Car Loans

Yes, it is possible to get a car loan with bad credit, although a number of factors will play a part in whether you could qualify for a car loan with a bad credit history.

Such as your visa status, your income and employment and which lender you apply though. When applying through Rapid Finance, you will have a better chance of approval for your car loan, even with bad credit, as we specialise in car loan approvals, for people who have difficulty getting finance, such as due to a bad credit history.

We have access to a large panel of loans and lenders who all have different criteria for approvals, for us to match your application with. Some specialised lenders offer 'bad credit car loans' specifically for individuals with low credit scores. However, these loans often come with higher interest rates and fees. It's advisable to get a free credit check and review the report, for any errors, and work on improving your credit score - we can help with that.

In Australia, most car loans are secured, meaning the car you buy is used as collateral or security for the loan. If you fail to make your repayments, the lender may choose to repossess the car. However, unsecured car loans are rare, but they do exist. These do not require any security, but usually come with higher interest rates due to the increased risk to the lender.

When you apply through a specialist broker, such as Rapid Finance, we can generally get your loan application approved within one or two days of application.

The speed of car loan approval varies among our panel of lenders. Some lenders can provide a decision within minutes and disburse funds within a day or two. Traditional banks might take longer, often a few business days. Keep in mind, though, that this is dependent on you providing all the necessary documents promptly and accurately.

Secured car loans allow the lender to hold an asset or collateral as security against the loan. In most cases this security is the vehicle purchased. So, if the customer defaults on the loan, the lender is able to sell the car in order to recoup some or all of the funds owed. Because secured car loans are generally considered less risky, they tend to attract lower interest rates when compared to unsecured car loans. They are also often available with higher borrowing limits and longer repayment periods.

Under an unsecured car loan, the customer is not required to put forward collateral. This means the car purchased will not be held as security against the loan. As a result of this, should the customer default on the loan, it is generally more difficult for the lender to recoup funds owed. Because unsecured car loans are often seen as more risky, they do regularly attract higher interest rates when compared to a secured car loan. Additionally, you may not be able to borrow as much as you would under a comparable secured car loan.

In most cases, yes. At Rapid Finance, our car loans can be used with a huge variety of cars. This includes family cars, work vehicles, classic cars, specialist vehicles and more. Exactly how much you are eligible to borrow, however, will depend on your individual circumstances. Things such as income, employment situation and credit history can all affect the amount you have access to. So, it's always worth considering these factors when deciding upon a car.

No. It is not possible to get car finance without the necessary credit check with any licensed lender in Australia. Under the National Consumer Credit Protection Act, credit providers are required to ensure that an application for finance is suitable for the applicant before approval can take place. Review of financial information, including a credit check, is part of this process.

However, you can limit the credit enquiries run, on your credit file, by applying through Rapid Finance - generally down to only one. We have a large number of lenders and loan products on our panel, across Australia. We generally know which items on your credit file, or other potential problems, different lenders will consider, and which they will reject.

Learn more on our no credit check car loans page, or consider a rent to own car agreement, which often allows the purchase of the vehicle, at the end of the rental term - without a credit check, in many cases.

Yes. While it may be more difficult for you to obtain a car loan while on Centrelink, in many cases, it is possible. You could have fewer options in terms of loan types available to you, but there are specialist lenders in Australia, willing to provide finance for people on Centrelink. Some lenders will also consider both your income from employment and income from Centrelink, which can help increase the amount you could borrow, due to any calculated affordability for the loan. If you're on Centrelink benefits such as Disability Pension/DSP, Carers Pension or an Age Pension, you can learn more on our pensioner car loans page, while other benefits such as  Family Tax or Parenting Payments are also considered. Your dedicated loan specialist will assess your situation, review a range of options and seek out a loan solution that matches your circumstances.

You'll get your own finance expert - your personal finance assistant. They'll identify your financial strengths and then try to help you by negotiating with lenders on your behalf. At Rapid Finance, we have access to a large range of Australian lenders and car loan products and will select the right lender or path of action, based on your financial strengths and needs.

Car finance and car loans essentially refer to the same thing, which is borrowing money to purchase a vehicle.

However, there can be nuances. A car loan is a type of personal loan where you borrow a lump sum of money to buy a car or other vehicle, such as a motorbike or caravan. Car finance can include car loans, but also other types of financing like hire-purchase, leasing, or dealership financing, where the finance company owns the vehicle until the final payment is made.

In some cases, where the car is used for business purposes and where Australian Tax Office (ATO) requirements are met, tax deductions may be available. For example, if you are using your vehicle during the course of your work duties, you could be eligible to claim vehicle depreciation (up to the depreciation limit). The tax implications of car loans do differ on a case by case basis. Everything from the loan type chosen to your form of employment can impact potential benefits. Consult a tax professional for specific advice about tax implications.

In some respects, yes, used car loans are easier to get approved, as generally the amount the lender needs to borrow will be lower than with a new car of the same type. A lower loan amount might present a smaller risk to lenders. Additionally, many lenders specialise in used car financing and are more familiar with the nuances of lending for pre-owned vehicles. However, other factors can influence approval, such as the age and condition of the used car, the borrower's credit history, income, and employment status. It's also worth noting that interest rates for used car loans can sometimes be higher than for new car loans due to the perceived higher risk associated with older vehicles. As always, it's essential to shop around and compare offers to find the best deal for your specific situation.