If you’re in the market for a new car, chances are you want to get your hands on it as quickly as possible. Here are our top tips on how to get approved quickly for a loan for your car.
1. Get pre-approval
Car loan pre-approval refers to your lender agreeing to loan you a sum of money to buy a car, subject to credit approval, and an invoice from the dealership. Going to a dealership with pre-approval means once you’ve picked out the car for you, you can be driving it in the next 48 hours. Pre-approval can also be a great budgeting tool as you know the maximum amount the lender will let you borrow.
2. Know the conditions of the loan
Certain car loans come with certain conditions attached. For example, if you’re applying for our Green Car Loan, the car you want to purchase will have to be a hybrid vehicle or be more fuel-efficient than average for a car of its size. If this isn’t the case, you are not likely to qualify for that particular loan. Another condition you might come across is a car not being older than a certain length of time.
3. Know your credit score
Most lenders will charge you a higher rate if you don’t have a good credit score. This is mainly due to you being seen at higher risk of not being able to make repayments and defaulting on the loan. Prior to trying to get a loan, you should get a copy of your score so you know what it is. If you’ve had prior records of late payments or defaults, then you might want to hold off applying for a loan and instead work on improving it by paying off your existing debts first.
4. Research and compare
It’s important to do your research on your car and your lender and understand how much you can borrow and whether you can easily make those repayments. Shop around lenders to see who can offer you the best deal. We currently offer a Green Car Loan at a fixed rate of 3.97% p.a. (4.51% p.a. comparison rate*). Use our Car Loan calculator to see how much your repayments might be and how much you can borrow.
Car Loan calculator
What is the car loan pre-approval process?
You can apply for car loan pre-approval online and soon after, one of our lending managers will contact you to approve you. You can get pre-approval with us on the same day and final approval within two days. After this, you’ll be required to provide some documentation and you can then sign a contract for a vehicle from a dealership. We’ll then contact the dealer and issue them the funds and the car will be yours. The whole process can be completed in 3-4 days.
Can I get approved if I have bad credit?
It’s unlikely you’ll get approved for a car loan if you have bad credit. You can improve your credit score but clearing debt, canceling credit cards, and demonstrating good credit behaviour.
How to increase my chances of getting approved?
You can increase your chances of getting approved by:
Knowing what car you want and from what dealership
Having all your documents ready
Being honest in your application
What are the documents I need for speedy approval?
The documents you’ll need for speedy approval on a car loan are:
100 points of ID: This can include a driver's license, a passport, a birth certificate, a Medicare card.
Proof of income: You’ll be required to provide two or three of your most recent payslips, as well as proof of employment and details of your employer. If your self-employed two years of tax returns will be required.
The vehicle details: You’ll need to provide the make, the model, the registration number, and the price of the vehicle, as well as whether it's new or pre-owned.
Assets and liabilities: The lender will need to know if you own property, other vehicles, other loans, your expenses, and any other debts you might have.
To get started on your car buying journey, book an appointment with one of our friendly lending specialists to get pre-approval today.