Top 5 tips to get approved for your first car loan

Last updated on February 29th, 2024
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Look for a car within your means

Before looking for cars that catch your eye, first look at your income and finances. How much can you afford to in repayments each week, fortnight or month? How much have you saved already, and what is the gap between what you’ll need for a loan and what you already have? Look around online and in trade papers for cars within your price range with all that factored in. Read what to budet when buying a car.

Look for a car that is economical to run and insure

The next step is to determine how much your car will cost to run each month, and how much it might cost to insure. You will factor these ongoing costs into your calculations. Cars with high KMs on the odometer and a patchy service history may cost less to buy but may be dear to repair in the long run.

If you have debts, clear them off

You may not think you have any debts to your name, but you should always make sure before applying for any kind of loan. Sometimes, telcos and utility companies will record defaults against you even if you’ve paid them back. To be on the safe side, you should check your credit history.

Compare, compare, compare

Before looking for car loan approval, you should compare as many car loan products as you can. Get as much information on car loans as you can. We have repayments calculators that you can use, plus we have financial professionals that can help you with the process. Read our car loan factsheet guide here for more information.

Limit Your Applications

You may feel tempted to apply for a number of loans to see if you gain approval, but it’s a bad idea. Rejections are black strokes against an otherwise clean credit history. This can follow you around for years and make finding finance difficult for you, even in the short-term.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for car loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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