Car Loans for Veterans. DVA Income Counts

Australian Defence Force members, both serving and ex-serving, are among the most valued borrowers by car loan lenders. Here's why:

• Exceptional job security: The ADF is one of Australia's most stable employers with guaranteed ongoing employment
• Above-average income: Defence salaries, especially with allowances, are generally higher than comparable civilian roles
• Disciplined financial habits: Lenders recognise that military training instils financial discipline and responsibility
• Multiple income streams: Base pay, service allowances, deployment bonuses, and housing benefits create strong overall income

These factors combine to give defence personnel access to some of the best car loan rates and highest borrowing limits available in Australia.

For veterans receiving DVA payments, understanding how lenders assess your income is key to a successful application. DVA income types that lenders commonly accept include:

• DVA Service Pension: Treated similarly to the Age Pension but often viewed more favourably
• DVA Disability Pension: Accepted by many specialist lenders as stable, ongoing income
• War Widow's Pension: Recognised as reliable pension income
• Income Support Supplement: Can be included when calculating total income
• Veterans' Supplement: May be counted by some lenders

Many mainstream banks don't fully understand DVA income structures. That's where Simple Loans adds value, we know exactly which lenders accept DVA payments and how to present your application for the best possible outcome.

Novated leasing is one of the most popular ways for serving ADF members to finance a vehicle. The Defence Force provides novated leasing through approved providers, and the tax savings can be substantial.

How it works for ADF members:

• A three-way agreement between you, Defence, and a leasing company
• Lease payments are deducted from your pre-tax salary, reducing taxable income
• Running costs (fuel, insurance, registration, maintenance) are also salary sacrificed
• You save on both income tax and GST
• The lease is portable if you discharge or change employers

Potential savings example: On a $45,000 vehicle, an ADF member earning $85,000 could save approximately $3,000–$5,000 per year through a novated lease compared to a standard car loan. The exact savings depend on your tax bracket and vehicle running costs.

Leaving the ADF and transitioning to civilian life brings many changes, including how lenders assess your financial situation. Here's what you need to know about car finance during and after your transition:

• During transition: If you have a discharge date set, apply for car finance before you leave while you still have ADF income
• Immediately after: Lenders can consider your DVA entitlements, any civilian employment, and superannuation income
• Established veteran: Once settled in civilian employment, your military background is viewed positively by lenders

We recommend getting pre-approved before your discharge date if possible. This gives you the strongest application position. If you've already transitioned, we work with lenders who understand the veteran journey and won't disadvantage you for a career change from defence to civilian work.