Secured Car Loan Rates – The Monzi Guide

Secured car loan rates help determine the amount you repay. Secure your loan with an asset and you can potentially unlock lower interest rates. Apply with Monzi and we might be able to pair you with a potential lender. 100% online cash loans from $300 to $10,000 with no paperwork. Apply today.

Disclaimer: The loans offered by our network of lenders are personal loans. Unlike traditional car finance, you may not be able to use the car you intend to buy as security against the personal loan. You will need to nominate one of your existing assets as collateral.

What is a secured car loan?

Secured car loans are simple. You apply for a car loan with a lender and use an asset that you currently own (e.g. a car or boat) as the security for the loan.

In lending terms, security acts as a guarantee that you will make your required repayments. However, should you default on your loan then the lender may take steps to repossess the asset in order to recover their losses.

Through Monzi’s lender-finder service, you may be able to access secured car loans up to $10,000. Apply during business hours and you may be matched with an available lender in just one hour.

You get the cash you need to purchase your vehicle while repayments are divided evenly over the coming months or years. In short, it may be a convenient and manageable finance option for you.

Ready to begin? Use the loan slider at the top of the page to start your application.

How much can I borrow with a secured car loan?

At Monzi, we work with lenders who offer cash loans from $300 to $10,000. Typically, secured loans range from $2,000 to $10,000.

In any case, the loans offered by Monzi’s lenders come in three types. So, before you begin, it’s important to understand which loan you will be applying for. See below for details.

Loan typeFeatures
Small loan$300 to $2,000 unsecured repaid over 12 months.
Medium loanSecured loan $2,001 to $4,600 with a 13 to 24 month repayment term.
Large loan$5,000 to $10,000 secured loans repaid over a 13 to 24 month term.

You may be eligible for large secured loans of up to $30,000 if you meet certain criteria.

Car loan calculator

Many online lenders provide car loan calculators that can help give you an idea of what your repayments will be. Just enter the amount you wish to borrow and the repayment period and you’ll be provided with a repayment estimate.

At Monzi, our loan slider does this too. Drag the bar across to the amount you wish to borrow, set your ideal repayment period and then you’ll see what your repayments may be.

Moreover, our slider shows examples of what the weekly, fortnightly and monthly repayments may look like.

However, keep in mind that these are estimates and should only be used as a guide. Your final repayments will be determined by your lender and outlined in your loan contract should you be approved.

Ultimately, the repayments presented in our loan slider may not reflect the actual cost of your loan.

Secured car loan rates vehicle sitting in car park

The best secured car loan rates

Monzi is unable to say what the best interest rate will be for secured car loans. Interest rates are calculated by lenders based on a number of factors and as a result, they can vary significantly depending on the features of your loan and application.

As a brief guide, factors taken into account by lenders may include:

  • Is the loan secured or unsecured?
  • You credit history: if you’ve got an excellent track record of making payments on time then you may be offered lower interest rates.
  • The amount you wish to borrow (small loan or large loan) and repayment term.

How do I apply?

Above all else, you first need to make sure you are eligible. Check below to make sure you meet our requirements:

  • 18 years or older.
  • Australian citizen or permanent resident.
  • Have a current personal email address and mobile number (so we can contact you).
  • Hold an online bank account with at least three months of history.

Satisfied that you’re eligible? Then it’s time to begin your application. Follow these steps:

  1. Select your ideal loan amount then your preferred repayment period (where applicable).
  2. Supply the required personal and financial details.
  3. Wait while our automated system tries to pair you with an available lender.
  4. You’ll receive an outcome via text. If you are successfully paired with a lender then they will be in touch to begin the assessment process.

Secured car loan rates comparison

If you’re looking to find the best secured car loan rates then you’ll need to do some research. Compare personal loan products to find the one that suits your circumstances the best.

While the interest rate is undoubtedly one of the key considerations, it’s not the only one. There is a range of factors to consider before agreeing to any loan. Check out our quick list below:

  • Secured or unsecured.
  • How much can I borrow?
  • What is the repayment period?
  • Can I repay my loan early?
  • Does the lender have a history of treating borrowers well? (Check their reviews to find out).

For more details, the Moneysmart website provides more details on how to compare car loans.

Secured car loan bad credit

If you’ve got one too many defaults on your credit report then you may feel like your options are limited. However, that may not necessarily be true.

These days there are plenty of online loan products that let you apply for car loans with below average credit. Moreover, you may be able to lock in lower secured car loan rates if you secure the loan with an asset (e.g. a vehicle you own).

In assessing your application, these bad credit lenders won’t just focus on your past credit mistakes. They’ll assess your complete financial situation. In other words, your budget (income vs expenses) may be just as important.

While approval is not certain, lenders will take the time to assess if the loan you’ve applied for is suitable for you. As a result, you may be approved regardless of your credit history.

Are lenders more willing to offer secured loans?

Lenders are may be more willing to offer secured loans than unsecured loans given that they are guaranteed.

Securing the loan with one of your assets reduces the risk posed to the lender. In the event that you default on your repayments, they may be able to take steps to repossess the asset to recover their losses.

In short, with this reduced risk potentially comes a greater willingness to offer these loans. Moreover, they may also be available at larger amounts compared to unsecured loans.

Apply today

Scroll up and use Monzi’s loan slider to begin your application now.

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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.