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How To Get a Secured Car Loan Up To $35,000
March 4, 2020●
10 minute read●
Available secured car loans
Buying a new or used car is one of the most exciting things you may be doing in your life. In an ideal world, you would have the right amount of cash waiting for you in your bank account. But life isn’t always like that and you may find yourself in a situation where you want or need a car and don’t have the required funds handy. That’s where a secured car loan could help.
If you have been looking into car loans, you probably came across secured car loans already. There are so many options for car loans available and it may be hard to know which one is best. A wide range of lenders offers loans to cater for a wide range of clients. So what’s special about secured car loans? In short, you may be able to get a loan for a larger sum of money and a better interest rate if you attach security or an asset to your application. How does that work? Let’s give you all the facts you need to make an informed decision!
What is a secured car loan?
Most medium or large personal loans are secured loans. Lending a bigger sum of money comes with risks for the lender that can be avoided by attaching an asset of value to the application.
A secured car loan is a type of personal loan that can be used to purchase a car. Your loan will be secured by an asset or collateral that is attached to the loan. This asset could be a car, boat, motorbike or caravan. If you fail to repay your lender, they will be able to repossess the asset you provided as security. In case of a car loan, the car itself can be used as security. Generally, however, lender’s will only repossess your vehicle as a last resort. Even if you can’t repay your loan, your lender won’t lose money. Therefore, the transaction is safer for them and they may be able to offer you a better interest rate and often, you are able to borrow a higher amount of money.
Let us tell you a little bit about ourselves! We are Jacaranda Finance, your friendly online lender of choice. We provide access to personal finance to thousands of Australians by offering a range of personal loans and car loans. Our car loans are convenient, fast, and easy. You can apply from the comfort of your own home and may get an outcome within 60 minutes if you apply during our business hours.
Why should you get a secured car loan?
A secured car loan may be the best option for you if you are after more cash for a better interest rate. It is sensible to compare the options that are available to you in order to understand what option is best for you. Let us look at some of the benefits:
- Getting a car loan, in general, will improve your budgeting. Instead of burning through all your savings in one go, it will allow you to repay your loan amount in a structured way over an extended period of time.
- Getting a secured car loan specifically may allow you to get lower interest rates and fees attached to your loan.
- Your car acts as additional security for your lender and yourself. If your financial situation changes, you may be able to find an arrangement with your lender more easily.
- In most cases, it allows you to borrow more money. Because the car itself is attached to the loan, you may be able to get a higher loan amount in the first place.
Requirements for a car loan
At Jacaranda, we want to make sure everyone gets a fair chance. That’s why our car loans are tailored to a wide range of personal needs. We can offer car loans for people on Centrelink, car loans for pensioners, and car loans for people with bad credit. However, we need you to meet a few requirements:
- Be at least 18 years old;
- Have a driver’s license;
- Be able to provide an online personal banking account with proof of at least 3 months of consistent income;
- Have an active mobile number and email address.
If that sounds like you, go for it! Our application only takes a few minutes and you could have the funds for your next car in your bank account in no time. If you have any further questions regarding requirements, please get in touch with our customer service team.
What car loans do we offer?
Our car loans range from $5,000 to $35,000 and we offer repayment terms between 1 and 5 years. By attaching security to your application, you may be able to receive a larger loan that you would be able to otherwise. It may be sensible to think about what car you would want to purchase before applying for a loan. Financial advisors recommend that you should be able to pay 40% of the full price already while taking a loan for the rest of it. It is also advisable to work out how much money you can repay comfortably over an extended period of time.
What documents do I have to provide?
Don’t worry. We won’t ask you for a big stash of paperwork. All we need to know is a few personal details. This includes your name, address, date of birth and so on. We will ask you for your email address and phone number, in case we have any questions and to get in touch once we have assessed your personal case.
How to apply for a secured car loan?
Our application process is 100% online. You can skip the boring paperwork and follow three simple steps to get access to personal finance. Here’s how it works:
Step one: Fill in the application form.
You can scroll up to the top of this page to find our car loan calculator. Choose the right loan amount and the right loan term for your personal needs. We recommend you choose the shortest loan term you can comfortably afford as you may be saving on interest. Click “Apply now” and fill in the required details. This step should only take a few minutes.
Step two: We assess your case.
Now you can sit back and wait. Our team will look at your personal application from all angles to ensure that we offer you the best possible loan for your financial situation. We know there is a personal story behind every application and we want to make sure that our car loans are affordable and suitable for you. If we need any assisting documents, we will be in touch. Otherwise, you will hear from us with your outcome shortly after. If you apply during our business hours, you may get an outcome within 60 minutes.
Step three: Receive your funds.
No matter the result, we will be in touch. If we get a green light for your application, we will send you the car loan contract will all associated fees and costs stated. We then ask you to read it thoroughly and send it back signed. Hooray! Once we are done with the formalities, we will send your money as soon as possible.
Repayments that are conveniently easy
You will repay the loan amount plus interest on top. Your interest rate may depend on your credit rating and how likely a lender thinks it is for you to repay. The riskier the application, the higher the interest rate. However, getting a secured car loan may allow you to get a better interest rate as it provides extra safety for your lender.
Once you have decided how much money you want to borrow and for how long, we will set up regular payments (weekly, fortnightly, monthly) that will be directly debited from your card. We will usually align these payments with your payday. Once set up, you won’t have to think about them again until your loan is repaid.
What if I miss a payment?
We recommend you talk to us if you don’t think you will be able to make a payment. Of course, we understand that changes in your financial circumstances are never easy and can happen to anyone. If you get in touch, we may be able to find a short term solution that works for both sides. If we don’t hear from you and you simply miss a payment, we may charge a penalty fee as stated in your loan contract.
Will you perform a credit check?
In short, we will. But don’t worry too much about your score. We know a bad credit rating doesn’t reflect your personal ability to deal with money. A mistake from up to 7 years ago can damage your score. That’s not really fair if you think about it. That’s why we mostly look at your current financial situation and how you spend your money. Obviously, we won’t punish you for getting Chinese takeaway on a Friday night, either. We just want to make sure that getting a secured loan is a suitable option for you and affordable to repay.
Are you going to call my work?
We may get in touch with your work to check that your details are correct. But of course, protecting your personal details is important to us. Our team is well trained and won’t disclose any details about your financial situation. If you have any concerns or questions, please get in touch and we are happy to clarify any parts of the process.
Some lenders may offer loans without performing a credit check. That sounds great at first but means the lender most likely doesn’t care if you can repay them comfortably. We believe in responsible lending practice instead. While we want to offer loans to as many Australians as possible, we want to make sure you can afford your repayments. We won’t lend you money if we believe you won’t be able to repay.
Transparent lending processes
It’s important to us that you have the best possible experience with our services. That’s why we want to make our processes as transparent as possible. Any questions you may have will be answered in the FAQ section or by an experienced member of our customer service team. Additionally, all costs and fees are clearly stated on our costs page and in your loan contract.
We want to make personal finance accessible to as many Australians as possible. We improve our application process based on feedback and make sure to keep it simple. You won’t have to fill in unnecessary details and you can conveniently apply from the comfort of your own home or anywhere in Australia.
How can I ask further questions?
If you still have questions about getting a secured car loan or personal loans in general, head over to our FAQ page and see if your question has been answered already. Otherwise, our friendly customer service team is here to help. Please note that we can’t take any applications over the phone, however, we can assist you with the application process.
You can send them a message on our contact page or give them a call on 1300 189 823 during our business hours.
Our business hours are:
Monday to Thursday: 8 am – 6 pm
Friday: 8 am – 4 pm
Saturday: 8 am-12 pm
Let’s get you moving! Send in your application during our business hours and receive your outcome within 60 minutes (additional time may be required in some cases).
Looking to purchase a camper trailer? Jacaranda could offer you affordable and quick camper trailer loans.