Secured Car Loans. Better Terms When the Lender Has Security.
A secured car loan uses the vehicle you're buying as collateral. That security is why it typically attracts a lower rate than an unsecured loan. Morella Finance compares secured car loan options across Australia.
Car loans from 6.20% p.a. Comparison rate 6.63% p.a.*
Vehicle held as security · No-obligation quote · Same day pre-approval possible
SECURED vs UNSECURED
Understanding secured car loans versus unsecured alternatives.
Secured vs unsecured car loans
Security opens up the widest choice of lenders
The lender's ability to repossess the vehicle in a default scenario reduces their exposure, which is why secured lending is the default structure across the market.
Most standard car finance is secured
The majority of car loans in Australia are secured against the vehicle being purchased. It is the default structure for most lenders on our panel.
Restrictions apply to vehicle age and type
Lenders apply security eligibility criteria. Very old vehicles, grey imports and some commercial vehicles may not qualify as security. Your broker will identify which lenders suit your vehicle.
You own the vehicle, the lender holds a registered interest
You drive and insure the car as normal. The lender's interest is registered as security and removed when the loan is paid in full.
The process
Securing Your Loan. Made Simple.
Tell us about your vehicle
Share the make, model, year and price of the car you're buying.
We search the panel
Your broker compares secured car loan options for your profile.
Review your options
See rate, term, fees and balloon comparisons side by side.
Settlement handled
We register the lender's security interest and settle the loan.
Secured car finance, explained plainly.
Step 1 of 5
What makes a car loan secured
A secured car loan uses the car as collateral. The lender registers an interest against it, which lowers their exposure if repayments stop and is the reason secured lending generally costs less than unsecured for the same borrower.
That security interest sits on the Personal Property Securities Register (PPSR), the same register a title check pulls from whether or not finance is even part of the purchase.
The benefits of a secured car loan
With the lender holding security, secured loans are open to a wider spread of buyers and come with more room to move on term and balloon than an unsecured loan typically allows.
For a newer car especially, secured finance is usually the simplest route, because the lender is relying on the car rather than mainly on your profile.
Deciding if secured finance fits your purchase
It suits most ordinary vehicle purchases well, particularly a newer car from a dealer. It's less suited to older cars, unusual or modified vehicles, or anyone who'd rather not have a security interest sitting on the asset.
If the car falls outside a lender's security rules on age, condition or import history, an unsecured loan is typically the next option, judged on your credit profile rather than what you're buying.
Applying for a secured car loan
We compare secured options against our lender panel based on the actual car you're financing, not a generic profile match.
Most secured applications receive a pre-approval decision the same day, and once approved, we look after the security registration and settlement.
Getting the most from a secured car loan
Get pre-approved first, so your budget's locked in and you can act fast once you find the right car.
Run a PPSR check on any car before you buy it, private sales especially, to confirm there is nothing already owing against it. Think through whether a balloon actually suits your plans before you sign up for one.
Secured car finance at a glance
- The car itself is the security, which is why secured lending generally costs less
- Best suited to standard vehicle purchases, especially newer cars
- A PPSR check protects the buyer as much as the lender
- Secured options are compared across our lender panel in one enquiry
- Most secured applications get a pre-approval decision the same day
Secured Car Finance Built for Your Situation
Security arrangements can be complex. We make sure you understand exactly what you're agreeing to and compare the panel so you see what lenders can offer for your profile.
Get my quoteA Wider Panel
Because the lender holds the vehicle as security, the application reaches a wider set of lenders than an unsecured one.
New and Used Vehicles
Secured finance is available for new, dealer used and private sale purchases.
Flexible Loan Terms
Terms from 1 to 7 years. We structure the term to suit your repayment budget.
Balloon Payment Options
A balloon can reduce monthly repayments. We'll explain when it makes sense and when it doesn't.
Early Repayment Considered
We compare lenders on early repayment fees so you're not penalised for paying ahead.
No Surprises
We walk you through all costs before you proceed. No surprises at settlement.
Car Finance Repayment Calculator
Estimate your repayments. Adjust the sliders to match your situation.
Monthly repayment
$580
per month
Weekly
$134
Total repayment
$34,799
Estimates only. Your actual rate depends on your profile and lender. Get a real comparison.
Get my quoteAbout the starting rate
6.00% p.a. is a starting point for estimating repayments only. It is not a quote, not an offer of finance, and not a rate available to every applicant. Your actual rate depends on the lender, the asset, the loan term, the loan amount and your circumstances. Adjust to model scenarios.
More Car Finance Options
Finance first.
Then the car.
Your broker compares the market against your car, your deposit and your profile, so any offer you are shown becomes something you can measure rather than something you have to accept.
Car Finance Guides
Written by a licensed broker for Australian borrowers.
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Who Benefits Most from Secured Car Loans
Credit-Conscious Buyers
Want a sharp rate on a clean application.
New Car Buyers
Financing a new or near-new vehicle through a lender.
Long-Term Planners
Structuring a loan they intend to carry through to full repayment.
Homeowners
Strong credit profile, want a competitive secured structure.
Business Buyers
Chattel mortgage or secured commercial loan for a business vehicle.
18 years or older
Australian citizen, permanent resident, or eligible visa holder
Stable income: PAYG, self-employed or ABN considered
Vehicle must meet lender security criteria (age, condition, type)
Credit history reviewed holistically
Secured Car Loans. Common Questions.
Rates on our panel start from 6.20% p.a. (comparison rate 6.63% p.a.)*. The rate you're offered depends on your credit history, the car's age and the loan term. Tell us what you're buying and we'll compare lenders to find you the best rate we can. The comparison rate example and warning are at the bottom of this page.
A secured car loan means the vehicle is registered as collateral on the loan. If you default on repayments, the lender has the legal right to repossess the vehicle to recover the outstanding balance. This security is why secured lending reaches more of the panel than unsecured alternatives.
It depends on the lender and whether your rate is fixed or variable. Some fixed-rate secured loans charge a fee for early or additional repayments. Variable-rate loans are often more flexible. Your broker will specifically compare early repayment terms if this is important to you.
When the loan is fully repaid, the lender is required to remove their registered interest from the PPSR. This discharge is typically processed automatically by the lender within a few business days of final payment.
A formal credit application does generate a credit enquiry, which can marginally affect your score. This is true of any finance application. Your broker assesses your profile first, which does not touch your credit file, before proceeding to any formal application.
Yes, though private sale secured finance involves additional steps including checks that the vehicle is unencumbered and direct payment to the seller. Your broker manages this process as part of the settlement.
A secured car loan is a consumer product. A chattel mortgage is a commercial finance product used when the vehicle is primarily for business use. With a chattel mortgage, the borrower (business) takes ownership from day one, and the lender holds a mortgage over the asset. Different tax treatment applies. Your broker will recommend the appropriate product based on your use case.