Unsecured Car Loans
Access unsecured financing with a car loan through Savvy.
Unsecured Car Loans
Looking for unsecured car financing? An unsecured car loan is a type of consumer car loan where your car is not used as collateral or a security for the loan. Instead, a lender will determine eligibility using a borrower’s credit score or overall creditworthiness. In exchange for taking on more risk, your bank or lender will usually charge a higher interest rate in comparison with a secured car loan. Unsecured loans may also come with a fixed or variable interest rate.
With unsecured car loans available with competitive interest rates from a wide range of lenders, Savvy can help you buy the car that you’re looking for, no matter the age, make or model. Access the best unsecured financing without having to break the bank with us.
Unsecured car loan features and eligibility
Save money by comparing interest rates tailored to your profile from our lenders.
You can select the amount you want to borrow, from $5,000 all the way up to $50,000, affording a wide range of car purchases.
As part of your unsecured financing, you’re able to choose between loan durations of one and seven years to shape your repayments.
Additionally, many lenders offer flexible repayment schedules of either monthly, fortnightly or weekly loan pay instalments.
You can also look to access added features on your loan, such as free extra repayments and redraw facilities, which add flexibility.
Your car must never have been written off previously, be covered by a comprehensive insurance policy and be made locally or imported by its manufacturer.
You must be at least 18, hold citizenship, permanent residency or an applicable visa and earn at least $26,000 p.a.
Trust Savvy with your unsecured car loan
How to apply for unsecured financing with Savvy
Compare the best offers with Savvy
Before you start looking at applying anywhere, it’s important to start by comparing your personal loan options with Savvy.
This is a great way to give you an idea of the interest rates and fees you’re looking for, as well as other aspects such as loan term and features like free additional repayments.
Unsecured car loans explained further
Who can access unsecured car loans?
As these are a type of loan that doesn’t put up your purchased asset as collateral, lenders will look at a borrower’s creditworthiness, or ability to pay back a loan, instead.
Lenders may approve financing even for bad credit customers, but their interest rates will be significantly higher than those customers with good or excellent credit. At Savvy, we partner with flexible lenders who are able to approve loans for borrowers of all types, so you can submit a quick quote with us and we can help you secure financing for your car.
How can you tell if you have good credit?
In Australia, credit reporting agencies give customers a credit score based on creditworthiness. These range from 0 to 1200, with others using a 0 to 1000 scale.
Lenders reward lower risk borrowers with more competitive interest rates or access to specialised lending products. Higher risk borrowers may gain approval with a higher than usual interest rate.
Why should I consider a personal loan for my car?
If you have good or excellent credit, a personal loan may be an appealing alternative to a secured car loan as you won’t need to put up your car as security. In a secured car loan, your car is collateral in case you do not pay back the loan, known as a default. In this situation, a lender has the right to repossess the car if you default. In an unsecured loan, though, you are at very little risk of losing the vehicle to repossession.
The lack of security requirement for unsecured personal loans also means that you won’t face any restrictions on the age of the car you can buy. Secured car loans typically employ this, as the car has to retain some value if it’s to be repossessed and sold. Also, because the car has to serve as security throughout the loan, financiers are more reluctant to approve an older car as its likelihood of malfunction is increased compared to a brand-new or near-new vehicle. Because there aren’t any age obligations for unsecured finance, you have a greater range of cars to choose from.
They’re also more flexible than comparable secured car loans. Since loans are unsecured, you may be eligible to borrow more than the car’s value to pay for registration or insurance, or to consolidate other debts. Some products may also include redraw facilities. This allows you to withdraw any additional payments you’ve made from the loan, using it in a similar manner to a line of credit.