Secured car loans are the go-to option if you need to borrow money to purchase a vehicle. By tying the loan to your car, you can access more competitive rates and improve your chances of approval – making it an attractive choice for borrowers across Australia.
If you are looking for a secured car loan, turn to Savvy. It’s our most popular type of vehicle finance, and with a panel of more than 40 lenders and experienced consultants to support you every step of the way, we can help you find the car loan you need. Get started with a free, no-obligation quote today!
Why apply for a car loan with Savvy?
How do secured car loans work?
Secured car loans are a common type of common type of car loan where the vehicle you are purchasing serves as collateral. In other words, the car acts as security for the lender in case the borrower defaults on the loan. If you fail to make payments as agreed, the lender has the right to repossess the vehicle to recover their losses.
Because the loan is tied to the vehicle, it represents less risk for the lender – which can result in lower interest rates and higher borrowing limits than other types of finance. However, there will typically be other conditions attached, such as restrictions on the age and condition of the car.
Other than this, a secured car loan works like any other loan, where you borrow the money you need, then repay in regular instalments plus interest.
Secured car loan interest rates
Our car loan interest rates start from as little as 5.50% p.a. (comparison rate 6.56% p.a. as of May 2025), though the rate you’re offered will depend on factors like your credit score, the loan amount and the lender’s criteria.
After you apply, your dedicated Savvy consultant will assess your application and provide an indicative rate, so you’ll have a clear idea of what you can expect to pay.
Car Loan Lenders We Work With
The pros and cons of secured car loans
Pros
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Lower interest rates
Interest rates for secured car loans are often lower compared to unsecured loans because there's less risk for the lender, helping to reduce the overall cost of the loan.
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Higher chance of approval
As the car acts as collateral to back the loan, borrowers with lower credit scores or limited credit history may have a better chance of getting approved.
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Improves credit
Making consistent and on-time loan repayments can help improve your credit score, demonstrating to future lenders that you are a responsible borrower.
Cons
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Risk of repossession
If you fail to make payments, the lender has the legal right to repossess the car to recoup their losses.
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Restrictions on car choice
Your car must hold enough value to cover lost funds in case you default on your loan. As a result, there are restrictions on what car you can buy.
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Mandatory comprehensive car insurance
Lenders typically require comprehensive car insurance to be taken out on the vehicle, which is the most expensive car insurance option and can increase your overall expenses.
What our customers say about their finance experience
