Blended Finance
Secured vs Unsecured Car Loans
Secured and unsecured car loans can both be useful depending on your profile. The right structure depends on risk tolerance, vehicle plans, and desired pricing outcomes.
Key differences in structure
Secured lending uses the vehicle as security, which can reduce lender risk. Unsecured lending does not tie security to the vehicle but can carry different pricing and eligibility criteria.
- Secured loans often target lower risk pricing
- Unsecured options may suit some flexibility needs
- Vehicle age and value can affect secured eligibility
- Credit and income profile remain important in both models
- Default consequences differ by structure
Choosing the right fit
Review repayment affordability, asset risk, and long-term plans before selecting structure. The best option is the one that remains manageable over the full loan life.
| Category | Secured loan | Unsecured loan |
|---|---|---|
| Security | Vehicle is lender security | No vehicle security required |
| Pricing tendency | Can be lower in many cases | Can be higher for similar profiles |
| Vehicle constraints | Age/value rules may apply | Typically fewer asset constraints |
| Default risk | Asset repossession risk exists | Different recovery pathways |
Next steps
Use this guide as a framework, then compare at least two full offers with the same assumptions before you commit. If you want support, our team can help you match structure, rates, and fees to your profile.