What are the requirements for a car loan?

What do you need for a car loan?

Applying for a car loan is so much easier these days, with most of the work done online. While quick and relatively hassle-free, there are still a few steps involved before you can take your new car home.

At loans.com.au, we require documents that prove you are who say you are and that you’ll be able to comfortably repay the loan.

For a smooth and comfortable car loan application, you will need to provide us with a range of documents that prove you’re a reliable borrower. These documents can be summarised as:

• Personal information and identification

• Proof of income

• Proof of assets and liabilities

• Information about your car and insurance

We are required to ask for these documents to comply with anti-fraud legislation.

1. Personal information and identification

When assessing your application, we need to know the following things about you:

• Your full name

• Your age

• Your date of birth

• Citizenship information

• A list of dependants (children, elderly or sick relatives you care for etc.)

We require a driver’s license, which will be electronically verified or certified. In some cases, we may require additional forms of identification such as your passport and Medicare card.

2. Proof of income

Arguably the most important thing for a lender when assessing a loan is your ability to repay it.

As such, we ask for each of the following:

• 2 most recent payslips

• Bank statements for the last 3 months showing your incoming and outgoing expenses

We may also ask for a list of your current living expenses, such as rent or mortgage repayments, and it never hurts to have at least three to six months of ‘genuine savings’ you can fall back on in hard times.

3. Proof of assets and liabilities

Another thing we might need to see is a list of your income-generating assets and liabilities, which can give us a broader view of your overall financial strength.

Depending on your employment and personal situation, we may also ask for some or all of the information below:

• Information on any other loans you have, such as mortgage and personal loan documents

• A summary of your share portfolio if you have one, or a portfolio of other investments such as bonds

• A summary of your superannuation

4. Information about your car and insurance

We need to know the details of the car you wish to buy, so we know how much it will cost and how much you’ll need to repay.

When purchasing a car, you will generally need to supply the following:

• A dealer invoice or contract of sale (contains address, contact numbers and ABN)

• The vehicle chassis number

• The year, make and model of the car

• Information on the vehicle’s registration

• Information on the car’s fuel efficiency (at loans.com.au, we offer discounts for cars that are more fuel-efficient than the average car in their category)

Importantly, it’s highly likely you will need to provide proof of comprehensive car insurance before receiving the stamp of approval. This is so you can repay the loan in full if the car is ever damaged so badly it needs to be written off.

5. Use onTrack to speed up your application

Sending all of these documents can be a pain which is why loans.com.au created onTrack to make everything much easier. Using onTrack, you can upload, review, and approve documents, receive notifications and track the progress of your car loan’s progress 24/7.

Fast track your loan with onTrack

Learn more

You can also check out the range of low rate car loans loans.com.au has to offer, and you can use our car loan calculator to work out what you can afford to repay.