types of car loans

Ah, the thrilling world of car loans—because who doesn’t want to be shackled to debt with a shiny new set of wheels? In Australia, you typically encounter:

• Secured Car Loans: The loan is backed by the vehicle itself, which means if you stop paying, the lender takes your pride and joy.
• Unsecured Personal Loans: No collateral needed, but brace yourself for higher interest rates that’ll make your wallet weep.
• Novated Leases: A salary packaging beauty, often for company car types, where repayments are deducted pre-tax.
• Chattel Mortgages: Business types’ favourite, allowing you to claim GST and depreciation benefits.

New car loans usually come with lower interest rates compared to used car loans, which can range from about 5% to 15% APR depending on your credit score and lender. For used cars, expect a bit more scrutiny and possibly higher rates. Check out ServiceCentral or CarShowroom for loan options and vehicle listings.