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Car Loans for Pensioners

October 29, 2019 6 minute read
Car Loans for Pensioners

Pensioners car loans: What you need to know 

Purchasing a car is a big commitment. In addition to the hefty purchase price, you will need to pay petrol, insurance, registration and service fees. If you are already on a limited budget, why cause more financial stress? At Jacaranda Finance, we offer affordable car loans for pensioners. 

We offer pensioner car loans to our customers from $5,000 to $35,000 over a term of 1 to 5 years. We consider most Centrelink income as regular income. So, whether you are on an Aged Care Pension or a Disability Pension, we may be able to provide you with car finance for pensioners. 

Who qualifies for car loans for pensioners? 

If you are looking to apply for a pensioner car loan, we have some standard eligibility criteria that all of our applicants must meet. Please ensure that you can say ‘yes’ to the following before you apply for a car loan with us:

  • You are at least 18 years old
  • You are an Australian citizen or Permanent Resident
  • You have had a consistent 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

Who is considered a ‘pensioner’?

To be considered a ‘pensioner’, you must be receiving Centrelink benefits labelled as a ‘pension’. Whether this is an Aged Care Pension or a Disability Support Pension, you are considered a pensioner in both instances. 

If you are receiving other Centrelink benefits, like a Parenting Payment or a Widow Allowance, you are not considered a pensioner. This is because the benefits you are receiving are not labelled as a ‘pension’. If you receive the Widow Allowance and the Aged Care Pension, then you are considered a pensioner. 

If you’re receiving Centrelink but you’re not a pensioner, you could consider applying for a Centrelink car loan

Car loans for pensioners with bad credit

Are you worried about your credit score affecting your chances of securing car finance? We offer car loans for bad credit. While we must conduct a credit check, we will look at other things like your bank statements to ensure that a car loan is an affordable option for you. 

We engage in responsible lending as set out by ASIC, so we will never lend anyone money we don’t believe they will be able to reasonably repay. However, if your relationship with money has improved even with a bad credit score, we may still be able to find a loan solution for you.

Is it possible to get no interest car loans for pensioners? 

If you are on a pension, a ‘no interest car loan’ can seem like a great option to save money. Unfortunately, there are no lenders that offer a ‘no interest loan’ for the duration of the loan period. Some lenders may be able to offer you a no interest period of your loan, however, after this period ends, you will be required to pay interest. 

At Jacaranda, we are not able to offer ‘interest free car loans’ but we can offer low interest car loans. Each application is subject to assessment but, depending on how much you wish to borrow and your current financial situation, we will be able to find a fair interest rate to suit your needs. For more information, visit our car loans interest page or use our car loan calculator

How to improve your chances of getting approved for a pensioner car loan 

Are you still worried about being approved for a pensioners car loan Australia? There are some things that you can do to improve your chances of being approved. 

Check your credit report

It is important to know what your credit score is so that you know what your options are in terms of lenders and types of loans. If you have a bad credit score, you may find it difficult to get approved from a traditional lender like a bank. However, online lenders like Jacaranda can be a lot more lenient in terms of credit scores. The better your credit score, the more room you have to negotiate your interest rate and other terms.

Pay down any outstanding debt

When you apply for a loan, your lender will look at your income and your outgoings. If your debt is too high relative to your current income, the lender will likely reject your application. Paying down some or all of your outstanding debt will only improve your chances of loan approval. 

Increase your deposit

If you put down a large deposit on the vehicle, not only do you need to borrow less, you make yourself more attractive to the lender by lowering the risk of the loan. You will also save money on interest and other fees by borrowing a smaller amount.

Don’t overextend yourself

The lender will look at what you can realistically afford to repay each month. You will not be approved for a loan that you simply cannot afford. Use our loan slider to see exactly how much you can afford, and readjust your budget if necessary.

Ready to apply?

Applying for a car loan with Jacaranda is easy with our 100% online application form

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. All the important details associated with your loan will be clearly stated in your contract. 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. 


I’m on Centrelink, does that make me a pensioner?

There are two main categories of pensions: the Aged Care Pension and the Disability Pension. Just because you are on Centrelink benefits does not necessarily mean that you are a pensioner.

Can I get a car loan if I’m a pensioner and have bad credit?

We will take a look at your financial situation as a whole before deciding whether a car loan is affordable for you. Even with bad credit, if we can see that you have the means to repay. your loan, we may be able to provide you with a car loan with bad credit.

Can I get a used car loan?

We provide car loans for both new and used cars. All you need to do is provide us with the make and model of the car you will be purchasing and we will handle the rest.

Can I secure my loan with the car I’m purchasing?

Since our car loans are all secured loans, you must have an asset to hold against the loan as collateral. If you do not have another item to use, you can use the vehicle you are purchasing.


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