The most common types of car finance in Australia are:
- Personal loans: A personal loan is a type of unsecured loan that can be used for any purpose, including purchasing a car. Personal loans typically have higher interest rates than other types of car finance, but they may be more flexible in terms of the amount you can borrow and the repayment term.
- Car loans: A car loan is a type of secured loan that is backed by the value of the car you are purchasing. Car loans typically have lower interest rates than personal loans, but they may have stricter eligibility requirements.
- Hire purchase: Hire purchase is a type of agreement that allows you to purchase a car over a period of time. You will make regular payments that include both interest and part of the purchase price. At the end of the agreement, you will own the car outright.