How to access car loans for pensioners in Australia - from eligibility criteria to how they work with your Centrelink payments.

For pensioners, obtaining a car loan tailored to their unique financial situation is possible through a pensioner car loan. Unlike regular car loans that require borrowers to have proof of income to finance the loan, a pensioner car loan allows individuals who are retired or receiving government benefits to borrow funds for a vehicle purchase.

Pensioner loans work in the same way as traditional loans - with borrowers making repayments toward the outstanding amount of the loan over the course of the loan term. The exception for a pensioner loan is that lenders have a different set of lending criteria, tailored to the income sources of pensioners, such as from investments or other assets, Centrelink payments, a disability pension, age pension or another kind of pension.

Funds from pension payments such as Centrelink payments can be used in the repayments for a pensioner car loan.

Eligibility criteria for getting a pensioner car loan

Like any form of loan, in order to apply for a pensioner car loan specific lender requirements must be met. These include: 

  • Applicants must be Australian citizens or permanent residents to apply.
  • Applicants may be eligible for a pensioner car loan if they receive the aged pension, disability support pension, or Centrelink payments such as parenting or carer payments. Some allowances, like JobSeeker, Youth Allowance and Austudy may not qualify, and may require the need to provide proof of supplementary income.

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