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Gusto Finance

Spank the Bank

Published 2 months ago • 1 min read

The RBA has delivered a gut punch to Australian households at their first opportunity in 2026.

So it has never been more important to ensure your car finance has the sharpest rate possible.

It is a common misconception that the big banks are the place to go for the best rates.

Well, this week’s customer story will prove otherwise.

And the difference is big enough for you to never look at your bank the same way again.

Customer of the Week

Despite having a strong credit score (>800) and an income over $130,000, our customer’s bank wouldn't give them a secured finance option for the vehicle they wanted.

Instead, they offered an unsecured personal loan at a hair short of 10%.

While that’s a good rate for a personal loan, a secured loan is always going to be more competitive.

Especially when financing a mainstream vehicle.

It was a Toyota Hilux he wanted, not a 94 Seat Toledo (my first car - 25 years ago!).

The point is, he is a prime customer buying a top selling vehicle, and he can access a prime interest rate.

But his bank wasn’t going to tell him that.

Luckily, he decided to get a second opinion and spoke with the team at Gusto.

We could tell instantly that there was room to do much better.

After matching his application with the best lender on our 40+ panel, and shifting from a standard bank personal loan to a secured car loan, we were able to secure an interest rate that better aligned with his strong credit profile.

  • Bank Offer: 9.99% p.a. (Unsecured)
  • Gusto Finance Result: 7.24% p.a. (Secured)

In dollar terms, it was a saving of ~$2.5k over the life of the loan. Which is nearly 30% lower than the bank’s original offer.

The Takeaway

A high credit score gives you leverage, but you only benefit from that leverage if you’re looking in the right place.

Don’t assume your bank is giving you their best rate just because they have your savings account.

​Check out the full blog post for a detailed comparison of the repayments and savings over the loan term.

Secured vs Unsecured

A secured loan will be the cheaper option in the vast majority of cases.

We only recommend an unsecured loan in rare circumstances:

  • You are planning to sell the car within 12 months.
  • The car you want is not eligible to be held as security (e.g. a very old vehicle, or collectible).

While a secured loan is cheaper, there are risks that come with it.

Like vehicle repossession if you default on the loan.

To learn more about the mechanics of a secured loan check out the article below.

​Read the full article here​

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