A car loan is a type of loan specifically designed for buying a new or used vehicle. With a car loan, you borrow a lump sum to buy a car and repay it over an agreed period through regular, fixed payments. Because the loan is linked to a vehicle purchase, car loans are typically structured to suit the value and lifespan of the car.
When you apply for a car loan, the lender assesses your financial situation, including your income, expenses and credit history. If approved, you start your search for the perfect vehicle, or if you’ve already found the perfect vehicle, you’re ready for the next step.
Once you’ve found the right car, the lender will pay the seller directly. You then repay the loan over a fixed term with weekly, fortnightly or monthly repayments.
At Jacaranda Finance, our car loans come with fixed interest rates. This means your repayments stay the same for the life of the loan, helping you budget with confidence and avoid unexpected changes.
Car loans are specifically designed to purchase a vehicle. This includes both private and dealership purchases and covers:
Before applying for a car loan, it’s recommended that you check if you qualify. This step uses a soft credit check, which means it won’t affect your credit score. It could help you to understand whether a car loan may be available to you before proceeding with an application.
The next step is to select how much you’d like to borrow and your preferred loan term. It’s important to understand at this stage the type of loan you are applying for and whether it will have fixed or variable interest rates. At Jacaranda Finance, all of our loans offer fixed interest rates and repayments.
During the application process, you will be asked to provide details such as:
This information helps lenders to assess whether the loan is affordable and suitable for you.
Once your application has been submitted, it will undergo an assessment. The assessment looks at a variety of factors including:
If your application is approved, you’ll receive a call letting you know what amount you’ve been approved for and your interest rate. Once you’ve found a vehicle, you’ll provide Jacaranda Finance with either a contract (if purchasing from a dealership) or contact details (if purchasing from a private seller). We’ll then work with the seller to complete the deal and deliver the funds directly to them. We’ll also notify you of your repayments and any applicable fees.
To learn more about our application process, read our guide: How to Apply for a Loan.
When you apply for a car loan, your application is assessed to make sure the loan is affordable, suitable and responsible for your circumstances. The aim is to confirm repayments can fit comfortably into your budget.
As part of the assessment, a lender will review important information such as bank statements, your credit report and existing financial commitments. Lenders will also ensure that the vehicle you are purchasing meets certain criteria, including:
Read More: Visit our guide on How to Apply for a Loan or our Loan Eligibility FAQ.
Interest rates are personalised and determined by factors such as the loan amount term and loan type. Your interest rate is determined by a range of factors that are reviewed when your loan application is assessed
Before you apply for a loan, it’s important to review your budget and understand what you can comfortably afford. Our loan repayment calculator can help, by allowing you to estimate your repayments before you apply.
$3,000 - $25,000
