Low Doc Car Loans Explained
Low doc car loans explained
Understanding what a low doc car loan is can help you decide whether it’s the right car loan option for you. At Positive Lending Solutions, we understand that your personal circumstances can often dictate what documentation you have available and we want to help you find the best car loan regardless of your situation.
What is a low doc car loan?
As the name suggests, low doc car loans are a loan product which do not require you to provide as much documentation as many other loans.
The main documents you are usually required to provide with a low doc car loan include:
- Proof of ID
- Proof of comprehensive insurance for the car
- Trust deed or partnership agreement (if applicable)
Who do low doc car loans suit?
Low doc car loans suit people who may not be able to provide the documentation required with standard car loans.
More often, it is self employed people or even business owners (especially for start up companies) who choose a low doc car loan as the best option for them.
Often low doc car loans have usage requirement that the car must be primarily used for business purposes so it’s more common for businessmen and women to use low doc car loans than those looking for a family leisure vehicle.
Pros and cons of low doc car loans
- The biggest benefit of a low doc car loan is that it gives people with minimal documentation the chance to get a car loan that they may otherwise struggle to get approved.
- The main drawback of a low doc car loan is that you’ll be restricted by the usage – most low doc car loans require you to be using the vehicle for business purposes at least 50% of the time. You may also be required to have held an ABN for at least 12 months before being approved for a low doc car loan.
Comparing low doc car loans
It’s true that lenders may have different criteria for approving low doc car loans so you’ll want to look at the specific requirements when you start to compare low doc car loans.
Deciding which one is right for you will also depend heavily on your financial situation so consider:
- What you’ll be using the vehicle for
- What rates of interest you’ll be paying
- What are the monthly repayments and can you afford them
- How long you have held an ABN for
- What loan terms are offered and do these suit you
Other loan options for self employed
If you’re self employed and looking for the right loan option for you, why not get a quick quote from Positive Lending Solutions? We have decades of experience working with people in all different situations and have helped thousands of people to find the right car loan for their needs.
We know that being self employed comes with a lot of responsibility. If you feel like you’re juggling too many things or simply haven't found the right car loan for, contact Positive Lending Solutions for expert help and we'll evaluate your financial situation to see how we could help you get a loan approved.