How to use a personal loan to buy a car

If you do not have the money to pay for your car up front, you may want to consider a personal loan.

You can use a personal loan to purchase a second-hand or new car from a private seller or a dealer. You can get the money you need by following these steps.

Set your budget

Use our how can I borrow calculator for help calculating how much you are able to borrow, and how much repayments you will have to make. When buying a new vehicle , it’s important to understand the expenses. Remember to allow yourself some flexibility if you choose a variable-rate personal loan.

Choose your loan

It may seem easy to get financing from the car dealer. However, you should check all the fees and charges. These can include commissions for the dealer or a balloon payment due at the end.

CommBank offers a variety of loans.

  • Secured personal loan: Offers a lower rate of interest than unsecured loans because the car that you are buying is used to secure the loan. Before you pay the deposit, we’ll verify that the vehicle is suitable for security. It must be new or under seven years old.
  • Fixed-Rate Personal Loan: Offers a guaranteed fixed rate of interest. Even if interest rates increase, you’ll always know what your monthly repayments are.
  • Variable-Rate Personal Loan: You can make extra repayments in order to pay off your loan more quickly, saving you interest. You can also withdraw funds when you need them.

Conditional approval

You can get a response to a CommBank Personal Loan online within 60 seconds. If you are an existing customer of CommBank, you can apply online using our application .

You can shop confidently knowing exactly how much you are allowed to spend. Negotiate with car dealers to get the best deal without going over budget.

Shop online

This is the most exciting part. You can choose to purchase your car from a private seller or a dealer.

A dealer can offer you a warranty and a cooling off period.

Private sales may not be protected by the same law, but they can offer great deals. It’s worth getting a mechanic to thoroughly inspect a used car before you buy it.

Close the deal

You can apply online or in your nearest branch of lowdoccarloansinfo.com.au. You’ll be informed of the documents that you need to submit to complete your application.

After the funds are approved, they will be either transferred to the car dealer directly (secured personal loans only) or deposited into your account. you might receive the funds the same day. *

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