How to get approved for a car loan in Australia

  • Written by Stratton Finance

You’ve found the perfect car, chosen the trim, and even have an idea of what colour you’d like, and now all you have to do is to arrange the car finance. But applying for finance can be a little intimidating. You need to talk about your credit history and then there’s the chance they’ll say no anyway. But you know what? You can alleviate quite a bit of that stress by simply getting yourself ready and knowing what to expect. So here’s our rundown on how to get approved for a car loan.

First up you’ll need to provide the following.


Personal Identification

The lender needs to know who you are so make sure you have some valid IDs at hand. Make some copies of your licence, passport, or even your birth certificate and have them ready for your application.


Two years’ Residential History

Irrespective of whether you are paying a mortgage or renting, your lender will want to know where you live. And for non-citizens they will also check your residential permit. The loan applicant needs to be a permanent resident in Australia to get car loan finance. Some financers may lend to those on working visas once they can prove that they have the means to repay the money.


Proof of Income

Even if your credit history is excellent, provide two recent payslips as evidence of your year to date wage and proof of your income. If you are self-employed, further proof of income is needed to show your ability to pay back the loan. You may be asked to submit other financial documents like your most recent Tax returns. For certain cases, a list of recent banking transactions may also be required.


Employment history

This is not an essential requirement for all car loan finance but it’s still a good idea to have it at the ready. Provide your job history for the last two years and if you can, get a personal reference or two preferably from people who are not members of your family. Every little helps you know.


Current assets (and debts)

Letting the lender know how good you are at saving and how many assets you have certainly won’t do you any harm. So if you own any cars, property, or have any savings plans or investments, make sure to let them know. Likewise, you should also list any debts or loans that you currently have. And don’t worry, just because you have a loan already doesn’t necessarily mean that you won’t qualify for car loan finance.

If going for a secured car loan, then you’ll also need the following.


Car Insurance Policy

Most lenders will ask you for proof of insurance before they agree to a secured loan. Now we know what you’re thinking ‘how can you have insurance if you don’t have a car yet?’ Well this proof can also be in the form of a quote from your insurer or the confirmation letter of your policy (Certificate of Currency).


Tax invoice for the car

The last one you’ll need is the tax invoice for the vehicle. This includes information such as the new car registration number, vehicle ID (VIN) or chassis number, engine number and the accepted purchase price of the car. If a deposit was given for the vehicle, include the information on the tax invoice.

If you’re struggling to provide proof of income or any of these documents, then don’t worry. This doesn’t mean that the door is shut on you, it just means that you may have to opt for a different type of finance or provide alternative information or security for the loan. Unfortunately, it’s pretty tough to give you exact details on what you may or may not require as each person’s means to repay and credit history may differ greatly. This is why it’s a good idea to use a car loan broker as they will be able to guide you through the process ensuring that you apply for the right finance package and have all your details ready before doing so.

While having the documentation mentioned won’t guarantee you a loan, it will certainly speed up the process and help you get an answer quickly. Remember though that even people with a solid credit history can make a simple mistake that results in a loan refusal. Time to call that broker, right?

As Australia's largest car finance broker, Stratton Finance know a thing or two about loans and finance. With over two decades of experience in the field they are one of the most trusted authorities in the industry.


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