Written by When your rego is due, it can hit your finances hard. Paying for 12 months of cover up front costs hundreds of dollars and if you don’t have savings to fall back on, this can be a lot for a single paycheque to absorb. A car registration loan offers a way to spread the cost across several months – or even as much as a year or two. This breaks down the cost into manageable amounts, ensuring you can continue to use your car without the financial strain.
With Savvy, you can quickly apply for small loans up to $5,000 with our simple online application process. Your submission will be reviewed by our panel of trusted lenders and you’ll receive an outcome in as little as 60 seconds. If approved, your loan could be funded the same day – sometimes within the hour – ensuring you get the money you need, when you need it.
How can I use my car registration loan?
Car registration loans are unsecured, meaning you don’t have to put anything up as security against your borrowing. That frees you up to do pretty much anything you like with the cash. It often makes sense to use a loan for more than one purpose. If your costs aren’t just limited to government rego renewal charges, that’s no problem. It’s fine to add some cash to cover additional expenses too. This could include:
- CTP insurance: compulsory third party (CTP) insurance is included in your registration fee in most states and territories, but in NSW your green slip must be purchased separately before registering a vehicle.
- Roadworthy inspection: if you live in NSW and your car is more than five years old, a pink slip inspection is required every 12 months before registration. While this isn’t required elsewhere in Australia, you may still need an inspection if, for example, your rego has expired or you’ve moved from another state.Â
- Expired registration: if your rego has expired, you may face additional fees and inspection costs on top of the standard renewal cost.
- Car repairs and maintenance: perhaps your car needs minor repairs or its service is due to keep your car in good working order and prevent bigger issues down the road.
Let's look at how this would work:
- You need to pay for your car's rego, insurance and roadworthy costs, as well as some new tyres. The total for everything works out at $2,500.
- You take out a loan for the full $2,500 and schedule ten repayments. That way, you spread the cost over almost a year, but you’ve paid it off before your rego becomes due again.
- The establishment fee cap means you pay a maximum setup cost of $400. Repayment fee caps mean you won’t pay more than 48% of the initial loan amount over 12 months – which won’t exceed $100.
- The most your loan will cost you to repay over the ten months is $3,900. Budgeting $145.45 a fortnight means your rego and other car costs can be taken care of.
What if I want to pay the loan back quickly?
Let’s take the same rego renewal scenario but reduce the length of the borrowing term. You may opt to pay your car rego off as quickly as possible – and don’t forget; you can choose to pay it off in just 16 days. However, you might still need to spread the cost over a few pay cycles. If that sounds like you, the following loan option may suit:
- You choose to borrow the same $2,500 over three months instead. When you apply, you can opt to schedule your repayments just after your monthly wages hit the bank.
- Again, your establishment fee won’t exceed $400.
- Your seven fortnightly payments will be $1,066.67.
- The total cost of your three-month loan will be just $3,200, a saving of $700 on the ten-month loan.
I need my car now. How quickly can I arrange a loan?
Getting a loan to pay your car registration costs is as quick and easy as one-two-three. Most cash loans get approved within minutes or hours, so if you need your car in a hurry, keep reading.
- Use your chosen lender’s web portal to fill out a short application form. You’ll get asked questions about your employment and marital status, where you live, and your monthly expenses.
- Upload the documents your lender needs to assess your suitability for the loan. Remember to provide proof of ID and address, as well as payslips if you’re employed. If you get part or all of your income from benefits, include a Centrelink Income Statement. Upload your previous three months bank statements, and your lender might ask for a copy of your Medicare card too.
- Wait for a decision on your loan application. Once it’s approved, your lender will forward a loan agreement. Read it through carefully and return after signing it digitally. Once that’s done, your lender will provide funds to the bank account you nominated during your application.
Why apply for a small loan with Savvy?
No matter the time of day or week, you can complete your small loan application with us online.
You can receive an outcome in 60 seconds and, if successful, have your money sent in just one hour.
We're partnered with reputable Australian lenders to bring you greater peace of mind when applying for your small loan.
Cash loan eligibility and information
More of your questions about car registration loans
No. Many states and territories also offer three- and six-month registration periods. Some (South Australia, Queensland, Western Australia and the Northern Territory) even allow you to pay for your registration monthly by direct debit. If you are able to, this could be a convenient alternative to taking out a small loan.
No. All car registration loans through Savvy are unsecured, meaning you don’t need to provide any collateral, such as your vehicle, to qualify. This makes the application process simpler and faster, allowing you to get the funds you need without the risk of losing your car if you’re unable to repay the loan.
No – you will not be asked to prove ownership of your car to take out a car registration loan. While the purpose of the loan is to help you cover the cost of registering your car, the funds are not tied to the vehicle in any way and function separately to your registration. As such, you will not need to supply any documentation relating to your car.
If your car needs repairs to pass a roadworthy inspection, you can use the funds from your car registration loan to cover these costs as well. Since the loan is a standard cash loan, you have the flexibility to allocate the money toward any necessary expenses, including repairs required to make your vehicle roadworthy and ensure it passes the inspection.
Yes. Our lenders will look more closely at your current financial situation, including your income and ability to repay the loan, rather than focusing solely on your credit history. This means that even if you have a less-than-perfect credit score, you may still be able to secure a loan to cover your car registration costs.
Yes. One option is the No Interest Loan Scheme (NILS), which offers loans up to $2,000 for essential items like car registration with no interest or fees. To qualify, you must meet specific criteria, such as having a lower income.
Small loans to suit your circumstances
Cash loan cost table
| Small (SACC) loans | Medium (MACC) loans | |
|---|---|---|
| Minimum loan amount | $100 | $2,001 |
| Maximum loan amount | $2,000 | $5,000 |
| Minimum loan term | 16 days | 16 days |
| Maximum loan term | 12 months | 24 months |
| Repayment schedule | Weekly, fortnightly or monthly | Weekly, fortnightly or monthly |
| Establishment fee | Up to 20% of your loan amount | Up to $400 |
| Interest | N/A | Up to 48.00% p.a. |
| Monthly fee | Up to 4% of your loan amount | Included in the 48.00% p.a. maximum |
| Example loan | $1,500 loan over six months repaid fortnightly
Costs: $1,500 (loan amount) + $300 (establishment fee) + $360 (4% fees over six months) Total cost: $2,160, repayable in instalments of $167 per fortnight | $3,000 loan over 12 months repaid fortnightly
Costs: $3,000 (loan amount) + $400 (establishment fee) + $912 (total interest over 12 months) Total costs: $4,312, repayable in instalments of $166 per fortnight |
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
