Many people rely on a personal car loan when buying a new or second-hand car. But how can you tell if you’re getting the best loan possible? Many people in Australia will compare one or two car loans or choose one offered by their current bank. Unfortunately, not completing a thorough car loan comparison can see you paying more interest than you should.
At CarClarity, we can show you the best car loans from over forty different lenders. We have access to over a thousand different products from these lenders, and we can find one that suits your situation.
After you enter your details, we’ll take that information and complete a soft credit check and determine which of our listed lenders are most likely to approve your application. When you receive your loan matches, you can decide which is best and apply for the loan directly through that lender.
Applying for a pre-approved car loan is in your best interest. Looking at cars is the best part of buying a new car, and getting a loan is often considered less interesting. But, when you get a pre-approved personal car loan, you clearly understand your budget. When you know your precise budget, it will allow you to negotiate better on a car deal as you’ll have an absolute limit.
How do pre-approved car loans work?
A pre-approved car loan is where the lender will agree to lend you money for a car before it is purchased. You can apply for a pre-approved loan the same way as a regular personal loan. However, in a pre-approved loan, the funds will only come available when the car is ready to be purchased.
Having a pre-approved car loan can give you confidence when you start looking into the car you’d like to buy. These loans will also stop you from going over your budget as there will be an absolute limit to how much you can spend. You can always buy a vehicle for less than your pre-approved amount.
It is important to remember that a pre-approval does not mean that your loan is guaranteed to be approved. After you find the car you’d like to buy, you’ll still need to complete the entire loan application and review it by the lender.
You can get pre-approved at CarClarity by filling out an easy online application that matches you with multiple lenders, so you can compare and get a better loan.
If you’re self-employed (including freelance work), you’ll find a few extra steps required to get a personal car loan in Australia. You may find fewer loans available, but many lenders will have products tailored explicitly to self-employed people.
If you’re looking to buy a car for your business, it may be best to choose a business car loan. However, if the vehicle you’re buying will be for personal use, you can choose a car loan. Loans offered to self-employed people are often referred to as low-doc or no-doc loans and may not require evidence of employment or income.
Applying for a loan usually requires you to submit evidence of your income. If you’re self-employed, you may be asked to supply your previous tax return as evidence of your income. Lenders may also request additional evidence to ensure your ability to repay the loan. Provided you are honest about your income, securing a personal loan shouldn’t be any issue.
If you are self-employed and your income varies from one month to another, you may prefer to find a personal car loan where you can make additional payments. At CarClarity, we can compare your details with our lenders, and you can choose the one that has the best benefits for your situation, including if you’re self-employed.
When you use CarClarity to complete your car loan comparisons, you’ll get to choose from forty different lenders and over a thousand products. All of our lenders may have different requirements for the type of documents you require to complete an application. However, you'll find some standard income proof requirements between these lenders.
Income proof for an employee
An employee will usually be working for a company they do not own. As an employee, you should receive a regular income paid weekly, fortnightly, or monthly into a bank account. Employees will receive a pay slip after their regular pay is deposited.
You’ll need to provide the lender with a few copies of your payslips as evidence of your income. The number of payslips required can vary depending on the lender you choose, but having access to at least four consecutive payslips is ideal.
Income proof for self-employed or business owners
When you’re self-employed, you can apply for a personal car loan like anyone else. However, the difference is that you won’t have any payslips to prove your income. Instead of payslips, you’ll need to provide your tax returns and the tax assessment from the ATO. If you have an outstanding tax debt, you may also require proof that this has been paid or that you have an agreement with the ATO to pay this in instalments. The number of tax returns will differ between lenders. Some lenders will ask for the most recent, and others may request two or more.
Getting the right loan is easier with CarClarity
You can use CarClarity to help find the best personal car loan (or refinancing loan) available from our forty lenders. We’ll complete a car loan comparison rates check and show you which of our lenders best suits you. Using CarClarity will only take around sixty seconds, and as we only do a soft credit check, it won’t affect your credit score. Start your search today and find which lender can deliver the best car loan for your needs.
CarClarity is an online financial comparison service and is owned and operated by CarClarity ACL Pty Ltd ABN 50 606 243 243 / ACN 606 243 243 and Australian Credit License 478 874.
CarClarity provides you access to our expert team who can assist in selecting suitable car loans from our panel of 40+ lenders and over 1000 financial services products. The financial products compared on this website do not necessarily compare all features that may be relevant to you and CarClarity does not compare all rates in market.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. CarClarity may receive a commission from lenders we recommend.
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