The answer is a definite yes it is possible, however there are some limitations and nothing is guaranteed. When getting a used car loan on Centrelink, newstart can not be solely used when assessing a clients legal ability or capacity to pay off a loan. Restrictions are also in place based on overall amount of income received as well as your day to day expenses. For this reason a single parent of 3 or more children with low rent is far more likely to get approved for a used car than a single disability pensioner paying a high amount of rent. Show
Government guidelines set a certian living allowance and we have to work within these legal guidelines. With that in mind we have had a lot of success not only in helping single parents on Centrelink get a used car loan but also in getting DSP recipients "micro" $5000 used car loans and sourcing the used cars for clients on approval... the main point: Yes with us at 1 Stop Car and Finance you can get a used car loan on Centrelink! Getting a car loan when you’re on Centrelink can be tricky and daunting: on the one hand, you (probably) need a car to get to job interviews or work but on the other hand, Centrelink income might not support a car loan. It can be a catch-22. Quick facts:
Which types of Centrelink payments are considered?The type of government benefit you receive will determine if it can be counted towards a car loan. Centrelink payments that can be accepted by lenders include:
Note that there are many kinds of Centrelink payments, each with different conditions. If you don’t see your form of income on the list above, give the team a shout on 1300 769 384. We’ll be able to tell you within minutes (sometimes seconds) whether you qualify for a car loan – finding out is a huge help. Youth Allowance, Austudy and Job Seeker aren’t accepted for car loans because these payments are considered for living expenses like food and utilities so adding loan repayments on top can be a real struggle. Can you afford a car loan on Centrelink?To qualify for a car loan on Centrelink payments, you’ll need to demonstrate your capacity to make repayments. This means having enough surplus money each pay cycle to support new loan repayments. To demonstrate this, most lenders (eg. banks) require three months of bank statements and look for a remaining surplus each pay cycle that can be used to service a car loan. This is the primary hurdle that you need to cross in order to get car loan approval. Top tips
Example: A car loan on CentrelinkSituation To expand her employment opportunities, she needs a car. Preparation Approval for a car loan on Centrelink Result Another optionTake out a car loan with someone else Consider asking a parent or family member to be a co-borrower for you by co-signing the car loan. This means two people are responsible for repaying the loan, even if only one person actually does make the repayments – the second person might be back up. Ideally, the person co-signing a loan with you will have a stable income. When you have a co-borrower for your car loan on Centrelink, they are not responsible for making the regular repayments. But if you default on the loan they will be called on to cover the difference between the market value of the car and the remaining balance on your car loan. Questions to ask yourselfIs your income secure?There are some issues that lenders have with accepting a car loan on Centrelink. One of them is that your benefit can change if you no longer meet the criteria for the payment that you are on. Changes in government policy can also affect your income. Lenders are under an obligation under the National Consumer Credit Protection (NCCP) legislation to lend responsibly. This means that if they can’t show that you can afford the loan, then they cannot give you a car loan. Of course, all decisions are based on your income and bank statements, among other things. Do you have a supplementary income?Working part time or casual can really help your car finance application when on Centrelink. Even if it is just one or two days a week, you can demonstrate your supplementary income using your tax returns, payslips, or bank statements. Note that you’ll most likely need to have been employing at least three months with the same employer. You might also be able to use invoices for work you’ve done, or items sold. Some people make a living selling things online or other forms of ecommerce and can prove their income is steady with documentation. Ready to apply?If you are ready to get more information about Centrelink car finance, speak to us. The team at Loans For People With Bad Credit are experts in matching car loan products and can help you get your ducks in a row, ready for your car loan. Can Centrelink help with getting a car?Types of Centrelink payments
Yes! It is possible to get approved for a car loan when you are receiving Centrelink payments. Zoom Car Loans are able to assist the large majority of Centrelink customers however minimum income requirement of $800 a fortnight does apply.
Does Centrelink affect credit?Your Centrelink debts won't affect your credit rating.
Does Centrelink lend money?Yes – as a Centrelink recipient, you may be eligible to apply for a cash advance on your benefits and have funds taken out of future payments. The amount you can borrow varies depending on your personal Centrelink situation and changes from year to year.
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