Car Loans Australia

Car Loans Australia

Car loans Australia are a constant part of the lending market due to the country’s renowned topography.

Nothing beats driving out through wide roads with friends and family, exploring the vast expanse of land ahead. From beaches to grasslands, the geography of the country is so varied that you could spend a whole year travelling and still leave parts unexplored.

This is why car loans Australia are something of a rite of passage for many young adults. Whether it’s for moving out for the first time or just spending a fun summer with friends before diving headlong into adulthood, a car is often the young adult’s status symbol of growing up.

Here are a few questions to keep in mind while you prepare for your very first automobile financing.

Can a car loan affect my mortgage application?

If you’re a parent pitching in for your child’s first vehicle, you must have considered this question at least once. You want to get your child a good, practical coming-of-age present before sending them out into the real world – what better choice than the right car?

Vehicle loans aren’t cheap, however. You want a road-safe vehicle first and foremost, and new cars could cost quite a bit more than a motorbike. If you’re concerned that taking on car loan financing will affect your mortgage application, don’t worry – it’s all about the credit products you apply for.

Mortgages are serious commitments, often involving exhaustive credit checks and financial background interviews. They’re typically done for housing acquisitions or long-term rental properties. Car loans Australia are a little more flexible compared to such loans and can be financed through secured or unsecured personal loans instead.

Secured vs unsecured car loans AU

What is a secured loan?

A secured loan is a type of credit that requires a pledged asset as collateral. Such assets can be real estate property, personal vehicles, proprietorship of businesses, or other types of assets that can be liquidated to cover the cost of the loan.

At SocietyOne, secured car loans Australia have a loan floor of $5,000 and a ceiling of $70,000. Term lengths available for secured loans are two years, three years, five years, or seven years. Proof of asset ownership will be required when applying for secured credit, such as loans for debt consolidation or loans for renovations.

Car loan financing may fall under secured credit, but for those who are just starting with credit and don’t have many high-value assets, you can opt for unsecured loans in the meantime.

Unsecured car loan options do not have a collateral requirement; they’re typically the loan type you encounter for payday loans or small cash advances. This type of personal loan is ideal for first-time borrowers or for families looking to cover minor budgetary gaps in income. Our unsecured car loans Australia have a floor of $5,000 and a ceiling of $50,000, payable in two-, three-, and five-year loan terms.

They’re also a great choice for motorbike loans if you decide to get a vehicle with fewer wheels for personal use instead.

Are students eligible to get car loans?

Honest answer: it depends.

At SocietyOne, working students who are at least eighteen years old, citizens or permanent residents of the country, and make at least $30,000 annually are eligible to apply for any SocietyOne credit products. For students who are still dependents, however, your parents may have to step in and apply for you.

The good news is that SocietyOne has some of the most competitive rates for car loans Australia in the market. You can check for yourself through our personal loan repayment calculator, which gives you the estimates on a prospective loan’s comparison rate, as well as how it holds up against comparison rates from major lenders and financing institutions.

We also don’t require any early repayment fees or monthly fees. The amounts disclosed in your loan agreement only are what you owe. This gives our borrowers the flexibility to plan out their payments comfortably and penalty-free.

Will an auto loan help improve my credit score?

Before asking this question, consider this one first: ‘How is my credit score doing?’

You can quickly check your credit score on our platform. We’ve partnered with Experian, an official credit reporting agency in Australia, to access your records and provide you with insight into your credit score.

If your credit score is less than ideal, then it may be time to review your credit history heading into your applications for car loans Australia. SocietyOne offers free membership in the Credit Score Club, which gives members access to comprehensive guides and resources on improving their credit score and growing their financial literacy.

The club is obligation-free, so you need only have a registered SocietyOne account to be a member. Just find the ‘Get My Score’ button on the Credit Score page and click to join. No need to have a small car loan application or commitment with us – just register as a user through our website or mobile app, and you’re good to go.

Speaking of mobile apps – our mobile app is verified for both iOS and Android and is downloadable now for both platforms through the App Store and Play Store.

Online credit solutions on the go with the SocietyOne mobile app

SocietyOne is a licenced and registered lending platform offering credit products to thousands of clients since 2012. Our personal loan offerings, like car loans Australia, have won awards over the years for innovative and effective credit solutions, and we strive to continue doing so.

We strengthen our product diversity with consumer lending investment, enabling interested private citizens to invest in loans and earn through online lending.

We believe that a good credit history deserves good credit deals. Let us help you seize personal achievements – apply for your first SocietyOne personal online loan today!