Can I get a car loan if I work as a contractor?
- Can you show evidence of a stable income for the past two years?
- Does your income exceed the minimum income criteria? To be eligible for a Plenti car loan, you must be able to prove that you earn over $25,000 per year.
- Can you provide proof of savings? If lenders can see that you’re capable of setting aside money for loan repayments, they’re more likely to view you as a trustworthy borrower.
Improve your chances
- Select a less expensive car so you can borrow a smaller amount
- Save for a deposit so you can borrow a smaller amount
- Check and improve your credit score
- Paying your rent, mortgage and utility bills on time
- Making credit card repayments on time and paying more than the minimum repayment
- Lowering your credit card limit
- Limiting how many applications you make for credit
Know your Plan B
Low doc car loan
Do you qualify?
- Australian permanent resident (some visa holders are also permitted)
- Over the age of 18
- Earn at least $25,000 per year
- Hold a valid driver licence (provisional or full)
- Hold an ABN if self-employed
- Interest rates: Is the rate fixed or variable?
- Hidden fees: Does the loan have upfront and ongoing service fees, or charges for making additional repayments down the track?
- The loan amount and terms: Car loans generally range from $3000 to $100,000, to be prepaid over a period of one to seven years.
- Loan restrictions: Low doc loans often have stricter lending criteria. For example, you may not be allowed to make additional repayments to repay the loan more quickly. Make sure the loan offers the flexibility to suit your situation.