How To Get A Car Loan

If you’re buying or financing a car for the first time, a loan will allow you to borrow a certain amount of money to purchase a vehicle that’s just right for you. We get that it’s a lot more convenient to have your own vehicle, whether you’re intending to use the car primarily for work or play such as running to the shops, travelling to the office or dropping the kids to school. 

The cars we drive say a lot about us and financing one is easier than you think. In return for the loan, you pay fees and interest to the lender that provided you the money. You then pay back the loan within a certain period of time, typically ranging from two to five years. 

The best way to get started is simply a case of narrowing down a lender and applying online. At Rapid Loans, we understand that purchasing the ideal vehicle can be expensive and not everyone has the money to pay for a car up front in cash. A car loan may be an option if you haven’t got enough in savings, but you can afford to repay a loan in weekly, fortnightly or monthly instalments. 

How to get a car on finance?

Rapid Loans offers vehicle loans from $5,000 to $45,000, because we know that all adventures start with a dream and big dreams have small beginnings. All vehicle types including trucks, motorbikes, boats, caravans, passenger vehicles, sports utility vehicles (SUVs) and utes will typically be considered for a standard car loan. 

If you think purchasing a vehicle on finance is right for you, these are the steps involved in getting a car loan with Rapid Loans:

• Submit an application for the loan.
• If your application is pre-approved, Rapid Loans will agree to lend you a certain amount to buy the vehicle, sometimes with conditions required to finalise the loan. You can take your pre-approval with you to the dealership or private seller to show that you have access to funding.
• Find your perfect car and sign a purchase agreement with the dealer or private seller.
• Provide details of the car to Rapid Loans, and satisfy any conditions noted on your pre-approval.
• Providing all conditions are met, and once the loan contract is signed, Rapid Loans will pay the dealer or the private seller directly on your behalf.
• You pay Rapid Loans back, usually over a period of two to five years.

You can apply for two weeks of conditional pre-approval for a certain amount before going shopping so you know exactly how much you can spend and how much your repayments will be. This gives you better insight on your possible price range before heading to a dealer or browsing an online marketplace. It might also take away a bargaining chip that the dealer can use to extract a higher price or allow you to resist pressure from the dealer to use their finance for the vehicle.

Despite this, some major benefits of buying through a dealer is that they are obligated by law to offer you a warranty (dependent on age of vehicle and how many kilometres it has done), they may give you a cooling off period and you might be able to trade-in your current car if you have one. This saves you the hassle of having to unload it as a private seller yourself! A dealer will also handle all the paperwork associated with ownership or title transfer and registration while being able to offer additional services like roadside assistance. Dealers are generally required to comply with consumer protection obligations and may offer warranties depending on the vehicle.

If you’d prefer to shop and negotiate a price privately or at an auction, it’s worth noting that private sales aren’t protected by the same laws as dealers so faults won’t be covered by Fair Trading. Many lenders also have a maximum age of cars they are willing to finance, some as low as five years as used cars are often considered riskier to finance than new cars. One of the benefits to the buyer of purchasing a car that’s a few years older means you let the first owner take the hit in depreciation. When purchasing through a private sale, do your due diligence when it comes to looking over the car. Whether that’s all relevant legal requirements to legally buy or sell the car, through to a comprehensive pre-purchase mechanical inspection. As the buyer, you are responsible for checking the vehicle against the Personal Property Securities Register (PPSR) to check for financial interests (encumbrances) for a small fee. If you’re financing through Rapid Loans, this PPSR check is included in the service.  As a base line, you may like to ask the seller the following:

• Why are they selling it?
• Has it ever been damaged or in an accident?
• Has it had any major repairs?
• How detailed is the car’s service history and is it with the car?

Even if you’re not an expert, having a good look over the car in the flesh is very important before agreeing on any purchase. When bargaining down from the seller’s asking price, make a list of any faults you discovered during the inspection and negotiate based on the cost of fixing these problems. If you’re confident you’re buying a car in satisfactory condition, it passes your own inspection and you’ve negotiated the price, make sure all the registration and service history paperwork is in order, and the details match the seller. If you’re making a payment or even a deposit, get a receipt and make sure the seller’s full details are on it.

Rapid Loans uses secured loans for all finance, meaning the car is used as security against the loan so if you don’t meet your repayment obligations on the loan, Rapid Loans may repossess your car. The fixed term interest rate will apply on the total loan amount from the time you take out the loan. 

To progress with your vehicle finance, we need to know the basic details of the car you wish to buy, including how much it will cost. You will generally need to supply the following:

• The dealer invoice or contract of sale, if purchasing through a dealer.
• The vehicle chassis number.
• The year, make and model of the car.
• Any information on the vehicle’s registration.

It’s worth thinking about the other costs that are associated with purchasing a new vehicle which may be included in the cost of your loan if purchasing with a dealer, such as stamp duty. You will also need to provide proof of comprehensive car insurance before receiving the stamp of approval. This will assist you in repaying the loan if the car is ever damaged so badly it needs to be written off or if it is stolen. You will need to maintain comprehensive car insurance cover until the loan is paid in full.

Can I still get a car loan if my financial situation isn’t ideal?

Our car loan assessment process is thorough and takes your individual circumstances into account. At the same time, committed to helping eligible customers finance a vehicle that meets their needs. We take a holistic approach to your car loan application as we understand that everyone’s financial situation is unique.

We recommend being honest about your financial situation in your application and consider your credit score to manage your expectations for application success. A credit score depicts your creditworthiness and is based on your credit history such as the number of open accounts, total levels of debts and the number of credit applications you’ve made and whether you pay on time. For example, if you have previously defaulted on loan repayments or have often been late in making credit card payments, a lender may reduce the amount they are willing to lend you, or even reject your loan application altogether.

You can check your credit score using an online provider, usually free of charge. You have the right to get a copy of your credit report and credit score for free every 3 months. Your credit report will show you:

• Your credit products.
• Your repayment history.
• Defaults on utility bills, credit cards and loans.
• Your credit applications.
• Bankruptcy and debt agreements.
• Your credit report requests.

When you get your credit report, check that all the loans and debts listed are yours and details such as your name and date of birth are correct.

Depending on the credit reporting agency, your score will be between zero and either 1,000 or 1,200. The score relates to a five-point scale, from excellent to below average. Your credit report is one of a number of factors lenders may consider when assessing a loan application. 

If you have existing debts with multiple lenders, a debt consolidation loan may be an option to help simplify your finances. A debt consolidation loan combines eligible debts into a single loan, meaning you’ll generally have one regular repayment instead of managing multiple repayment dates.

Whether debt consolidation is right for you will depend on your individual circumstances. It’s important to consider the total cost of the loan, including interest and fees, and whether the repayments fit within your budget.

At Rapid Loans, we assess every application individually against our lending criteria and responsible lending obligations. If approved, a debt consolidation loan may help you combine eligible debts into one loan with fixed repayments and flexible repayment frequencies.

Can I get a car loan with part time or casual income?

If you’re not working full time, you may still be eligible to apply. You are welcome to apply for a car loan with Rapid Loans if you are:

• Employed part time or as a casual with the same employer for a minimum of three months.
• A sub-contractor or self-employed business owner.

We consider employment casual if the following applies:

• You do not have a permanent employment contract.
• You are not paid sick leave or annual leave.
• You typically work irregular hours, or your employment is based on hourly demand.
• You receive a higher hourly rate to compensate for the loss of benefits.

Regardless of your employment status, you should always work out how much you can afford to repay, and therefore borrow, before taking out a loan. You can do this by assessing your budget by using our loan calculator to estimate the total cost of the loan and what your weekly, fortnightly or monthly car loan repayments could be. This could put you in a better position to make an informed decision as to how much you can afford for your repayments and if you might need to look for a cheaper car to fit in with your budget.

At Rapid Loans, we use the latest up to date technology so you can submit everything electronically with no fuss, providing us secure access to your relevant information and you with more time in your day. We also recommend demonstrating your ability to save, as having a deposit and long-term savings history is a great way to show you are reliable, though it is not strictly essential.

Casual employment is common in Australia and eligible applicants are welcome to apply. It is important to know that if you stop working, or the car stops working, you’re still required to pay back the loan. Should your employment change suddenly and you are unable to make the minimum repayments, you should contact us as soon as possible to discuss your situation.

Can I get a car loan?

Applying online with Rapid Loans is easy, we’ve made it so there are just a few simple screens from start to finish. If you have your documents on hand, many applicants complete the application in just a few minutes by supplying them electronically. You might not have to tick off everything in this list but here is what you may be asked for:

• Payslips, PAYG statements and tax returns.
• Credit card statements and existing personal or car loan statements.
• Mortgage, lease or rental agreements.
• Bank account statements for each of your accounts, including term deposits and shared accounts.
• Contracts, outstanding invoices, profit and loss statements if you work for yourself.

Once you send your application, it goes straight to one of our loan consultants in real time. You are our priority, so our team will begin reviewing it and be in touch within just a few business hours. Your eligibility for a car loan and the amount you may be able to borrow depends on the following variety of factors:

• Your financial circumstances such as income, credit rating and history, assets and liabilities.
• Your citizenship or residency status.
• The type of car you’ve chosen such as the model and whether the car is new or used.

You are even welcome to apply for a car loan if you’re on your learner’s permit! However, you must be able to show 3 months of continuous income and place of residence.

If we receive your completed application before midday and all required information has been provided, we’ll aim to assess it the same business day. Timeframes may vary depending on your circumstances. Apply online today and our team will assess your application as quickly as possible.