Personal Loans for Car and Vehicle Costs
A personal loan can cover a car deposit, repairs, or leftover debt after a sale. We compare lenders who will look at the vehicle purpose, not just a generic cash loan. Free assessment, no credit enquiry to start.
When a personal loan is the right tool for a car cost
A personal loan can cover a car deposit, repairs, or leftover debt after a sale. We compare lenders who will look at the vehicle purpose, not just a generic cash loan. Free assessment, no credit enquiry to start.
- Buying a car under about 12 years old at settlement, look at a secured car loan first
- Consolidating debts or funding works with no asset, a personal loan is the right tool
- Rates on our panel start from 6.49% p.a. depending on lender and circumstances
- Free assessment, no credit file enquiry until you choose a lender
Buying a vehicle? Start with car loans, used car loans or your situation: nurses, teachers, apprentices, veterans and ADF, FIFO workers.
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When to use a personal loan vs a secured car loan
Use a secured car loan when you are buying a vehicle lenders will take as security. Use a personal loan when the car is still the reason but the structure is different: a deposit, repairs, leftover debt after a sale, or a car that is too old or unusual to secure.
Compare both on car loan vs personal loan and start a vehicle purchase on car loans by how you earn.
Use a personal loan for anything.
Personal loans offer flexibility that other finance products don't. Here's what Australians commonly use them for.
Debt Consolidation
Combine multiple debts into one manageable payment with potentially lower interest.
Learn more about Debt ConsolidationHome Improvements
Finance renovations, repairs, or upgrades to your home without accessing equity.
Medical Expenses
Cover unexpected medical bills, dental work, or elective procedures.
Education Costs
Fund course fees, certifications, or professional development.
Travel & Holidays
Make your dream holiday a reality with affordable repayment options.
Major Purchases
Finance appliances, furniture, electronics, or other significant purchases.
Types of personal loans.
Choose the loan type that best suits your needs and circumstances.
Secured Personal Loans
From 6.49% p.a.Use an asset (like a car or term deposit) as security for lower rates.
Unsecured Personal Loans
From 6.49% p.a.No asset required, approval based on income and credit history.
Fixed Rate Personal Loans
From 6.49% p.a.Lock in your rate for predictable repayments throughout the loan term.
Variable Rate Personal Loans
From 6.49% p.a.Rates that can move with the market, potentially saving if rates drop.
Why choose Simple Loans for your personal loan.
We compare options from 50+ lenders and guide you to the best choice for your situation.
Compare 50+ personal loan lenders.
Access Australia's largest panel of personal loan providers.
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Personal loan FAQs.
Answers to common questions about personal loans in Australia.
Can I use a personal loan to buy a car?
Yes. A personal loan can fund a car deposit, the car itself, repairs, or leftover debt after a sale. A secured car loan is usually cheaper when the vehicle qualifies as security. Use this page when the car is the reason but a car loan is not the right structure.
Is a personal loan cheaper than a car loan?
Usually no. A secured car loan is typically cheaper because the car is security. A personal loan can still be the right tool for a deposit, repairs, an older vehicle lenders will not secure, or leftover debt after a sale.
Can I consolidate a car debt into a personal loan?
Sometimes. If you have sold the car and still owe, or you are combining a car debt with other unsecured debts, a personal loan can tidy that into one repayment. We compare lenders who will look at the vehicle purpose, not just a generic cash loan.
What can I use a personal loan for?
Personal loans can cover a car deposit, repairs, leftover car debt, consolidation, home improvements, medical costs or other cash needs. When you are buying a vehicle that lenders will secure, start with a car loan first.
How much can I borrow with a personal loan?
Personal loan amounts typically range from $2,000 to $100,000+ depending on the lender and your financial situation. For larger amounts above $75,000, security may be required. Your borrowing capacity depends on your income, expenses, credit history, and existing debts.
Can I pay off my personal loan early?
Most personal loans allow early repayment, but some charge break fees on fixed-rate loans. We help you find loans with flexible repayment options and minimal early exit fees when possible.
Your Complete Guide to Personal Loans in Australia
A personal loan gives you access to a lump sum of money that you repay in regular instalments over an agreed term, typically between one and seven years. Unlike credit cards, which offer a revolving line of credit, a personal loan provides a fixed amount with a clear repayment schedule, making it easier to budget and plan your finances.
In Australia, personal loans are offered by major banks, credit unions, online lenders, and specialist financiers. Each has different approval criteria, rate structures, and fee schedules. Comparing them individually takes significant time and effort, which is why many Australians use a broker like Simple Loans to search multiple lenders simultaneously and find the most competitive deal.
How to Choose the Right Personal Loan
Start by determining how much you need to borrow and how quickly you can comfortably repay it. A shorter loan term means higher monthly repayments but significantly less total interest paid. For example, borrowing $20,000 at 8% over three years costs roughly $2,500 in interest, while the same loan over seven years costs approximately $6,000.
Consider whether a fixed or variable rate suits your situation. Fixed rates provide certainty, your repayments remain the same throughout the term regardless of market movements. Variable rates may start lower but can increase over time. If you value predictability, a fixed rate is usually the safer choice.
Finally, check the comparison rate, not just the advertised rate. The comparison rate includes most fees and charges, giving you a more accurate picture of the loan's true cost. Our team can explain the difference and help you compare loans on a like-for-like basis.
Free assessment
Tell us what you need, we'll do the running around
One short form, then a specialist compares our 50+ lender panel for your situation. Rates from 6.49% p.a. No credit impact to get started.