If you’ve ever thought, “I’d love a new car, but how does car finance even work?” You’re not alone. At Hanna Lending, we help people every day who just want a simple, stress-free way to get behind the wheel of their next car. But with so much jargon out there - balloon payments, residuals, secured vs unsecured loans - it’s easy to feel overwhelmed.So, let’s break it down.

‍What is Car Finance in Australia?

In simple terms, car finance is when you borrow money to buy a car and then pay it back over time (usually with interest). Instead of paying the full price upfront, you make manageable repayments while enjoying your new ride.

The most common types of car finance in Australia include:

Secured Car Loan: The car itself is used as security for the loan. If you stop making payments, the lender can reclaim the car. The good news? These usually have lower interest rates.
Unsecured Loan: No security attached, which can mean higher interest rates.
Dealer Finance: Finance offered directly by the dealership. It can be convenient, but always compare rates and terms — sometimes there are better deals elsewhere!

Why Use a Car Loan Broker Instead of Going Straight to the Bank or Dealer?

You can go directly to a bank or car dealer, but here’s the catch:

They’ll only offer their loan products, which might not be the most competitive.

When you work with a car finance broker (like us):

We compare loans from a range of lenders
We ask the right questions to find the best option for you
We explain everything in simple, easy-to-understand terms
We handle the paperwork so you don’t have to

This means you get a better deal without the hassle of shopping around yourself.

Pro Tip: Know Your Budget First

Before you fall in love with that shiny new SUV or zippy hatchback, get a clear idea of what you can afford.

A good broker can also help you work out how much you can borrow — without impacting your credit score.

Whether you’re upgrading the family car, buying your first vehicle, or finally getting that weekend cruiser, Hanna Lending is here to help.

We’ll make the process simple, transparent, and tailored to you. No confusing jargon. No pressure. Just honest advice and support from start to finish.

If you’ve got questions (or you’re just curious what’s possible), reach out anytime — we’re always happy to chat apply now: www.hannalendingservices.com.au/get-my-quote

Subscribe to Optic Insights

Get industry insights that you won't delete, straight in your inbox.

We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For information, check out our Privacy Policy.

Nathan Hanna

Director

Nathan has 10 years experience as a finance broker, helping Australians find the right loan. Nathan will work with you to get your next asset or personal finance.

More insights

Finance

Truck Finance for Sole Traders: What You’ll Need to Apply

For many sole traders, owning your own truck is more than a business decision, it’s your livelihood. Whether you're starting out or upgrading your current vehicle, truck finance can be a smart and tax-effective move. Here’s what you need to know before applying.

Read Article