Car Loans Explained

Looking for a car loan? LoanU has you covered with secured car loans, fixed rates and low fees for loans up to $50,000 for cars, motorcycles, 4WD’s, and more.
 

Shopping around for the best car loan can save you thousands of dollars in interest and fees. 

 

A car loan is a type of personal loan used to purchase a new or used car. You have to repay the loan plus interest over a fixed term, usually between one and seven years.

 

In this blog, we’ll explain how LoanU Car Loans are different from the rest, and we’ll cover all your miscellaneous car finance questions, such as:

  • How do online car loans work? 
  • What is a secured car loan? 
  • What is a unsecured car loan?
  • How do I know if I’m eligible? 
  • What we focus on 
  • Our tailored solutions 
  • Cash minimum and limit 
  • Rates and fees 
  • Our team

 

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How do online car loans work?

 

Finding the right car loan can be overwhelming. Here at LoanU, our vehicle finance is designed to keep the process simple for people who have suffered from credit impairments in the past.

 

Our car loans also cover motorcycles, 4WD’s, and leisure vehicles such as caravans. You may not have enough savings to purchase a vehicle outright but are in a financial position where you can afford to repay a loan in small monthly repayments.

 

 

What is a secured car loan?

 

Basically, the car being purchased acts as security for the loan. At LoanU we only offer secured car loans. We also require for the car to be full insured, but that’s always a good idea! Since secured loans are safer for the lender and the borrower, they have better interest rates and lower fees in return. Our rates are fixed so there’s no surprises month to month. 

 

At LoanU, we understand that everyone’s financial situation is unique. That’s why our loan consultants take time to get to know you, your financial interests and your potential before deciding on an interest rate.

 

What is an unsecured car loan?

 

As the name suggests, an unsecured loan means there is no asset tied to the loan (i.e. the car) so a borrower can loan a lump sum of money to spend on a purchase of their choice. If you purchase a vehicle, because the asset is not tied to the loan it means it carries a higher interest rate.


 

How do I know if I’m eligible?

 

To receive a car loan from LoanU, you must meet the following criteria: 

  • Be 18 years or older
  • Be a permanent Australian Resident or citizen
  • Be currently employed 
  • Earn a gross annual salary of $50,000+

 

Best of all, you can check if you qualify without damaging your credit score today.  

 

Check if I qualify

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What we focus on

 

Some lenders want to give you fast, easy money, regardless of whether you can afford it. We conduct responsible lending assessments and work with you to rebuild your credit profile. We want to see you succeed with a tailored solution for your situation, making it easier for you to plan, budget, and move forward.  

 

Our tailored solutions 

 

Look Forward

  • We look beyond your credit score
  • We take time to understand your circumstances
  • We deliver responsible loans personalised for you

 

No Hidden Fees

  • No nasty surprises
  • Transparent pricing
  • All fees are stated upfront

 

Repay your Loan Sooner

  • Flexible options
  • Feel free to repay your loan early
  • Only a $50 administration fee to close your account

 

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Cash minimum and limit

 

Car loans with LoanU start at $8,000 with a maximum of $30,000. Just remember every person’s situation is different, so we work to find the sweet spot price wise so you’re not stressed about repayments. 

 

LoanU can also help out with on-road costs too. Because we only approve vehicles that are new or used vehicles with valid registration, we can factor in the cost of registration into the loan too.

 

Rates and fees

 

With LoanU we have a one-off establishment fee which ranges from $400 to $1,495. We charge no risk fees or equalisation fees, just a monthly fee of $15 and a once off $10 security search and registration fee. Rates vary on a case by case basis, so get in touch with us to find out more. 

 

Customers may also have the option of consolidating other small personal debts into their car loan. To help you get on top of your debt faster, and strengthen your overall credit rating.

 

 

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Our team

 

We are the leading specialists in alternative lending solutions because we understand the unique circumstances of our customers and work to tailor out-of-the-box solutions to meet your needs, getting you on the road sooner!

 

Purchase your dream car and get moving sooner with a LoanU Car Loan.

 

Check if I qualify

 

 
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or requirements. Therefore, please consider whether the information is appropriate to your circumstance before acting on it and seek independent advice from a finance or legal professional if necessary. All loans are subject to a full application and assessment by United Loan Solutions Pty Ltd trading as LoanU (Australian Credit Licence number 486303). LoanU is part of the PF Group Holdings Pty Ltd group of companies.

 

 

 

Get started. Talk to a finance specialist today.

1300 080 852
Message

1300 080 825

Email

enquiry [at] loanu.com.au

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PO Box 1995, Toowong DC, QLD, 4066