Buying a car is exciting but can be a challenge if you don’t have all your finances ready to go.
As a result, a car loan may be your best bet to purchase your dream car if you don’t have enough savings to buy it outright. Similar to a personal loan, a car loan is finance offered specifically for buying a car - or another type of vehicle.
There are a few steps and car loan tips you’ll need to keep in mind to apply and get your car loan approved.
1. Understand the Loan Requirements
One of the first steps to getting a car loan is to understand your lender’s loan requirements. Different lenders have varying loan criteria, so it is important to do your research and figure out which lender you can work with based on their loan requirements.
In Australia, most loan requirements will include:
- Being over 18 years old
- Being an Australian citizen or permanent resident
- Having a stable source of income
Some lenders may also consider your credit history before approving a loan. Bad credit history can make it harder to get approved for a loan because it indicates to a lender you’ve had trouble managing debt in the past. If you have a bad credit rating, you might want to consider applying for a bad credit car loan, specifically designed for individuals with a poor credit score who want a second chance.
2. Get Loan Pre-approval
A loan pre-approval is an official offer by a lender to loan you a certain amount under specific terms before your final application. A loan pre-approval is incredibly helpful when applying for a car loan, as it shows dealerships and private sellers that you have reliable financial backing from a lender to purchase a vehicle from them.
When applying for a loan pre-approval, you will also need to meet certain criteria dictated by your lender and provide information on your financial circumstances. You can seek review multiple lenders to figure out which loan term suits you the best, where you can borrow the most money, and where to apply for your loan pre-approval from. Money3 offers quick and reliable loan pre-approvals.
3. Organise Your Paperwork
Getting your paperwork organised is key to speeding up your car loan approval process. Whether you’re applying for secured or unsecured loans, you’ll need to provide your lender with personal details such as proof of income, driver's license, and vehicle details.
This will help your lender sort out the parameters of your car loan repayments and connect with your car dealer as quickly as possible. As a general rule, secured loans are often available for larger amounts than unsecured loans, due to the asset being purchases, which is used as security for the loan.
4. Budget for Repayments
When obtaining car finance, lenders will also consider your ability to repay the loan. As a result, you will need to demonstrate that you’re able to reliably make monthly repayments with interest. This is important even with bad credit car loans, as lenders need to have confidence in your ability to pay back your loan.
One of the most effective ways to show your lenders that you’re able to repay their loan is to budget effectively. As part of your budget, you can document your savings versus spending with bank account and credit card statements and show them to your lender to prove that you’re able to make repayments.
You can work out how much you need to budget for repayments by using a car loan calculator. A car loan calculator works out how much you can borrow, and how much you’ll also need to pay back.
Get a Car Loan with Money3
With Money3, you may be able to enjoy vehicle finance of up $75,000 with loan terms flexible to your needs1. Whether you’re looking to purchase a new car or a used one, Money3’s car loans could help you purchase your dream car quickly and reliably. As one of the most reliable car loan providers in Australia, if approved, you can trust Money3 to offer you a car loan suitable to your circumstances1
1. Subject to verification, suitability and affordability
We give everyone a fair go at obtaining vehicle finance. Our vehicle loans are available up to $75,000.
Whether you’re after a brand new or used motorbike from a private seller or dealership, Money3 could offer you a motorbike loan of up to $75,000.
Used Car Loans
Get finance for a used car up to $75,000 from a dealership or private sale. We'll give you a fair go - whatever your credit history!
Centrelink Friendly Car Loans*
You may apply for a car loan with us, even if you are on Centrelink benefits*. At Money3, we believe in giving everyone a fair go, including those who receive Centrelink income*.
Bad Credit Car Loans
You could be eligible for a car loan with Money3 even if you have a history of bad credit. Money3 will go the extra mile for you even if you’ve been turned away by lenders before.
Get out and see more of Australia with our leisure loans, available for camparvans up to $75,000 - we'll give you a fair go!
Also check out the related articles below:
Car Loan Requirements
Check out Money3's car loan requirements in this article, to learn about our criteria when applying for a secured loan with Money3.
What are Secured Car Loans?
Secured car loans are a type of personal loans, where financed vehicles are held as security until the loan has been fully repaid.