First Car Loan. Get Your First Car Sorted
Buying your first car? We explain how lenders on our panel read a first loan, then compare eligible options for your income and the car you want.
Australian Credit Licence 509582. Lender fees may apply. Lender criteria apply.
Can I get a car loan for my first car?
Yes, you can apply for a first car loan in Australia. Lenders on our panel may look at steady income, a clean bank account and the car you choose rather than a long credit history. A deposit or a guarantor can help some applications, and approval depends on each lender's assessment.
- A thin or empty credit file is normal for a first loan and is not a decline on its own
- Steady income, even part time or casual, is what lenders look at first
- A deposit lowers the amount borrowed, and a guarantor is optional
- Rates are set by the lender and depend on your circumstances
- Budget for registration, insurance, fuel and servicing as well as repayments
- No upfront assessment fee. Lender fees may apply, and we may receive commission if your loan settles
Reviewed by Simple Loans Editorial Team · Last reviewed
The Simple Loans Editorial Team researches and reviews every car finance guide published on simpleloans.au. Simple Loans holds Australian Credit Licence 509582 and is a member of AFCA.
Why choose Simple Loans.
Thin Files Considered
Some lenders on our panel assess a first loan on income and bank statements rather than credit history.
Part Time and Casual Income
Regular casual or part time income may be considered, usually averaged over recent payslips.
Guarantor Is Optional
A parent or family guarantor can help some applications, and many do not need one.
New or Used
Lenders set limits on the age of the car, so we check your choice before you commit.
Plain Explanations
We explain each step and what a lender is likely to ask before you apply.
No Upfront Assessment Fee
Lender fees may apply, and we may receive commission from a lender if your loan settles.
What lenders may look at for a first car loan
A first borrower has little or no credit history, so lenders lean on other evidence. Each lender weighs these differently, and none is a promise of approval.
| What they look at | Why it matters | What helps |
|---|---|---|
| Income | Shows you can afford the repayment | Recent payslips, and a steady pattern for casual or part time work |
| Employment length | Shows how stable the income is | A letter or contract, and time in the current job where you have it |
| Bank statements | Show how you manage money day to day | Regular savings and no dishonoured payments |
| Credit file | A thin file is not the same as a bad one | Paying phone and buy now pay later accounts on time |
| Deposit | Lowers the amount borrowed | Any deposit you can put in, though not every lender requires one |
| The car | Lenders set age and type limits | Checking the car with us before you buy |
Costs beyond the loan
The repayment is only part of owning a car. Add registration, compulsory third party insurance, comprehensive insurance, fuel, servicing and tyres. Insurance can cost more for a younger or newer driver, so get a quote on the car before you commit. A cheaper car with lower running costs may let you borrow less and sleep better.
Is a personal loan or a car loan better for a first car?
A secured car loan uses the car as security and is how most car loans are written. An unsecured loan does not use the car and suits older cars or private sales. Read car loan vs personal loan for the differences, and our first car buyer guide for the buying side.
Your situation
If you are an apprentice, see car loans for apprentices. If your work is casual, see car loans for casual workers. Studying on a student visa? See car loans for international students, and car loans for visa holders for other visas. To compare options before you buy, start with car loans.
How it works.
Tell us about you
A short enquiry with your income, the car you have in mind and any deposit. No hard credit enquiry to start.
We compare lenders
We compare eligible options from our panel and explain how each one reads a first loan.
Choose and settle
If you proceed, the lender assesses your application and we help with settlement. Timing depends on the lender and your documents.
Frequently asked questions.
Can I get a car loan with no credit history?
Yes, it can be possible. A first borrower usually has a thin credit file, which lenders treat differently from a bad one. Some lenders on our panel look at your income, employment and bank statements instead. Approval, rate and amount depend on the lender's assessment.
Do I need a deposit for my first car loan?
Not always. A deposit lowers the amount you borrow and some lenders weigh it in your favour, but some lenders on our panel consider low or no deposit applications depending on your circumstances.
Do I need a guarantor for my first car loan?
No, a guarantor is optional. Adding a parent or family guarantor can improve the options for some applications, because the lender also relies on their position. A guarantor takes on real risk if the loan is not repaid, so we explain what is involved first.
Can I get a first car loan on a part time or casual wage?
Often yes, when the income is regular. Lenders usually want to see a steady pattern over recent months. Our casual workers page explains how casual income may be assessed.
What car should I choose for my first car loan?
Lenders limit the age and type of vehicle they will finance, and older cars may need an unsecured loan. Tell us the car before you buy so we can check it against lender policy. Keep repayments at a level your take home pay can carry.
How much should I budget beyond the repayment?
Registration, compulsory third party insurance, comprehensive insurance, fuel and servicing all add to the cost of running a car. Insurance is often higher for younger drivers. Work out the whole weekly cost, not only the loan repayment.
Ready to get started.
No upfront assessment fee. Lender fees may apply. We compare eligible options from a panel of 50+ lenders.
Simple Loans is a finance comparison tool. Holder of Australian Credit Licence No. 509582. All applications are subject to lender approval. Terms, conditions, fees and charges apply. This information is general in nature.