Car loans

A secured loan is 'secured' against the asset you are borrowing for such as a car, or home. If you are unable to repay the loan, the lender can sell the asset to cover the costs of the loan. Most secured personal loans have a lower interest rate when compared to an unsecured personal loan because there is an asset attached.

An unsecured personal loan is a loan that does not require an asset as security. Your income and ability to repay the loan is still assessed, however you don't need an asset to secure the loan.

If you’re buying a car or motorbike under seven years old, a Great Southern Bank Secured Fixed Car Loan may be right for you.

For vehicles older than seven years, Unsecured Fixed Personal Loans are available.

The term “car finance” describes the different ways you can borrow money to buy a car. You may also know this as a car loan.

If you want to buy a car, but don’t have the money to pay the ticket price upfront, car finance allows you to borrow the amount you need. Then pay it off in smaller flexible repayments.

It’s important to note that car loans attract interest on top of your regular repayments. This is essentially the cost of taking out the loan. The interest rate will vary between lenders, so it pays to compare.

When you apply for a car loan your income and expenses will be assessed to ensure you can pay off the loan. Then you’ll receive the funds in your bank account to buy your new set of wheels – it’s that simple!

No. There is no requirement to find a car before you get loan approval.

You can also apply for pre-approval while you’re looking for your perfect vehicle.

A balloon payment is a final lump-sum that’s paid at the end of your loan. It’s a percentage of the car’s purchase price and is paid in addition to your regular repayments and fees.

A balloon payment may lower your monthly repayment amount, but it’s important to note that balloon payments accumulate interest. You’ll also have to set some money aside to make the balloon payment. Don’t forget to calculate the full cost to avoid paying more in the long term.

Our car loans have no balloon payment; but we still recommend comparing car loans to find the one that’s right for you. Got a question? Drop us a message on Live Chat, we’re here to help.

The rate you are offered is calculated on your personal circumstances and credit history. A few different factors are considered, including:

• your credit score
• information provided in your application
• existing loans
• the loan amount and your perceived ability to repay the loan.

Don't forget the starting rate for our Secured Green Car Loan is lower than our traditional Secured Car Loan, so if you have a good credit history you could be rewarded with a low competitive rate.

Credit scores are calculated by looking at various aspects of your credit history and profile. These can include details of any applications you’ve made for credit or a loan (whether successful or not), details of credit or loan products you have held in the past, your repayment history, any overdue accounts you might have, and information about any court judgements against you.

These are added together to give an overall picture of your ability to repay a loan.

As you might imagine, someone who has never defaulted on a loan will be considered a lower risk than someone with a history of missed repayments, court judgements, or bankruptcy.

Similarly, the more applications for credit on your record, the lower your score is likely to be.

Other factors which can negatively impact a credit score include a history of using ‘payday lenders’ and having open accounts with debt collection agencies.

Simply request a free copy of your credit score from Equifax (previously known as Veda).

Checking your credit score can also help you estimate what your personalised rate will be before you apply.

Our Green Car Loans are available to customers buying an electric or hybrid vehicle up to seven years old. They offer a lower interest rate, for lowering your emissions. Plus, you’ll also receive $0 monthly fees, unlimited extra repayments and no penalties for paying off your loan early.

Learn more about Green Car Loans.