Car Loan Approval Checklist

Car Loan Approval Checklist

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How To Get Your Car Loan Approved

When you apply for a car loan, there are two key steps that you will take before you drive away with your new car.

If you've found the car, or before you start looking for your car, you'll need to get your car loan 'pre-approved' with the lender.

Then once you've found the car and signed the contract to purchase it, you'll need to 'settle' the loan so the funds will be released for you to finalise the purchase.

Here's how you can maximise your chances of getting your car loan approval, and getting a fast settlement.

Guarantee your initial car loan approval

You can increase your chances of getting your car loan approved by following this car loan checklist:


  • Work out how much you can afford to pay each week after your other expenses, and practice saving this amount regularly for a few weeks.
  • Get your free credit report before you apply to find out where you stand.
  • Reduce any unnecessary expenses like subscriptions that you don't use.
  • Use a car loan calculator to estimate how much you can comfortably borrow.
  • Pay off any small outstanding debts, including your credit card balance.
  • Save a deposit towards your car, as well as insurance and registration.
  • Have stable employment and residence.
  • Use a car loan broker to compare loans before applying.
  • Get a quote for your car loan before deciding to apply.
  • Have all of your car loan application documents, including evidence of identity, income, and residence, ready when you start your application.
  • Apply online to get your car loan approved faster.


  • Apply for a loan amount that you can't really afford to repay.
  • Make multiple car loan applications.
  • Stretch the truth in your application, such as exaggerating your income, or providing false references.
  • Change jobs or address frequently.
  • Get the first loan you see advertised.

When you prepare to apply for a car loan, you want to present your application in the best light possible to the lender, so that you're offered a favourable car loan structure and low-interest rate.

By arranging your pre-approval with a car loan broker, you can rely on their expert advice and presentation of your application to maximise your chances of approval.

To get a faster online car loan approval, make sure you have all of your documents ready when you start the application. This will mean the lender can review your information and give you a car loan approval without needing to ask you for further information.

Car loan checklist: documents

Here's what you'll need for a full and complete car loan application:

  • 100 points of ID
  • 3 months payslips or proof of income such as Tax Return, BAS Statement
  • Evidence of other income
  • Residential information
  • Any assets you have, including property, bank balances
  • Liabilities, including loans, mortgage, credit cards
  • 2 personal references

If you have all this information ready when you complete your application, it can be processed right away.

Car Loan Checklist for a Fast Settlement

Once you have an initial car loan approval and you've found a car that's within the amount you've been approved to borrow, you're ready to proceed to settlement.

Settlement is the final step in the car loan process before you drive away with your new car. Here's what you'll need to make it happen:

  • Tax Invoice for the car, with VIN, Registration number, car make and model.
  • Evidence of comprehensive car insurance
  • Sign and return car loan contracts

At settlement, if you've arranged your car finance with an online lender, they will usually email your contracts straight to you when you've found the car, enabling you to complete and return them for a same-day final car loan approval.

A car loan broker will be proactive about getting the tax invoice the lender needs, speeding up your settlement process.

Before your car loan can be finalised you'll need to provide evidence of comprehensive car insurance. You can arrange insurance through the insurance provider of your choice, or you can arrange it with your loan broker when you get your initial car loan approval.

When final car loan approval is complete, the funds will be released to your account, and you can pick up your new car.

Now that you know the car loan checklist you need to follow, you can confidently take the first steps by getting a car loan quote and working out what you can afford.

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