A car loan is finance to buy a vehicle for personal use, usually secured against the car itself. Because the car is the security, car loans typically come at lower rates than unsecured personal loans, and they can fund a purchase from a dealer or a private seller, new or used.
Rates and terms vary widely between lenders, and the figure you’re offered depends on the car’s age, the loan amount, your deposit and your credit history. Getting pre-approved before you shop tells you exactly what you can spend and puts you in a stronger position to negotiate, especially at a dealer.
At Loanworx, we compare car loans across a panel of lenders, arrange pre-approval where it helps, and match you to a lender that suits your situation. As an experienced finance broker, we work for you rather than for any single lender, so you’re not limited to whatever the dealer’s finance desk offers.
Buying a car and want the finance sorted first? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
A car loan comes down to the security, the car, and getting your finance sorted before you buy. Here’s how it works.
Most car loans are secured against the vehicle you’re buying, which lowers the lender’s risk and usually means a sharper rate than an unsecured loan. The car serves as the security until the loan is repaid.
Car loans can fund a new or used vehicle, bought from a dealer or privately. Used and older vehicles can attract slightly higher rates or shorter terms, and private-sale purchases are handled a little differently, all of which we work through with you.
Getting pre-approved before you shop tells you exactly what you can spend and strengthens your hand when negotiating, particularly at a dealer. It separates the finance decision from the showroom, so you’re not pushed into the dealer’s own finance on the spot.
The finance desk at a dealership isn’t always the cheapest place to fund a car, but it’s the easiest to be pushed toward once you’ve fallen for a vehicle. Sorting your finance first puts you in control of both the rate and the negotiation.
We compare car loans across the market, arrange pre-approval where it helps, and match you to a lender that suits the car and your situation. Whether it’s new or used, from a dealer or a private seller, the aim is a competitive rate and a clear budget before you walk in.
A car loan is one of several ways to finance a vehicle through us. Whether it’s for business or a different asset, explore our other asset finance services below.
Flexible personal finance for a car, travel, renovations, consolidation and life’s larger expenses.
Vehicle and fleet finance for business through chattel mortgage, lease or hire purchase.
Novated leasing and car finance options structured around how you use and own the vehicle.
Finance for trucks, trailers and business equipment, sized to the asset and your cash flow.
Finance for excavators, loaders and heavy plant, new or used, for construction and earthmoving.
A car loan is assessed on you and the vehicle. These are the factors that shape your rate and approval.
The vehicle secures the loan, so its age, type and value feed into the terms. Newer cars attract the strongest rates and longest terms; older or unusual vehicles can mean tighter terms.
We match the car to a lender comfortable with it.
Lenders assess your income, its stability and your credit history to confirm you can meet the repayments. A steady income and clean credit file support the best rates.
We present your position in its strongest form.
A deposit reduces the loan, and a balloon or residual payment at the end lowers your monthly repayments in exchange for a lump sum later. The right balance depends on your budget and how long you’ll keep the car.
We structure the deposit and balloon to suit you.
Older vehicles and certain types can attract higher rates or shorter terms because they depreciate faster or are harder to resell. This affects which lenders suit the purchase.
We match older or unusual vehicles to lenders with appetite for them.
Whether you’re buying from a dealer or privately affects how the loan is handled and which lenders are involved, with private sales requiring a little more verification. We arrange the finance to suit either, so a private purchase isn’t a barrier to a sharp rate.
Asset finance isn’t only about the headline rate. It’s about being matched to a lender that suits the asset, structuring the facility around your budget and, where relevant, your tax, and getting it approved quickly. Here’s what working with us looks like.
We compare asset finance across a broad panel of banks, second-tier lenders and specialist asset-finance funders, so you see a genuine spread of options rather than one lender’s offering. We match the asset and your situation to the lender most likely to approve it at a competitive rate.
Because the asset secures the loan, many deals can be approved on limited documentation and settled quickly. We know which lenders move fastest for which assets, so you can get the vehicle or equipment working without a drawn-out process.
The right structure depends on how you want to own the asset, manage repayments and, on the business side, treat it for tax. We compare the structures, including any deposit or balloon, and coordinate with your accountant where it’s a business asset.
For most asset finance, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. Where a fee for service applies to a more complex scenario, we disclose it in writing before any work begins. No surprises.
A car loan provides the funds to buy a vehicle, usually secured against the car itself, which you repay over a fixed term in regular instalments. Because the car is the security, the rate is typically lower than an unsecured loan. The loan can fund a new or used car, from a dealer or a private seller. We compare lenders to find a competitive rate and a term that suits your budget.
Yes. Car loans can fund used as well as new vehicles, from a dealer or a private seller. Older or higher-kilometre cars can attract a slightly higher rate or a shorter term, because they depreciate faster, and some lenders have age limits on the vehicle at the end of the loan. We match the specific car to a lender comfortable with it.
Yes, and it’s worth doing. Pre-approval tells you exactly what you can spend and how much the repayments will be, and it strengthens your position when negotiating, particularly at a dealer. It also separates the finance decision from the showroom, so you’re not pushed into the dealer’s own finance on the spot. We can arrange pre-approval as a first step.
Not usually. Dealer finance is convenient, but it’s tied to the lenders the dealer works with and the finance desk’s margin, so it isn’t always the sharpest rate. A broker compares the whole market and isn’t tied to one source, which often produces a better rate and structure. We’ll benchmark any dealer offer against the market so you can compare.
A balloon, or residual, is a lump sum left owing at the end of the loan term. Including a balloon lowers your monthly repayments, but you’ll need to pay, refinance or trade out of that amount at the end. It can suit your cash flow, particularly if you plan to upgrade the car, but it increases the total interest. We’ll explain the trade-off so you can decide.
Yes. Buying privately can mean a better price on the car, and many lenders will finance a private-sale purchase. It involves a little more verification than a dealer sale, such as confirming the seller and checking the vehicle isn’t under existing finance, which we help coordinate. A private purchase is no barrier to arranging a competitive car loan.
Talk through what you’re financing with an asset finance specialist, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to find the right facility for your asset.
Disclaimer: The information provided here is general in nature and should not be considered financial, tax or legal advice. You should consult your professional advisers, such as your accountant, solicitor and financial planner, to see whether a particular finance strategy is suitable for your business, ahead of a discussion with us that will be limited to how to arrange any funding required.
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Melbourne VIC 3004
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