applying for a car loan online

Online car loans

Information verified correct on December 5th, 2016

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 December 5th, 2016
$
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
IMB New Car Loan
This fixed rate new car loans up to 2 years old features no early repayment penalties
From 6.34% (fixed) 6.62% $2,000 1 to 7 years $199 Go to site More
CUA Fixed Rate Car Loan
A competitive car loan that offers flexible repayment options and no account keeping fees.
From 6.79% (fixed) 6.92% $15,000 1 to 7 years $0 Go to site More
RACV Car Loans
Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
Matchacar Financing
Get a tailored financing solution for buying your next car.
From 5.35% (fixed) 6.04% 1 to 7 years $350 Go to site More
NRMA Car Loan
Purchase a new car with an NRMA Car Loan with a fixed rate term and no monthly fees.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
IMB Secured Personal Loan
A secured loan from IMB with flexible repayment features
From 7.39% (fixed) 7.67% $2,000 1 to 5 years $199 Go to site More
RACQ New Car Loan
A low fixed rate loan from RACQ suitable for buying a new car.
From 6.2% (fixed) 6.73% $15,000 1 to 7 years $378 Go to site More
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.
From 12.99% (fixed) 14.2% $3,000 2 to 7 years $250 (Loans under $4000 - $140) Go to site More
St.George Secured Personal Loan - Fixed Rate
Get behind the wheel of your perfect car with a competitive interest rate from St.George. Get an application response within 60 seconds.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More
St.George Secured Personal Loan - Variable Rate
A lower interest rate personal loan with flexible repayment options.
From 12.74% (variable) 13.62% $3,000 1 to 7 years $195 Go to site More
Bank of Melbourne Secured Car Loan
A low rate personal loan from Bank of Melbourne with variable or fixed option.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More
BankSA Fixed Rate Car Loan
Apply for a fixed rate car loan from multi-award winning BankSA.
From 8.49% (fixed) 9.39% $3,000 1 to 5 years $195 Go to site More

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.

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Related Posts

IMB New Car Loan

This fixed rate new car loans up to 2 years old features no early repayment penalties

RACV Car Loans

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

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