Car Loans on Centrelink

Lenders may have preferences or restrictions on the age, condition and type of vehicle they are willing to finance. Generally, lenders prefer financing newer cars with lower mileage as they are seen as less risky investments. Older or high-mileage vehicles may pose greater reliability issues, increasing the lender's risk. Additionally, luxury cars may be harder to finance, especially for individuals with limited income sources like Centrelink payments.

Defaulting on loan payments can result in late fees, penalties, and ultimately repossession of the vehicle by the lender. This can further impact your financial situation and credit score, making it even more challenging to secure loans in the future. It's essential to communicate with your lender if you're facing financial difficulties to explore potential options for repayment plans or assistance programs.

It's possible to get a car loan while on Centrelink with existing debts, but it may affect your eligibility and loan terms. Lenders assess your debt-to-income ratio to determine your ability to manage additional debt responsibly. If your existing debts consume a significant portion of your income, lenders may view you as a higher risk borrower and offer less favourable loan terms, such as higher interest rates or lower loan amounts.

No. All reputable lenders in Australia will perform a credit check when you apply for a car loan. These checks help lenders assess your financial responsibility and the risk of you defaulting on the loan. Be wary of lenders that advertise no credit check loans.

You can access a free copy of your credit report every three months from one of the major credit reporting agencies in Australia (Equifax, Experian or illion). These reports include your credit score and details of your credit history.

Your credit score or history is only one way lenders determine your suitability for car loans. Some lenders may not count your disability payments as income and might reject your application.

Yes, if you are on disability benefits from Centrelink or as part of the National Disability Insurance Scheme, there are ways to get approved for a car loan. To improve your chances of approval, you should look for a lender that acknowledges your pension or allowance as income and set a realistic budget for repayments and overall costs to ensure you don't overextend yourself financially. 

In most cases, yes. Part-time work, depending on the level of income, can qualify you for a car loan. How much you can borrow may vary.

Yes – but only alongside your existing family payments. JobSeeker isn’t considered a stable stream of income by lenders on its own, as you can easily become ineligible for further payments should you find employment. Similarly, Youth Allowance, Austudy and Abstudy aren’t accepted forms of income.

Yes – we can arrange financing for casual workers, provided you’re earning a relatively stable income and meet our lenders’ minimum requirements relating to annual earnings.

Yes – if you’re moving from full-time employment to another full-time job, we partner with lenders who can approve applications as soon as you start at your new workplace. Part-time employees will need to have been in the same job for at least three months, while casual workers will require a minimum of six months of consistent income from the same job. All of this is related to job stability and the potential for your income stream to dry up: if you’ve completed your probationary period, or have stayed in the position for a sustained period, it’s less likely that this will happen as a general rule.

No – your car loan can only be used to cover the cost of your car and any on-road expenses such as stamp duty, rego, car insurance and extended warranties. If you want to use loan funds to cover other expenses in your life in addition to the car, you can take out a secured personal loan (with your car acting as security if acceptable) or unsecured personal loan to consolidate debts, fund renovations or pay for any other personal costs.