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Car Loans for Single Parents
Don’t let your family situation stand in the way of you getting a car loan.
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Single parent car loan comparisons
For many Australians, owning a car 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 difficult for single parents to access car loans. But there are options available to you.
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Car loans suitable for single parents:
- Beyond Bank Low Rate Car Loan "Special Offer": 5.01% p.a. comparison rate. A limited time offer - get a car loan with a 4.69% p.a. variable rate.
- RACQ Bank Car Loan Special: 6.16% p.a. comparison rate. A car loan suitable for new vehicle purchases with no monthly administration fees.
- IMB New Car Loan: 5.34% p.a. comparison rate. A new car loan with no monthly service fees and no early repayment.
- bcu Car Loan: 6% 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 car loan application.
What car loan options do single parents have?
| Loan type | Loan amount | Interest rate | Eligibility criteria | Find out more |
|---|---|---|---|---|
| Secured car loan | $3,000 - $100,000 | 4-13% p.a. |
| More |
| Short-term loan | $100 - $2,000 | 24% per $100 borrowed |
| More |
| Centrelink loan | $100 - $10,000 | Varies |
| More |
| NAB StepUP | $800 - $3,000 | 5.99% p.a. |
| More |
| No Interest Loan Scheme | $300 - $1,200 | 0% |
| 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.
What is next?
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- Income protection for single parents
Find out why you need income protection if you’re a single parent.
- Pepper Money
Pepper Money is an Aussie non-bank lender that offers a vast range of personal loans and home loans to customers Australia-wide. Find out more here.
- Handypay Personal Loan
Find out more about Handypay's personal loans for home improvements. Personalised rates start from 6.75% p.a. on terms from 1 to 7 years.
- Pepper Money No Fee Personal Loan Review
Find out more about Pepper Money's no fee personal loan and benefit from a competitive rate from 6.95% p.a., zero fees and loan terms of up to 7 years.
- Health Professionals Bank Credit Card
Get an introductory rate of 7.9% p.a. on purchases and balance transfers for 6 months and save with an ongoing $0 annual fee with the Health Professionals Bank Credit Card.
- Brighte Personal Loan
Looking to renovate your home? Find out more about Brighte's personal loan for home improvements and ways in which it may be able to benefit you.
- Endeavour Mutual Bank Special Fixed Home Loan
The Special Fixed Home Loan from Endeavour Mutual Bank is a fixed rate mortgage for owner-occupiers and investors.
- Sydney Mutual Bank Special Fixed Home Loan
The Special Fixed Home Loan from Sydney Mutual Bank is a fixed rate mortgage for owner-occupiers and investors. Available with a 5% deposit.
Hi,
Just wondering if I can go for a car loan. I just recently moved from Queensland to Northern Territory.
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
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
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
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
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
Wondering if a singel mothers with two children can apply for a car loan.
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