Car Loans by How You Earn

A car loan is a fixed-term finance contract used to buy a vehicle, usually secured against the car itself. You repay the amount borrowed plus interest and fees over an agreed term, most commonly between one and seven years. Because the car is security, secured car loans are generally priced below unsecured personal loans.

Most Australian lenders write consumer car loans from about $5,000 up to $150,000, and higher for commercial and asset finance. Your borrowing capacity depends on income, living expenses, existing commitments, credit history and the age and type of the vehicle.

Pricing is set by each lender based on your credit profile, the vehicle age, the loan term and whether the loan is secured. Simple Loans compares indicative rates from 6.49% p.a. across a panel of more than 50 Australian banks and lenders, and the rate you are offered depends on your individual circumstances.

Getting an indicative quote through Simple Loans does not involve a credit enquiry, so it does not affect your credit score. A credit enquiry is only recorded once you choose a lender and a formal application is submitted with your consent.

Many lenders return a decision the same business day when the application is complete. Settlement typically follows within one to three business days once the vehicle details, invoice and verification documents are provided.

Generally a driver licence, evidence of income such as recent payslips or business financials, and 90 days of bank statements. Self-employed applicants may need an ABN, BAS or tax returns. See our car loan documents guide for the full checklist.

Yes, in many cases. Specialist lenders assess defaults, discharged bankruptcy and Part 9 arrangements case by case, looking at your current position rather than only your history. Pricing on those products is higher than mainstream lenders.

New vehicles usually attract the lender's best pricing tier, while used vehicles are priced according to age at the end of the term. Some lenders cap the vehicle age at settlement or at loan expiry, which is one of the biggest differences between lender policies.

A balloon is a lump sum left owing at the end of the term. It lowers the monthly repayment but increases the total interest paid, and you must refinance, sell or pay out the balloon when the term ends.

Dealer finance is convenient but is usually limited to one or two funders. Comparing across a broad lender panel lets you see how policy and pricing differ before you commit, which matters most for used vehicles, private sales and non-standard income.