Getting A Used Car Loan? What You Need To Know!

Looking for used car loan options can be a daunting task, especially if you’re not familiar with the ins and outs of used car financing in Australia.

With so many used car loan options to choose from, it’s important to do your research and compare the various options before making a final decision.
At Fundo, we understand that Australians are looking for ways to finance their next vehicle purchase, whether it’s a new or used car, a first used car or a secondary used car. That’s why we offer used car loans up to $5000, making it easier for you to get the funds you need to purchase your dream used car.

Many Australians are interested in purchasing a used car for differing reasons, and it has never been easier to find one, with a number of dealerships, Facebook marketplace, Gumtree, Carsales and more, accessing the used cars for sale has never been easier – however finding a used car loan or choosing a used car is when the difficulty can begin.

According to the NRMA –
– Buying a well-maintained used car can save you a lot compared with buying new
– Buying privately can also deliver savings compared with buying from a dealer, however;
– Buying from a dealer means you get a warranty in many cases (usually if the car is less than 10 years old, there may be a provision for a statutory warranty)

So we can see why a cheaper option that comes with great value can be appealing to Aussies everywhere!

 

What used car loan options are available in Australia?

A Used Car Loan in Australia is a specific type of personal loan which can either be secured or unsecured depending on the provider and the amount you need to borrow.
A secured used car loan will mean that the lender will register an interest on the vehicle or other agreed asset, and in the event of non-payment, they may repossess the vehicle or asset to recover their costs. An unsecured used car loan does not take security over any assets and is generally granted based on your financials. Fundo offers unsecured used car loans of up to $5,000 with a FAST application, FAST approval, and FAST funds to your account!

 

How do Used Car Loans work?

Used car loans in Australia can be secured or unsecured. The main difference between these two types of personal loans, or used car loans, is that a secured used car loan requires you to put up an asset as collateral. For example, if you were to purchase a brand new car at the dealership, this is a typical loan type you may be offered. If you choose this used car loan type to purchase your car, in the event that you fail to make your repayments, your lender would have the right to repossess your vehicle to recover the amount they loaned, and have a registered interest in the vehicle, which could present an issue down the track if you wished to sell or trade in your car after a few years’ time. Unsecured used car loans, which is what we offer at Fundo, do not require you to put up an asset as collateral; however, without assets attached to the used car loan, the interest rates can be at a higher rate due to the higher risk.
The used car loan product that you choose will determine how that particular product works. If you are in need of fast cash and wish to access a short-term used car loan of up to $5,000 – a used car loan with Fundo is the way to go!

 

If you have bad credit, are there used car loan options?

Each individual has different needs. Two people can have the same problem but require different solutions due to their personal circumstances. Some lenders are not able to offer finance to individuals who have what is considered bad credit or a low credit score, or the intricacies of navigating banks might not be for you. At Fundo, we can certainly consider applications from customers with bad credit – we genuinely consider your overall situation and circumstances, and not just your credit score. We understand that sometimes everyone needs a little bit of help which is another reason why we make it so easy!

How quickly can I be approved for a Used Car Loan?

Depending on the provider, some used car loan providers can assist you at the dealership on the spot – sometimes this is not always the case, and your opportunity gets snapped up by someone with faster finance; however, if you are purchasing privately or secondhand, that option may not be available. Fundo can offer approval and funds deposited within 1 hour of successfully submitting an application.

Can some used car loan options be repaid early?

Yes, however, some Car Loan products are not designed to be paid out early and can have high or unexpected fees applied for early payouts. If you are considering paying off your used car loan in a shorter term than offered, it is best to confirm this in advance with your provider. For all Fundo loans, including a loan for a used car, you can pay it out early and be rewarded with discounts on monthly fees and an increase in your Fundo Credit Score.

How long does it take to repay a used car loan?

The repayment term of a Car Loan can depend on the amount that you have borrowed, along with the provider and product you have selected. Check out the Fundo homepage for current examples of available loan products! All Fundo used car loans can be paid out early without penalty for doing so, and in many cases, our customers are rewarded for taking control!

When considering finance for your new or used car purchase, keep these 5 things in mind:

• Confirm the terms and conditions of the sale with the seller/dealer and perform any verifications before exchanging to avoid surprises.
• There are many used car loan options to choose from, the number of these that will work for you will depend on the amount you wish to borrow and how you’d like to pay it back. Fundo offers used car loans up to $5000, and charges no penalty for early payout making it a great option for those looking for a smaller used car loan, that they can pay off fast if they choose!
• The amount you can borrow for a used car loan will depend on your individual circumstances, it may depend on factors such as the type of car you’re purchasing, the loan provider you choose and their criteria, and the loan type that works best for you.
• It’s important to keep in mind the on-road costs associated with buying a car in Australia, including registration, transfer costs, stamp duty and insurance, as well as day-to-day running costs like fuel, maintenance, and servicing – make sure to set a little extra aside to cover these costs, however if you have found that you’ve come up short – you can Fundo it (as long as you don’t have a current loan)!
• Compare more than one financing option and consider it carefully before making a final decision. You can review a loan example from Fundo on our home page! https://fundo.com.au/

 

If you’re looking for a used car loan up to $5000, look no further than Fundo. To apply for a used car loan online, visit our website https://fundo.com.au/ to access our easy 3-minute application and get one step closer to owning your dream used car!

FAQ

How can I contact Fundo if I have any questions about their Used Car Loan options available?

Questions? Concerns? We got you! Reach out to our friendly team by phone, online chat, or email – we’d be happy to answer any questions you have about applying for a used car loan with Fundo and can walk you through the application process. You can also check out the FAQ

Am I eligible for a Fundo loan?

 

Can I repay my loan early?