Now you are ready to get that loan and buy that car. Before you hit the road, you'll need to get your papers in order. Understand exactly what you need to apply for a car loan in Australia. We've compiled a car loan checklist to make it easy.

  • Step 1: Contact your broker to initiate the process. They will advise what documents you need, and any extra paperwork you need to sign such as a privacy disclosure.
  • Step 2: Gather your information (including documents listed below), fill out your application (usually online, but you could also do paper form) and submit to your broker or lender.
  • Step 3: Your loan application will either be approved or denied.
  • Step 4: If your application is approved, you will need to sign and settle the loan. Sign the documents and return these to your broker or lender. The settlement process will depend on whether you purchase from a car dealership or from a private seller.
  • Step 5: Find and purchase your new car. If you purchase from a dealership they will finalise your paperwork. If you buy privately, the seller must transfer the car into your name through their state or territory’s transport department.
  • 100 points of ID
  • Payslips and proof of income
  • Residential information (i.e. utility bill)
  • Asset details and proof
  • Proof of assets and liabilities (mortgages, other loans, etc.)
  • Bank statements
  • Information about the car you’re looking to buy
Frequently Asked Questions

If you have all your documents and know your expenses, the application process is quick. How long it takes will depend on how readily available your information and documents are.

Lenders in Australia usually approve car loan applications within 48 hours. Some lenders even offer same-day approvals, so you could receive approval in just a few hours. Once you know the car you want and have submitted your application, you will want your approval as soon as possible. To get your car loan approval within a day or two, make sure you provide accurate and complete documents.  

Your borrowing power will depend on your personal situation. There are many factors that determine how much you can borrow:

  • How much you earn
  • Your employment security
  • How much you spend each month
  • Expenses such as rent, mortgage payments or other loans
  • Your savings
  • Whether you have dependents
  • Assets you can use to secure your loan

Different lenders use different formulas to calculate how much you can borrow. This is why online calculators are just helpful estimates. Your broker can help you find the right loan and lender to fit your situation.

Use a car loan calculator to estimate how much you can borrow.

Conditional pre-approval requires preparing documents, income, and expenses to determine how much you can afford in repayments. Getting a pre-approval will guide you in setting your budget and choosing your car purchase.

Pre-approval does not guarantee approval though. With pre-approval you must also choose the car and apply for the loan you want within a specific time frame.

Yes, you can get a car loan for a used vehicle. Keep in mind that some lenders have restrictions on how old the car is or how many kilometres the car has clocked. This is because the more used the car, the harder it can be for the lender to sell it if you default on your repayments. If you're interested in buying a car that's more than a few years old, consider getting a broker to find you the right lender.

Also know that there can be some additional paperwork required for a used car loan application. In a private sale, the lender may ask for the seller's ID, vehicle registration, insurance certificate, and other information.