If you’ve found the car you want, chances are you don’t want to wait around for your finance to be approved.
In some cases, car loan approval can happen as soon as the same day, especially if you have a stable income, strong credit history and all your documents ready to go. While most applications are assessed within one to two business days, not all move that quickly. Approval can take longer depending on the lender and how complex your situation is, but there are ways to speed things up.
What can affect how long car finance approval takes?
The time it takes to get a car loan can vary depending on how straightforward your application is, how quickly you provide information and whether the lender needs to complete any extra checks. Some delays happen early in the process, while others can occur once the lender is assessing your finances, the vehicle or the final loan documents.
Your application details
Submitting your initial application is usually quick, but delays can happen if the information you provide is incomplete, incorrect or does not match your supporting documents.
For example, differences in your address history, employment details, income or expenses may need to be clarified before your application can move forward.
Your supporting documents
Car finance approval can also be delayed if your documents are missing, unclear or not supplied promptly. Lenders will need documentation like recent payslips, bank statements, identification, employment details and information about the car you want to buy.
Having these ready before you apply can help reduce back-and-forth and give the lender what they need to assess your application sooner.
Your financial profile
Applications with straightforward income, strong credit history and manageable expenses may be assessed faster. However, lenders may take longer if your situation is more complex.
This can include applicants who are self-employed, have income from multiple sources, recently started a new job, have irregular income, a lower credit score or recent payday loans or buy now pay later (BNPL) accounts. In these cases, the lender may need extra information before making a decision.
The vehicle you’re buying
The car itself can also affect approval time, particularly if the loan is secured by the vehicle. Lenders may need to confirm details such as the vehicle’s age, value, condition, registration status and whether it meets their lending criteria.
Used, older vehicles or modified or imported cars may require additional checks or a manual valuation, which can add time to the process.
Lender cut-off times and processing
Even if your application is ready to go, lender processing times can vary. Some lenders may only be able to assess or settle applications submitted before a certain time of day, while applications lodged after hours, on weekends or during busy periods may take longer.
If the lender asks for more information, responding quickly can help keep your application moving.
Final approval and settlement
Once your loan is approved, you will usually need to review and sign the loan documents before funds can be released. Delays can happen if documents are not signed promptly or if the lender, dealer or private seller needs to confirm final payment or vehicle details.
For dealership purchases, the lender may pay the dealer directly. For private sales, additional checks may be needed before settlement can be completed.
Different types of car finance and how long they can take to be approved
The type of car finance you choose can also affect how quickly your application is approved. Some loans can move faster because they require fewer checks, while others may require more detailed assessment.
| Type of finance | What it is | How long approval can take | Why timing can vary |
|---|---|---|---|
| Secured car loan | A car loan where the vehicle is used as security for the loan. | Around 48 hours in many cases, byt may be less. | The lender may need to assess both your application and the car being used as security. |
| Unsecured car loan (personal loan) | A personal loan used to buy a car, without the vehicle being used as security. | As soon as 24 hours in some cases. | There is no vehicle security to assess, so approval is based mainly on your financial profile. |
| Chattel mortgage | A vehicle loan for business use, where the vehicle is used as security. | Similar to a secured car loan in many cases. | The lender may also need to confirm the vehicle is being used mainly for business purposes. |
| Novated lease | A salary packaging arrangement between you, your employer and a leasing provider. | Same business day in some cases, but often longer. | Approval can take longer because it involves your employer and the leasing provider. |
| Bad credit car loan | A car loan for borrowers with a weaker credit history, usually secured by the vehicle. | Often longer than standard car finance. | The lender may need extra documents or checks due to the borrower’s credit profile. |
Why apply for a car loan with Savvy?
Top tips for making your car loan approval as quick as possible
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Consider car loan pre-approval
Pre-approval can give you an indication of how much you may be able to borrow before you choose a car. While it is not a guarantee of final approval, it can help you narrow your search and may make the formal application process smoother once you have found a suitable vehicle.
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Apply early in the day and week
Submitting your application earlier in the day and week can give the lender more time to review it, request any extra information and progress it before close of business. Applications submitted late in the day, after hours or on weekends may not be reviewed until the next business day.
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Have your documents ready
Missing documents are one of the easiest ways to slow down a car finance application. Before you apply, gather your ID, recent payslips, bank statements, residential history, employment details and any information you have about the car you want to buy.
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Make sure your details are accurate
Incorrect or inconsistent information can cause unnecessary back-and-forth. Check that your income, expenses, address history, employment details and vehicle information match the documents you provide before submitting your application.
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Respond quickly to follow-up requests
If your lender or car loan broker asks for more information, responding as soon as possible can help keep your application moving. Delays often happen when extra documents, clarification or signed loan forms are not returned promptly.
