A practical Australian loan comparison
Understand the difference between keeping your vehicle as security and handing it over to a provider. This guide compares possession, affordability checks, repayment structures, fees and enforcement risk.
Will you keep possession of your vehicle while the loan is repaid?
A keep-driving car-secured loan allows you to continue using the vehicle, subject to the contract.
A vehicle pawn arrangement may require the provider to hold the vehicle until redemption.
In either case, read the security, repayment and missed-payment clauses before signing.
Published by AutoSwift Finance
This comparison is published by AutoSwift Finance. We’ve included our own EquiMax Loan alongside other lenders so you can compare us directly.
Car equity loans and logbook loans are often discussed as if they are identical, but the practical arrangements can be different. This guide is for Australians who own a vehicle, need a defined short-term amount and want to understand whether they retain possession, how affordability is assessed and what happens if repayments are missed. In our view, the EquiMax Loan is the clearer fit for an eligible borrower who needs fixed repayments while continuing to use an approved vehicle. A different vehicle-backed arrangement may suit someone who understands and accepts surrender or holding conditions.
Reviewed by Justin C
With over 8 years of international experience in client service, operations, and leadership within the finance and technology sectors.
View author profileA car equity loan uses the value of a vehicle you own as security for a fixed amount of borrowing. The lender normally considers the vehicle, your ownership and registration, income, expenses, liabilities and capacity to repay.
With a keep-driving structure, the borrower retains use of the vehicle while making scheduled repayments. A security interest may be registered on the Personal Property Securities Register.
A logbook loan is a general term for finance secured using a vehicle’s registration papers, ownership documents or “logbook”. The label alone does not explain the legal structure or the provider’s enforcement rights.
Some arrangements allow the borrower to keep driving, while vehicle pawnbroking arrangements may require the vehicle to be handed over. The contract must confirm which model applies.
The main trade-off is straightforward: keeping the vehicle offers continuity for work and daily life, but the vehicle remains secured and may be repossessed if obligations are not met.
This is a secured loan. If you fail to meet your repayment obligations, your secured asset may be repossessed.
| Key strengths | Key limits | Pricing | Who It Is For | What I Love About It |
|---|---|---|---|---|
| Car equity loan | Requires acceptable vehicle security, affordability assessment and repayment capacity. | AutoSwift’s EquiMax Loan has a fixed interest rate of 47% p.a., $416 fixed upfront fees and no monthly account-keeping fee. | An eligible vehicle owner who wants a defined amount and continued vehicle use. | The possession question is clearer when the contract expressly allows the borrower to keep driving. |
| Logbook loan | The name does not reveal whether the vehicle is retained, held, redeemed or repossessed. | Fees, interest, term and redemption costs depend on the provider and agreement. | A borrower considering vehicle-backed finance who has checked the exact possession and enforcement terms. | It prompts an important question: what happens to the vehicle after a missed payment? |
AutoSwift Finance’s EquiMax Loan is a secured Medium-Amount Credit Contract from $2,100 to $5,000. All applications are subject to credit assessment and eligibility criteria. AutoSwift Finance is operated by Koala Enterprises Pty Ltd (Australian Credit Licence 537359).
What it is:
A fixed-amount loan secured against a vehicle registered in your name or another approved asset. AutoSwift Finance’s EquiMax Loan has a fixed 12 month repayment term, with weekly, fortnightly or monthly repayment options aligned with the borrower’s pay cycle.
Strengths:
Limitations:
What it is:
A broad term for finance linked to a vehicle’s registration papers, ownership documents or logbook. It can describe different arrangements, including a keep-driving loan or a vehicle pawn where the provider holds the vehicle.
Strengths:
Limitations:
Car equity loan
Applicants generally provide identification, income information, vehicle registration or logbook details and proof of comprehensive insurance. The process is easier to understand when the amount, term, fees and security are itemised before signing.
Logbook loan
The borrower must establish what “logbook” means in that provider’s contract. Before accepting, confirm possession, valuation, storage, redemption, repayment dates and enforcement rights.
Car equity loan
The borrower applies for a defined amount, completes an affordability and credit assessment, provides vehicle documents and makes scheduled repayments while continuing to use the vehicle.
Logbook loan
The workflow depends on the provider. It may involve a keep-driving arrangement or handing the vehicle to a pawnbroker until the loan is redeemed.
Car equity loan
AutoSwift Finance supports a 100% online application and digital servicing throughout the loan term. Funding can be made by PayID, often within minutes of disbursement, or by EFT on the next business day, once requirements are met.
Logbook loan
The digital process, decision timing and funding method vary by provider. Do not assume that a familiar product name means the same workflow or service arrangement.
Car equity loan
The relevant records are the vehicle registration, ownership documents, insurance information and any PPSR security interest. The loan is managed through the lender’s online servicing process.
Logbook loan
The relevant documents and registrations depend on the provider’s structure. Ask whether a PPSR interest is registered and which party physically holds the vehicle or documents.
Car equity loan
A fixed repayment schedule makes the amount and due dates easier to monitor. The borrower should also track the remaining balance, payment status and any additional repayments.
Logbook loan
The borrower should monitor repayment dates, redemption conditions, storage or valuation charges and the steps that follow a missed payment. These details must come from the agreement.
Car equity loan
AutoSwift Finance operates under Koala Enterprises Pty Ltd and holds Australian Credit Licence 537359. Its EquiMax Loan is secured, and a PPSR security interest is registered.
Logbook loan
The security and enforcement model depends on the agreement. A borrower should not rely on the word “logbook” to understand whether a PPSR interest, physical possession or repossession right applies.
Car equity loan
Applicants can review product information, FAQs, the Credit Guide, the Target Market Determination and hardship contact options before applying.
Logbook loan
Support quality depends on the provider. Request written answers about possession, fees, repayment changes, missed payments and vehicle release before signing.
| Cost item | EquiMax Loan | Logbook loan |
|---|---|---|
| Interest | Fixed interest rate of 47% p.a. | Depends on the provider and agreement. |
| Comparison rate | 65.61% p.a. based on a $2,500 loan over 24 months. | Must be checked in the provider’s disclosure documents. |
| Upfront fees | $416 total fixed upfront fees, comprising a $400 establishment fee, $2 PPSR Check fee, $6 PPSR Registration fee and $8 Credit Check fee. | May include establishment, valuation, storage, registration or other fees, depending on the model. |
| Ongoing fees | $0 monthly account-keeping fee. A $35 Dishonoured Payment Fee applies only if a scheduled payment is missed or returned. A $25 Reschedule Fee applies where relevant. | Check the full schedule, including late, storage, redemption and administration charges. |
| Typical scenarios | A defined $2,100 to $5,000 amount over a fixed 12 month repayment term, with weekly, fortnightly or monthly payments. | The amount, term and repayment structure depend on the provider and may be short-term or structured differently. |
Fixed interest rate of 47% p.a. Rates and fees apply. Refer to our Terms and Conditions for full details. The comparison rate is true only for the stated example and may not include all fees and charges.
Car equity loan
Pros
Cons
What real users say
“Easy process good company to work with they look at you more personally rather than just automatic response.” L Groom
“The team is professional, responsive, and truly knows their space.” Nicole Z
Logbook loan
Pros
Cons
| Tool | Best for | Why consider it |
|---|---|---|
| AutoSwift Finance EquiMax Loan | Eligible Australians who own an acceptable vehicle and need a defined amount while keeping possession. | Fixed 12 month repayments, online application, itemised fees and continued vehicle use, subject to credit assessment and eligibility criteria. |
| Keep-driving car-secured loan | A borrower who wants vehicle-backed finance without handing over the vehicle. | The contract can provide clear possession terms, but the borrower must still understand the security and repossession risk. |
| Vehicle pawnbroking | A borrower who understands that the vehicle may be surrendered and held. | The arrangement is distinct from a keep-driving loan, so storage, redemption and release conditions need careful review. |
| Unsecured personal finance | A borrower who does not want to use a vehicle as security and meets another provider’s eligibility rules. | It may avoid vehicle security, but the borrower must compare the provider’s rates, fees, term and affordability requirements. |
Not necessarily. Both may use a vehicle as security, but the legal structure, repayment terms, fees, possession arrangements and enforcement rights can differ. Review the contract rather than relying on the product name.
You may be able to keep driving the vehicle if the product is structured as a keep-driving car-secured loan. AutoSwift Finance states that EquiMax Loan borrowers retain full use and possession throughout the loan term, subject to the contract. The vehicle remains security, so missed repayments can lead to enforcement or repossession.
No. Some asset-backed providers may focus heavily on the vehicle, but regulated personal lenders can still assess credit history, income, expenses and affordability. A vehicle does not replace the need to assess whether repayments are affordable. “Bad credit considered” does not mean a credit check is not performed or that approval is guaranteed.
A missed repayment may result in fees, arrears, recovery action or repossession of the secured vehicle, depending on the contract. AutoSwift Finance lists a $35 Dishonoured Payment Fee where a scheduled payment is missed or returned. Contact the lender as early as possible if you expect difficulty making a payment.
Early payout is available at any time with a $0 early exit fee, subject to contract terms. Additional repayments are also permitted at the borrower’s discretion. Early payout is available subject to the terms of your contract.
For an eligible Australian who owns an acceptable vehicle, needs a defined amount and wants to keep driving, AutoSwift Finance places the EquiMax Loan first in this comparison because its fixed term, possession arrangement and itemised fee structure are clearly stated. Other vehicle-backed arrangements may suit people who accept different possession or redemption conditions. Review the EquiMax Loan details before deciding.