How can I get a car with low money?

A car loan is a personal loan for a new or used car. You have to repay the loan and interest over a fixed term, usually between one and seven years.

Get the best car loan for you

Most people shop around before they choose a car. You should also shop around before you choose a car loan. It can save you thousands in interest and help you pay off your car faster.

Compare loans before visiting a car dealer

It's important to look at loans before you go to a car dealership. You'll be able to negotiate better, as you'll know:

• exactly how much you can spend
• the best interest rate you can get
• how much your repayments will be

Car dealerships will try to sell you add-on car insurance. This includes loan protection, gap cover, and tyre and rim protection. These products are not good value for money. Don't feel pressured to buy them.

Fixed or variable interest rate

With a fixed interest rate, the interest rate and your car loan repayments are fixed and won't change. You'll know exactly how much will come out of your bank account for repayments each month. Car dealerships usually offer fixed rate loans.

With a variable interest rate, your car loan repayments can change if interest rates change. If interest rates rise, your repayments will be higher. If interest rates fall, your repayments will go down.

Variable rate car loans usually don't have an early exit fee. This might be better if you're planning to make extra repayments and pay the car loan back early.

Secured or unsecured loans

Most car loans are secured. Your car will typically be the security for the loan. If you don't pay the loan back on time, the lender can repossess your car and sell it.

With an unsecured loan, you don't have to provide your car as security. But the interest rate will be higher and you won't be able to borrow as much. Unsecured loans are mainly for used cars.

Beware of balloon payments

Some car loans offer a ‘balloon payment’ (also called a residual payment). This option means you pay off part of the loan as regular repayments, and then pay the final amount as a lump sum (this is the balloon payment) at the end of the loan.

This may look like a good deal as your monthly payments will be smaller. But you'll have to repay the lump sum with interest, so the total cost of the loan is higher.

If you choose a balloon payment, you'll need to be able to repay the lump sum plus interest when it falls due. Otherwise, you could end up needing another loan to pay the lump sum and interest.

Compare car loans

Compare loans before you meet the seller. Find out what you can spend and how much your repayments will be.

Compare these features:

Comparison rate

• a single figure for the cost of the loan that includes the interest rate and fees
• make sure you're comparing the same loan amount and term when you look at comparison rates

Interest rate

• the rate of interest you'll pay on the amount borrowed

Application fee

• the fee when you apply for a loan

Other fees

• the monthly service fee
• the default fee or missed payment fee
• any other fees — read the terms and conditions to find these

Extra repayments

• whether you can make extra repayments without paying a fee

Loan term

• shorter terms often have lower interest rates
• longer terms usually mean lower repayments, but you'll end up paying more interest

Loan conditions

• whether the loan can be for a second-hand car or only for a new car
• whether there are limits on how old the car can be

Comparison websites can be useful, but they are businesses and may make money through promoted links. They may not cover all your options. See what to keep in mind when using comparison websites.

Cover your other car costs

When you buy a car there are other costs you need to think about such as:

• stamp duty
• registration
• car insurance
• running costs, like petrol, maintenance and servicing

Some lenders offer loans that cover some of these costs as well as the car. It's better to pay for these other costs up-front if you can — your loan will be smaller and you'll save on interest.

A Centrelink car loan is offered to customers who get all or most of their income via Centrelink. Many lenders will not be willing to finance a car loan to customers whose income is only via Centrelink.

The good news is that Money3 considers all types of income, whether from employment or Centrelink payments when assessing your loan application. This is because your Centrelink payments may qualify as income. Your Centrelink car finance and car loan could be approved with Money31

What documents or details do I need when I apply for car loans on Centrelink benefits?

The application process for Centrelink car finance is quick and simple, as the information you need to complete your application should be easily on hand. You'll need to confirm your contact details, address, employment details and regular expenses.

You can also verify your driving licence, which will help speed up your application. After that, due to responsible lending concerns, we require 90 days bank statements which can be given securely online in a few minutes. These details are necessary for your car loan on Centrelink.

Do I have to provide security for a car loan on Centrelink?

As the car or vehicle you will be buying with your car loan from Money3 is used as security for your loan, no other security is required. Hence, Money3’s Centrelink car loan is considered a secured car loan.

What is the maximum I could borrow for a car loan on Centrelink?

If your regular income is a mix of earnings from employment, plus Centrelink payments, then the maximum you could borrow could be up to $75,000 depending on your affordability1. If your income is over 50% and up to 100% from Centrelink benefits, then the maximum we could finance would be up to $10,000 for first time customers. You can use a car loan calculator or our comparison chart above to assess your potential loan amounts.

Can existing or previous customers with 100% income from Centrelink payments borrow more?

Yes, it is possible for existing customers with 100% income from Centrelink payments to borrow more than $10,000, although your repayment history, personal circumstances and loan affordability will be taken into consideration1.

As licensed credit providers operating under an Australian credit licence, Money3 specialises in providing many Australians with flexible finance options. The whole process is transparent, from comparison rates to the pre-approval loan process to your loan contract with us1.

Can I borrow if I am on youth allowance?

Unfortunately, we are unable to consider income from temporary assistance programs such as youth allowance, abstudy and austudy in the context of our car loans on Centrelink. You cannot make a car loan application if youth allowance payments are your primary source of income.

Can I get a car on finance if unemployed?

Yes, if you are unemployed, you may be able to get a car on finance depending on your income from Centrelink payments and the affordability of the loan1. Receiving Centrelink payments of a certain type such as single parent payments may influence your ability to get a car on finance. No matter your personal circumstances1, our team at Money3 are dedicated to giving you a fair go at loaning a car outright.

Will I need to save a deposit for my car finance on Centrelink?

No you won't have to. If you have saved a deposit, great, that can be used together with your loan from Money3, but it is not necessary to have one.

Do I have to use a dealership to buy my car?

No you don't. However, where you choose to find your vehicle is up to you. Dealerships and private sales are fine.

Is it possible to have a joint Centrelink car finance loan?

Yes, that is also possible. Complete the application as a single applicant and let us know that you'd like to make a joint application. The amount you could borrow with a joint application may be higher1.

Is it possible to get bad credit Centrelink car loans?

Yes, it is1. We will look at your current financial situation and your affordability when reviewing your application for finance. At Money3, we are specialists in assisting people with irregular financial circumstances and will give you a fair go when applying for a car loan. This may apply to people with a bad credit history and would like bad credit car loans Centrelink1. See Pensioner Car Loans for more details regarding a car loan on Centrelink payments (including pension).

How do you buy a car if you don't have enough money?

What is the lowest credit to buy a car?

Can Centrelink help me get a car?

Can I get a car loan on minimum wage?