{"menuItems":[{"label":"Quick car loans you can apply for today","anchorName":"#quick-car-loans-you-can-apply-for-today"},{"label":"How do quick car loans work?","anchorName":"#how-do-quick-car-loans-work"},{"label":"How quick is a \u201cquick car loan?\u201d","anchorName":"#how-quick-is-a-quick-car-loan"},{"label":"How can pre-approval help me get my car more quickly?","anchorName":"#preapproval"},{"label":"What types of cars can I purchase with a quick car loan?","anchorName":"#what-types-of-cars-can-i-purchase-with-a-quick-car-loan"},{"label":"How can I compare my options?","anchorName":"#how-can-i-compare-my-options"},{"label":"Things to avoid with quick car loans","anchorName":"#things-to-avoid-with-quick-car-loans"},{"label":"Have more questions?","anchorName":"#have-more-questions"}]}
If you have already found the car of your dreams and need finance sorted out in a hurry, then quick car loans are for you. Generally, you will be able to apply online and get approval in under two minutes. Funds should be in your account and ready to go within 24 hours of the initial application.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Quick car loans are comparable to regular car loans in terms of interest rates, loan duration and loan amounts. The main advantage of a quick car loan is that it gives you money sooner, which is useful if you want to lock in a bargain. You don’t want to waste more time searching for a car because you missed out on a good buy due to a lack of funding.
Whether you are buying through a dealer or privately, new or used, having your finances ready to go will give the seller a sense of urgency, giving you an additional haggling tool to drive the price down.
*You need to be an existing customer and apply in-store
How can pre-approval help me get my car more quickly?
If you already have your car picked out then getting a pre-approval is of little benefit. If you are still looking for a car, then having pre-approval will make the process of purchasing the car you eventually choose much faster.
Pre-approval works by you making an application with the lender you wish to borrow with. You will need all the same information as if you were actually applying for a loan, such as proof of income, assets, liabilities and cost of living estimates. The lender will then give you “conditional” approval for a maximum loan amount.
Once you have selected a car the pre-approval is updated with the actual value you need to borrow and you can sign the loan contract. Pre-approvals are time-bound; if you leave things too long it will expire, and you will be required to make a fresh application.
What types of cars can I purchase with a quick car loan?
You can use a quick car loan for a range of cars:
New cars and newer used cars. Lenders will generally offer you a secured car loan for new and newer used cars. These car loans typically have lower interests rates as the loan is secured by the value of your vehicle.
Older used cars. For a car more than 10 years old or worth less than $10,000, you may need to opt for an unsecured car loan or standard personal loan. As the loan is unsecured there will be a higher interest rate charged.
Vintage cars. Older cars that have value due to being considered vintage may be eligible for a secured car loan, or secured line of credit, which will come with a lower interest rate.
Work vehicles. If the car is purchased primarily for business purposes you may be able to use a chattel mortgage. It works in a similar way to a home mortgage, where the lender has a mortgage for your vehicle and you make monthly payments towards it. Once it is fully paid you own the car outright.
Employees. If you are employed then you may be able to use a novated lease to purchase a car. In essence, your lender will purchase the car and your employer will make repayments out of your pre-tax salary. At the end of the lease term, you can make an additional payment to purchase the car or start a new lease on a new car. This may be a cost-effective method of owning a car by reducing your tax burden.
How can I compare my options?
Quick car loans have the standard range of features that most personal finance products come with. However, not all lenders offer all features, so consider which ones are important to you or will give you the most cost-effective loan.
Variable rate interest.A variable interest rate changes periodically in line with the Reserve Bank of Australia’s cash rate. If the cash rate goes down, then your lender may, but is not obliged to, reduce your interest rate. Obviously, the opposite is also possible. Variable interest rates are lower than fixed rate options to reflect this volatility.
Fixed rate interest. Fixed rate interest allows you to lock in the rate you wish to pay over the entire term of the loan. This is useful if you want to know exactly how much your repayments will be for the loan term. Interest rates will be higher than the variable rate.
Additional repayments. Being able to make regular or lump sum additional repayments helps you reduce your loan and save on interest charges. Some loans offer this option fee-free.
Early payout. If you are making extra repayments or happen to receive unexpected money, then having the option to pay out your loan early is nice. Most loans have fee-free early payout after 12 months.
Free unlimited redraw. If you have made early repayments then you might want to have the flexibility to redraw this money for other expenses if the need should arise. This can save you from having to take out another loan to cover an unexpected cost.
Fee structure. Car loans typically have two types of fees: an application fee and a monthly fee. Some loans charge neither but have slightly higher interest rates. Loans with a higher application fee but no ongoing fees may be better for loans with a longer term, whereas a no application fee option with monthly fees could be better for shorter loan terms. Do the maths to work out the total cost of a loan before signing up.
Loan terms. Terms generally range from between one and seven years depending on the lender. Make sure you consider the ability to make additional repayments or pay the loan out sooner.
Loan values. Lenders have different requirements in terms of loan amount and vehicle value. Some will lend as little as $5,000, whereas bigger banks typically won’t lend less than $10,000 for secured car loans.
Vehicle age. For secured loans, lenders generally require the car to be new or a fairly new used car. Some will give a secured loan for vehicles that will be no more than 10 years old at the end of the loan term. It would be possible to purchase an eight-year-old car with a two-year loan term and get the benefit of a low interest rate with a secured car loan.
Things to avoid with quick car loans
Taking on too much debt. Don’t get pre-approval for the maximum amount the bank will give you. Work out the price range of cars you are actually interested in then add a bit extra as a margin of safety. If you get pre-approval for your maximum amount you may be tempted to spend more, or bargain less.
Applying for multiple loans. Just because these loans are quick and easy doesn’t mean you should apply without due consideration and reason. Too many credit applications can have a negative effect on your future borrowing potential.
Not taking five to think. Taking out a loan, or even buying a car, should be a measured and considered decision and not be done on an impulse. Always take the time to think about the ramifications and future costs before committing to a loan.
Not working out the full cost. Don’t be fooled by low rates or fees; calculate the total cost of a loan before comparing it with other options. Loans that have higher fees but with even a slightly lower interest rate can work out cheaper in the long run. Conversely, a no-fee loan with a higher interest rate might not actually be cheaper.
Have more questions?
Do I need pre-approval?
Not necessarily, although it will make finalising the process faster later on. Getting a pre-approval is a fairly straightforward process, but only do it if you truly intend to take out a loan. Read more about pre-approval here.
Will I pay more for a quick car loan?
No, not if you are organised. There are many loans that can be approved and funded quickly. If you at least spend a bit of time comparing a few options and calculating the total cost of each loan, you should be able to get a competitive deal.
Should I go through my current bank or financial institution?
Value should be the ultimate driver of your decision. From a purely effort and time perspective, it will be inevitably faster to take a loan out with an institution you already have a relationship with. However, the other quick car loans listed above can be funded in under a day, so if you have reliable income and few other debts it won’t take long to get approval from a new institution.
Are quick loans riskier?
No. Quick loans are identical in nature to any other regular personal loan. If you borrow from a licensed and authorised credit provider then both you and the lender are bound by the same rules and regulations as any other personal loan. Picture: Shutterstock
Elizabeth Barry is the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
Find out more about how you can be a driver with DiDi, even if you don't own your own car. Rent a car and start making money using the ridesharing platform.
Australian Military Bank lets you finance a car, motorbike or boat up to five years old with its competitive car loan. Find out about the rates and fees in this review.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
