Bad Credit Car Loans

Need a second chance? Get Savvy on your side and get approved for your car loan.

No obligation. It won't affect your credit score.
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, updated on July 31st, 2023       

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Bad credit car loans approved with Savvy

Bad credit is OK

Do you have a bad credit rating? Have your car loan applications been rejected by the banks? You deserve a second chance! At Savvy, we’re partnered with a wide range of reputable lenders to give you more options when it comes to financing your vehicle. Whether you’re a single parent, receiving Centrelink benefits or have defaults on your file, we can help you secure a bad credit car loan suited to your situation.

Our experienced consultants can help you maximise your chances of approval for your car loan and advise you on steps to take to improve your credit rating. With Savvy, you can be on your way to owning your car before you know it.

A trusted brand

We’ve been helping Australians from all walks of life finance their vehicle the right way for over a decade, with our 4.9-star Feefo rating representing the overwhelming satisfaction our customers feel throughout the process.

Get the wheels in motion on your second-chance car loan application by completing a free, no-obligation quote with us today to find out whether we can help you secure the finance you’re looking for.

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Our bad credit car loan features and benefits

High approvals

We’re lenders who specialise in dealing with customers who have no borrowing history, inconsistent income, struggled with their credit score in the past and even prior paid or unpaid defaults.

Borrow from $5,000

Our bad credit car loans start from $5,000 and can be approved up to as much as $100,000, though the amount you’re approved for will depend on your eligibility and borrowing power.

No deposit required

If you’re looking for a car loan with no deposit, we can help you find finance for 100% of the car's cost. In some cases, you can also include on-road costs such as stamp duty and registration.

Flexible loan terms available

You can choose from flexible loan terms as short as one year in length and as long as seven with some lenders (depending on your eligibility and profile).

Same day pre-approvals

Through our fast online application process, we can help you get a pre-approval as soon as the same day, so you can shop around for your car with a peace of mind. 

Diverse income accepted

You can include eligible earnings from full-time, part-time, casual or self-employed work (including certain Centrelink payments such as age and disability pensions and single parent payments).

Competitive interest rate for your credit profile

Although car loan interest rates are higher for those who have a patchy credit history, our vehicle finance consultants can still help you find the best rate for your individual situation.

Buy new or used, anywhere in Australia

Whether you’re looking for a brand-new car from a dealer or find one from a private seller, we can help you access finance, source the car through our dealer network and deliver it to your door.

No impact on your credit score

We run a soft check as a part of your bad credit car loan application, meaning your credit score won’t be affected during the process.

Discharged bankrupts accepted

We can also lend a hand to discharged bankrupts who are looking to take out a car loan and may not be able to access the financing they need through traditional sources.

Why more bad credit customers trust Savvy

How to apply for a bad credit car loan with Savvy

Our Process

Fill out our online application form

Our car loan starts with an easy application form (which takes no more than ten minutes) to assess your profile and find the most suitable lenders for your individual situation.

Send through the required documents

We may require additional supporting documents to further process your application, such as bank statements, which you can submit via our online portal. You can also sign any relevant documents electronically.

Discuss your options with your consultant

Your personal consultant will call you within two hours of your application to discuss your car finance options. Once you’re happy with your choice, we can prepare your application for formal approval.

Sign your contract and drive away your new car

From there, you can expect to be formally approved within 24 hours. We'll organise settlement for you once you’ve signed off on the paperwork, after which you you’ll be able to drive away your new car!

Top tips to increase your chances of bad credit car loan approval

Further bad credit car loan questions answered

How much can I borrow with a bad credit car loan?

The amount you’ll be able to borrow will depend on a variety of factors, which your Savvy consultant will run through with you. These include:

  • Your income and expenses: how much disposable income you have available; low income-earners won’t be able to borrow as much as higher earners.
  • Your repayment record: some lenders may trust borrowers with a verifiable record of repaying past loans with more money
  • The value of your car: the size of your loan will be dictated largely by the value of the vehicle
  • Your interest and fees: these will eat into your loan amount, so your borrowing power will be adjusted to include these
  • Your lender’s maximum amount: while some lenders may allow some borrowers to borrow up to $100,000, others may set this maximum at $75,000 or even $50,000
What interest rates can I expect to receive for my bad credit car loan application?

Bad credit car loan interest rates will generally be higher than those for borrowers with an average to good credit score. However, this doesn’t mean it isn’t still important to look around for the best loan available, which your Savvy consultant can help you do. We’ll consider offers from our partners specialising in bad credit loan products to find the most affordable rates and fees for you among our panel.

How long does the application process take?

The speed of your application will depend on a number of variables pertaining to your borrowing profile, such as your recent credit record, income, employment, vehicle you wish to buy and more. We work with specialist lenders who can have applications approved and funded in as little as 48 hours.

Can I pay off my bad credit car loan early?

Yes – you can make additional instalments towards your car loan and repay it ahead of schedule. If you’re looking to make early repayments without paying any extra costs, our consultants can help you find a loan suited to your needs with a lender that won’t charge you an early settlement fee. However, doing so may incur a fee with other lenders, which will be determined in part by the size of your loan, your interest rate and the time left to run on your agreement.

How can I refinance a car loan with bad credit?

If you're repaying your bad credit car loan and your credit score has improved sufficiently across your loan term to date, you may be able to look around to refinance your car loan with other lenders. You’ll need to prove you’re in a better financial position than you were when you took out your loan in the first place, as well as show that you've been keeping up with your repayments consistently. One other way is to trade in your current vehicle and pay out the bad credit car loan in full, although this may cost you an early repayment fee to do so with some lenders.

What is a Part IX debt agreement?

Part IX Debt agreement is a formalised, legally-binding agreement between yourself and your creditors to pay back debts.

Can I get bad credit car loan with unpaid defaults?

Yes – it is possible to get a bad credit car loan with unpaid defaults. We work with lenders who can look past defaults and approve your application if you’re able to show you’re comfortably able to afford the repayments on the loan you’re applying for. You’ll stand a much better chance of loan approval if you pay any previous defaults prior to applying, though.

Can be guaranteed for bad credit car loan approval?

No – each lender will assess your application differently, so there isn’t any way to guarantee you’ll be approved. All you can do is try to make yourself as appealing an applicant as possible, which will go a long way towards helping you get approved.

Are no credit check car loans available?

No – all lenders will conduct a credit check. You shouldn’t be too concerned about a credit check when you look at a bad credit car loan, as lenders are already anticipating a patchy credit history. There are limits to what lenders will accept, though, but there are many lenders that are very flexible when reviewing one’s credit file. When you speak with your consultant, they’ll review your file to make sure that you application is sent to the right financier. There are some rent to own organisations which may not require a credit check, but all financiers will.

I’m self-employed. Can I get approved for a bad credit car loan?

Yes – you can be approved for car finance if you’re self-employed and have an imperfect credit score, both for you and your business. Lenders will generally look to ensure you’ve been working for yourself for at least one to two years at the time of your application. The only other major difference comes in terms of documentation requirements: you’ll have to submit your tax returns from the most recent financial year (or two most recent years). However, if you don’t have access to these, we also offer low doc finance options to self-employed individuals.

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