A car loan is a great way to purchase the car you need even if you don’t quite have the funds yet. However, some car buyers feel a lot of trepidation when applying for finance. The car loan process can be a bit complex, especially for novice car buyers. The good news is Aussie Car Loans has a way to make the whole thing simple and convenient for borrowers.  

Read on to learn what happens when you apply for a loan with us! 

Car loan application: What’s the process? 

Taking out a loan is easy with the help of Aussie Car Loans. As a finance broker, we’re here to make your car loan application run smoothly. All you need to do is follow these simple steps: 

Step 1: Apply on our website or give us a call 

The first step to the loan application process is getting a quick quote. Simply fill out the online form with your email address, name, phone number, postcode, and desired loan amount. Or you can also give us a call on 1300 889 669 and we’ll get back to you at your earliest convenience. 

With Aussie Car Loans, you’re not bombarded with forms and complicated requirements. Our goal is to get to know your borrowing needs so we can be of assistance. Everything is streamlined, easy, and convenient. 

Step 2: Discuss your borrowing needs with an expert broker 

Our finance brokers will get in touch with you to talk about your car loan needs. Tell us your story! This step is all about getting to know your financial situation and figuring out what loan product fits your needs best. This is done conveniently over the phone, so you don’t have to take time out of your day to go to an office. 

After asking you general questions, we’ll get your application started. We’ll complete your application form, perform a credit history check, and advise you on your best course of action.  

Step 3: Sit back while your finance broker searches for a car loan 

Your finance broker will talk to our expansive network of lenders to find a car loan that’s tailor fit to your needs. They’ll also negotiate with the lender on your behalf so you can get the most favourable terms. 

Your broker will be there for you every step of the way—from application to settlement. They’ll keep you updated on the progress of your application so you can continue working and living your life. 

Step 4: Sign off on a car loan and complete the finance contract 

The broker will send information about the car loan they’ve procured for your approval. Once you give the go-ahead, your broker will submit the application to the lender to formally start the loan process. 

The lender will check over your car loan application and give the final approval. When everything is signed and approved, all you need to do is proceed to the car loan settlement and you’re good to go. 

Car loan settlement process: What do you need? 

Car loan settlement is the last step to finalising your car loan. This is when the sale of the car you plan to purchase is completed.  

If you’re buying from a dealership, you’ll need to provide the car invoice to your finance broker. For those buying a used car through a private sale, you’ll need to provide the car information, insurance, and other documents needed by the lender.  

Your finance broker will handle the submission of these documents to the lender. After all the requirements are passed to the lender, the loan contracts are produced. The last thing you need to do is sign the settlement documents. 

Getting a car loan is easy with Aussie Car Loans 

Ready to apply for car finance? Set an appointment with our expert finance brokers today! 

FAQ 

Am I eligible for a car loan? 

To be eligible for most car loans, you’ll need to be at least 18 years old, an Australian citizen or permanent resident, and able to repay the principal loan amount including interest. Other requirements may be needed depending on the lender and the type of car finance you’re applying for. 

How do car loans work? 

Car loans are a type of finance where borrowers use the funds provided by the lender to purchase a vehicle. After buying the car, borrowers pay back the original loan amount along with interest over a set period. 

How long do car loans take to process? 

On average, car loans take about a day or two to process. If you provide all the needed documentation, you can get your car loan approved quickly. 

What documents do you need for a car loan? 

Usually, you’ll need the following documents when applying for a car loan: 

  • Personal information  

  • Identification forms 

  • Proof of income 

  • Proof of assets and liabilities 

  • Information about your car and insurance 

It’s best to have these requirements ready to avoid delaying your loan application. 

Does a car loan affect your mortgage? 

Your car loan won’t affect the existing rates on your mortgage. However, if you’re planning to apply for a mortgage, having a car loan could affect your application because it’s additional debt. As long as you’re still able to make your potential mortgage payments, it won’t severely impact your home loan application. 

Is there a car loan application fee? 

It depends on the lender. Some may charge an application fee (usually around $150) while others like Aussie Car Loans don’t have any upfront fees. 

Does car loan application affect credit score? 

Yes, applying for a car loan affects your credit score. Whenever you apply for a loan, the lender sends a hard inquiry into your credit, reducing your credit score by a few points.

What does the car loan settlement process look like? 

Settlement of your car loan application involves providing the lender with the sale invoice and contract of sale. Some lenders may ask for additional documents depending on where you’ve purchased your car.