When you start your search for a loan with NOW Finance and tell us you’re looking to buy a car (or caravan, bike, or boat), we will often show you two different options: a Car Loan and a Personal Loan.
Both are great ways to get on the road, but they work slightly differently.
We show you both upfront because we believe in transparency. Some drivers want the lowest possible interest rate, while others prefer total freedom and zero fees. Here is a simple breakdown to help you decide which loan fits your journey.
Why do we show you two options?
We don’t believe in a “one size fits all” approach. By offering both a Car Loan (Secured) and a Personal Loan (Secured or Unsecured), we put the power in your hands. You can compare the repayment amounts and terms and pick the one that suits your budget and your lifestyle.
Option 1: The NOW Finance Personal Loan
Best for: Maximum flexibility and absolutely zero fees.
The most common Personal Loan is an unsecured loan. This means we don’t use your car as security. It is often the preferred choice for people buying older cars, from private sellers, or those who want to use the funds for more than just the vehicle (e.g., buying a car / a roof rack, / a holiday).
Key benefits:
- No Fees, ever: We mean it. No establishment fees, no monthly service fees, and no early repayment fees.
- Cash in your account: If approved, the funds are transferred directly to your bank account (usually within 48 hours), giving you the power of a cash buyer.
- Total freedom: You can buy from any dealer or private seller. You can even use part of the loan for registration, insurance, or modifications.
Choose this if:
- You want the money directly in your account to negotiate with cash.
- You haven’t found the specific car yet and want to be ready.
- You absolutely hate fees.
Option 2: The NOW Finance Car Loan
Best for: Lower interest rates and long-term savings.
A Car Loan is a secured loan. This means the vehicle you are buying is used as security for the loan. Because of this, we can generally offer a lower interest rate, which can save you money over the life of the loan. With a NOW Finance Car Loan, you can also apply for pre-approval, so you know your budget before you start shopping.
Key benefits:
- Lower Interest Rate: Usually lower than an unsecured loan because the car acts as security.
- Pre-approval available: Get approved before you choose a car, so you can shop with confidence and move quickly when you find the right vehicle.
- Transparent Fees: We charge a one-off establishment fee of $595 to set up the security, but no ongoing monthly fees and no early repayment fees. This is rolled into your loan repayments.
- Smart Savings: A secured loan is ideally suited for newer vehicles where you want to minimize the total interest paid.
What is Pre-Approval?
- Pre-approval lets you keep browsing without making repayments until you choose your vehicle. With a personal loan, once we approve you and start the loan contract, repayments begin straight away, even if you haven’t bought a car yet.
Choose this if:
- You want pre-approval before buying your car.
- You have found, or are close to finding, your vehicle.
- The car meets our age and model eligibility requirements for security.
- You want the lowest possible interest rate.
What both options have in common
No matter which path you choose, you get the signature NOW Finance experience: “None of the bank.”
- Personalised Rate: An interest rate based on your personal circumstances, not a generic advertised rate.
- No Credit Score Impact: Check your rate in 2 minutes without affecting your credit score.*
- Human Support: A dedicated personal loan consultant to guide you from application to settlement.
Not ready to buy yet?
If you like your rate but haven’t found the perfect set of wheels, don’t stress. You can get pre-approved to lock in your rate and shop with confidence.
Read more: How Car Loan Pre-Approval Works with NOW Finance
*Checking your rate will not affect your credit score. If you choose to proceed with a full application, this may impact your credit report.
