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Unsecured car loans

Get the funds you need without restrictions on the type of car you can purchase with an unsecured car loan.

If you want to purchase a second-hand car or you wish to use the loan amount to pay for something in addition to your vehicle, or you just don't want to risk attaching your vehicle as security to a loan, an unsecured car loan may be an option for you. This type of loan lets you borrow funds for a vehicle of your choosing, as well as any other legitimate purpose, without attaching your car to the loan as security. Find out more about this loan and whether it's right for you by reading our guide below.

RateSetter Unsecured Personal Loan - 3yr Fixed

RateSetter Unsecured Personal Loan - 3yr Fixed

From

8.11 % p.a.

fixed rate

From

8.71 % p.a.

comparison rate

  • Get a personalised comparison rate based on your credit score
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RateSetter Unsecured Personal Loan - 3yr Fixed

RateSetter offers this unsecured personal loan with a fixed or variable rate. Receive a tailored interest rate from 8.11% p.a. based on your risk profile.

  • Interest rate from: 8.11% p.a.
  • Comparison rate: 8.71% p.a.
  • Interest rate type: Fixed
  • Application fee: $89
  • Minimum loan amount: $2,001
  • Maximum loan amount: $45,000
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Unsecured car loans comparison

Rates last updated December 19th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
RateSetter Unsecured Personal Loan - 3yr Fixed
From 8.11% (fixed)
8.71%
$2,001
0.5 to 5 years
$0
$89
You'll receive a fixed rate from 8.11% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 6 months. Interest and comparison rates calculated for a loan term of 3 years.
Harmoney Unsecured Personal Loan
From 6.99% (fixed)
7.69%
$5,000
3 to 5 years
$0
$500 (Upfront fee)
You'll receive a fixed rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.
Apply for a loan up to $70,000 and repay your loan over 3 or 5 years terms.
Citi Personal Loan Plus
From 8.99% (variable)
9.96%
$5,000
3 to 5 years
$10
$199
You'll receive a variable rate between 8.99% p.a. and 17.99% p.a. (9.96% p.a. to 18.91% p.a. comparison rate) based on your risk profile
A credit limit up to $75,000 that you can continue to draw down over terms up to 5 years.
ANZ Fixed Rate Personal Loan
12.45% (fixed)
13.32%
$5,000
1 to 7 years
$10
$150
You'll receive a fixed rate of 12.45% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.
Latitude Personal Loan (Unsecured)
From 13.99% (fixed)
15.19%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
You'll receive a fixed rate between 13.99% p.a. and 29.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Flexible repayments options.
HSBC Personal Loan
From 8.5% (fixed)
9.06%
$5,000
1 to 5 years
$5
$150
You'll receive a fixed rate between 8.5% p.a. and 16.99% p.a. based on your risk profile
An unsecured personal loan with a tailored, fixed rate where you can make additional and early repayments without penalty.
Westpac Unsecured Personal Loan
12.99% (fixed)
14.14%
$4,000
1 to 7 years
$12
$250
You'll receive a fixed rate of 12.99% p.a.
Benefit from the security of a fixed rate with the flexibility of additional repayments. Existing Westpac customers may qualify for discounts.
Latitude Low Rate Personal Loan (Unsecured)
10.99% (fixed)
12.21%
$20,000
2 to 7 years
$13
$250
You'll receive a fixed rate of 10.99% p.a.
A secured or unsecured loan available to homeowners with a large minimum borrowing amount of $20,000. Benefit from flexible repayments and fast approval.
Pepper Money Unsecured Fixed Rate Personal Loan
From 9.99% (fixed)
9.99%
$5,000
1 to 7 years
$0
$0
You'll receive a fixed rate between 9.99% p.a. and 27.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no monthly or application fees.
NAB Personal Loan Unsecured Fixed
Headline rate 13.49% (fixed)
14.36%
$5,000
1 to 7 years
$10
$150
You'll receive a fixed rate between 11.49% p.a. and 18.99% p.a. based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years.
SocietyOne Unsecured Personal Loan
From 7.5% (fixed)
9.51%
$5,000
2 to 5 years
$0
3% (of loan amount)
You'll receive a fixed rate between 7.5% p.a. and 19.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
NOW FINANCE Personal Loans
From 8.95% (fixed)
10.56%
$5,000
1.5 to 7 years
$13
$495 (Based on $10,000)
You'll receive a fixed rate between 8.95% p.a. and 16.95% p.a. based on your risk profile
Apply for loans from $5,000 and get a dedicated loan manager. No security required.
Australian Military Bank Fixed Rate Personal Loan
From 7.93% (fixed)
8.77%
$1,000
1 to 5 years
$10
from $100 to $500
You'll receive a fixed rate between 7.93% p.a. and 18.87% p.a. based on your risk profile
An unsecured loan with a low minimum borrowing amount and flexible repayment options.
CUA Unsecured Fixed Rate Personal Loan
11.99% (fixed)
12.25%
$5,000
1 to 7 years
$0
$175
You'll receive a fixed rate of 11.99% p.a.
An unsecured loan from $5,000 with no monthly or establishment fees and flexible repayments.
CUA Discount Fixed Personal Loan (Loans over $30,000)
10.99% (fixed)
11.25%
$30,000
1 to 7 years
$0
$175
You'll receive a discounted fixed rate of 10.99% p.a.
Receive a discounted rate for borrowing over $30,000 and benefit from features such as no monthly fees and flexible repayments.
St.George Unsecured Personal Loan - Fixed Rate
From 12.99% (fixed)
14.06%
$2,000
1 to 5 years
$12
$195
You'll receive a fixed rate between 12.99% p.a. and 19.99% p.a. based on your risk profile
A low minimum borrowing amount of $2,000 to fund a range of purposes.
MyState Bank Unsecured Personal Loan
12.99% (variable)
16.42%
$3,000
1 to 7 years
$10
$200
You'll receive a variable rate of 12.99% p.a.
Apply for up to $50,000 and benefit from features such as fast approval, free online redraws and no penalties for early repayment.
ANZ Variable Rate Personal Loan
15.99% (variable)
16.84%
$5,000
1 to 7 years
$10
$150
You'll receive a variable rate of 15.99% p.a.
A flexible loan with amounts starting $5,000 that offers flexible repayments and a redraw facility.
NAB Personal Loan Unsecured Variable Rate
Headline rate 12.69% (variable)
13.56%
$5,000
1 to 7 years
$10
$150
You'll receive a variable rate based on your risk profile. The headline rate is 12.69% p.a.
An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$0
$175
You'll receive a variable rate of 11.89% p.a.
Borrow from $5,000 with the option for flexible repayments and no monthly fees.
CUA Discount Variable Personal Loan (Loans over $30,000)
10.89% (variable)
11.15%
$30,000
1 to 7 years
$0
$175
You'll receive a discounted variable rate of 10.89% p.a.
Borrow over $30,000 and receive a discounted interest rate. No monthly fees and a redraw facility also available.
Australian Military Bank Variable Rate Personal Loan
From 7.88% (variable)
8.72%
$1,000
1 to 7 years
$10
from $100 to $500
You'll receive a variable rate between 7.88% p.a. and 18.82% p.a. based on your risk profile
An unsecured loan with flexible repayment options and a low minimum borrowing amount.
Pepper Money Unsecured Variable Personal Loan
From 9.99% (variable)
9.99%
$5,000
1 to 7 years
$0
$0
You'll receive a variable rate between 9.99% p.a. and 27.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make extra repayments and repay early at any time.

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Compare unsecured car loans

Is an unsecured car loan right for me?

An unsecured car loan is an option to consider in a number of situations:

  • You're purchasing an older or second-hand car. Secured car loans come with restrictions regarding the type of vehicle you can use as security. Restrictions typically include a maximum age limit, which can extend up to 12 years with some lenders, that the car is in good condition and that it is of a certain value. If your vehicle does not meet these criteria you may want to consider an unsecured car loan. However, keep in mind secured used car loans are available.
  • You want to borrow funds for two or more purposes. If you're borrowing money to buy a car as well as consolidate debt, or to purchase your rego or even to get the vehicle modified, an unsecured car loan may work better for you. This is because you are generally only able to borrow the value of the car with a secured car loan so the lender can be sure it will be able to recoup its cost if you default on the loan.
  • You don't want to use your car as security for the loan. Using your car to guarantee your loan can give you access to lower interest rates and can also help you to get approved. However, if you don't want to risk losing your vehicle if you default on the loan, you may want to opt for an unsecured loan.

Unsecured vs secured car loans: The benefits and drawbacks

BenefitsDrawbacks
Unsecured car loans
  • No restrictions on the type of car you purchase
  • Use the funds for other purposes
  • Interest rates are higher than with secured car loans
  • More stringent eligibility criteria for the loan as it is more of a risk for the lender
  • You won't get access to features available with most car loans, such as pre-approval
Secured car loans
  • Lower rates than unsecured car loans
  • You may have a better chance at being approved as the loan is less risky for the lender
  • Your car must meet the lender's eligibility criteria
  • You may not be able to borrow above the value of the car

How does an unsecured car loan work?

An unsecured car loan is a loan which allows you to purchase a vehicle without needing to attach the car to the loan as security. Because the car isn't used as security there aren't restrictions on what type of vehicle you can buy, such as it being under a certain age or of a certain value. You can also borrow more to take out insurance or cover additional vehicle costs.

An unsecured car loan is a higher risk for the lender because there is no guarantee attached, and so you should expect a higher interest rate than you would with a secured car loan. You may also be subjected to stricter eligibility criteria in terms of your own financial stability.

How to take out an unsecured loan to buy a car

The borrowing process may differ slightly between lenders, but generally you will need to take the following steps when financing your car with an unsecured loan:

  1. Find your vehicle. It's good to get an idea of what kind of car you want to buy and how much it will cost before you start looking for a loan. Even if you don't settle on a specific car, get a ballpark figure so you can start comparing your loan options.
  2. Work out what repayments you can afford. How much will you be able to comfortably repay each month? Remember to take into account the on-road costs for your new vehicle.
  3. Compare unsecured car loans. Now it's time to start your comparison. Look at how competitive the interest rate is and check for upfront and ongoing fees. The comparison rate will give you a good idea of the overall cost as it includes interest and fees. Finally, check for features that are important to you such as repayment flexibility or the ability to repay the loan early. See our "how to compare" section below for more information.
  4. Check that you are eligible. Lenders have set minimum eligibility criteria that you will need to meet in order to be approved for the loan. This will typically include a minimum age requirement, minimum income, credit history requirements and employment requirements. Minimum eligibility criteria for loans are listed at the bottom of every finder.com.au review. If you are unsure if you meet any of the set criteria, contact the lender directly.
  5. Apply for the loan. Once you're sure you meet the minimum requirements you can click "Go to Site" to apply online. Have your ID, financial and employment documents on hand to complete the application.
  6. Organise your funds with the lender. Lenders disperse funds in different ways. The lender may prefer to pay the car seller directly or send the funds to your bank account. Discuss the best way to receive the funds with your lender.

How can I compare unsecured car loans?

Here is what to look at when comparing your options:

  • Interest rate. The interest rate is the most important thing to take into account. Generally, the lower the rate, the lower your repayments will be. The first thing you should do is to compare the interest rate that different lenders offer by checking the "interest rate" column in our comparison table above.
  • Comparison rate. The comparison rate reflects the true cost of the loan because it takes into account the fees that are payable as well as the interest rate.
  • Fees. Look for up-front fees such as application or establishment fees as well as ongoing fees such as monthly or annual fees. You may also find fees for additional payments or repaying the loan early which can make the loan restrictive, so check if these will apply.
  • Repayment flexibility. Most lenders will let you choose between weekly, fortnightly or monthly repayments. Check whether you can make additional repayments and repay the loan early without penalty.
  • Redraw facility. Redraw facilities allow you to withdraw any extra repayments you’ve put into your car loan. This is particularly useful in emergencies when you may need the cash, but check if a fee or limit applies.

Summary: What to remember about unsecured car loans

  • Interest rates will be higher than secured car loans
  • There are no restrictions on the car you can purchase
  • There may be more stringent eligibility criteria
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Important Information*
Latitude New and Used Car Loan

You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

Loans.com.au - New Car Loan

You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 5.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

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