Question 1

What is a secured car loan?

Accepted Answer

A secured car loan is a type of funding solution for the purchase of a vehicle. It involves the purchased vehicle being used as collateral for the loan, allowing lenders to offer lower interest rates and better loan terms, compared to unsecured credit facilities. If the borrower does not meet the repayments, the lender can reclaim the vehicle.

Question 2

Who can apply for a secured car loan?

Accepted Answer

Most individuals over 18 with regular income and the ability to meet the specific monthly repayments can apply for a secured car loan. Eligibility is dependent on a strong credit history, as well as strong employment, and a suitable vehicle type.

Question 3

What vehicles are eligible for secured credit?

Accepted Answer

Both new and quality-used vehicles are eligible for a secured car loan. Lenders assess the age, condition and value of the car prior to offering a secured credit deal.

Question 4

Are all secured car loan rates fixed?

Accepted Answer

At Easy Car Loans, our secured car loan rates are fixed. Predictable repayments over the loan term via fixed rates and fixed terms allows for consistent budgeting and financial stability for borrowers.

Question 5

Can businesses get secured finance for buying cars?

Accepted Answer

No. Our secured and unsecured car loans are available for private buyers only. Commercial car buyers can access our business credit facilities - Chattel Mortgage, Rent-to-Own, Commercial Hire Purchase, and Leasing.

Question 6

What happens if my credit score is low?

Accepted Answer

Borrowers with low credit scores may still be able to obtain secured car finance. Under a secured car loan, the vehicle acts as collateral, providing smaller risk for lenders compared to unsecured funding options. Interest rates will typically be higher for less ideal credit scores, but the overall cost can be reduced by submitting a larger deposit or by choosing a newer vehicle.

Question 7

When I acquire secured car finance, is the car in my name?

Accepted Answer

Yes. While the lender holds a financial interest in the vehicle until it is repaid, the borrower owns the vehicle and is responsible for all associated costs.

Question 8

Is a deposit required to obtain a secured car loan?

Accepted Answer

A deposit is not always required for secured car finance, but it can increase a borrower’s chance of approval and reduce interest costs.

Question 9

Can I refinance my existing secured car credit?

Accepted Answer

Yes. By refinancing an existing secured car loan, buyers may be able to obtain a lower interest rate, reduce their monthly repayment amount, or adjust the loan term to better suit their current situation.

Question 10

How long is the approval process for a secured car loan?

Accepted Answer

Secured car loan approvals with Easy Car Loans are generally provided within 24 hours, depending on the lender. Provided all the required documentation is provided, the approval process can be extremely quick, enabling borrowers to secure approval in a timely manner.

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