Car Loans For Single Parents
Savvy helps you get your car loan approved as a single parent in no time.
Car loans for single parents
Owning a car as a single parent is a non-negotiable, taking your children to and from school, sport and other events, so Savvy is here to help you get approved for a loan to buy your next car. We’ll help you find great deals for all different types of cars that are tailor-made to fit your financial needs.
Completing a quick quote today will get your application moving immediately and enable us to get to work comparing from a wide range of lenders Australia-wide. Take your first step in the car buying process with Savvy now.
Buying a car as a single parent: what you’ll need to know
As a single parent, you can borrow from as little as $5,000 up to the maximum amount you can afford to repay comfortably in instalments.
Locking in a competitive interest rate from one of our lenders ensures that budgeting into the future for your family is more accurate.
We can arrange flexible terms for single parents of between one and seven years, with a repayment schedule of your choice of either monthly, fortnightly or weekly payments.
If you paid just an extra $20 on each monthly instalment of your $20,000, five-year loan at 7.5%, for example, you could save over $200 and trim your loan term by three months.
We partner with flexible lenders who can arrange financing for single parents who receive income through Centrelink.
If you need your car quickly to drive your kids around, Savvy can help you have your application settled in as little as 48 hours.
Even if your credit score doesn’t meet conventional lending criteria, we can help you access finance with one of our flexible lenders.
Watch for ongoing fees ($0 to $20), an application fee ($0 to $600) and early repayment fee ($0 to $600-$900) on your car loan, while late payments will cost you between $25 and $50.
Here’s why Australians choose Savvy for car finance
Checklist before you apply for your car loan
The documents you’ll need to apply
As part of your application, it’s important to know the documents you’ll need to submit so that you can maximise processing speed. Your driver’s licence is the main one, or you can show your passport instead. You’ll have to submit your last two payslips, as well as any recent Centrelink statements. Your lender may also require you to submit your last 90 days’ worth of bank statements. Finally, you can obtain the remainder of your required documentation from us: your application form, signed consent form and credit guide. Having these ready to go for submission will help avoid any hiccups.
Single parents car loan explained further
How can I qualify for a car loan as a single parent?
To qualify for car finance as a single parent, you’ll need to provide proof of income, to demonstrate your ability to meet your repayment obligations. Our lenders will require a minimum total income of at least $30,000 annually. Of course, you’ll also need to be an Australian citizen, permanent resident or valid visa holder and over the age of 18.
The good news is that we partner with lenders who accept proof of income from multiple sources – so if you’re receiving any Centrelink benefits, these will count in addition to any income that you receive from your job, if you’re also able to work. They’ll accept child support payments, family tax benefits A and B and the single parent allowance, as well as any income from a full-time, part-time or casual job, in determining the affordability of your loan. Our flexible lenders can finance borrowers receiving up to 100% of their income through government payments, although you must show that the loan’s repayments are affordable for you to be given the green light.
Your Savvy consultant will only select car loan options which come with requirements that you’re able to fit – because too many rejected applications will have a negative effect on your credit rating, your broker will ensure you fit within the minimum income requirements, as well as any other criteria set out by the lender. They’ll be able to recommend the best deals in the market for your individual circumstances
How should I compare between different car loan options?
When assessing the available car loan options for you, the factors that you should always weigh up are the interest rate, duration and fees associated with each loan. Each of these has a significant bearing on the cost of your car loan, so it’s important to understand how each of these will affect the cost of your loan and try to aim for one which saves you the most money. For example, a loan that offers a low interest rate, but a longer duration, may in fact end up costing you more in interest overall because you’ll be paying interest for longer.
Say you’re taking out a $30,000 loan and have a choice between a 5-year loan at 7% interest, or 7 years at 6%. The 7% rate will have you repaying $594 a month, and $5,642 in interest over the life of the loan. The 6% rate will come with lower repayments, at $438 a month, but you’ll end up paying a total of $6,813 in interest – over $1 ,000 more for a lower interest rate.
Similarly, we’ll help you watch out for loans advertising low interest rates but charging high fees throughout the loan period. This is where the comparison rate will come in handy, which is a figure combining the interest and main fees on the loan to give a truer indication of how much your loan will cost.
There are several other aspects of the loan you should look to compare. Whether the selected few come with free additional repayments is an important factor to consider, as this can help you save a meaningful amount over the life of your loan.