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Most car loans in
Australia are for personal use and are secured. As
an individual you are borrowing money to purchase a
tangible item like a new or used car, which will be
used as security for the loan. Secured loans
generally have a lower interest rate than unsecured
loans
To
get a secure loan, you have to “secure” the loan
with something you own. With an unsecured loan vs. a
secured loan, you are not giving anything to the
bank to hold. With a secured loan, you are. With
this type of loan, you are giving the bank something
you own as collateral to hold until your loan is
paid. They do not physically have this item (home,
boat, car, or other assets) but have rights to seize
it if you default on the loan. To get these types of
loans, you have to sign a document that gives
ownership of your property to the bank if you fail
to make payments. The interest on these loans is
fairly low because the bank holds a deed on your
property until the loan is paid in full.
When to get a secured loan:
-
Auto Loan
-
Boat Loan
-
Motorcycle
-
Caravan
-
Jetski
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