A Quick Loan Using A Car As Collateral

10th July 2024

Loans Advice

Looking for a way to access quick cash? Unexpected costs can happen, especially during a cost of living crisis. Red Tree Finance offers a reliable solution with our quick loan using your car as collateral. This option allows you to leverage the value of your vehicle to secure the funds you need in a hurry.

What is a loan that uses your car as collateral?

A quick loan using your car as collateral is known as a “secured loan”. This type of secured loan is where your vehicle’s value is used to back the loan. This will sometimes allow for a higher loan amount compared to unsecured loans, and typically, a faster approval process.

How does a secured loan work?

When you apply for a loan using your car as collateral, the lender assesses your vehicle’s value. You can borrow up to a certain percentage of this value. During the loan term, the lender holds a security interest in the car until the loan is repaid.

What is the difference between a secured and unsecured loan?

A secured loan uses a high-value asset, such as a car or boat, as security in case you can’t repay the loan. An unsecured loan doesn’t use collateral, meaning you can borrow the money outright.

Eligibility and requirements for a secured loan

To qualify for a quick loan using your car as collateral, you need:

  • A vehicle in good condition.
  • Proof of income and expenditure to demonstrate repayment ability.
  • Valid identification and proof of residence.

Applying for a loan using car loan as collateral

Applying for a secured loan using your car as collateral is straightforward:

  1. Apply: Fill out our online form with your personal and vehicle details.
  2. Vehicle valuation: We assess the value of your car to determine the loan amount up to $5000.
  3. Loan approval: Once approved, you’ll receive the loan amount in your account, typically within 2 business hours.

What can I do if I don’t have a car to use as collateral for a loan?

Get creative and consider how you can boost your funds in other ways:

  1. Do a household clean out and make some money by selling things you no longer need.
  2. Get on top of your finances, once and for all, and create a fool-proof budgeting system on excel. This budget planner from Moneysmart is another great resource to help you get ahead.
  3. Organise your bills and pay them on time.
  4. Save on bills in the winter.
  5. Get crafty and give affordable handmade gifts instead.
  6. Speak with your bank, insurance companies and telco companies about flexible bill payments to manage your cash flow.

Fast funds using your car as collateral for a loan

Sometimes you need a quick loan to help you get through a tight period. When you can’t stretch the budget to cover an unexpected expense in one go, a small personal loan using your car as collateral can help you meet those financial goals and stay afloat.

Apply for a cash loan with Red Tree Finance

The request for your employment details by loan companies serves a meaningful purpose. Providing accurate employment information increases your chances of loan approval. If you’re looking for a loan, Red Tree Finance provides instant loans of $2000, $3000 all the way up to $5000. Whether you need a loan for bills, rental bond or just a weekend loan, we have you covered. Apply for a loan now or contact our friendly staff for more information.


If you need an instant cash loan, Red Tree Finance can help. We practice reliable, responsible, and trustworthy lending and can offer a loan using a car as collateral to help you get across the line for the finance you need.

Generally, lenders will allow you to borrow up to a certain percentage of your disposable income (the amount left over once you pay the essential bills each pay cycle). Your item of value, in this case, your car is used as security for the loan. Get in touch with our friendly customer service team and see how much you can borrow against your car.

Personal loans from Red Tree Finance offer convenience and speed given our fully online application process, saving you time and hassle. Borrow up to $5,000 with no hidden costs. Once approved, funds will appear in your account within 2 business hours.

The information provided in this blog is of a general nature and is provided without considering your specific objectives, financial situation, or needs. It is intended for informational purposes only and should not be relied upon as financial, investment, or other professional advice.

Before making any financial decisions or taking action based on the information presented, you are strongly encouraged to assess its appropriateness in light of your individual circumstances. Red Tree Finance does not intend to provide personalised financial advice, and you should seek independent financial, legal, tax, and other relevant advice tailored to your unique situation.

How much would you like to borrow?

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Loan term
12 months
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WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The above uses a comparison rate of 47% and upfront establishment fees of $420.



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