How much can I borrow on a car loan?

Your income and current liabilities as well as the specific loan you apply for determine the amount you're able to borrow for a car loan . The minimum amount you can apply for is usually about $1,000, although the maximum depends heavily on your income and ability to meet your repayment obligations.

Can I get a pre-approval for a cheap car loan?

Yes. A car loan pre-approval is a great way to work out how much you can comfortably borrow and what your repayments will be before you head out car shopping.

How long does it take to get an approval?

The approval process for car loans is usually very quick. In most cases, you should get a conditional approval in a couple of hours. You should receive your final approval on the next day after submitting your application.

Can I include the insurance and on-road costs in my loan amount?

Some lenders will allow you to include the costs of your car insurance premium and other costs associated with the purchase into your loan amount. Always ask to be sure if this applies to your loan type.

Do I need a deposit for a cheap car loan?

Some lenders will allow you to borrow the entire purchase price of your car. This depends on the strength of your financial situation and your credit history.

Can I make extra repayments on my car loan?

This will depend entirely on the lender you choose and the type of car loan you want. Some loans will charge you an early repayment fee for making extra repayments. Others won't. You can find a list of car loans that allow early exit and extra repayments here.

How do I make extra payments on my loan?

Most lenders will allow you to make additional repayments in a variety of ways. You can choose to make a payment directly into your loan account using BPAY, transfer funds electronically from your regular transaction account over to your loan account or nominate to have each payment taken out at an agreed amount as part of your direct debit agreement. For example, if your minimum repayment is $387.50 per month, you might nominate to have your direct debit payments set to pay $400 per month instead.

How is the interest calculated on my loan?

Interest is calculated on your outstanding loan balance on a daily basis and charged to your account monthly in arrears.

Can I buy a car privately or do I have to buy through a dealer?

You are able to buy your car through a private seller if you wish. You will need to provide details about the car to the lender, such as registration number and vehicle identification number (VIN) for the loan to proceed.

Does applying for a car loan affect my credit report?

Any enquiries you make for any form of credit will be entered onto your credit report as an enquiry with that lender. Our guide to car loan credit checks explains this further.

Should I choose a balloon payment at the end of my car loan?

A balloon payment lets you reduce your monthly repayments throughout the term of the loan and then you need to pay off the lump sum amount still owing at the end. You can read more about balloon payments on car loans in our guide.

Will I still owe the bank money if it repossesses my car?

In the event that you stop making your car loan repayments, the lender may choose to repossess your car. It will sell it in an attempt to get some of its money back along with covering any repossession fees it was charged. If the sale price of the car doesn't fully cover those costs or pay off your outstanding loan amount entirely, then you may still need to repay the bank for the remaining amounts owed.