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Car Loans on Centrelink
March 4, 2020●
5 minute read●
Can you get a car loan on Centrelink?
Are you looking at applying for a car loan while receiving Centrelink benefits? Most traditional lenders will not consider lending large sums to people that receive Centrelink payments. At Jacaranda, we believe that as long as you have the means to repay your loan, that is all that matters. We consider most Centrelink income as regular income. So, as long as you have been receiving your benefits for the last 90 days, you may be eligible for car finance on Centrelink with us.
Centrelink car loans: What are your options?
We offer car loans from $5,000 to $35,000 to be repaid over 1 to 4 years. A Centrelink car loan is a type of personal loan that can be used to purchase a new or used car. This money can either be used to fund part of or the entirety of your purchase.
Jacaranda’s car loans are secured loans and are offered with a fixed interest rate. This means that the interest rate will remain the same throughout the duration of your loan. If you do not have an asset to secure your loan, you may be able to use the car you are purchasing as collateral.
Financial advisors suggest to only use 10% of your income for car loan repayments. They also suggest to put down about 40% of the payment straight away to keep repayment periods short and manageable. However, if this is not an option, you can apply for any amount with us. We will assess your individual situation to ensure that you will be able to responsibly repay your loan.
How to qualify for a car loan on Centrelink
There are a few eligibility criteria all of our applicants must meet before we provide them with a loan. Please ensure you can say ‘yes’ to the following:
- You are at least 18 years old
- You are an Australian citizen or Permanent Resident
- You have been receiving a regular income into your bank account for the last 90 days
- You have an active email address and mobile number
- You have internet banking set up
What Centrelink benefits are considered eligible for a car loan?
If you are receiving any of these Centrelink benefits, and meet the rest of our eligibility criteria, you may be eligible for a car loan with Jacaranda.
- Age Pension
- Carer and Disability Payments
- Parenting Payments
- Remote Area Allowance
- Widow Allowance
Unfortunately, we cannot provide car loans for people receiving Jobseeker, Jobkeeper, Youth Allowance or Education payments (Austudy, ABSTUDY). This is because these payments are considered ‘temporary’ and cannot be relied upon for the duration of your loan.
What about bad credit car loans on Centrelink?
Are you worried that your poor credit history will impact your chances of securing a car loan? We offer bad credit car loans even to people on Centrelink. While every application is subject to assessment, we will take a look at your financial situation as a whole.
It is required by law that we carry out credit checks on all of our loan applicants. However, we will also look at things like your bank statements to ensure that you will be able to repay your loan. So, if your relationship with money has improved even with a bad credit score, we may still be able to help.
How to get a car loan on Centrelink benefits
Are you ready to apply for a car loan with Jacaranda Finance? The application process could not be easier with our 100% online car loans.
Step one: Apply online
Use our loan slider to select the amount you wish to borrow. When you’re ready, click ‘Apply Now’ and complete the rest of your application form.
Step two: We assess your loan application
Once we have received your completed application, along with all of your supporting documents, we will begin processing. We will do our best to get back to you with a same-day outcome, however, this is not guaranteed.
Step three: Review and sign your contract
If your application is approved, we will send you a copy of your electronic contract. Everything you need to know will be clearly stated. Once you’re happy, sign your contract and return it to us.
Step four: Receive your money
Once we have received your signed contract, we will transfer your funds straight to your account. If your bank supports NPP, you could have your money within 60 seconds.
Still have a question about our car finance options? You may find the answer below.
Does Centrelink count as income?
We treat most Centrelink income as regular income. The reason we consider your income is to ensure that you will be able to repay your loan. As long as you have been receiving your Centrelink benefits for the last 90 days, you may be eligible for a car loan with Jacaranda. Every application is subject to a full assessment, so we cannot guarantee that we’ll approve your loan.
Can I get a car loan on Centrelink?
We provide car loans to people receiving Centrelink. As long as you have the means to repay your loan and meet the rest of our eligibility requirements, we may be able to provide you with a loan solution.
How much can I borrow?
We can provide car loan options from $5,000 to $35,000 to be repaid over 1 to 4 years. If you have more questions about our costs, you can visit our car loans interest rates page or use our loan slider.
I’m on Jobseeker, can I still get a car loan?
Unfortunately, Jobseeker is not an eligible Centrelink benefit to qualify for a car loan with us. The reason for this is because it is considered ‘temporary income’ and cannot be relied upon as a consistent source of income for the duration of your loan period.
Do you provide guarantor loans?
We can provide guarantor car loans. Guarantors will co-sign the loan agreement with you, taking part of the repayment responsibility onto them.