Bad Credit Car Loans
Looking to buy your next car but have bad credit? We help borrowers like you get a second chance at car finance.
Get approved for a car loan with bad credit through RoadLoans
Having less-than-perfect credit can seem like an obstacle to accessing the finance you need to buy your next car, but it isn’t. At RoadLoans, we’re partnered with a variety of understanding lenders who can look past your score when it comes to assessing your application.
One of our diligent consultants will help you throughout the process, from start to finish, and find the most suitable offer available. Regardless of whether you’re looking to purchase a brand-new set of wheels or looking at an older model, we can help secure the funding you need to make your car purchase dream a reality. Get started with a quick quote today.
Flexible lending partners
We count a variety of specialist lenders amongst our panel who can work with you, no matter your credit score.
Quick no-obligation quote
The quick quote you’ll get through RoadLoans is obligation-free, so you can take more time if you’re unsure.
Experienced consultants
Our consultants work with you to get approved and have vast experience working with clients in your position.
The features and benefits of bad credit car loans
No upfront deposits required
Whether you have enough for 50% of your car’s purchase price or don’t want to put any money up at all, you can still be approved for your purchase up to 100%.
Customisable repayment schedule
You can choose how long you take to repay your car loan, from as little as one year up to three or more, as well as whether to make weekly, fortnightly or monthly instalments.
Apply with multiple income sources
If you derive your income from multiple sources, such as from more than one job or via Centrelink benefits, you can still be approved if they’re stable and consistent.
Purchase new or used from a dealership or private sale
The car you buy doesn’t have to be purchased brand-new; we can also help you get approved to buy used vehicles from dealers or private sellers around Australia.
Extra repayments available
If you’re able to pay above the minimum amount required on your car loan, we can connect you with lenders who enable you to do so freely (although an early repayment fee may apply).
Fixed repayments for accurate budgeting
Your repayments will remain the same throughout your repayment term, meaning you can more confidently budget around your instalments and not worry about rate rises.
How to apply for your car loan with RoadLoans
Get a quick quote and apply
Complete your quote and, if you’re ready to apply, fill out your initial car finance application form. Once we have your form, we can get to work finding your loan.
Speak with your RoadLoans consultant
Your consultant will be in touch with you once they find the ideal lender who can work with your situation, which they’ll discuss with you before proceeding.
Confirm your lender and apply formally
Once you’re happy with your lender, you can kick your feet up as your consultant prepares your application to meet the specific financier’s requirements.
Receive approval, sign your contract and own your car
You can receive formal approval not long after and sign and return your loan contract to have the funds advanced to your seller and take ownership of the car.
How to get approved for your bad credit car loan
How do bad credit car loans work?
Bad credit car loans as a product are no different to a standard car loan: you’re approved to borrow a set amount to purchase a vehicle (up to 100%), which is secured by the vehicle itself, and repay it over a pre-agreed term upwards of one year. The differences between these products lie primarily in their respective costs, as loans for borrowers with imperfect credit histories come with higher rates and fees.
However, the most important role these loans fill is to grant those who have struggled in the past with other debts a second chance at finance and bring their car purchase dreams within reach. Lenders who offer this product are more concerned with your ability to repay your loan in the here and now, rather than whatever your score may be. Even if the cost of your loan may be higher, what’s crucial is that you can get approved to buy your car when you apply with RoadLoans.
What are the eligibility criteria for bad credit car loans?
There are several key criteria you’ll be required to meet as part of your car loan application. Your consultant will make sure to only select financiers whose qualification requirements you’re able to meet to sidestep any avoidable rejections. Although they may differ slightly between lenders, the key points to meet include the following:
- At least 18 years old and a citizen, permanent resident or valid visa holder
- Working in a stable job and earning a consistent income (at least $26,000 per year)
- Any Centrelink income must be stable and unconditional such as a single parent payment or disability pension, rather than JobSeeker or Youth Allowance
- If working casually, you’ll need to display at least six months of consistent hours and income, while self-employed workers will need one to two years of trading
- Your car mustn’t be older than 20 years when you purchase it, otherwise an unsecured loan will likely be required
Which documents will I need as part of my bad credit car loan application?
You’ll be required to supply several documents as part of the application process to enable your consultant and lender to accurately assess your income and financial situation. These are likely to include:
- Your last 90 days’ worth of bank statements
- Your last two payslips
- If you receive benefits, recent Centrelink income statements
- If you’re self-employed, your last one to two years’ worth of tax returns
- Photo ID such as your driver’s licence
- Details of your current expenses and liabilities (such as other loans)
- Information on any other assets you own (such as other cars or your home)
- Your application form, signed consent form and credit guide, which you’ll receive from your consultant
How much will I be able to borrow on my car loan?
While car loans don’t technically have an upper limit and can be approved for up to 100% of the value of the vehicle you’re purchasing, bad credit car loans don’t often exceed $100,000. However, the amount you’re ultimately approved for will depend on a variety of individual factors. Some of the main variables which can impact the amount you’re approved for are:
The value of your vehicle
A key area which shapes the size of loan you’re approved for is how much your car is worth. Because your funds will be used exclusively for the purchase of the car (as well as to potentially cover on-road costs like insurance and registration), you won’t be approved for much more than the car’s value.
Your income
Fundamentally, your lender won’t approve an application for an amount they don’t believe you can comfortably afford. For instance, if your disposable income each month was $1,000, you won’t be approved for a loan which comes with repayments over that figure. The more you earn, the more you’re likely to be able to afford.
Your employment
Another aspect of your income which lenders consider is the stability of your employment. This can help tell them whether you’re at any risk of having your income stream run dry during your repayment term. For instance, someone who has been working full-time in the same job for five years is more likely to be approved for a greater amount than someone who recently started working casually.
Your expenses
Of course, it isn’t just about what you earn, but also what you spend. The more your expenses eat into your available funds each week or month, the less you’ll have available to cover car loan repayments. Lenders want to avoid putting you under any stress or risk of default when it comes to your repayments.
The nature of your bad credit
Not all bad credit is the same, which lenders will be able to see when they assess your credit file. For example, someone whose credit isn’t the best because of a few late payments on your credit card a few years ago but has been positive since will be assessed differently compared to someone who has recently defaulted on a loan (which is likely to rule you out from being approved).
Top tips for maximising your chances of bad credit car loan approval
Avoid job changes
If you can show that you’ve been able to hold down a job consistently for an extended period, you’re more likely to be approved and seen as a safer prospect when it comes to repaying your loan debt.
Put down a deposit
Paying a deposit towards your purchase reduces the level of risk posed to the lender and shows that you’re serious about your vehicle purchase, so you can increase your chances of approval if you have any savings available to do so.
Try not to move around too much
Lenders will look to general life stability when assessing applications. If you’ve been moving between homes, your living expenses are more likely to fluctuate and potentially make keeping up with repayments more difficult.
Plan a budget to help you save
It’s worth looking at your financial situation before you apply. Cleaning up your overall spending can help show your lender that paying off your loan is a top priority and you’re working to make it easier for yourself.