There are several key steps to learn in the car loan application process with RAA. It’s important to familiarise yourself with these before commencing the process, as this will hold you in good stead and place you well to succeed with your application. The steps you’ll need to take are:

Make sure you’re eligible

First and foremost, you should always ensure that you’re eligible to take out a loan with your lender before commencing your application. In the case of RAA, all applicants must be at least 18 years old and a permanent resident of either South Australia or Broken Hill.

On top of this, you’ll need to show that you’re earning a regular income and haven’t been bankrupt in the last five years (or currently under a debt agreement). Finally, the vehicle acting as security for the loan must be registered in SA or Broken Hill and have any co-owners listed on the application.

Gather all the documents required

You should also have all of your required documents handy before you submit your application. Not having these documents can lengthen the process and draw it out longer than it needs to be, so it’s always recommended to account for the required documents first. You’ll need:

• Proof of identity (namely your driver’s licence)
• Record of your income via payslips and bank statements
• Information on any current assets and liabilities, as well as regular expenses
• Two years’ worth of residential and employment details

Submit your application

You can send through your initial application, which should only take you around ten to 15 minutes to complete. This is designed to provide you with a pre-approval, or conditional approval, which provides an indication of how much you can be approved for based on the information provided in your application (although it isn’t a guarantee that you’ll be approved for the same amount, or at all, in the future).

Receive pre-approval and choose your car

If RAA is satisfied with your application, you’ll be pre-approved for a set amount. You can use this to help you buy a car within your price range and place you in a stronger position to negotiate on the price of your vehicle with your seller. Once you’ve agreed on a price with your seller, you can proceed with your application.

Apply for formal approval and submit your documents

From here, you can apply formally to RAA. This application will include all the documentation you gathered from earlier, as well as information on the car you’re looking to purchase.

Sign your loan contract

Once you’ve formally applied for your loan, RAA will consider your application and whether to approve it. In the event your application is accepted, you’ll be sent a loan contract to sign and, after this has been completed, your funds will be sent directly to your vehicle’s seller so they can then pass your car onto you.

It’s important to note that Savvy offers a streamlined application process which takes much of the hard work out of your hands. We’re partnered with over 25 car loan financiers to give you the best shot at securing a low rate for your loan.