PromotedRateCity may receive remuneration for clicks on these links and/or as a consequence of a consumer acquiring a credit product after following these links.loans.com.au terms and conditions
Compare Car loans for pensioners car loans
Now showing 1 - 16 of 16 car loans
Sort byChoose your preferred sort order for the search results. The Default Sort is the
order products appear in the table before any sorting or filtering is done by you to better match the
results to your requirements. It is based on a variety of factors, including the product’s rates and
fees, the popularity of the lender, the availability of a direct link to lender sites, and other commercial
factors (see also <a href="/how-we-make-money" target="_blank">how we make money</a>). We encourage you to filter and sort the products accordingly to
your needs, to assist in your product research and product comparison.
Advertised RateThis is the interest rate published by the lender. Rates 'from' indicates that it is a minimum rate and most borrowers will pay higher based on your credit profile and other factors. 'Headline rate' indicates that this is an indicative rate from the lender and actual rates may be higher or lower based on your credit profile and other factors.
Comparison Rate*The comparison rate* is a way of comparing loans by including both the advertised rate and the fees involved. It is calculated based on a loan of $30,000 over 5 years, and represents the effective rate on the loan. The comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates.
Monthly repaymentInitial monthly repayment excludes fees and is an estimate based on advertised rate, loan amount of $30,000 and a loan term of 5 years. Actual repayments may vary based on your individual circumstances and interest rate changes.
Upfront FeeThis is the cost that you will get charged to set up the loan.
Go to siteRateCity may receive remuneration for referrals to these links
and/or as a consequence of a consumer acquiring a credit product
after following these links. Enquire Now, View Now, Apply Now and similar
wording indicates the results of clicking different links.
Today's top car loans productsSelected based on performance and popularity on our site. RateCity may receive remuneration for referrals to these links and/or as a consequence of a consumer acquiring a product after following these links.
Find popular car loans lenders from a wide range of Australian. View All >
People receiving a pension may wonder if they are eligible to apply for and be offered a car loan. If you're in this position, there is no reason not to explore your options, and many lenders will assess your financial circumstances to examine your eligibility. Car loans for pensioners are personal loans, and when assessing your situation, lenders will look at all your financial details, including your credit history, the value of your assets (including your home, if you own one) and what type of pension you receive. Pensioners with assets can be quite an attractive prospect for a lender, as a car loan could be secured on a home.
Can I get a car loan on a pension?
Yes. If you are receiving an aged or disability pension/DSP, Centrelink payments, parenting payment single/PPS, partnered parenting payments/PPP, or carer’s pension, there may still be options available to you when it comes to getting a car loan. Here at RateCity we try our best to outline the information that could help you make the best financial decisions possible, and potentially get you closer to an affordable car loan, even if you have bad credit.
Can I get a car loan if I’m retired?
Yes. Your options will be more limited than those of someone who is in employment, but as long as you have a form of income from aged pension, carer’s income, disability payments or Centrelink payments, it is possible to get a car loan.
Things to consider before looking for a car loan if you are on a pension
Are you a homeowner?
You are more likely to be accepted for a car loan if you have property that can secure the loan and reduce the risk to the lender.
How much do you need to borrow?
Lenders are more likely to lend to you in the case of smaller amounts.
Assess whether you have any savings that you can put towards your purchase.
Borrowing less will mean less to repay, and therefore less cost to you in interest payments.
How much is your income?
Even if you are not in employment, your pension payments will still be looked at by a lender as income.
Lenders will take your income into account in order to assess whether you can meet the repayments of a car loan.
This will affect the interest rate that you are offered.
How much are your outgoings?
Look at your income against your outgoings and be honest with yourself about how much you can afford to repay.
Assess your budget capabilities yourself prior to making any applications to check that repaying a loan is feasible.
You may need a car for daily use and find that owning a car is cheaper than living without one.
You might find on assessment that owning a car isn’t in fact necessary to your lifestyle.
How do car loans for pensioners work?
A personal loan works the same way for pensioners as for anyone else, in that you borrow an amount of money to pay for your car, and then repay that amount with interest over a number of months or years. One to five years is usual, but you could get up to seven years depending on the lender and the amount you want to borrow. Putting down a deposit or trading in an older car will reduce the principal sum you’ll be loaned, and consequently reduce the repayments. Interest rates will vary, so you should make comparisons between lenders – a loan comparison calculator is a handy online tool.
Yes. If Centrelink payments are your main source of income, getting a loan for a car can seem like an uphill struggle. However, there are still lenders who could be happy to lend to you. While the big four banks might not be willing to provide you with a loan if you are not in employment, smaller lenders and credit unions, as well as specialist lenders, tend to be more accommodating.
If you are on Centrelink payments, try to check the minimum income eligibility on the loan that you are looking to apply for. Applying for loans and being rejected will negatively impact your credit score, so be sure that you meet the requirements set out by the lender.
It may be advisable to try getting in touch with the lender directly before putting in an application.
You may even be able to receive a short-term advance on your Centrelink payments, providing that the amount you need to borrow for the car is low. This will be assessed on a case-by-case basis.
Can I get a pensioner car loan with bad credit?
Yes. While having bad credit and being on a pension limits your options, there are lenders who potentially will lend to you. There are also many lenders who specialise in bad credit car finance. Having bad credit means that applying for any loan is more difficult to do, and it tends to mean that the interest rates you will face will be higher.
Things to compare when applying for bad credit finance include:
Secured and unsecured loans – car loans tend to be secured against the vehicle, but if you are purchasing a used car you might require an unsecured car loan, or to secure the loan against your property. Secured loans tend to have lower interest rates than unsecured loans, but is it worth risking your home or your car if you don’t meet the repayments?
Interest rates – look at what interest rates are available to you with your current credit score. Do the repayments fit in with your current budget? With RateCity you can calculate repayments easily with our car loan calculator.
Fees – look at the fees that are attached to car loans. Are there any upfront or ongoing fees? Some loans may offer a lower interest rate but with fees that could end up making the loan more expensive. Also keep an eye out for early exit penalty fees. You don’t want to be caught out should you decide to pay off the loan early.
Final thoughts on car loans for pensioners
It is important to really weigh up your options and compare car loans in order to find the best possible outcome for your circumstances. Be realistic about what you can afford when looking at car finance and assess how necessary a car purchase really is for you.
Find loans that you are more likely to qualify for
For some people though, a car really is a necessity. If you have bad credit and are struggling financially there are other options. You can look into Microfinance from Good Shepherd Finance. Partnered with NAB they provide StepUP loans of between $800 to $3000 for people on low incomes for various expenses, including cars. You may find that this sort of loan is the most affordable for your circumstances.
You can also contact the free National Debt Helpline, on 1800 007 007 for further advice.
Can I get a car loan if I am on disability benefit?
Yes, there are some lenders who will consider your application if you are on a disability pension. As long as you have an income, usually of over $400 a week, there are lenders that are willing to supply you with a loan. There are also microfinancing charitable organisations that provide low interest loans for people on low incomes for certain necessary amenities, such as cars, if they match the specified criteria.
Poor credit doesn’t necessarily mean you won’t be able to get finance for your car purchase, though your options aren’t likely to be the same as someone with good credit.
In fact, a number of specialist lenders exist offering car finance for customers with poor credit, able to provide access to bad credit car loans.
However having a history of poor credit will likely mark you as a potential risk to lenders, so your car financing needs could see higher fees and interest rates. Alternatively, consider a secured car loan, which is a type of loan that uses the car you purchase as collateral, reducing the risk.
Other options include getting someone close to act as a guarantor for your car loan, or to talk to a broker about a personalised rate specific to your circumstances.
There are also costs associated with vehicle ownership, such as paying for petrol and the obligatory ongoing maintenance. But should you cut down on costs by servicing your own vehicle?
If you’re considering getting out the tool box, spanner, and grease-laden towel, you need to carefully weigh up the risks and benefits. A trained mechanic will need to complete certain tasks, while you may be perfectly capable to handle other aspects yourself.
If you’re short on time, it may be worth paying for the convenience of a full vehicle service. However if you’re trying to slash your expenses, there are some basic maintenance tasks that you can complete yourself.
You should call a mechanic if you’re unsure about a vehicle maintenance task you’re about to take on. However there are a number of maintenance tasks that you may be able to complete with your own two hands including:
Replacing your car battery
Changing the oil
Replacing worn windscreen wipers
Replacing blown fuses
Remember to keep your car’s body in good condition, by washing and applying a protective wax on a regular basis, too.
Always check your car warranty agreement as some new car purchases come with an extended car warranty provided your services are conducted at the vehicle service centre where you purchased the car. In these circumstances, you may find the service fee is capped, alleviating some of the maintenance woes.
A guarantor on a car loan is a third party, usually a relative or friend, who guarantees to meet the repayments of a loan for the purchase of a car, if the borrower/owner of the car defaults on the loan.
Guarantor car loans can be useful for people who would otherwise struggle in being accepted for credit to purchase a vehicle. These may include people with bad credit, students and young people who may have no credit history, as well as some pensioners.
Many lenders offer guarantor car loans, guarantor personal loans and guarantor home loans, because of the significantly reduced risk to the lender.
A guarantor car loan is a type of loan that features a guarantor on the agreement. The guarantor is a third-party individual, often a friend or relative, who guarantees the loan will be repaid if the borrower defaults on the car loan.
Guarantor car loans are often geared at people who might otherwise struggle being accepted for a secured car loan when purchasing a vehicle. Some of the reasons might include a lack of credit history such as with a student or young person, if there’s bad credit, or age as a factor such as with pensioners.
Being a student is tough enough, and while you might find the odd student discount on movies and technology, the same can’t be said about car loans, as you can’t really get a discounted student car loan.
Lenders make money on the interest and fees that they charge with loans, and the lowest interest and fees are given to the most reliable credit holders: people with excellent credit history.
As a student, you are unlikely to have enough on your credit report to warrant an excellent history. There are however, ways of getting a lower interest car loan if you can’t get an interest-free loan from the bank of mum and dad. One way of doing this may be through getting a guarantor car loan, which can get you a secured car loan by setting your parents up as guarantors.
Yes, as long as you meet basic criteria set out by lenders you are eligible for car finance. Your interest rate will be determined based on your financial history which can be found in your credit report, your income and any property you may own.
Student car loans are not a necessarily a product in and of themselves, but what you may be looking for is a guarantor car loan.
A guarantor car loan has a third-party act as a form of guarantee for your loan application, telling the bank or lender that if you default on your loan, someone will pay the loan repayments.
Going guarantor on a car loan is no new thing, and before internet-based credit scores, guarantor car loan applicants would apply for loans with a guarantor or property owner who could vouch for the person borrowing the loan.
To get a guarantor car loan, you’ll need someone willing to act as a guarantor for your car loan.
Yes, you can get a car loan with bad credit, although you’ll probably find the process trickier and dearer than that experienced by people who have good credit histories.
You can find a number of lenders that specialise in bad credit car loans. However, make sure you compare bad credit car loans before you sign on the dotted line, because not all car loans are alike and having bad credit may mean you are more likely to be hit with higher fees and interest rates.
If you have bad credit, it’s important not to take out a car loan unless you can afford the repayments because a default could further damage your credit rating. Conversely, if you make all the repayments and repay the loan successfully, your credit rating might improve.