fbpx

Car Loans for Non-Residents

Explore car loan options for non-residents and temporary visa holders working in Australia.

No obligation. It won't affect your credit score.
Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on September 11th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Getting around in Australia as a temporary resident usually means you have to take the train. Or if you’re feeling a bit lavish, you can take a taxi or an Uber everywhere. Finding a lender or broker that will approve you for finance without Permanent Residency or Citizenship is difficult. It’s difficult, but not impossible.

Why lenders are reluctant to lend to temporary residents

Lenders are wary of temporary residents, even if they have a work permit, because they are higher risks than permanent residents or citizens. Since most work permits have an expiry, lenders would rather place a “sure bet” on someone who has no reason to skip out on a loan by returning to their home country. Sometimes, temporary visa holders my breach the limits of their visa by working more hours than they are entitled to, or with employers other than their visa sponsor. If temporary workers breach their visa conditions, it means instant cancellation and they must return home. Of course, these are worst-case scenarios, but banks and lenders think of every eventuality and factor that into their decision.

Some types of visas are better than others

Banks and lenders generally favour temporary work visas and student visas with a path to permanent residency. If you have a visa sponsor, this can work towards your approval in the eyes of lenders. Arrivals with bridging or provisional visas without expiry dates are usually declined for finance, as income isn’t taken into consideration. These visas are dependent on a decision by the government, which could go either way.

What that means for you

If you are working in Australia with a temporary work permit, a lender may approve your car loan. However, a lender is well within their right to set a loan term that fits within your visa’s time limit. This means your repayments may be higher than loans with standard terms (five years is usually the standard.) Since you fit a higher risk profile, they may only approve your loan as a “sub-prime” borrower. “Sub-prime” borrowers tend to be people with bad credit. That means higher interest rates compared to the rest of the population.

What you can do to help your case

Like any type of loan, it helps to have as much information about your finances and residency as possible so your lender can make an informed decision. Proof that you pay your bills on time and in full, that you have steady income and a sponsor that vouches for your good conduct helps you gain approval, and perhaps even a (slightly) better interest rate. As always, you should seek advice from a financial professional before applying for a car loan as a non-resident.

Why choose Savvy for your car loan?

Helpful guides on car loans

New cars Australia

Car Statistics Australia: Car Sales & Car Loans Report

As part of Savvy’s ongoing research into automotive consumer sentiment and broader financial landscape of Australians, we present the latest car finance statistics in Australia. Check back for new and...

Car Loans Banner - Couple looking at their laptop together on the couch

What is the Maximum Car Loan Term?

Car loans are a great way for buyers to spread their payments out over an extended period to ensure they’re comfortable with managing the debt. Because of this, you might...

I'm self employed. Will I get a car loan?

Consumer Loan Options This option is for people who are using the car for personal purposes. A consumer car loan is what’s commonly referred to a “car loan.”  These loans are regulated...

Car Loans Banner - Young couple shaking hands with sales representative at a dealership after buying a new car

Novated Lease vs Car Loan

When it comes to financing a vehicle, you have several options available, each with its own set of benefits and considerations. Two of the most popular consumer car finance options...

Car Insurance Banner - Happy couple driving an open-top red car.

How Long Does Car Finance Approval Take?

Car loans take about one to two days on average to process before formal finance approval, which can occur as soon as within 48 hours. This can be influenced by...

Car Loans Banner - Couple happily smiling and holding car keys after buying a new car

How to Get a Car Loan

If you’re looking for a car loan in Australia, you aren’t alone. According to the Australian Bureau of Statistics (ABS) lending indicators for December 2023, the value of new fixed-term...