How long does a car loan application take?
If you’re itching to get behind the wheel, you’ll want to secure your car loan as quickly as possible.
These days, the process of applying for a car loan is quick and hassle-free. With most of the application handled online, it’s possible to complete your application and be approved for a car loan within 48 hours.
Make a move
It’s worth taking a minute to request a RateEstimate to find out if you’re eligible to apply for a loan with Plenti. It will also provide you with an estimate of the fees, charges and interest rate that may apply to your loan.
If you’re happy with your rate estimate, we’ll typically finalise successful loans within a day or two of receiving your complete application. It’s that simple!
Remember, requesting a free RateEstimate only takes 1 minute. It won’t impact your credit score and there’s absolutely no obligation for you to proceed with a loan application.
To be eligible for a Plenti car loan you must:
- Be aged 21 or over
- Be an Australian citizen or permanent resident
- Be earning over $25,000 per year from a regular source of income that you can demonstrate
- Have a good credit history
Plenti will consider a loan application if you are self-employed. Additional credit assessment criteria and requirements may apply.
Make the first move and you could be hitting the road sooner than you think.
Necessary paperwork
Lenders will ask for a range of documents to prove your identity and financial situation so that they can assess whether you will be a trustworthy borrower. Basically, they want to know that you have the ability to repay the car loan without falling into financial difficulty.
It’s a good idea to prepare your paperwork ahead of time to speed up the process. Here is an overview of the type of documents you may need to provide when you apply for your car loan:
- 100 points of ID. For example, your driver’s license, passport, Medicare card, etc.
- Proof of residence, such as council rates or a utility bill that confirms your address.
- Proof of income, such as recent payslips, a tax return, a group certificate or current bank statements. Lenders may also ask for a letter from your employer stating your employment details.
- Proof of savings, such as bank statements or investment documents that show you have the ability to regularly save money from your income.
- Assets, including property or other vehicles that you own.
- Liabilities, including any other debts or loans in your name, such as credit cards.
- Proof of comprehensive car insurance to show you’re covered in case you are hit with a damages claim in the future.
- Contact details for people who can authenticate these details, such as your employer, landlord or accountant.
Details about your car
Lenders may ask for details about the car you wish to buy so they can understand how much it will cost and how much you’ll need to borrow. You could be asked to provide documents such as:
- An invoice from the dealership or a contract of sale
- Vehicle chassis number
- The year, make and model of the car
- Registration details
- Details on the fuel efficiency of the car
- Confirmation of comprehensive car insurance
Number crunch!
Take the time to work out how much you can afford to pay each month on top of your current expenses. You can crunch the numbers on this useful calculator on the MoneySmart website. Next, figure out how much you can contribute as a deposit, should you be approved for a car loan.
Once you have a particular car loan in mind, make sure you’re aware of all the loan features and hidden costs including:
- The loan amount
- The interest rate
- The repayment period
- Additional fees such as establishment, upfront late payment, account keeping, early exit and monthly administration fees
Experiencing delays?
There are a few things that could stand in the way of a speedy car loan approval process.:
A poor credit score: If you have a poor credit score or no credit history, you may find it more difficult to be approved for a car loan.
Limited deposit: If you have no deposit saved to contribute to the cost of the car, or your deposit is too small, it may slow down the approval process and you may be required to provide more documentation.
Incomplete paperwork: If you are unable to provide all the required information about yourself and the car, the approval process will be delayed.