Car loans for casual workers

Casual employment is common in Australia. You could be a parent balancing child-minding with working, a student studying at university or TAFE, or simply working in an industry with fluctuating labour demands.

While many people choose casual employment because it suits their lifestyle, it does make it harder to get approved for a loan. This is because lenders view casual workers as more risky; they have a greater chance of not making a repayment.

Working casually doesn't exclude you from getting a car loan, but you may be required to provide more evidence of your ability to repay the loan.

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Name	Product	Interest Rate (p.a.)	Comparison Rate (p.a.)	Min Loan Amount	Loan Term	Application Fee	Monthly Service Fee	Monthly Repayment
IMB New Car Loan		5.45% (fixed)	5.8%	$2,000	1 to 7 years	$275.12 ($250 Application fee + $25.12 PPSR registration fee)	$0		You'll receive a fixed rate of 5.45% p.a. A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.	Go to site More Info	Compare	loading Fetching your data...
Loans.com.au - New and Dealer Used Car Loan		From 4.67% (fixed)	5.22%	$5,000	3 to 5 years	$400	$0		You'll receive a fixed rate from 4.67% p.a. based on your risk profile Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Note: Settle the loan before 30 November 2020 and enter the draw to win a $1,000 fuel voucher. Terms & conditions apply.	Go to site More Info	Compare	loading Fetching your data...
Stratton Finance New Car Loan		From 3.85% (fixed)	5.43%	$10,000	3 to 7 years	$700 (for private seller vehicles this fee is $608)	$8.25		You'll receive a fixed or variable rate depending on the lender you are approved with Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.	Go to site More Info	Compare	loading Fetching your data...
NRMA New Car Loan		From 5.69% (fixed)	6.39%	$5,000	1 to 7 years	$499	$0		You'll receive a fixed rate from 5.69% p. a. Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.	Go to site More Info	Compare	loading Fetching your data...

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Which lenders can I apply with if I'm a casual worker?

Lender	Criteria	Learn more
act.	Be in paid employment as subject to lending criteria.	Details
ANZ	Earn at least $15,000 p.a. and have been employed at your current work for six months.	Details
AutoCarLoans	Be over 18 with a good credit history.	Details
Bankwest	Work a minimum of 25 hours per work and receive consistent hours and pay.	Details
Bank of Melbourne	Be over the age of 18 and a permanent Australian resident.	Details
BankSA	Be over the age of 18 and a permanent Australian resident.	Details
Bendigo Bank	Be in paid employment as subject to lending criteria.	Details
Cando	Be over 18 and employed.	Details
Commonwealth Bank	Be over the age of 18 and earn at least $14,000 p.a. after tax.	Details
IMB	Have been in your current role for at least 12 months.	Details
Latitude Finance	Earn at least $24,000 p.a.	Details
loans.com.au	Your eligibility will depend on your individual circumstances and loan purpose.	Details
NAB	Have a good credit rating and earn a regular income or wage.	Details
NRMA	Be able to provide evidence of a regular income or wage.	Details
RACQ	Earn an income that's sufficient to manage your loan repayments.	Details
St.George	Be over the age of 18 and a permanent Australian resident.	Details
Westpac	Have been in the role for 12 months or more.	Details

How can I get approved for a car loan if I work casually?

• Check the minimum eligibility criteria. Regardless of the type of employment, loans will generally have a minimum income requirement.
• Don't apply until you have worked for a couple of months. Check with the lender to see if they have any requirements for how long you must have worked at your current job. It may be up to a year.
• Apply for less than what you can afford. You might need to settle for a cheaper car so that your repayments will be well below the theoretical maximum.
• Get a letter from your employer. The more evidence the lender has that your employment is stable, the better.
• Try with your existing bank. This is especially true if you have borrowed from it before and have never missed a repayment.
• Demonstrate your ability to save. Having a deposit and a long savings history is a great way to show you are reliable.

How do I know if I can afford a car loan on a casual income?

Regardless of your employment status, you should always work out how much you can afford to repay, and therefore borrow, before taking out a loan. To do so, use a simple repayment calculator like the one below to get an estimate of your likely repayments. All you need to do is enter the amount you wish to borrow, the interest rate and the length of the loan.

Loan Repayment Calculator

Is there anything else to consider before I apply?

First and foremost, you should consider how stable your employment is. Just because someone will lend you money doesn't mean you should necessarily borrow it. Try talking to your employer before taking out a loan to get an idea of the chances of your employment ending.

You must also consider whether the loan you are applying for is right for your circumstances. There are many car financing options available and a huge number of providers. Compare different options to work out which one will give you the best value.

Finally, don't apply for a loan that you are ineligible for as it will be marked on your credit history. Talk with the lender to make sure you are fully eligible before applying.

Have more questions?

Here are some of the top questions casual workers ask about getting a car loan:

Will I have to pay more because I am a casual employee?

Not necessarily, but in practise, probably. As a casual worker you will most likely be deemed as riskier and so have less access to the lowest-cost products. However, if you have a long, clean record of borrowing and repaying money, an existing relationship with a bank and a decent income from casual work, you very well could be approved for a no fee, low rate loan.

What if I work for multiple employers casually?

Having multiple jobs is not necessarily a bad thing in terms of getting a car loan. In one way, it makes you a less risky customer as you have a more diversified income. You will need to prove your total income and all your places of employment. Having a long history of regular hours and income will help.

What will happen if I stop working?

You are required to pay back your loan, regardless of your employment status. Make sure you have a little bit of extra money to make the minimum repayments should you lose your job. Most lenders have some kind of financial hardship provision, so you should talk with your lender straight away if you think you will not be able to make a repayment.

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