Am I Eligible to Get a Car Loan?

To qualify for a car loan in Australia, you’ll typically need to meet these eligibility criteria:  

• Be over 18 years of age and no older than 65 years old  
• Be an Australian citizen or permanent resident  
  • o Some visa applicants can also get car loans we will look at  this in a different document  
• Have a regular source of income (most lenders look for six months  of steady income)  
• Have no major issues in your credit history or bank statements:  Personal loan lenders want to see bank statements as way of  making sure that you can afford the loan and that your bank account  is not constantly overdrawn. (esp financial lenders: like buy now pay  later, pay day lenders are the main concerns).  
• Be buying an eligible vehicle these can be new or used. Older  vehicles can be an issue for most lenders as all cars go down in  value over time. If it is an older car that you have your heart set on  we can then look at other options like an unsecured personal loan  as an option.  

When contacting Sharyn at Finance Finance Finance she will be  needing you to fill out an application form stating all your personal  details. Including loans, living expenses, assets these include cars,  home, superannuation.  

Once you have filled out the application form the next steps are to  provide the following items:

Key Requirements for a Car Loan  

1. Proof of Identity  

• Lenders must verify who you are to comply with regulations.  
• Acceptable documents:  

o Driver’s license  

o Passport  

o Other government-issued ID with your photo and name  

o Visa documents  

2. Proof of Income  

• Lenders need to see that you can repay the loan.  
• Common forms of income verification:  

o Recent payslips  

 If you have a partner we may need to get two payslips and details  about your partner’s employment as well this helps with offset of rent  or mortgage plus living expenses.  

o Bank statements these are done via a link that Sharyn will provide to you.  o Tax returns or income statements from 1st July to 1st October  

o Income statements from Centrelink if you receive family income and rental  assistance  

o Child support documents if you are paid through this system. Personal  approach between each party is not taken into consideration by most of the  lenders  

3. Budget Assessment  

• Work out how much you can comfortably borrow and repay monthly.   Include:  

o Vehicle cost  

o Loan interest  

o Registration and insurance  

o Other fees (like stamp duty or dealer charges)  

4. Preapproval  

• Getting preapproved helps you understand:  
  • o How much you can borrow  
  • o Your likely interest rate  
• It involves submitting your financial info for lender review before selecting a car.  

5. Additional Documentation (Settlement) 

Depending on your situation, you may need:  

o Proof of car insurance with the financier noted  

o Tax invoice from the dealership or if private sale then we follow different  steps:  

o Trade-in paperwork this may mean payout letter from previous lender, rego  paperwork  

Tip: Being fully prepared with all the documentation makes the process faster and  increases your approval chances.