Used Car Loan – Second-hand Car Finance

Upgrade your ride with a used car loan potentially available through Monzi’s lender-finder service. Apply and you may be matched with a great lender in no time! $300 to $10,000 cash loans potentially available online.

Please note, you will need to use one of your existing assets as security for loans over $2,000. Moreover, you cannot use the used car you intend to buy as security.

Used Car Loan: Monzi investigates

A used car loan could be the right finance option to help you fund the purchase of a second-hand vehicle.

With Monzi, you can potentially access these loans up to $10,000. All it takes is one simple application, and we may be able to pair you with a potential lender. Apply during business hours and you might be paired with a lender in just 60 minutes.

Best of all, you get the money you need to drive away in your car today while the costs are divided evenly into a series of repayments.

Dreaming of that new set of wheels? Try Monzi today. It’s a convenient way to find a possible lender online.

Can I get finance on a used car?

Yes.

There is a range of finance options available to help cover the purchase of a second-hand vehicle.

At Monzi, we can help you find them. As a lender-finder service, we can potentially match you with one of our great lenders.

Each of our lenders offers a range of loan products meaning you can borrow from as little as $300 all the way up to $10,000.

Keen to get behind the wheel of your new car? Apply with Monzi. We may be able to help you access the finance you need.

How do used car loans work?

Used car loans work the same way as any other personal loan.

First, you apply and, if approved, the cash will be transferred to you. From there, you can then purchase the used car that you’ve had your eye on.

Finally, you’ll need to repay your loan through a series of on-going, regular repayments made over the months or years that follow.

Please note, the personal loans potentially available through Monzi’s network of lenders do not function like typical car loans. In other words, you cannot use the car you intend to buy as security. Instead, you must already have an existing asset of adequate value.

What is a secured car loan?

With a secured loan, you must sign over an asset in order to guarantee the loan. With a secured personal loan from Monzi’s network of lenders, you must attach one of your assets as security against the loan. Lenders are often able to consider the following as security:

  • car
  • caravan
  • motorbike
  • boat.

Please note, the vehicle you use as security cannot be the car you are about to buy. You must already be the registered owner of a different vehicle.

Is it better to finance a car or pay cash?

In short, it will come down to your individual financial situation. As a result, Monzi is unable to provide guidance on this issue.

As a general rule, paying cash is typically more cost-effective as you are not required to pay the interest that is attached to a car loan.

However, realistically, having the cash-on-hand to cover the purchase of your vehicle is often not possible. With a used car loan, you get the cash you need, while repayments are divided evenly over a period of months.

To sum up, before making any decision, consider what’s best for your financial situation. Consider using a tool such as the ASIC’s Moneysmart budget planner to better understand where your cash is going each month.

Used car loans with Monzi: how to apply

Before you even think about applying, make sure you are eligible. Monzi has four boxes you must tick. Check them out:

  • 18 years of age or older.
  • Australian citizen or permanent resident.
  • Have an active contact number and email address.
  • Have an online bank account with at least three months of transaction history.

So, you’re eligible, what now?

It’s time to apply. At Monzi, our application process is simple. Just follow these steps:

  1. Use the loan slider to select the amount you wish to borrow and your ideal repayment period.
  2. Enter the required personal and financial information.
  3. Wait while we try to pair you with an available lender.
  4. If you are paired with a lender, they will be in contact to complete an assessment.

Can I get financed for a car with bad credit?

Yes; at Monzi, we associate with plenty of lenders willing to accept applications from individuals with less-than-impressive credit reports.

While they may examine your credit history, they’ll look deeper too. In short, these lenders will assess your financial situation as a whole.

By looking at the balance between your income and expenses, lenders can get a sense of what repayments may be affordable for you.

While approval is not certain, your credit history won’t necessarily stop you from accessing credit. Your current budget may be just as important.

Can I get a car loan with a credit score of 500?

You may be able to get a loan with a credit score of 500. After all, Monzi works with lenders who are willing to consider bad credit applications.

They’ll assess your application like any other and provide you with an outcome. However, approval is never certain.

Moreover, keep in mind that bad credit loans may attract higher interest rates to account for the lenders increased risk. As a result, ensure you shop around before reaching any agreement.

Used car loan close up of brake light

What is a good interest rate for a used car?

The interest rate you are offered may be influenced by a number of elements. As a result, it is difficult for Monzi to say what a reasonable interest rate may be.

More often than not, lenders will calculate your interest rate based on the amount you are looking to borrow, your credit history and whether the loan is secured or unsecured. Therefore, there is a number of factors that determine what interest rate you may be offered.

Car loans comparison

Finding the right loan is crucial as it can potentially save you a ton of money.

Not sure what to look for? Make sure you consider these factors before agreeing to a loan:

  • How much can you borrow?
  • What is the interest rate?
  • What feels and charges will be applied?
  • Secured or unsecured
  • The lender: ensure they have plenty of positive reviews.

Apply now

Ready to begin? Monzi is ready to accept your application. Let’s go.

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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.