A car loan is a type of finance used to purchase a vehicle. You repay the loan in instalments over time with interest.
The car usually acts as security in secured loans.
Car is collateral
Lower interest rates
Easier approval
No collateral
Higher interest rates
More flexible use
Borrow amount for vehicle purchase
Repay weekly/fortnightly/monthly
Interest charged on outstanding balance
Factors Affecting Approval
Income stability
Car loans help Australians purchase vehicles without paying full upfront cost while managing cash flow effectively.