Compare finance types
Leisure loan vs Car loan: which is right for your business?
The main difference between a leisure asset loan and a personal car loan is how they are secured and repaid: a leisure asset loan suits buyers of boats, caravans or bikes who have a deposit and plan to keep the asset for years, while a personal car loan suits individuals buying a car for private use who want secured pricing and regulated protections.
Leisure loan vs Car loan at a glance
| Leisure asset loan | Personal car loan | |
|---|---|---|
| What it is | A leisure asset loan is regulated consumer credit secured by a recreational asset such as a boat, caravan, motorbike, jet ski or camper trailer. Because these assets depreciate faster and sell more slowly than cars, rates sit above car loans and deposits are more often required. | A personal car loan is a consumer loan used to buy a vehicle for private use, secured by that vehicle and regulated under the National Consumer Credit Protection Act. Because it is regulated credit, lenders must verify your income and expenses, quote a comparison rate, and assess whether the loan is not unsuitable for you. |
| Amount | $5,000 – $250,000 | $5,000 – $150,000 |
| Term | 12–84 months | 12–84 months |
| Indicative rate | 8% – 22% p.a. | 6.5% – 18% p.a. |
| Rate type | Fixed | Fixed |
| Security | Secured by the asset | Secured by the asset |
| Repayments | Weekly, fortnightly or monthly | Weekly, fortnightly or monthly |
| Typical speed | 2–5 business days | 2–5 business days |
| Best for | Buyers of boats, caravans or bikes who have a deposit and plan to keep the asset for years | Individuals buying a car for private use who want secured pricing and regulated protections |
| Consider the other if | Assets you may want to sell within two or three years, where negative equity is likely | Vehicles used predominantly for business, where business vehicle finance is usually better value |
| Tax | Interest on a private-use recreational asset is not deductible. Charter or hire use changes the treatment — speak to your accountant. | Interest on a private-use vehicle loan is not deductible. Where the car is partly used for work, speak to your accountant about apportioning. |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
When to choose a leisure asset loan
A leisure asset loan is usually the better fit for buyers of boats, caravans or bikes who have a deposit and plan to keep the asset for years. Its main advantages are secured pricing well below unsecured personal lending, terms to seven years keep repayments manageable, full nccp consumer protections and comparison rate disclosure. Consider the alternative if assets you may want to sell within two or three years, where negative equity is likely.
When to choose a personal car loan
A personal car loan is usually the better fit for individuals buying a car for private use who want secured pricing and regulated protections. Its main advantages are materially cheaper than unsecured personal lending, full nccp consumer protections including hardship provisions, fixed repayments and a comparison rate for honest comparison. Consider the alternative if vehicles used predominantly for business, where business vehicle finance is usually better value.
Leisure asset loan
A leisure asset loan is regulated consumer credit secured by a recreational asset such as a boat, caravan, motorbike, jet ski or camper trailer. Because these assets depreciate faster and sell more slowly than cars, rates sit above car loans and deposits are more often required.
Personal car loan
A personal car loan is a consumer loan used to buy a vehicle for private use, secured by that vehicle and regulated under the National Consumer Credit Protection Act. Because it is regulated credit, lenders must verify your income and expenses, quote a comparison rate, and assess whether the loan is not unsuitable for you.