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Used Car Loan Australia

September 14, 2017 7 minute read
Used Car Loan Australia

Used car loans with Jacaranda Finance

Cars are the most common form of transport in Australia. More than two in three Aussies drive to work, according to the Australian Bureau of Statistics. Cars may be a necessity; however, it doesn’t have to drain your pockets. Used car loans could be a perfect fit for you. At Jacaranda Finance, we offer used car loans online up to $35,000. 

What are used car loans?

Used car loans are a type of loan used to finance the purchase of either a portion of or the entirety of a second-hand car. Jacaranda Finance offers used car finance from $5,000 to $35,000. The repayment terms range from 1 to 5 years depending on how much you wish to borrow.

You could get on the road in no time with our speedy approvals. Our 100% online application could take you less than 8 minutes to complete. All you need is an internet connection, mobile device or computer and a few spare minutes. Once we have received your application, we will endeavour to get back to within the same day that you apply.

Applying for a car loan for used cars is a cheap car loan option compared to purchasing a brand new car. A car that is only 12 months old has already lost up to 30% of its original price. If you purchase a car that is still only a few years old, you could inherit its warranty. ‘Used car’ does not always mean ‘old’; you could purchase a used car and still ride in style.

How do used car loans work?

Similarly to new car loans and personal loans, a used car loan involves borrowing a lump sum of money to fund the purchase of a used car to be repaid back over a set period of time with interest. The loan is used to purchase a used car rather than a new car.

How old does the car need to be for it to be considered a used car? 

Technically, to be considered a ‘used car’, the vehicle must have been previously registered in Australia. As soon as a car has been driven out of a dealership, it’s value depreciates considerably. Buying a used car allows you to keep costs down and avoid the hefty depreciation costs of a brand new car. 

Are your used car loans secured?

All of our used car loans are secured loans. The reason for this is because there is more risk involved for the lender if you are unable to repay your loan. Secured loans involve using an asset as collateral. This asset could be the vehicle being purchased. If you can’t pay off your loan, the lender may repossess your asset and sell it to cover their losses. Most lenders, however, will only consider this as an absolute last resort. Secured loans are, for this reason, less risky for the lender and therefore are usually accompanied by lower interest rates. 

Do you offer used car loans for bad credit?

Have you been searching for bad credit used car loans? Traditional lenders like banks or credit unions don’t usually consider bad credit applicants for approval. . At Jacaranda Finance, we like to take a more inclusive approach to lending. 

While we must conduct credit checks on all of our applicants, we actually put more focus on other factors like your income and spending. We use a third-party encryption service called Credfin to access read-only copies of your bank statements. We will look at your current income and spending habits to help us assess whether taking on a car loan is affordable for you. So, even if you have a bad credit score, if we believe that you have the means to repay your loan now, we may be able to pair you with one of our bad credit used car loans for used vehicles. All applications are subject to assessment. We follow responsible lending obligations set by the ASIC, so we will never lend any person money that they will not be able to repay. 

Can I get a used car loan if I’m Centrelink?

You may be eligible for our used car loans on Centrelink. We consider most Centrelink income as regular income. As long as you have been receiving your benefits for at least 90 days and meet the rest of our eligibility criteria, you could be in your new car in no time! The reason that we consider your income source is because we will never lend you money you cannot afford. So, if you can afford your car loan repayments while on Centrelink, we may be able to provide you with a loan.

Unfortunately, we cannot approve applicants receiving Jobseeker or Youth Allowance. This is because these benefits are considered a ‘temporary income’ and cannot be relied upon for the duration of your loan period.

How to apply

Applying for low interest used car loans with Jacaranda is simple and easy with our online application process.

Step 1: Apply online

Step 2: We assess your application

Step 3: If you’re approved, review and sign your contract

Step 4: Receive your money

Eligibility criteria

We have a few eligibility criteria all of our applicants must meet. Please ensure that you can say ‘yes’ to the following requirements prior to applying.

  • 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 phone number
  • You have internet banking set up

Documents required

In order to fast track our team’s processing time, please make sure you have all of these documents handy when you apply for a used car loan with us.

  • 100 points of identification
  • Your basic personal information (name, D.O.B, address etc.)
  • Online banking login details (so we can access read-only copies of your bank statements)
  • The reason for your loan application
  • Your myGov details (if you receive Centrelink benefits)  

FAQs

Do you still have questions about our used car finance? You may find your answer here!

Can I get a used car loan if I’m a student?

The short answer is yes. As long as you meet the rest of our eligibility criteria, we may be able to provide you with a used car loan. However, we do not accept any form of Centrelink study benefits (Youth Allowance, ABSTUDY, Austudy) as a form of income as it is considered ‘temporary income’. If you have an income sufficient to cover your loan repayments, not including these Centrelink payments, we may be able to approve your loan application.

Do you offer guarantor car loans?

We can provide guarantor car loans. Guarantors will co-sign the loan agreement with you, taking part of the repayment responsibility onto them. If you are considering a guarantor loan and have further questions, you can contact our team. 

How do I find out the exact value of a used car?

There are a few options for you to consider. You can get a car appraisal from a vehicle valuer. This can give you a very accurate estimate of how much your car is worth. Alternatively, you can use an online car valuation calculator. This will be reasonably accurate and give you a good idea of how much your used car is worth.

I’m a casual worker, can I get a used car loan?

As long as you meet our eligibility criteria, yes! We offer car loans for casual employees. If after our assessment we believe you will be able to make your repayments, we may be able to provide you with a used car loan.

Can I get a used car loan while on a pension?

We consider the government pension a form of income. Whether you are on a Disability Pension or an Age Pension, we consider these Centrelink benefits a regular income. As long as you meet the rest of our eligibility criteria and our assessment shows that you can repay your loan, we may be able to offer you a used car loan for pensioners.

Do you charge early repayment fees?

We do not charge early settlement fees. If you are able to repay your loan early, you are free to do so. This will save you on interest, monthly fees and any other fees and charges.

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Reviews current as of Aug, 2020.

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💰 Personal Loans starting from 7.59% (12.24% p.a. Comparison Rate)

🚗 Car Loans starting from 5.29% (5.84% p.a. Comparison Rate).

We never charge early repayment or exit fees.

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Jacaranda is 100% online. So, we do not accept applications over-the-phone. However, our friendly team is more than happy to answer any questions you may have.