Car loan FAQs

See below for answers to the questions our Mortgage Choice brokers are often asked by customers who are considering a car loan.

Getting a car loan FAQs

Am I eligible for a car loan?

To apply for a car loan, you must:

- be 18 years or older

- be an Australian resident

- have a regular income

- be looking to borrow more than $5,000

Can I choose between a fixed or variable rate loan?

All car loans are fixed rate loans.

Can I include insurance and warranty in the loan amount?

Some lenders will allow you to include these in the loan amount.

How does pre-approval work?

Pre-approval means having your loan approved before you find the car you’d like to buy. This means you can shop around for your new car with peace of mind knowing what you can afford.


Once you find the car you’d like to purchase, your broker will arrange for the funds to be drawn and payment to be made.

What documentation do I need to apply for a loan?

If you are a PAYG Applicant you will need:

- a clear copy of your drivers licence (front and back)

- your last 2 pay slips

- a recent rates notice (if you own property)

- a copy of the contract for sale for the car


If you are a self-employed applicant you will need:

- a clear copy of your drivers licence (front and back)

- a recent rates notice (if you own property)

- a trust deed (if applicable)


If you are a commercial full doc applicant you will need:

- a clear copy of your drivers licence (front and back)

- a recent rates notice (if you own property)

- recent financials (for the business and individual)

- a trust deed (if applicable)

What are the benefits of going through a broker for my car?

Your broker has access to a number of different lenders, therefore not only being able to service your needs at the cheapest rates but also having the flexibility to a range of different products. This varies from no monthly administration fees to no early payment penalties and also the flexibility of low fixed interest rates and options to make payments weekly/fortnightly/monthly.

Can I get a car loan if I am self-employed?

Yes, there are loans available for the self-employed. You may be able to claim part of the car’s costs including loan interest as a tax deduction.

Can I get a car loan if I have a poor credit history?

Yes, there are lenders who can assist you if you have a poor credit history. Speak to your Mortgage Choice broker for more information.

What types of vehicles can my broker finance for me?

We can source loans for the following:

• Cars

• Motor bikes

• Caravans

• Boats

How long will my car loan take to be approved?

Your finance can be processed as quickly as 2 days (this may vary depending on circumstances, such as the dealership not co-operating). E.g. Dealerships can try and delay the process by not providing a Tax Invoice, giving them the opportunity to quote the finance themselves.


We can organise pre-approval of your loan to ensure there is no disappointment and delays regarding sourcing finance for your vehicle. In order to proceed with a pre-approval, we require an indication of the vehicle you are looking to purchase (the vehicle description may change) along with an application. It is best to provide supporting documents (i.e. Privacy Consent, Pay slips and Drivers Licence) upfront to ensure all income calculations are correct.

How is buying privately different from buying through a dealer?

Purchasing a vehicle privately may give you more room for negotiation on price and the ability to select a vehicle you are looking for in the price range you can afford. However you will be required to provide more information to prove that the title is clear so that the lender can put a charge on it. E.g. a payout letter to ensure you are purchasing a vehicle free from past owner encumbrance. The value of the vehicle will also be evaluated to ensure you are not paying too much.


Purchasing a vehicle from the dealership is quite easy and all that is required is a Tax Invoice and banking details to electronically transfer funds at settlement.

Are there extra fees when buying privately?

When financing a vehicle privately there can be additional fees to cover an inspection report and photos of the vehicle. This fee can vary from $150 to $250 (including GST) depending on the location of the inspection report. Some lenders also charge additional establishment fees.

Are there any fees involved in taking out a car loan?

Yes, there may be some fees involved, including:

- lender application fee

- origination fee

- vehicle inspection fee (for private purchases)

- PPSR (Financiers Security Registration fee)

- stamp duty (applicable in NSW only)

- monthly account keeping fees

How much deposit do I need for a car loan?

You do not need a deposit to take out a car loan, however it may increase your chances of success and will also reduce your repayments.

How long do I have to pay off my car loan?

Loan terms vary depending on the lender you choose, ranging from 2 to 7 years.

How old can the vehicle be?

If you are a PAYG applicant, the vehicle cannot be more than 12 years old at the end of the contract. If you are a self-employed applicant, the vehicle cannot be more than 15 years old at the end of the contract.

Talk to us about car loans today

We can help you to compare a range of options to find the car loan that's right for you.

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