Can you finance your used car purchase?

Where Can I Find the VIN (Vehicle Identification Number)?

The vehicle identification number (VIN) is composed of 17 characters (digits and capital letters) that act as a unique identifier for the vehicle. A VIN displays the car's unique features, specifications and manufacturer.

The VIN can be found in a couple of places including on the car's registration label (1), on the compliance plate in the engine bay (2) or on the passenger side windshield (3), or on one of the door posts (where the door latches when it is closed) (4). See the image below:

Look for the VIN in these other locations:

  • Insurance card/Insurance policy
  • Vehicle title and registration certificate


VW car wheel

Yes you can!

Contrary to popular belief, financing is available for a used car purchase, but it will depend on the vehicle.

Many used car purchases generally do qualify for some type of financing that can be secured against the car. Once you have secured financing for your used car, you can go about making your purchase with confidence on how much you can afford.

Remember you’ll need to account for other costs that fall outside of your purchase, including insurance and a PPSR check to ensure the car you’re buying has a clean car history.

Secured car loan

Contrary to widespread belief, financing can be secured against a used car. Most financiers will be willing to secure a car loan against a vehicle that is less than seven years old. Flexible terms are generally available for most car loans, but they are generally set at about two to seven years.

Be careful, however... while longer terms generally mean lower monthly payments, if your used car doesn’t retain its value you could end up in an “upside down situation” where the amount you owe on the loan is greater than value of the vehicle.

Car lease

For those looking to minimise their monthly payments and are not be looking to lock themselves into a vehicle purchase, leasing a used car could be a good option. Lease agreements are made for the “hire” of the car over the lease term. Lease terms on used cars are generally for two to seven years.

Personal loans

For those who are looking to purchase a car that is older than seven years, it may be difficult to find financing that is secured against an older model.

One alternative is to apply for an unsecured personal loan which can then be used towards the purchase of a vehicle. Unsecured personal loans generally incur higher rates as they are a greater risk to the financier, but if you’re keen to get your hands on that retro car of your dreams, it could be the best option.

Novated lease

A novated lease is an arrangement where an employer makes lease payments on a vehicle on behalf of the employee, and is usually bundled up into a remuneration package. And yes, it can actually be used to finance a used car or help refinance the employee’s current vehicle.

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