A car is an expensive purchase, and if you don't have the money to pay for your vehicle you'll consider getting a car loan. Whether you're buying a new or used vehicle through a private sale or from a dealership, there are a variety of car loans you can consider. Read through the steps below to find out what it takes to secure financing for your new car.
Step 1: Choose your vehicle or find pre-approval
Finding your vehicle is an important first step. Whether you're purchasing from a private sale or a dealership, have a look online so you get an understanding of what different vehicles cost and how much you'll need to borrow. This will make it easier comparing lenders and selecting your loan terms when you apply.
If you want to go shopping for your car after you've secured your finance, you have the option of a pre-approved car loan. This is offered by various lenders (detailed in the article linked below). If time is of the essence, select a lender that offers a quick approval.
Once you know what type of car you want to buy and how much you need to borrow, it's time to find a lender that can help you finance it. For example, if you're want to purchase a used car you can compare lenders here, or if you want to purchase a new vehicle you could perform a comparison here. You also have the option of using a car broker to find a lender for you based on your needs and financial situation.
When comparing it's important to look for a lender that will let you apply for your loan amount (check for set minimum and maximum amounts); that there are no restrictions that make your car ineligible for the loan; that the interest rate is competitive; and that you are aware of all the fees and features of the loan. Reading the review on finder.com.au and the lender's website before applying is very important.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Is your loan competitive? More simply, is the loan affordable on your budget? You can work this out by using a car loan repayment calculator. Input your loan term, loan amount and interest rate and some other details and you will see your ongoing repayments. You can adjust key details, such as the loan term, to see if you can make your loan terms more affordable. Other useful calculators for car loans can be found on this page.
Step 4: Submit your application
Applying for a car loan doesn't take long, but it can seem like a daunting process. An important aspect to remember is not to submit too many applications at once; every application you make will be listed on your credit file and making too many can damage your credit score.
Before you click "Go to Site" or start filling out any applications, make sure you meet all the minimum eligibility criteria set by the lender. This is listed on every finder.com.au review page and usually at the start of every online application. If you are uncertain about any of the criteria, it's best to contact the lender directly.
Once you have confirmed you meet the criteria, gather the information and documents and start the application. You'll generally need your personal, financial and employment details as well as details of the car you're purchasing. If you don't have all these details on hand you can generally save your application to complete it later.
Step 5: Receive your funds
You normally find out if you've been approved quite quickly, normally within a few minutes for conditional approval. Once you are fully approved you can receive your funds the next business day with some lenders. These funds are transferred differently depending on the lender, but generally it will be a direct transfer to your bank account. It may also be through a cheque or by paying a third-party directly. Check with the lender if you need the funds paid a certain way.
Elizabeth Barry is the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
Find out more about how you can be a driver with DiDi, even if you don't own your own car. Rent a car and start making money using the ridesharing platform.
Australian Military Bank lets you finance a car, motorbike or boat up to five years old with its competitive car loan. Find out about the rates and fees in this review.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
