Our team of brokers work all day every day to help our customers get the best deals on loans. A lot of the time we’re being asked questions about how these asset loans work and how personal complications might impact applications.
Some of the most common car loan FAQs we get asked are about eligibility. Am I eligible for a car loan if I’ve got bad credit, low income or a poor credit rating? Am I too young (or too old) for a car loan? Can I apply for a loan if I have a casual job, I’m self-employed or I’m not working? What about if I was denied for a loan before? Or if I’m looking to take out a mortgage? Does it matter what visa type I have?
In a lot of cases, the answer is simply ‘it depends’. Some lenders might not want to lend to people on Centrelink, for example, but others might. Your credit rating – or more importantly, the reason for your credit score – might put off some lenders, but we work with a panel of more than 50 lenders so we can normally find you someone that looks at different parts of your rating.
Read on for some of the most common questions we get asked about car loans, our best attempts at answering them and what you might be able to do to help your situation. Sometimes the answer might just be to wait.
Work/employment questions
Can I get a car loan on Centrelink?
If Centrelink is your only source of income, you’re generally unable to get finance. If you get some form of Centrelink, that doesn’t rule you out completely, it just needs to be less than half of your income.
Can I get a loan if I’ve just started a new job?
Generally, lenders would want to see at least three months of employment.
Can I get a loan with a casual job?
Yes. Again, generally our lenders would need to see that you’ve been in that position for at least three to six months.
Does it matter if my hours vary from week to week?
No, we would work out your year-to-date income. We’ve got a calculator, we’ll just average it out.
Can I get a car loan if I’m self-employed and what do you need to know if I’m self-employed?
Yes, you can. We have lenders that will do loans for day-one ABNs. Different lenders need different things. Generally, if you want something before three months, you’d likely need a work source letter as well as a deposit.
Once you hit three months, it opens up a wide variety of lenders for us. And usually you wouldn’t need a deposit or those other things.
Can I get a loan if I’m like an Uber driver or DoorDash or something like that?
Yes, you can. No restrictions there. Most lenders are doing it for Ubers and Didis, and things like Ubereats, DoorDash, Menulog etc.
Is Uber driving and delivery driving classes as casual employment for a loan?
No, they aren’t. It’s considered as a stable employment.
Can I get a car loan for my business?
Yes, you can. No restrictions there but it needs to make sense. Obviously, if you’re a tradie, you’re going to get a ute. Some lenders won’t allow you to get a Ferrari for a chef, for example. But our job is to make it make sense.
Do I have to have a minimum income to be able to service a loan?
As a consumer, yes. Servicing works a little bit differently with commercial loans.
Saying that, there’s no real cut-off for consumer loans. There just needs to be enough surplus in your current income/expenses to cover the new loan.
Age/visa questions
Can a 17 year old get a loan?
No.
Never?
No. You have to be 18 for every one of our lenders.
Can a pensioner get a car loan?
Like with any form of Centrelink, you need to have less than half of your income from Centrelink. If you’re retired, other forms of income may be from shares or rentals.
Can international students get a loan?
Yes. Lots of visas are okay. Bridging visas, partner visas are accepted. Very few restrictions there.
Can I get a loan on a tourist visa?
No, it wouldn’t make much sense because a tourist visa is one year. Because you can’t work and you’re not getting income, right?
Can I get a loan on a 485 visa?
Temporary and bridging visas are generally fine for consumer applications, but it depends on your overall profile.
Financial complication questions
How long after bankruptcy can I get a car loan?
Depends on the lender. Some lenders won’t do a bankruptcy check but the rule of thumb is that you’d want about a year.
If I have a loan application declined, when can I apply again?
Usually after 30 days.
Does a car loan affect a mortgage application?
It does impact capacity. So, it would reduce your borrowing power.
Can I get a car loan with bad credit?
Yes. We have lenders that offer finance for applicants with defaults, late payments, multiple inquiries, etc.
And how much of an impact does credit have on how much I can borrow or my rate?
A lot. Although we have some lenders that don’t care about credit score as well. So it really depends on your situation.
Are those ones going to charge you massive rates?
No, not necessarily. They look at adverse, which is like defaults, but not necessarily inquiries.
Can I get a loan if I’m buying from a private seller?
Yes, you can. It works in a pretty similar way. The private seller would get sent an inspection link. They just take a few photos of the vehicle and we take it from there.
Got any other questions about a car, caravan or boat loan? Call our team on 1300 28 57 67 to pick their brains.
