2021 Car Loan Requirements
Note: Updated for 2021
When you apply for a car loan, there's specific car loan paperwork that you need to supply to get a loan assessment. From your residential address to your financial information and proof of ID, here's your checklist to make your car loan application faster:
Your Car Loan Requirements:
- Personal Identification
- Two years of Residential history
- Proof of Income
- Car Insurance Policy
- Tax Invoice for your new car
1. Personal Identification
The first car loan requirement is your personal identification. Our 100 point ID check is straightforward, you'll need to provide your full name, contact email and telephone number.
100 points of ID can be your passport and Medicare Card, or Driver's Licence (front & back) and current tertiary ID.
You can submit your personal identification by simply snapping a clear photograph of your ID, front and back, and sending the photos by SMS or email. There's no need to find a scanner to meet your car loan requirements during the application.
2. Residential Information
The second car loan requirement is two years of residential history, whether you are renting or mortgaged.
At this stage, it's also a requirement that we check your citizenship or residential status in Australia - generally, you'll need to be a permanent resident or Australian citizen to get a car loan, though there are some visas, such as work visas, that means you meet the car loan requirements.
3. Proof of Income
The third car loan requirement is to show proof of income. To meet this requirement, you will need to provide your last two payslips with evidence of your year to date wage.
If you're self-employed or a business owner, instead of providing payslips, you can meet the proof of income car loan requirement by providing your two most recent tax returns.
We'll also need your most recent three months bank statements. If you use online banking, you can provide this car loan paperwork quickly and easily online through our secure bank statement portal using your login - so there's no hassle with printing and scanning your statements.
Car loan paperwork: employment & references
To apply for a loan, you'll need at least 3 months of employment with the same employer. However, as car loans are assessed on a case-by-case basis, it's best to check with the Positive team if you're unsure.
Often, you'll be asked to provide references. This is especially true with consumer loans (non-business). Your references can be other adults not living with you, and not living together. For example, mum or dad (if you're not living at home) and a friend. These are listed as last resorts for contact and typically won't be contacted.
Car loan paperwork: assets & liabilities
We'll also ask you about any current assets and liabilities, and your regular household expenses. This includes things like TV/Internet costs, petrol or public transport, insurance, groceries and entertainment.
Your assets include any vehicles you own, cash savings, investments and property.
Remember to state all of your liabilities, including credit cards, any loans or debts.
If you have any outstanding payments due or previous bad debt, in order to strengthen your loan application with the lender, we will ask you about the story behind the missed payment.
4. Car Insurance Policy
The fourth car loan requirement is at the stage of the final settlement. When you've found the car you'll buy, you will need to arrange comprehensive car insurance and provide a certificate for a 12-month car insurance policy at the time of your loan settlement. Often, borrowers prefer their car insurance to be arranged along with the loan, Positive Lending Solutions is able to assist with car insurance quickly and easily.
You may be able to arrange the car insurance as part of your regular car loan payment, so you're only getting one bill for your car. Just ask your lending manager about getting a competitive car insurance quote included in your car loan paperwork.
5. Tax Invoice for your car
The final car loan requirement is the tax invoice for the car that you've contracted to purchase. This essential piece of car loan paperwork needs to show your new car registration number, vehicle ID (VIN) or chassis number, engine number, and the agreed purchase price of the car.
If you've paid a deposit on the car, this should be included on the tax invoice or a receipt attached to your car loan paperwork.
Your car loan requirements for pre-approval
When you apply for a car loan pre-approval before you choose the car you want to purchase, we'll need to know some basic details about the type of car that you intend to purchase:
- Whether the car will be new or used.
- How much you intend to spend.
- Whether you will trade in the car you have now.
- How the car will be used - personal or business.
For a secured car loan, you'll need to buy a car that's less than seven years old.
Then once you find the car, we will collect the tax invoice and submit the final loan information to the lender for final approval and settlement.
Are there different car loan requirements for a Business Car Loan?
When you apply for a business car loan, such as a chattel mortgage, we'll ask you for car loan paperwork including your BAS statement, as well as profit and loss statements for the recent 12 months.
When you apply for a business car loan, you'll need a registered ABN and evidence that you are trading profitably. Information that we need for your business car loan may include:
- Nature of the business
- Trading Name
- Assets and liabilities
- Recent BAS statement
- Profit and loss statement
Additional business car loan requirements
To strengthen a business loan application, we may request a profit forecast from your account.
Submit all your car loan paperwork from your mobile phone
Now that you know exactly what you'll need to apply for your car loan. The Positive advantage is that all of this information can be uploaded using just your smartphone, making applying for your car loan super quick and easy.
You can start your car loan application right now, online, and you could have a pre-approval within a day.