What is used car finance?
Used car finance is a loan taken out to buy a pre-owned vehicle. The car's age, kilometres, condition, and value can all influence whether a lender will approve the loan and what terms it may offer.
How vehicle age can affect your options
Some lenders limit the age of vehicles they will finance, often to around 7–12 years at the end of the loan term. Older cars may come with higher interest rates, shorter loan terms, or a requirement for an unsecured loan instead of a secured car loan.
What lenders typically look at
Private sale vs. dealership
Buying from a licensed dealer may give you access to statutory warranties and a simpler vehicle check. Private sales can offer lower prices, but lenders may require extra verification such as a roadworthy certificate, inspection, or proof of ownership.
Inspection and valuation
Before committing to a used vehicle, many buyers arrange a pre-purchase inspection and a valuation check. Lenders may also conduct their own valuation to confirm the vehicle is suitable security for the loan.
Important notice
The information on this page is general in nature and is not financial advice, credit advice, or a recommendation. It does not take your personal circumstances into account. We recommend speaking with a licensed financial adviser or credit provider before making any decisions.
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