Some lenders are willing to offer a car loan to temporary residents in Australia, but it will likely depend on the visa you are on.
As a temporary resident you are more of a risk to lenders because a loan term is often longer than the length of a visa.
This is more of a problem for some visas than others, but you'll still need to know about eligibility and other potential conditions before you apply.
To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.
A car loan for a temporary resident is essentially the same as any other car loan or personal loan, except that lenders will generally apply more stringent eligibility criteria.
Provided you meet that criteria and are approved for the loan, you'll be given the amount of money needed to purchase a car, and will enter into a contract to make repayments. Those repayments will cover the principal amount you've borrowed plus the interest charged at regular periods over a set loan term.
Regardless of your status in Australia, the lender may have requirements about the type or age of car purchased with the loan. For example, a lender is unlikely to extend a car loan to purchase a car more than a few years old, or a car that has been in an accident.
As a temporary resident, additional strict lending criteria and other considerations will apply, including:
As with all car loans and personal loans, different lenders will have different requirements in relation to income, employment history, loan terms, deposits and lending amounts.
But for a temporary resident, there is further eligibility criteria. Unfortunately there's no clean cut answer here because that criteria will differ between lenders too.
Some lenders will not offer a car loan to temporary residents at all, while others will only consider temporary residents holding certain visas. Additionally, lenders will have different criteria regarding how long you have been in Australia, the expiry of your current visa, and your employment stability.
Examples of visa requirements for temporary residents include:
Car loans for temporary residents are considered a high-risk endeavour for lenders. Once you have satisfied the eligibility requirements you can improve your chances of being accepted by considering the following factors:
You can usually apply for a car loan application online, even as a temporary resident. However in some cases you may need to apply at a branch so that you can provide your documents in person.
If you can apply online the application process might take a little longer as you send in copies of your visa information.
"Even as a temporary resident, your credit score can be impacted when you apply for credit. Making too many applications within a short period of time can negatively affect your credit history – and considering temporary residents have little to no existing Australian credit history already, this is something to really consider.
You should do the groundwork first to work out which lender could be the best choice based on your circumstances. Then, make an appointment to speak with a car loan officer at your chosen bank or financial institution."
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Hi, I am international student and I hold student visa (500 subclass). I would like to ask if I can find a chance to get car loan or not. I have scholarship and I get monthly income.
Thanks
Hi Rob,
Thanks for your comment and I hope you are well.
Yes, you are able to get a car loan while on student visa subclass 500. Essentially, it is the same as any other car loan or personal loan, except that lenders will impose additional stringent eligibility criteria. The requirements also vary on the type or age of car purchased with the loan.
Also, your eligibility will depend on how many months are left in your visa. It will typically end at least three months before the expiration of your visa. In terms of credit score – since this is unavailable, lenders will place more emphasis on an applicant’s deposit, income and employment status.
You can review the lenders listed on our page and you can read more about them when you click the MORE INFO. If you’d like to be redirected to their official page, please click the green Go To Site button. Know that this is where you will start the application process.
I would suggest reading the part of our page saying “How can I increase my chances of being accepted?” To add to that, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
I am on sub class 482 Visa. Can I buy a car on finance? I had arrived 3 weeks ago to Melbourne.
Hi Venkata,
Thank you for getting in touch with Finder.
Since we do not have the specific Visa type of who may apply for a car loan for a temporary resident, I suggest that you contact your chosen bank/lender to know the eligibility criteria like the Visa type. The lending criteria for a car loan for a temporary resident will vary between lenders.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
Hi im looking for a car loan! I have been in australia for 3yrs on a marriage visa in full time employment my permernent residency has not been processed due to back logs!
Hi Charlie,
Thank you for leaving a question with finder.
You are on the right page to see a list of lenders that could assist. Please scroll down to “How do I know if I am eligible for a car loan?”. This should give you an overview of what banks you could reach out to talk about taking out a car loan. Hope this helps!
Cheers,
Reggie