How to Apply for a car loan is a relatively straightforward process and most lenders follow the same procedures. As long as you have good credit, permanent employment, and income, it is easier to qualify for any number of auto loans. The hardest part will be choosing the best one you can find.

Without going into the different types of car loans on the market, let’s focus on the things you need to know before applying for a car loan and what to expect from a potential lender. The trick is to start your app as early as possible so that you can get your finance app locked down before you start looking for a car. If you have pre-approved your car loan, you are less likely to be tempted by a financing offer from the dealership you are visiting.

Most dealerships offer self-financing, but getting a loan right away can be a headache. Resellers often add something for themselves and you end up paying the price. If you do your homework early enough, you won’t have to worry about overpaying for your car loan.

Here are the things that you will need to apply for your car loan.

– Firstly, you must be at least 18 years old to apply for a loan in Australia. You must also be a permanent resident of Australia and have a minimum net income of around $ 25,000 per year. While these conditions do not apply to all creditors, this is a general rule of thumb and if you don’t meet any of these conditions there are many more questions to answer.

– In addition to your income, lenders also analyze your assets and liabilities to get a better picture of your financial situation. The stronger your position, the more likely your loan will be approved.

– You will need to provide evidence of your income through payslips and possibly your PAYG summary for the past few years. This allows the lender to assess whether your income is sufficient to repay the loan.