Home > Blog Posts > Can I Get a Car Loan On Centrelink? Car Loans Up To $35,000
Can I Get a Car Loan On Centrelink? Car Loans Up To $35,000
March 4, 2020● 8 minute read●
Written by - Jacaranda Team
If you receive Government benefits and think getting a car loan on Centrelink is off the cards, think again! For most people, owning a car is not a luxury, it is a necessity to be able to work, participate in social life and just get from A to B. However, some lenders may refuse your application because you are on Centrelink, but not Jacaranda! Getting a car loan on Centrelink shouldn’t necessarily cause you trouble and we want to give every Australian fair access to personal finance. That’s why we treat Centrelink payments just like any regular source of income. We can offer car loans from $5,000 to $35,000, subject to the assessment of your application.
Car loan on Centrelink
A car loan is a type of personal loan that – like the name suggests – can be used to purchase a new or used car. While it’s quite common that people pay a part of the price in one go, a car loan can also be used to cover the full costs of your purchase. As with any loan, you pay your loan amount plus interest back to your lender over an agreed-upon period of time.
The Jacaranda difference
Why choose Jacaranda for a car loan on Centrelink? Let’s get to know each other! We are your friendly online lender. We are 100% online, completely transparent about fees and costs, and we’re very fast. However, we do require documentation when assessing your application. Nevertheless, you can skip boring paperwork and apply from anywhere in Australia at any time of the day, as long as you have an internet connection.
We believe in responsible lending and want to make sure that you know what you sign up for. We won’t lend you money we think you might not be able to repay. All our costs and fees are openly stated on our costs page and in your loan contract – no hidden fees, no bad surprises. While our service is online-based, our team is still only a click away. They can support you at any step if you have a question or need help. And they will do their best to offer you a suitable loan for your personal situation. Because we know there are real people and real stories behind every single application. That’s why we love our job: It’s our mission to provide access to personal finance to as many people as possible.
How to qualify for a car loan on Centrelink?
As we’ve already stated, receiving Centrelink is not a problem for us. We could look at Centrelink benefits as a regular income that covers your repayments. If your source of income is Centrelink payments, that’s fine with us. But you do have to tick a few more boxes before you can apply:
- Are you at least 18 years old?
- Do you have a driver’s license?
- Is your online banking account set up properly and received consistent payments such as an income or Centrelink for the last 3 months?
- Do you have an active email address and mobile number?
If you said “Yes!” to everything, you are good to go! If you have any further questions about our eligibility criteria, please get in touch.
How to apply?
Not only is our application process super easy, but it’s also super fast. Most people submit their applications within a few minutes and may receive their outcome within 60 minutes (if they apply during our business hours). And the best thing – our paperless application allows you to apply from the comfort of your home, from the beach or from your smartphone on the go.
Step one: Fill in the online application
Firstly, scroll up to the top of this page to our car loan calculator. Using the slider, select the amount you’d like to borrow and the repayment period, when you’re done hit ‘Apply Now.’ You’ll then be taken to our 100% online application form. You can speed up this step by keeping the required information such as personal details, driver’s license number, and online banking details handy. Fill in your data, hit submit and you’re done!
Step two: We assess your case
We are well aware that everyone has different financial circumstances. That’s why we want to look at your case from every side to see the bigger picture. To assess affordability and suitability, our team will access a read-only version of your bank statements. Don’t worry about your privacy, we use the newest and safest banking software to keep your data secure. If you apply during our business hours, in most cases this process shouldn’t take longer than 60 minutes. However, if we need additional documents or need to clear up something in your application, we may request further documentation to support your application.
Step three: Get your cash
Once your application is approved, we will send you a digital loan contract to sign. Everything you need to know will be stated in the contract. If your bank has the New Payment Platform (NPP), you should receive your funds instantly. Time to buy a car!
What car loans do you offer?
Time for real numbers! Jacaranda can offer car loans from $5,000 to $35,000 with repayment terms from 1 to 5 years. How much you should borrow really depends on how much you can afford to comfortably repay. While we know mobility is important, you shouldn’t drain your budget for an extended period of time. Financial advisors suggest to only use 10% of your income for car loan repayments. You should also think about additional costs such as registration fees, a car parking spot, car insurance, and so on. If you struggle with any of these expenses, a personal loan may provide short-term financial relief to your budget.
What if I have a bad credit rating?
You may still get a car loan on Centrelink even if you have a bad credit rating. Your credit score affects which interest rate a lender may be able to offer you. While we do perform a credit check, it’s not all we look at. We look at the bigger picture, taking your current relationship with money and your bank statements into account. We promise to assess your complete financial situation and a mistake you made up to 5-7 years ago shouldn’t necessarily affect you financially today!
How do I repay my loan?
If you would like to know more about repayment rates, you can either head over to our costs page or play around with the car loan calculator on top of this page. It’s pretty simple: The shorter the period you borrow money for the less interest you have to repay. Once you’ve been approved for the loan amount and loan term, we set up automatic payments that will be debited directly from your account at a regular date.
What happens if I miss a payment?
No one plans to miss a payment, at least we hope so! But we know your personal circumstances can change and you may not have enough money in your bank account to cover the next repayment. If that is the case, please get in touch as early as you know about it. Open communication is key and we may be able to find a solution that fits both sides. If we don’t hear from you and you simply miss a payment, a penalty fee may be added to your loan amount (as stated in the contract).
What can car loans be used for?
A car loan has a simple purpose to help you buy a car. If you would like to cover additional car-related fees such as rego or repair costs, a personal loan may be better suited. But you can still do different things with your car loan. You can use it to buy a new or a used car or to refinance an existing loan. It’s advisable to put down about 40% of the payment out of your own pocket to keep repayment periods short and easy on your budget. However, sometimes you need a car and you need it now.
Refinancing an existing car loan is another interesting option. If you’ve been paying your loan for a few years already, it’s sensible to re-evaluate if you can get a better deal. You can then use the new loan to repay the old loan and continue payments with a better interest rate or under better conditions. Maybe your personal financial situation has changed and you can increase repayments towards your previous loan or you find a lender that you just click with more. That could be Jacaranda!
Something to consider
Taking on debt can be a scary decision and we encourage you to think twice if a personal loan is a good decision for your personal situation. If you receive Centrelink there may be other options available to you. If you find yourself in a sticky financial situation that is hard to navigate, you should speak to a free financial counsellor first. Additionally, you may be eligible for Centrelink Advance Payments. You can receive an advance on your Centrelink payments that will be repaid through future payments. While those payments won’t be able to cover for a car loan, they are interest-free and may help with additional costs that you are facing when buying a car.
When are your office hours?
If you would like to talk to someone in person about a car loan on Centrelink, you can reach our friendly customer service team with a phone call during office hours. You can also send us an email at any time, we will get back to you as soon as possible.
Our business hours are:
Monday to Thursday: 7am – 6pm
Friday: 8am – 4pm
Saturday: 8am – 12pm
Are you ready to apply?
We can’t wait to help you get your dream car. If you are looking for a car loan on Centrelink and you are ready to become a proud car owner, head over to our application. Your application could take only a few minutes. Some people receive their funds the same day (if they apply during business hours). However, every process is different and your application may take a little longer.
Scroll up now to get started on your application!
Want to learn more about car finance? Keep reading!
Get the lowdown on Centrelink approved loans
Written by Jacaranda Team