Am I Eligible for Car Finance?

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Am I eligible for car finance?

It’s a pretty common question in the car finance world and if you’re asking yourself whether you’re eligible for car finance, you’re in the right place.

Firstly, you’ll have to be over 18 years of age, an Australian citizen or permanent resident or on a valid visa.

You’ll also need enough income surplus to cover additional car loan repayments.

Generally, finding out if you’re eligible for car finance is a case-by-case situation, meaning that talking to a broker is a good option.

Eligibility for car finance

There are a number of factors that can affect whether you’re eligible for car finance. They vary depending on the individual lender and the type of car finance that you are applying for.

Some general things to consider are:


Although in Australia, you are eligible for car finance from age 18, it can be harder to get it if you’re between the ages of 18-21 years old.

Usually, this is because people this age have not built up a substantial credit record to show evidence of responsible borrowing.

If you are over 75 years old, you may also find it harder to get car finance approved. That's not to say that you can't get finance if you fall under these age brackets. It's just a little harder.

Proof of income

You’ll need to consider whether you can show proof of a regular income. Payslips with a fixed salary are ideal in the car loan application process but if you’re self-employed or working part time or casual, you may need to show additional documentation.

Usually, a borrower needs to have been with their employer for at least 3 months or more before applying for a car finance.

If you’re receiving other income like rental income, you might need to provide evidence of regular payments.

  • Centrelink support. Many people receive Centrelink support and some forms are acceptable for a car loan. For example, typically, Carer’s Allowance is acceptable for car finance but Youth Allowance is not.


If you have a bad credit history, a deposit could help you to be seen as more eligible for car finance.

In addition, a deposit will lower the amount of money that you need to borrow from the lender so that may mean you have a better chance at your finance application being approved.

  • Balloon. A funny name but a balloon payment (aka. residual) means a sum of money a borrower agrees to pay at the end of a loan term instead of at the start, like a deposit. A balloon payment can also lower scheduled repayments and may be a good option for some.

Proof of residence

You’ll need a fixed address to be eligible for car finance. If you’ve been in your address for less than a year or two, you might need to provide previous address history.

Proof that is commonly requested is things like utility bills in your name, a rental agreement / ledger, mortgage documents or other written confirmation.

Checking your credit rating

You can check your credit rating for free on our website. It's one of the first steps you should take when finding out if you’re eligible for car finance.

Note that simply viewing your credit report won’t affect it.

Checking your credit will allow you to understand what makes a good car loan applicant and to figure out whether you can get car finance with your current credit score.

If you see incorrect information on your credit record, you can apply to have this changed. It’s important that you do this as incorrect information could affect your credit score and your eligibility for car finance.

Applying for a car loan

Once you know you’re eligible for car finance, it’s time to begin the car loan process.

The team at Positive aims to make the process fast and simple. Simplifying finance is what we do everyday for thousands of Australians.

In most cases, a car loan goes through these basic steps;

  1. The applicant discusses their circumstances and needs with a professional from Positive
  2. The applicant submits necessary documents like ID and is pre-approved for a certain amount of money
  3. Car shopping time. Upon finding the right vehicle, the professional from Positive make adjustments to the loan amount and contacts the seller
  4. The loan settles, funds are transferred and the applicant becomes the driver of their new vehicle!

Getting a pre-approval is a surefire way to purchase a car. It means you’ll know your budget and be ready to pull the trigger upon finding one knowing the funds are ready.

Ask for help

Speak to the friendly and experienced team at Positive Lending Solutions to get expert advice. Call 1300 192 367 today.

Prefer doing things online? Start with a quick quote.

The positive team can assist with new, used, dealer and private sale vehicles.

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