The CUA Secured Fixed Car Loan
This personal loan from CUA allows you to borrow $5,000 to $100,000 to purchase a new or used vehicle up to seven years old, offering flexible repayment options and a competitive fixed rate.
What we love...
If you’ve been comparing personal loan options, you may have noticed the rate on this secured loan is less than rates typically found on unsecured loans. Why is this? By securing the loan to collateral (typically the vehicle being purchased), the loan is deemed lower risk than an unsecured loan, so rates tend to be lower. While circumstances vary, this type of secured loan can also be easier to get approved for, thanks to the collateral being placed against it.
Another important factor to note on this loan is the fact that the rate is secured. That means, whether rates rise or fall elsewhere in the market, the rate on this loan remains the same. This can offer two major benefits. Firstly, if rates rise, you are protected from that, and your rate will not change. Secondly, as your rate stays the same throughout your loan term, you always know what your repayment will be, making budgeting easier.
One thing loan applicants often look for in a loan is flexibility. Thankfully, this loan offers lots of flexible features. In terms of loan amount, you can apply for an amount between $5,000 and $100,000 to purchase a new or used vehicle up to seven years old. This gives you plenty of scope to choose the car that not only suits your needs, but your budget.
In terms of budgeting and affordability, the loan term can be anywhere between one and seven years, with the option of weekly, fortnightly or monthly repayments working to fit your budget. If you have extra cash, you can make extra repayments whenever you like, without any fees to pay. That cash can be accessed via redraw should you need it – and if you decide to pay off the loan early, you can do so with no early payout fee to worry about.
What’s not so great...
As with any loan, it’s a good idea to check what fees you may have to cover in order to work out its overall affordability. Like many personal loans, the CUA Secured Fixed Car Loan features an establishment fee – and it also charges a Security Administration Fee. However, it is worth noting that there are no monthly fees to cover, which could make it easier on your wallet each month.