online-car-loans

Online car loans

Thinking of financing a car? Apply online and you could be approved within minutes.

If you’re thinking of financing a car, applying online has never been easier. You can be approved within minutes and, if you do it right, you can have the funds disbursed in less than 24 hours.

The entire process of applying for a car loan online is simple, it’s just a matter of having the right supporting documents and a few minutes of your time. From beginning to end, the process involves four stages. You’ll fill out your application and then upload your supporting documents. Your lender will then inform you of a decision, or they’ll request more information, and once approved, you’ll review your contract, sign, and send it back to your lender who will then release the funds to the vehicle seller.

Compare a range of online car loans

Rates last updated November 21st, 2017
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Monthly Repayment Product Description
IMB Secured Personal Loan
From 7.39% (fixed)
7.74%
$2,000
1 to 5 years
$0
$250
All approved applicants can access this competitive rate and use the loan to finance a range of purposes. Loan amounts up to $60,000 available.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
A great rate for cars under 2 years old.
RACV Personal Loan
From 7.49% (fixed)
8.04%
$5,000
1 to 7 years
$0
$380
You could use this personal loan offer from RACV to help finance a renovation, holiday or project.
bcu Secured Freedom Loan
From 9.08% (variable)
9.99%
$4,000
1 to 5 years
$8
$250
A competitive, secured personal loan that you can use for a variety of purposes.
Bank Australia Car Loan
From 6.45% (fixed)
6.66%
$1,000
7 years
$0
$150
A competitive rate and the ability to offset your car’s carbon emissions for the loan term.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
14.2%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
AutoCarLoans
From 5.16% (fixed)
6.64%
$15,000
1 to 7 years
$5
$381.80
AutoCarLoans can match you with a lender from its panel with rates starting from 5.16% p.a. Suitable for vehicles up to 2 years old.
Freedom Finance Car Loan
From 5.1% (fixed)
5.94%
$35,000
1 to 5 years
$0
$380
If you meet all the requirements you could get access to a range of lenders to finance a new or used car up to 4 years.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
Get behind the wheel of your perfect car with a competitive interest rate from St.George. Get an application response within 60 seconds.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$0 (On new loan applications before 31st January 2018.)
Apply for a Westpac car loan and enjoy a great interest rate when you purchase a new or used vehicle.
Bank of Melbourne Secured Car Loan
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
A low rate personal loan from Bank of Melbourne with variable or fixed option.
BankSA Fixed Rate Car Loan
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
Apply for a fixed rate car loan from multi-award winning BankSA.
Latitude Car Loan
From 8.99% (fixed)
10.09%
$5,000
1 to 7 years
$10
$295
A secured loan with a competitive rate that can help you finance new or used vehicles.

Compare up to 4 providers

How does applying for a car loan online work?

Stage one: File application

Your online application plays a very important role in helping your lender assess your repayment ability. As a result, you should always fill out an accurate and complete application.

Stage two: Supporting documentation

Once you’ve filled out your application, you’ll need to upload supporting documentation. Depending on the lender, you may be able upload your documentation directly to the loan application or you’ll have to use other methods such as fax or email.

Stage three: Lender decision

Once you’ve submitted your application and supporting documents, your lender will either notify you of its decision or ask for further information. In many cases, after submitting your application lenders can give you approval or pre-approval while supporting documents and other requested information are still pending.

Stage four: Contract review, signing and disbursement of funds

If approved, your lender will send you a loan contract for review. This contract contains vital information including your loan term, repayment schedule and interest rate, so take your time when reviewing it. After reviewing, if you’re comfortable with the terms, you’ll sign the contract and return it to your lender who will then distribute the funds to the vehicle seller.

What do you need to apply for a car loan online?

You’ll need certain information as well as documentation to fill out your application. Generally, you should have the following on hand:

  • Personal information. This includes information such as your driver’s license number, contact information, income and residential status.
  • Employment information. This includes information regarding your employment history to help your lender assess your stability as an applicant.
  • Requested loan details. You’ll need to provide your requested loan amount along with your preferred methods of repayment.
  • Driver’s license or certified ID.Your driver’s license, or other valid identification, is used as proof of your current address and to help your lender conduct a credit check.
  • Proof of income. These include bank statements, payslips, financial statements, rental income statements or anything else serving as proof of the income declared on your application.
  • Proof of insurance. Depending on the lender, you may be required to provide proof of insurance on the car you plan to purchase.
  • Vehicle details. You’ll need to provide information about your vehicle’s make and model, the seller’s asking price and the seller’s details (such as location and name of business).

Pros and cons of applying for an online car loan

  • Quick process. Most lenders will come to a decision on the same day you apply and, in many cases, you can get funds disbursed in as little as one day.
  • Bargaining power. Since just about every individual needs a car, competition among lenders is fierce. This results in better bargaining power for consumers.
  • Convenience. Applying for a car loan online is simply much more convenient than having to apply in-person at a dealership or bank.
  • Applying too many times.Lenders may deny your application if they see you’ve been applying for too many loans within a short period of time. Doing this also lowers your credit score.
  • Short pre-approval times. Keep in mind that any pre-approval you get from a lender will expire in a very short amount of time.
  • Credit history. Red flags in your credit history, such as missed or late payments, will hurt your chances of being approved.

Is there anything you should avoid?

  • Getting into too much debt. Since car loans involve a lengthy financial commitment, make sure you can afford the repayments required by your lender. Also, compare your options from different lenders to make sure you’re getting the best deal.
  • Getting mixed up with shady sellers. Avoid any seller that tells you to falsify information on your loan application. Not only is it illegal, but you carry all the risk while the seller carries none. In addition, make sure you’re fully aware of the car’s condition before buying it. Always have an expert conduct a thorough checkup of any vehicle you plan to purchase.

Have more questions?

Can I still qualify with bad credit history?

There are lenders that may approve your application even with a history of bad credit. However, this would likely mean significantly higher rates and fees.

Can I still qualify with an insufficient income?

If you’re in this situation, you may still be able to qualify by using another asset as additional security for your loan. You can also ask your lender if you could have a loan guarantor.

What happens if I default on my payments?

Since you’re likely to be required to put up your vehicle as security for your loan, your lender will have the right to seize your vehicle if you default on your payments.

Picture: Shutterstock

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IMB New Car Loan

Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.

Beyond Bank Low Rate Car Loan "Special Offer"

A great rate for cars under 2 years old.

RACV New Car Loans

Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.

Latitude Personal Loan (Secured)

Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.

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