How Do I Apply For A Car Loan?

What do you need to consider when applying for a car loan?

There are many things to consider when it comes to knowing how to apply for a car loan – such as the type of loan your want, terms and conditions, fees and rates, budget, credit score, and eligibility requirements. But, there is no need to stress. Our online application is a quick and hassle-free experience. With our help, you can drive away in your dream car sooner!

Car loan eligibility

Before applying for vehicle finance, you will need to check whether you fit the eligibility criteria. You will need to:

• Be 18 years old or over
• Have a regular income
• Have not filed for bankruptcy
• Be a permanent Australian resident or relevant visa holder

Learn more: Car loan eligibility

What documents do I need for car finance?

Before lodging your application, you will need to have all the required documentation ready. The exact documentation will depend on the chosen lender and the type of vehicle you’re purchasing, but the basic documents needed include:

• Certified copy of your passport or identity document
• Proof of income and employment details
• Proof of address
• Assets and liabilities
• Registration details of the vehicle

What credit score do you need to apply for a car loan?

As a part of their responsible lending obligations, lenders and banks will access your credit history to see whether you fit the criteria for a car loan.

Credit score requirements will vary depending on the lender or bank you’re seeking the loan from. So, it’s best to speak to a lender or a broker and discuss all the requirements before applying for a loan.

Have a bad credit score? Don’t worry, you may still be eligible for a car loan! At Oceania Finance, we offer a range of lending options for all credit scores, from excellent to average and bad. Get in touch with our team to discuss your options.

How do I apply for a car loan?

So, how do you apply for a car loan? You have two options: apply directly through a lender or through a broker. With most major lenders in Australia, you can apply for a car loan online. You can also go into the bank to have someone do it for you.

If you choose to apply with a broker, you only need to enquire online and provide all of the relevant information. At Oceania Finance, we also take care of the entire application process for you and negotiate with lenders to get a loan that best suits your needs.

The process for both is generally very similar, which we’ve outlined below.

1. Work out how much you need

Knowing the loan amount and purchase price of the car will help you narrow down lenders. Don’t forget to take any fees and charges, such as interest rates, into consideration.

You can borrow up to $150,000 through Oceania Finance for your dream car.

Learn more: How much can I borrow for a car loan?

2. Have your paperwork ready to go

You’ll need a number of documents to apply for a loan, which we’ve already mentioned above. Have all the paperwork ready before you apply to save time on the loan process.

3. Check your credit score

Lenders look at your credit score to help determine if you are a suitable loan candidate. So we recommend either checking your credit history before you apply or speaking to a broker to do it for you. There may be some errors in your file that need to be corrected, or you might not have the right credit score for the lender and loan amount you seek. Otherwise, there is an increased risk of being rejected for the loan, which can negatively impact your credit score.

4. Research & choose a lender

Many car dealerships and banks will offer car loans. Be sure to compare the loan terms, fees, charges, conditions, and any eligibility requirements. If you choose a financial loan broker, they will be able to advise on the best option for your situation. They can also negotiate with lenders for better rates on your behalf, and take care of the application process for you.

5. Choose a loan type

There are a number of loan types you can choose from in Australia. If you’re unsure what loan is the best for you, please do not hesitate to contact our expert brokers.

• Secured loan: the car will be used as security for the loan in case you don’t meet the loan payment requirements.
• Unsecured loan: this loan will not be tied to any asset. These types of loans commonly have higher interest rates compared to secured loans.

6. Set the loan term

Depending on your personal circumstances, the loan amount you have applied for, and the age of the asset, you can choose a loan term of 3, 5, or 7 years. You will also be given the flexibility of choosing weekly, fortnightly, or monthly loan repayments.

How easy is it to get a car loan?

Once you have made sure that you meet all of the car loan requirements, the application process is very simple. It’s even easier and stress-free when you apply through a broker. Their specialist knowledge and experience will help you get a great deal on your car finance without all the hassle. You can research and negotiate for a car loan on your own, but it will require more time and effort.

What is the best way to get a car loan?

The best way to get car finance will depend on how confident you are at deciding on a loan and managing the application by yourself.

If you have completed the process before you may prefer to apply online directly. It should take around 10-20 minutes to complete if you have all the documents ready.
The enquiry form will include questions about your financial situation, credit score, assets, income, expenses and debts. You will also need to provide the required documentation. Once you’re ready, simply press the submit button!

On the other hand, a loan broker is a good option if:

• You aren’t sure about the best lender or loan to suit your circumstances
• The loan process or technical jargon is too confusing
• You want more negation power
• You’re time poor