vehicles · Equipment & asset finance
Used car finance
A used car can be the smarter buy once the first owner has absorbed the depreciation. We handle dealer, auction and private-sale purchases the same way.
What is used car finance?
Used car finance is funding for a second-hand vehicle bought from a dealer, an auction or a private seller, secured against the car. Used vehicles are financed across Australia on similar terms to new, though age at the end of the term, kilometres and the source of the purchase all affect what a lender will offer.
Buying used shifts the depreciation curve in your favour. A three-year-old vehicle has typically shed a large share of its value while retaining most of its useful life, and in Australia that gap widened when supply constraints pushed used prices up and then eased. The trade-off is a shorter remaining warranty and less certainty about how the car has been treated.
Finance treats used vehicles almost identically to new, with two practical differences. First, the lender cares about how old the car will be when the loan ends, not just how old it is today. Second, private sales require more paperwork: a PPSR clearance, a proper sale agreement, and payment made to the seller rather than through your account. Your broker manages that process so settlement is clean.
Used car finance at a glance
| Typical price range | $10,000 – $90,000 |
|---|---|
| Finance term | Up to 84 months |
| Useful life | About 10 years |
| New or used | This is the used market by definition. Vehicles under about eight years old with reasonable kilometres are straightforward; older cars need a lender with appetite for age. |
| Indicative rates (Chattel mortgage) | 6.9% – 14.5% p.a. · rate history |
| Finance structures | Chattel mortgage (recommended), Used vehicle finance, Business vehicle finance, Personal car loan |
How lenders assess used car finance
Most lenders set a maximum vehicle age at the end of the term, commonly 12 to 15 years, which is the main constraint on used car finance. Private sales are accepted by many lenders but need a PPSR check, a signed sale agreement, and payment made directly to the registered owner rather than to the buyer. Auction purchases are also fine, though funds usually need to be ready before bidding. High-kilometre vehicles may attract shorter terms or a deposit request. Pricing sits slightly above new-vehicle rates.
Before you buy
- Run a PPSR check yourself before you commit — it shows finance owing, written-off status and stolen records for around $2.
- Get an independent inspection on a private sale; a few hundred dollars can save thousands in deferred maintenance.
- Have your finance pre-approved before an auction, since settlement timeframes there are short and non-negotiable.
Commonly financed
Toyota Corolla and RAV4 · Mazda 3 and CX-5 · Toyota HiLux · Hyundai i30 · Ford Ranger
Estimate used car repayments
- Number of repayments
- 60
- Balloon at end of term
- $10,000
- Total interest (est.)
- $14,154
- Total repaid (est.)
- $64,154
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is used car finance?
Used car finance is a secured loan used to buy a second-hand vehicle, with the car as security. Terms usually run 36 to 84 months, and lenders assess the vehicle’s age at the end of the term, its kilometres and whether the purchase is from a dealer, auction or private seller.
Can I finance a private-sale car?
Yes. Most panel lenders fund private sales, subject to a PPSR check confirming no money is owing on the vehicle, a signed sale agreement, and the funds being paid directly to the registered owner. The process takes slightly longer than a dealer purchase.