Through lenders in our network, you can borrow amounts ranging from $10,000 to $100,000. With a car loan, the car of your dreams may be more accessible than you thought.
While this provides a brief overview, there’s much more you need to know. Read on for Monzi’s A to Z guide. Let’s go. Learn more about loan against my car that is paid off here.
Bad credit car loans
If you’re one of the many Aussies with bad credit, there’s some good news. These days, there are a number of great, online lenders who may be willing to accept bad credit applicants.
In assessing your application, they’ll look at more than just your credit score. Your current budget may be just as important.
If you’re in a secure financial position, you may be able to access the car loans you need even if your credit history isn’t the best. However, approval is never certain.
If you do have bad credit, one option could be to apply for a secured car loan. If you guarantee your loan with an asset, then lenders may be more prepared to consider your application or may even be willing to offer lower interest rates. However, more on that soon.
New car loan no credit check
So, you want a loan without a credit check being performed? While they may be offered by some lenders, unfortunately they may not always be an option.
In short, lenders use credit checks to assess your history as a borrower. From there, they can get an idea of your reliability and how likely you will be to repay your loan.
However, as mentioned, some lenders may be willing to bypass this step. As a result, you can potentially finance your new car without a credit check.
Although, this is far from certain and may not be possible. It will simply come down to the lender’s assessment policy.
In any case, if you’ve bad credit, a credit check may not be the end of your application. Lenders are now more prepared to consider bad credit applicants for finance and may assess your income and expenses too. From there, they’ll make a decision about your suitability for credit.
Secured car loans
With a secured loan, the lender must sign over an asset as security in order to guarantee the loan. In the event of default, this asset can be repossessed by the lender and sold to recover their losses. So, how does a secured car loan work?
In essence, it’s the same. When you apply for a secured car loan, you’ll need to sign over one of your existing assets as security (e.g., another car you own). From there, you will get your cash and can purchase your new vehicle.
Secured loans come with two benefits. First, you can potentially access a greater loan amount. Second, you may be offered more competitive interest rates as the lender’s risk is reduced. However, the risk is that if you are unable to make your repayments then you may lose your asset.
As a result, weigh up the pros and cons before making any decision.
Car loan comparison
When it comes to finding a loan, shopping around is a must. Compare your options to find the best deal; it can potentially save you a ton of money and even make your dream car more accessible.
If you’re new to the borrowing game, however, then you’re probably wondering what to compare. That’s ok! Monzi’s here. Check out our simple list of features to consider:
- The interest rate (aim to find a low rate)
- The fees and charges applied
- How much can you borrow?
- What repayment periods are available?
- Who is the lender? Do they treat their borrowers well? Check their reviews to make sure.
For further details, visit Moneysmart’s article on car loans. It will run you through more of the key considerations as well as what to be aware of.
New car loans and Monzi
At Monzi, while we do not offer car loans ourselves, we can connect you with a lender who does. With amounts ranging from $10,000 to $100,000, we aim to make securing a car loan simple and accessible. Whether you’re looking for a brand-new car or a reliable used vehicle, our lender network is here to help.
