Is It Possible to Obtain a Secured Loan over My Existing Car?

avenuel on 14/06/2020 - 23:20

Hope everyone had a great weekend. It was quite wet in Gold Coast and extremely humid :(.

I have a Jeep 2016 and have 100% equity (i.e. no loan over the car). I bought it with a CBA loan but that was paid off a couple of weeks ago.

I want to get a secured loan but Westpac or NAB told me they can't give a secured car over a used car.

I couldn't find much information whether I can get a secured loan using my car as a security and just wanted to ask if anyone here had experience in achieving what I'm planning to do. I don't really want to go through non major banks with the secured loan but will consider that as I'm my current financial situation necessitates some cash.

Thank you

Automotive

Comments

  • Simoneee on 14/06/2020 - 23:35

    You want to loan a car that you own?

  • garetz on 14/06/2020 - 23:39
    +6

    Generally speaking you cannot use a depreciating asset as collateral, as the value of the item reduces over time, and may not cover a default in the future.

    • pegaxs on 15/06/2020 - 08:07
      +10

      Especially a Jeep…

    • Cheapskate Paul on 15/06/2020 - 22:17

      And yet car loans are quite common.

  • pao2x on 14/06/2020 - 23:40
    +1

    If you have access to novated leasing you can "lease it", get cash

    • Muzeeb on 14/06/2020 - 23:53
      +1

      As long as it's no more than 7 years old at the end of the lease period?

      • pao2x on 15/06/2020 - 11:46

        Can’t remember now. i think 10 at end last time I tried to lease

  • AdosHouse on 15/06/2020 - 00:12
    +2

    You will have to apply for an unsecured personal loan. But don't worry, they will take the car as security if you default anyway.

  • iforgotmysocks on 15/06/2020 - 07:20
    +3

    You bought a jeep??

  • HeWhoKnows on 15/06/2020 - 08:19
    +1

    "Westpac or NAB told me they can't give a secured car over a used car."

    You have been given your answer already.

    Cars depreciate quickly and can be stolen, smashed or sold easily so useless as collateral.

    If you could find a lender to use your car as collateral the interest rate would be very high hence defeating the purpose of a secured loan.

  • seraphim2017 on 15/06/2020 - 09:39

    What do you need the loan for? If it's another car, just sell the jeep (quickly, before it's down to single digit value!) and get the car you want instead?

  • dust on 15/06/2020 - 10:03

    Step 1: Sell the Jeep
    Step 2: Buy a Camry (if you still need a car)
    Step 3: ???
    Step 4: Profit!

  • bryn on 15/06/2020 - 10:20

    loans.com.au will do it, and they are cheap, but the valuation they give on the car (ie the amount they will lend) will be conservative- don't expect to be able to borrow its "full value"

  • Baysew on 15/06/2020 - 10:30

    How much do you want to borrow and for what period?

  • Mulga Bill on 15/06/2020 - 10:36

    Try Bendigo Bank, they do it. It is called introduced security but they will take the "average value" from Glass's Guide which can be a lot lower than some people expect.

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