Once you submit your car loan application, it could take a few days to a few weeks to get approved. The car loan approval process varies depending on the lender and the kind of car loan you’re applying for. Some lenders could respond within hours while others may take a few days.  

Usually, standard car loan applications take only a day to assess. More complex or difficult applications, like bad credit car loans, can take more than a few days. Below, we explain the ins and outs of the car loan application process. 

How long does the whole car loan application process take? 

From submitting your application to receiving approval, the car loan process could take a couple of days. After receiving your application, the lender will verify the information you’ve provided. You will be required to provide supporting documents, and although the requirements change per lender, the most common include your recent payslips and bank account statements.

If your car loan is approved, the lender will send you the finance documents to sign. Afterwards, you can finalise your car purchase and the car dealership or private seller will be paid directly. This typically takes one to two days only. 

Factors that affect your car loan application 

There are a lot of reasons why car loan applications can take a long time. Here are a few things you should watch out for when applying for a car loan: 

Incomplete car loan application 

Providing incomplete or insufficient information on your car loan application could prolong the whole process. If you forget to provide a required document, your car loan application will be on hold until you provide it.  

To avoid any bumps during the initial application, talk to the lender about the requirements and needed documents. Also, always double-check the information you provide the lender as any mistakes could stall your application further or lead to rejection. 

Your credit score and credit history 

Your credit score and credit history play a big role in your car loan application. Lenders may take longer to scrutinise your application if you have a bad credit score or poor credit history. You may also need to provide additional requirements to prove you’re in good financial standing which could lengthen the whole application process.  

Lender’s internal process 

Sometimes, what makes the car loan application process lag are the lenders themselves. Some have fast car loan approval while others have a much longer process. For instance, Aussie Car Loans has a fully online car loan approval process which means borrowers don’t have to go to a physical office just to fill out paperwork and submit documents. Because it’s all online, everything can be done quickly and conveniently. 

Every lender has a different process when reviewing car loan applications. There may be special protocols for certain loans like unsecured loans or bad credit car loans. The size of your loan could also affect the speediness of your car loan approval. 

Tips to make the car loan application process smoother 

At the end of the day, your car loan approval relies on the lender. However, there are a few things you can do to make the whole process easier and improve your chances of approval such as: 

Prepare the needed documents 

Your car loan application could move quicker if you have all the paperwork ready beforehand. One of the most common delays during car loan applications is borrowers missing supporting documentation or requirements. Common documents needed for a car loan include: 

  • Identification 

  • Proof of residency 

  • Proof of income 

  • Proof of assets and liabilities 

  • Car information 

Provide complete car details 

Your car loan application should include information about the car you want to buy, if possible. You should include the make, model, age, condition, insurance, and other pertinent information. Submitting comprehensive documentation of the car you want to buy is a good idea, especially for those buying a used vehicle. 

Get a pre-approved car loan 

When you have a pre-approved car loan, it means a lender has provided conditional approval on a car loan. This doesn’t guarantee that you’ll be approved for an actual loan, but it does move things in the right direction. Being pre-approved for a loan can hasten the application process because the lender has already verified your information and credit history. 

Use the help of a car finance broker 

The whole car loan application process can be daunting, especially for novice car buyers. If you don’t want to go through the hassle of talking to multiple lenders, you can always get help from a car finance broker like Aussie Car Loans. Our expert brokers are here to help you through every step of the application process, from submitting your documents to finalising your car loan. 

Applying for a car loan can be easy with the right help. Get in touch with Aussie Car Loans today to learn more about your car finance options. 

FAQ 

What credit score is needed to get a car loan in Australia? 

Ideally, you’d want a credit score of 600 or higher. The higher your credit score is the better. It’s still possible to get a car loan with a lower credit score, though it may be a bit more difficult. 

Is it better to get a car loan online? 

Getting a car loan online could be quicker and more convenient. Because you don’t have to go to an office to submit your requirements, it hastens the application process and can save you a lot of time. Always go to a reputable online lender or car finance broker like Aussie Car Loans when applying for a car loan. 

Can you get a car loan with bad credit in Australia? 

You can still get a car loan with bad credit. In fact, there are car loans catered to those with poor credit scores called bad credit car loans or second chance car loans. 

Does getting a bad credit car loan take longer? 

A bad credit car loan may take longer to process compared to a standard car loan. Bad credit car loan applications are assessed more strictly to ensure borrowers are at a low risk of defaulting. 

What’s the quickest way to get a car loan? 

The quickest way to get a car loan is to have all the requirements and documents ready beforehand. You should also look for lenders who have quick approval processes so you can get your car loan in no time. 

What do I need to apply for a car loan in Australia? 

Basic requirements when applying for a car loan in Australia include: 

  • Identification 

  • Payslips, bank statements, and other proof of income 

  • Proof of assets and liabilities 

  • Information about the car you want to purchase (i.e., make, model, VIN, etc.) 

Can I get a car loan with an average credit score? 

Yes, you can get a car loan even with an average credit score. If you want to find the best deal out there, it’s best to enlist the help of a finance broker like Aussie Car Loans. 

Does getting a pre-approved loan make car loan approval faster? 

Getting a pre-approved loan can shorten the application process because the lender already has your financial information. In some cases, all you need to do is submit additional documents to formally apply for a car loan.