If you need extra cash for a new car, you can apply for a secured car loan or a personal line of credit loan. So, what is the difference and which type of loan is going to be right for you? There are a few things that you need to consider including the loan amount that you require, interest rates and whether you feel comfortable securing your car to the loan.
Loan amount
You can apply for up to $15,000 with an APS Personal Loan. This loan will be a line of credit that you can access if you encounter any financial emergencies. This loan will not be connected to your new vehicle and a personal line of credit loan may be all you need. You can learn more about applying for a Personal Loan here.
The benefit of an APS Car Loan is that the amount you can borrow is unlimited as you can borrow up to 100% of the value of the car. If the value of your vehicle is greater than $15,000, you will need to apply for a Car Loan. There are plenty of benefits, including low interest rates.
Secured Car Loan interest rates
Secured Car Loan interest rates are significantly lower than interest rates for personal loans. At APS, Secured Car Loan interest rates range between 7.9% p.a. and 9.9% p.a. This compares to personal loan interest rates of 11.9% p.a. – 12.9 % p.a. By taking out a Car Loan, you will be paying a lower interest rate over a shorter term. As you can see in the table below, when you compare all loans at APS, secured car loans are the cheapest option.
Car Loans are secured
APS Car Loans are secured meaning that we require you to use your car as security for the loan. As a result, we are able to provide a competitive interest rate with no monthly fees, no application fees and no penalty for early repayment.
Still unsure?
If you have any questions about APS Secured Car Loans, feel free to get in touch! Our team are happy to chat you through the specific details of APS Secured Car Loans. We can also look at any other types of loans that might be relevant for you.