single-parents-car-loan

Car Loans for Single Parents

Don’t let your family situation stand in the way of you getting a car loan.

For many Australians, having a car is a necessity rather than a luxury. It can mean a way for the kids to get to school, a way for you to get to work, or just simply giving your family the means to get where they need to be. Unfortunately, it can be often be difficult for single parents to access car loans. But rest assured that there are options available to you when it comes to car finance.

Latitude Motor Vehicle Loan

Latitude Motor Vehicle Loan

From

6.99 % p.a.

fixed rate

From

8.10 % p.a.

comparison rate

  • Competitive low rate
  • Up to 7 years to repay
  • New or used vehicles accepted
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100% confidential application

Latitude Motor Vehicle Loan

A competitive fixed rate loan available for new and used vehicles.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 8.10% p.a.
  • Interest rate type: Fixed
  • Application fee: $295
  • Minimum loan amount: $5,000
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Single Parent car loan comparisons

Rates last updated October 17th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Latitude Motor Vehicle Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.
Loans.com.au - New Car Loan
5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.
IMB New Car Loan
5.89% (fixed)
6.24%
$2,000
1 to 7 years
$0
$250
You'll receive a fixed rate of 5.89% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
You'll recive a fixed rate of 5.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$250
You'll receive a fixed rate of 8.49% p.a.
Finance a new or used car and benefit from convenient features for car buyers including a car search tool and the option to borrow extra for on-road costs.
RACV New Car Loans
From 5.99% (fixed)
6.55%
$15,000
1 to 7 years
$0
$399
You'll receive a fixed rate of 5.99% p.a.
A larger loan of $15,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
Australian Military Bank Car Loan
From 5.71% (fixed)
6.57%
$1,000
1 to 7 years
$10
from $100 to $500
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
14.2%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
You'll receive a fixed rate between 12.99% p.a. and 28.99% p.a. based on your risk profile
Lock in a competitive variable rate when you offer security. Loan can be used for any purpose and repayments are flexible.
IMB Secured Personal Loan
6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
You'll receive a fixed rate of 6.89% p.a.
Benefit from this competitive rate by securing the loan with a vehicle up to 6 years old. Use this flexible loan for any purpose.
Community First Credit Union New Car Loan - Variable
From 5.34% (variable)
6.1%
$10,000
1 to 7 years
$5
$195
You'll receive a variable rate of 5.34% p.a..
Finance a brand new car, demonstrator vehicle, boat, caravan or motorbike and benefit from a competitive variable rate. Loans from $10,000

Compare up to 4 providers

Car loans suitable for single parents:

  • Beyond Bank Low Rate Car Loan "Special Offer": 5.97% p.a. comparison rate. A limited time offer - get a car loan with a 5.69% p.a. variable rate.
  • RACQ New Car Loan: 6.72% p.a. comparison rate. A car loan suitable for new vehicle purchases with no monthly administration fees.
  • IMB New Car Loan: 6.24% p.a. comparison rate. A new car loan with no monthly service fees and no early repayment.
  • bcu Car Loan: 6.82% p.a. comparison rate. A flexible car loan with redraw facility and fee-free early payout.

Why wouldn’t a single parent be approved for a car loan?

There are a few reasons why single parents might find it difficult to access car finance. As single parents rely on a sole income, they may not meet the financial requirements set by lenders. Their income may not be sufficient because they work part-time in order to take care of their children, or they may receive Centrelink payments. These financial constraints may also mean they are in debt, making it more difficult for them to be approved for a car loan.

As well, some lenders may not take into consideration what you may receive from Centrelink. Most of the time you’ll need a supplementary income to support your loan application.

What car loan options do single parents have?

Loan typeLoan amountInterest rateEligibility criteriaFind out more
Secured car loan$3,000 - $100,0004-13% p.a.
  • Earn a regular income
  • Have good credit
  • Be employed
More
Short-term loan$100 - $2,00024% per $100 borrowed
  • Earn a regular income
  • Have capacity to repay
More
Centrelink loan$100 - $10,000Varies
  • Earn a regular income
  • Some types of Centrelink payments may not be allowed
More
NAB StepUP$800 - $3,0005.99% p.a.
  • Hold a Centrelink or pension card or be eligible to receive FTB Part A
  • Have resided at your current address for three months
  • Are borrowing for essential goods and services
More
No Interest Loan Scheme$300 - $1,2000%
  • Hold a Centrelink or pension card or be eligible to receive FTB Part A
  • Have resided at your current address for three months
  • Show a willingness and capacity to repay
  • Are borrowing for essential goods and services
More

How to compare car loans for single parents

While you may feel you have limited options when it comes to car loans, it’s still important to compare what options you have available to you to ensure you get opt for the best one for you.

  • Interest rate. The interest rate will be the main contributor to the cost of the loan, and so it’s important you find a competitive rate. Check whether the rate is fixed or variable and compare the rate on offer with that being offered by other lenders.
  • Loan terms. This is how long you’ll have the repay the loan. Most lenders will offer you the option to choose terms of between one and five years for fixed rate loans and one and seven years for variable rate loans.
  • Repayment flexibility. Are you able to line up your repayments to match your pay frequency? Are you able to make additional repayments without penalty? Can you repay your loan early? These are all things which you will need to find out about the loan.
  • Fees. Most loans come with fees, but obviously some loans charge less than others. See what fees you will be charged upfront, check if there are ongoing fees such as monthly or annual account-keeping fees, and note any other fees that may be applicable.
  • Additional features. The loan may also come with additional features, such as extended warranty or a loan redraw facility.

Things to watch out for

When comparing your car loan options, make sure you check the reputability of the lender. Some lenders may claim to help single parents with car loans, but then charge you extremely high fees and rates that can make it difficult for you to manage your day-to-day finances. If you’re unsure of your eligibility with a certain lender, it might be worth talking to them first to avoid having too many credit applications on your credit file.

How to apply?

To apply for a car loan you can compare your options using the comparison tables on this page and across the rest of finder.com.au. Once you’ve found a loan, make sure you check the eligibility criteria to see what your chances are of being approved. Then you can simply click "Go to Site" to be directed through to the lender’s online application form where you can provide your personal and financial details and wait to see if you’ve been approved.

As a single parent, it's important to call a few lenders to discuss your eligibility first. Applying too many times can affect your credit history and make you appear less appealing to lenders.

Picture: Shutterstock

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Car Loan Offers

Important Information*
IMB New Car Loan

You'll receive a fixed rate of 5.89% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Loans.com.au - New Car Loan

You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Latitude Motor Vehicle Loan

You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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8 Responses

  1. Default Gravatar
    TanyaSeptember 3, 2018

    Hi,

    Just wondering if I can go for a car loan. I just recently moved from Queensland to Northern Territory.

    • finder Customer Care
      JeniSeptember 4, 2018Staff

      Hi Tanya,

      Thank you for getting in touch with finder.

      Even if you have just recently moved, as long as you meet the financial requirements set by lenders – let’s say Centrelink payments, that should be fine. In addition, a supplementary income is helpful to support your loan application. On this page, you’ll see a table with the list of banks/lenders that you may apply for a car loan with. It is best to check the eligibility criteria to see what your chances are of being approved.

      Please note that it’s important to call a few lenders to discuss your eligibility first. Applying too many times can affect your credit history and make you appear less appealing to lenders.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  2. Default Gravatar
    July 23, 2016

    I’m single mother with 4 kids Centerlink is my main income and I also receive child support,I have $7000 saved in my bank to help with purchasing a car,would I be able to get finance for a car worth between 20,000 to $25,000,
    What would be best option

    • finder Customer Care
      MayJuly 24, 2016Staff

      Hi Ems,

      Thanks for your inquiry.

      Please note that you’ve come through to finder.com.au we are an Australian financial comparison website and general information service. We are not a lender nor represent any lender featured on our site. And as we cannot recommend any lender, the best loan option will entirely depend on your own financial situation.

      Since you’re on Centrelink payments, most lenders would require you to have an additional source of income to support your loan application.

      Nonetheless, though we’re not sure if you’ll be approved for a loan or not, as a single parent, your options would either be secured personal loan, unsecured personal loan, or a payday loan.

      Hope that helps.

      Cheers,
      May

  3. Default Gravatar
    TrishJanuary 4, 2016

    I am a single mother of 3 on a single parenting payment from Centrelink, am I able to get a loan for a car I have someone who is willing to go guarantor for me on a loan

    • finder Customer Care
      ElizabethJanuary 4, 2016Staff

      Hi Trish,

      Thanks for your question.

      I can’t recommend a specific lender to you but I can direct you to a few of our guides that may be able to help. You can find lenders that consider Centrelink applicants on this page (this includes short-term lenders and banks), you can find a guide on guarantor personal loans on this page, our guide on joint application personal loans on this page, and also a review on a bad credit lender that accepts guarantor applications on this page.

      I hope this information will be of use.

      Thanks,

      Elizabeth

  4. Default Gravatar
    CharlenaDecember 13, 2014

    Wondering if a singel mothers with two children can apply for a car loan.

    • finder Customer Care
      ShirleyDecember 15, 2014Staff

      Hi Charlena,

      Thanks for your question.

      If the source of your primary income is not from Centrelink and you are currently employed, then you may be eligible for most loans featured on this page.

      It’s advisable that you get in touch with a few of the lenders first to discuss your options and eligibility.

      Cheers,
      Shirley

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