For many Australian’s, cars are more than just a way to get from A to B , it’s part of their lifestyle and how they earn a living. Whether you’re a travelling salesperson, delivery driver, tradie or service provider – more than before, more of us are at work when we’re on the road.

With more Australian’s requiring car loans, car dealerships have been offering a wider range of in-house finance options. Getting finance through a dealership seems easy at the time, but before heading to a car dealership who will offer you their own finance option, it’s important to understand your loan options.

Here’s a breakdown of car loans available to you:

Unsecured Car Loans
An Unsecured Car Loan is no different from an unsecured personal loan in that the bank has no collateral on the amount borrowed. In this case, the lender relies on the borrower’s creditworthiness.

Secured Car Loan
Unlike Unsecured Loans, secured loans are secured by an asset, such as a car. This allows the lenders to repossess and sell that asset if you fail to repay the loan. Unsecured loans also tend to have a lower average interest rate because they’re less risky for the lender.

Peer-to-Peer Car Loans
P2P lending is when individuals seek loans from private lenders (their peers) rather than using a traditional lender. This has certainly increased over the past few years with RateSetter currently offering personal loans which can be used for buying a car.

At IN2Mortgages, we have access to over 60 lenders, including a number of car finance lenders who have excellent relationships with dealerships. So, if you’re looking to purchase a car for commercial or personal use, our team can help you.

For more information on car loans, fill out our form or contact us on 0418 646 441 today.


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