When we talk about financing to buy a car, especially outside of Brazil, it’s normal to have a lot of doubts. After all, no one wants to get into a bad loan, with very high interest rates or hidden fees that appear later.
Great Southern Bank’s Secured Fixed Car Loan is one of those financial products that, at least on paper, seems designed to simplify the lives of those looking to finance a new or pre-owned car in Australia. Today I’m going to break down all the points you need to understand before making your decision.
Why we recommend the Secured Fixed Car Loan
This loan is recommended for a number of reasons that make it stand out among so many options available on the Australian market:
Competitive interest rates: starting at 6.29% per year for those with good credit, which is considered an attractive rate.
Zero monthly fees: you won’t pay that monthly fee just to keep the contract alive, which many financial institutions love to insert into the middle of the contract.
Possibility of paying early: if you have money left over, you can pay off the loan before the due date without being penalized for it.
Payment flexibility: you can choose to pay monthly, biweekly or weekly.
Redraw Facility: If you make extra payments, you can withdraw the excess whenever you need it, hassle-free.
No bureaucracy to apply: 100% online and fast application, without having to spend hours filling out forms.
Basically, it is a loan designed for those who want practicality, cost control and some margin for unforeseen events.
What can I use the loan for?
This type of loan is not a “personal loan” that is available for any type of purchase. Its use is very specific:
Buying a new car: ideal for those who want to leave the dealership with a brand new car.
Purchase of used car: they accept used vehicles up to seven years old.
Motorcycle purchase: also available for those who want to finance a new or used motorcycle.
If your plan is to buy a very old car or use the money for other purposes (such as renovating your house, going on a trip, paying off debts), then this is not the right loan for you. It is focused exclusively on new or pre-owned vehicles.
Advantages and disadvantages of borrowing
Before deciding anything, it is important to put the cards on the table and know what the strengths and weaknesses of this financial product are.
Advantages of Secured Fixed Car Loan
Fixed interest: you know from the start how much you will pay in total, without any surprises along the way.
Zero monthly fees: no hidden charges along the way to keep the loan active.
Freedom to repay: you can make extra payments at any time and reduce your outstanding balance.
Payment flexibility: you can pay weekly, biweekly or monthly, whichever best fits your budget.
No penalty for early settlement: Did you pay off your debt early? Even better. You save on interest and don’t pay a fine.
Redraw facility: allows you to withdraw overpaid amounts in case of emergency.
Wide financing amount: allows financing from 5 thousand to 100 thousand Australian dollars.
Term of up to 7 years: ideal for those who want a lighter installment.
Disadvantages of Secured Fixed Car Loan
Need for collateral: the vehicle purchased will serve as collateral for the loan until it is paid off in full.
Vehicles with age limits: they only accept cars or motorcycles up to seven years old, which can be limiting depending on the budget.
Rate variation: not everyone will get the minimum rate of 6.29% – those with average or bad credit will pay much more.
Requires credit analysis: those with a bad credit history may not be approved or may receive a high interest rate.
In other words, it is an excellent loan for those who have reasonable credit and want to finance relatively new vehicles.
How is the credit analysis done in the Secured Fixed Car Loan
Credit analysis is a mandatory and important step in this type of loan. Basically, Great Southern Bank takes into account:
Credit history: whether you have always paid your bills on time or whether you have been in debt in the past.
Credit score: based on information from Australian credit bureaus.
Proof of income: you need to show that you have enough income to pay the installments without getting into trouble.
Income commitment: the bank assesses how much of your income is already committed to other debts.
Job stability: How long you have been in your current job or how long you have had a steady source of income.
These factors together determine:
Whether you will be approved or not
What interest rate will be offered for your profile?
It is worth noting that Great Southern Bank allows you to run a simulation without impacting your score, to get an idea of the rate they can offer you.
But remember: the final value is only finalized after all documents have been analyzed.
Is there a maximum and minimum loan amount for a Secured Fixed Car Loan?
Yes, and it’s important that you already have these numbers in mind to see if they make sense for your goal:
Minimum amount: 5 thousand Australian dollars
Maximum amount: 100 thousand Australian dollars
Some important notes about this:
The amount released will depend on the credit analysis, the vehicle evaluation and your payment capacity.
The car or motorcycle must be within the age range of up to seven years to be accepted as collateral.
In some cases, the bank may limit the approved amount to a percentage of the vehicle’s market value.
These locks exist to ensure that, if you are unable to pay, the bank can sell the car to recover the amount borrowed.
Want to apply? Learn how to get a Secured Fixed Car Loan right here
If you’ve made it this far, you’re probably considering applying for financing with Great Southern Bank.
Now, if you want to know all the exact details, updated rates and start your process, click the button.
