Using a Personal Loan to buy your car
Otherwise known as an Unsecured Car Loan, a Personal Loan involves a lender providing you the funds to purchase a car of your choice, but they won't hold security over the loan (unlike a Secured Car Loan).
A security on the loan means the lender has the potential to repossess the asset if the loan cannot be paid. This lowers the risk for the lender and consequently lowers the interest rate of the loan
As a Personal Loan means the lender does not have security over the asset, this can mean a higher interest rate on the loan. This is because the loan is without security, and the lender considers it a bigger risk.
How does a Personal Loan work?
The lender will transfer the funds to you to purchase the car or asset of your choice. You’ll take ownership at the time of purchase and repay the loan to the lender over the agreed terms.
These terms include the time period you have agreed to pay it back over and the decided interest rate. This varies from person to person depending on their financial situation.
The alternative option is a Secured Car Loan, which generally speaking have a lower interest rate, as the security provides a risk protection mechanism for the lender.
Features of a Personal Loan for cars
- Flexible contract terms ranging from 1 to 7 years
- Fixed interest rates mean you'll always know your repayments
- A tax deduction may be available when the vehicle is used for business purposes*
- A good option if you're looking to purchase a vehicle that may not meet the criteria for a Secured Car Loan, such as an older or lower value vehicle
* Please refer to your accountant for eligibility
Why choose a Personal Car Loan with Stratton Finance?
Anytime, Anywhere, AnyhowWe're a real online business. You can simply apply online with our easy quote forms to find out your personal car loan repayments. There's no need to leave that couch!
Financial FlexibilityOur lenders have a wide range of options that give you flexibility. You’ll also be on a monthly repayment schedule with fixed rates, so you’ll have peace of mind that your repayments will be consistent across the loan.
Lifetime SupportA dedicated consultant will complete all the legwork to help you secure the best personal loan for your needs. We're here for you over the life of your loan.
We make getting finance simple.
Common questions about Personal Loans for Cars
What is a personal loan and how does it work?
A personal loan (also known as an unsecured car loan) involves a finance company lending you the money to purchase a vehicle for personal use. Although you’ll make regular loan and interest repayments over a period agreed with your finance company, you will own the vehicle from the time of purchase, due to the fact that the loan is not secured against the vehicle.
What are the benefits of a personal loan?
- Flexible loan repayment periods, ranging from one to seven years
- Fixed interest rates mean you'll always know your repayments=
- The potential to claim tax deductions if the car is being used for business purposes*
*Please check with your accountant for eligibility
What tax and GST can I expect to pay on a personal loan?
Please visit the ATO website or speak to your accountant to find out about claiming vehicle-related tax deductions.
Who should choose a personal loan?
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