What are the requirements for a car loan?
For most people, getting a car loan is a necessary step in buying a new or used vehicle. It’s not always possible to save up a lump sum amount to purchase a new set of wheels, car loan can help you manage your money effectively – spreading out the cost over a longer period of time. When you’re buying a new car, financing can be the least fun part, but it doesn’t have to be complicated.
Whether you need to purchase your dream car, refinance your home or go on a holiday of a lifetime, at Rapid Finance, we help people get the finance they need in a few easy steps. We have over a decade of experience in specialising with car loans and can generally match you with a lender that suits your specific needs.
Applying for a car loan is so much easier than it used to be, with most of the steps done online. So, what are the requirements for getting a car loan?
At Rapid Finance, we require documents to prove that you are who you say you are and that you’ll have no trouble repaying the entire loan. Lenders are effectively pledging thousands of dollars to someone they’ve never met, so performing background checks is the best way to assess the level of risk and determine how likely it is that their money will be paid back.
You are required to provide the following documents when applying for a car loan in Australia to ensure that we comply with anti-fraud legislation. Usually, the following documents are needed:
- ID and personal information
- Proof of income
- Proof of your assets and liabilities
- Information about your car and car insurance
The minimum requirements for obtaining a car loan are holding Australian citizenship or permanent residency, being over the age of 18 and earning an income.
Eligibility for a car loan varies depending on the type of loan and the lender. For example, an unsecured loan has more restrictive criteria than a secured car loan when it comes to your credit score. Lenders will generally only approve unsecured loans for those who have an excellent credit score, whereas secured loans lenders can be more lenient.
Identification and personal information
At Rapid Finance, we need generally the following ID and personal information from you when you apply for a car loan:
- Your full name
- Your date of birth
- Your citizenship information
- A list of your dependents
- A copy of your driver’s license
Occasionally, another form of personal identification is required when applying for a car loan, such as your Medicare card or passport.
Proof of income
Probably the most important step when applying for a car loan is providing proof of your income so that lenders have the peace of mind that you can pay them back. We ask everyone applying for car finance to provide:
- Your two most recent payslips
- Your bank statements for the last three months
We may also ask you for a list of your current expenses such as mortgage repayments or rental costs so that we can determine the likelihood of you being able to pay back the car loan.
Proof of your assets and liabilities
Another requirement for a car loan is proving what assets and liabilities you have so that we have a broad view of your financial stability. This proof could include:
- Information about other loans you have
- Your superannuation summary
- A summary of your investment portfolio (If you have one)
Information about your car and car insurance
To be accepted for a car loan in Australia, we need to know all the information about what car you hope to buy so that we can determine how much it costs and your repayment amounts. For this reason, you will need to supply the following information:
- The vehicle’s registration
- The year, make and model of the car
- The vehicle’s chassis number
- A dealer invoice or contract of sale
- Proof of comprehensive car insurance
At Rapid Finance, we have access to an extensive list of car loan options so we can tailor a loan that matches your budget, needs and situation. Our team of car loan specialists provide prompt and expert service and will help you secure the right finance as quickly as possible.
If you’re hoping to buy a new car and believe you fulfill all of the requirements needed for car finance, take a look at our car loan repayment calculator. You can adjust the settings to figure out a finance solution that woks for you and calculate the interest rate, repayment frequency and the length of the loan. Chat to one of our friendly car loan specialists and find out what’s possible for you and your situation.
As car loan experts, we offer a range of automotive solutions, including new, demo and used car loans, novated lease, chattel mortgage, car refinancing, secured car loans, business car loans and even commercial hire purchases. Start your new car journey with Rapid Finance today.
*Every application is different – assessment criteria is based on the applicant's overall profile or circumstances and subject to verification checks and supporting documents. Rapid Finance will do everything it can to assist in finding a suitable loan product based on the applications requirements. Interest rates and fees vary depending on the individual applicant's circumstances and overall profile. Conditions apply.