If you’re in Australia temporarily and need a car loan, its likely traditional lenders such as the banks have denied you. Banks usually only lend to Permanent Residents or Australian Citizens and people with a credit history.
What can I do?
As a 457-visa holder, there are some options available to you. They come with some conditions, but they are a viable option to get you behind the wheel of a vehicle.
Loan terms
At the very minimum, a financier willing to lend to a 457-visa holder will impose a loan term that finishes before the date your visa expires. Any guarantees to extend your visa by your sponsoring employer are not applicable. Only the Department of Immigration and Border Protection (DIBP) may grant extensions to a visa and as such determine the level of risk.
Security and deposits
Financiers may impose further conditions before lending to a 457-visa holder. They may require a cash deposit on a vehicle to reduce the amount they are lending to you. This reduces their risk. The loan will most likely be a secured loan, too. This means in the case of repossession or abandonment of the vehicle, the loss to the financier is low.
Not all professions are equal
The conditions described above are not “one-size fits all.” Each person will have different cash reserves, working arrangements and assets while in the country. There are no guarantees that a 457-visa holder will stay in Australia indefinitely. Add to that fact 457-visa holders have no credit history, it may be up to the individual financier to assess whether an applicant will fulfil the terms of a car loan. It is also up to the lender to set the conditions for the loan.
457-visa holders don’t have to go it alone. Talk to a finance professional or lending broker to discuss what you can do to get a car loan.