Secured car loan
A car loan where the car itself is used as security, so the lender can repossess it if you stop paying. Rates are usually lower than unsecured loans.
A secured car loan uses the car as security for the money you borrow. The loan is registered against the vehicle on the PPSR, which tells everyone the lender has a claim over it until you have paid the loan off.
Because the lender can take the car back if you default, they take on less risk. That usually means a lower interest rate than an unsecured personal loan. Most car finance in New Zealand is secured for this reason.
The trade-off is simple. You get a cheaper rate, but you do not fully own the car until the last payment is made. If you fall behind, the car can be repossessed. If your credit is not perfect, a secured loan is often the easiest type to get approved for.
Not sure which type suits you? Get your fair rate and we will match you with a lender that fits your situation.
See your repayments, then get a fair rate.
One application, one soft credit check, no obligation. We match you to the lender most likely to give you a fair go.