A secured loan is backed by collateral, such as the car you're purchasing. This means if you can't make repayments, the lender can repossess and sell the car to recover the loan balance. Because this reduces the lender’s risk, secured loans often come with lower interest rates. However, these loans typically have restrictions, such as maximum vehicle age. Lower rates are often available for newer cars.

In contrast, an unsecured loan involves more risk for the lender since there’s no collateral to claim if you default. As a result, interest rates for unsecured loans are generally higher. The upside is greater flexibility, as these loans usually have fewer restrictions on how funds are used and may allow the borrower to cover various expenses like insurance, registration, or new tires. You should check your loan for any terms and conditions to understand any restrictions or requirements.

For initial assessment we may require some of the documents below:

• Proof of ID-Driver’s license, passport, Medicare card, etc.
• Proof of Income: Recent payslips, tax returns, or bank statements.

For some circumstances we may require additional information as below:

• Proof of Residence: Utility bill or council rates confirming your address.
• Proof of Savings: Bank statements or investment documents.
• Assets and Liabilities: Information on property, other vehicles, and existing debts.

You can use Plenti’s car loan calculator to find out your estimated loan repayments.