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.

Stratton Finance New Car Loan Offer

Stratton Finance New Car Loan


5.29 % p.a.

fixed rate


6.56 % p.a.

comparison rate

  • Rates from 5.29% p.a.
  • Loan terms 1-7 years
  • Fast approval
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100% confidential application

Stratton Finance New Car Loan Offer

Benefit from Stratton's expertise to get a fixed or variable rate car loan.

  • Interest rate from: 5.29% p.a.
  • Comparison rate: 6.56% p.a.
  • Interest rate type: Fixed
  • Application fee: $459.20
  • Minimum loan amount: $18,000
  • Maximum loan amount: $100,000
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Single Parent car loan comparisons

Rates last updated August 20th, 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
Stratton Finance New Car Loan
From 5.29% (fixed)
1 to 7 years
Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit. - New Car Loan
From 5.44% (fixed)
3 to 5 years
This car loan is for new cars and offers a low fixed rate and no ongoing fees.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
2 to 7 years
$250 (Loans under $4000 - $140)
Benefit from a tailored fixed rate from 12.99% p.a. to 28.99% p.a. with a loan that can be used for any purpose.
IMB New Car Loan
5.99% (fixed)
1 to 7 years
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
From 5.69% (fixed)
1 to 7 years
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
RACV New Car Loans
From 5.99% (fixed)
1 to 7 years
A competitive rate car loan from RACV with no monthly fees and 5-hour loan approval.
Sydney CU Special Variable Car Loan
5.95% (variable)
1 to 7 years
Benefit from a flexible, variable rate to finance a car up to 3 years old with SCU. Note: Approval fee waived until 30th September 2018.
Bank Australia Car Loan
6.45% (fixed)
1 to 7 years
A competitive rate and the ability to offset your car’s carbon emissions for the loan term.
IMB Secured Personal Loan
6.89% (fixed)
1 to 5 years
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.
MyState Secured Personal Loan
From 7.99% (variable)
1 to 10 years
Apply for a loan up to $75,000 and benefit from loan terms up to 10 years. Your choice between secured or unsecured.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
1 to 5 years
Use your car as security and benefit from a competitive interest rate.

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: 6.34% 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
Short-term loan$100 - $2,00024% per $100 borrowed
  • Earn a regular income
  • Have capacity to repay
Centrelink loan$100 - $10,000Varies
  • Earn a regular income
  • Some types of Centrelink payments may not be allowed
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
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

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 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

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. - New Car Loan

This car loan is for new cars and offers a low fixed rate and no ongoing fees.

Latitude Motor Vehicle Loan

Apply online to finance a new or used motor vehicle and receive a response in 90 seconds. You will receive a competitive tailored rate of between 6.99% p.a. to 14.99% p.a. based on your risk profile.

Stratton Finance New Car Loan

Apply for up to $100,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.

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6 Responses

  1. 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 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.


  2. 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.



  3. 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.


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