October 15, 2021
When you’re thinking about a used car loan, getting questions answered quickly can really help.
Below are some common used car loan questions and answers.
Can I get a loan to buy a used car?
Yes, you can.
Can I get a car loan to buy a vehicle from a private seller?
Yes, you can finance vehicles that are being sold by private citizens, not only dealerships.
This means with a pre-approval, you can go car shopping online on places like Facebook Marketplace and Gumtree.
The funds are typically dispersed directly from the lender to the seller’s bank account which means we’ll need the seller’s banking information, usually only a BSB and account number.
What’s a pre-approval?
It means you’re ready to go car shopping with your loan budget. Someone with a pre-approval has provided details and information to the OnlineLoans.com.au system and we’ve found a lender and loan product for them.
In other words, the loan amount and funds are “pre-approved”, pending finding a vehicle and providing all the details (agreed sales price, year, make, model variant, registration, etc.).
A pre-approval really helps when you want to get a car.
What details do I need to provide?
Typically, you’ll need to provide;
- Personal information: name, address, email, phone number, etc.
- Employment details: e.g. full time or part time, casual, how much you earn plus any bonuses, commission. If you’re a sole trader or self employed, we’ll need financial details too.
- Expenses: a rough idea of weekly (or monthly) living expenses and any other loans you might have.
- Documents: proof of income, ID, bank statements, signed privacy consent form, some additional documents may be required
- The vehicle: once you find a car you like, we’ll need details like, registration and seller’s information.
- Insurance: you’ll need to insure the vehicle, OnlineLoans.com.au can provide assistance with insurance.
Note that the above information is a guide only as requirements differ from lenders and applicants.
Why does OnlineLoans.com.au need all that information?
To assess the loan details. All lending institutions in Australia (like banks) need to know their clients’ details and where the funds are going.
OnlineLoans.com.au is able to help and guide applicants when it comes to information required.
How do I get all of those documents?
They can usually be sourced and submitted online via your device. Bank statements, for example, are typically generated via online banking. This goes for the privacy consent form, it’s all online.
Often, the only documents you’ll need to leave home for are certified copies of ID, which generally means going to your nearest police station or post office.
Check with your state or territory’s government for more details on who can certify ID.
OnlineLoans.com.au is here to help should you have any questions.
How long does it take to get a car loan?
As little as 24-28 hours from first entering your details to driving away! Note that processing times vary per applicant and vehicle.
Also, some brand-new cars attract delivery times but this is dependent on the manufacturer and car dealer.
What about classic cars or rare cars?
This can be arranged. OnlineLoans.com.au is well aware that some enthusiasts are looking for that wow factor in a vehicle.
Can I get extra money for repairs and/or upgrades?
Yes, in some cases, this can be arranged. It happens when someone finds a used car they like but it’s in need of repairs or upgrades.
OnlineLoans.com.au is able to assist with these requirements, however, it depends on vehicle and applicant.
What is the interest rate on used car loans?
Interest rates are dependent on applicant profile and type of vehicle. Generally, an applicant with good banking conduct and sufficient income, buying a late-model used car will attract lower rates.
OnlineLoans.com.au has a large panel of lenders and resources to find the best loan products for our clients.
Where can I drive a car bought with a loan?
All over Australia. As long as it’s safe, feel free to use your car as you see fit.
What if I find a car before applying for a car loan?
This happens a lot. Someone finds the perfect car for sale at the perfect price, then needs finance. In this case, get the ball rolling quickly to make sure you don’t lose it to another buyer.
Think carefully about putting a deposit down before you’re pre-approved. Ideally, you’ll get your pre-approval and then go car shopping as you’ll have a budget to go by.
How do I get started?
It’s easy. Simply start with an OnlineLoans.com.au quick quote to see the numbers and know where you stand.
As soon as you’re ready, you’ll be able to get the process moving.
As per our name, it’s a simple online process.