Car Loans for single parents

Car Loans for Single Parents

Information verified correct on December 9th, 2016

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.

CUA Fixed Rate Car Loan

CUA Fixed Rate Car Loan

Apply for CUA Fixed Rate Car Loan and enjoy a great low fixed interest rate with no ongoing fees.

  • Interest Rate From: 6.79% p.a.
  • Comparison Rate: 6.92% p.a.
  • Interest Rate Type: Fixed
  • Application Fee: $0
  • Minimum Loan Term: 1 year
  • Maximum Loan Term: 7 year
  • Minimum Loan Amount: $15,000
  • Maximum Loan Amount: $100,000

Single Parent car loan comparisons

Rates last updated December 9th, 2016
$
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
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
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
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
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
RACQ New Car Loan
Apply online and receive a response within 5 business hours.
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
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
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
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
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

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.

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Related Posts

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.

CUA Fixed Rate Car Loan

A competitive car loan that offers flexible repayment options and no account keeping fees.

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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6 Responses to Car Loans for Single Parents

  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

    • Staff
      May | July 24, 2016

      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

  2. Default Gravatar
    Trish | January 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

    • Staff
      Elizabeth | January 4, 2016

      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

  3. Default Gravatar
    Charlena | December 13, 2014

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

    • Staff
      Shirley | December 15, 2014

      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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