Information on car loans if you’re on Centrelink
If you think being on Centrelink means car loans are out of reach for you, think again. Zoom Car Loans provides car finance for people on Centrelink, so we know what is involved in making it work. Here are some questions and handy tips you might want to consider.
Do I Meet the Minimum Income Requirements?
Although the legal requirements vary based on the type of loan and the amount you are borrowing, all credit providers work on the basic principle of affordability. The majority of the financiers in Australia use either the HPI (Henderson Poverty Index) or HEM (Household Expenditure Measure) guide to establish average monthly expenses based on whether the customer is single or de facto and how many dependents they have in their care. After taking these guides into consideration, along with any additional expenses such as rent and existing liabilities (e.g. loans, credit cards and hire purchases), the credit provider can establish what level of affordability is available based on your current income.
Although these measures tend to be very accurate, they do not take personal circumstances and habits into consideration. You should always look at your own spending habits and budget to ensure you will be comfortable with any additional borrowing. The government’s MoneySmart website has an easy-to-use budget planner/calculator to assist you in working out how much you can afford to borrow.
Am I Being Realistic with How Much I Can Borrow?
Due to the requirements mentioned above, it has become increasingly difficult for customers who rely solely on Centrelink benefits to obtain fair interest loans on newer vehicles. To avoid the disappointment of not getting a car you have your eyes on, we always encourage you to obtain a pre-approval for an amount you can afford and then look for a suitable vehicle within your approval limits (note that most Zoom Car Loans finance packages allow for both dealer and private sale vehicles).
Are My Finances Up to Date?
The law requires that all credit providers must verify your current financial situation. This may include asking for your bank statements, payslips and/or Centrelink statements, copies of bills, copies of other credit contracts, and property rental statements showing if you are up to date with your rent. The number of documents a lender asks you for will depend on things like whether you are already known to them, your credit history, and the information contained in your bank statements.
At the time of your application, you should ensure that you can meet as many of these guidelines as possible to increase your chance of obtaining a desired approval. (Note: Each lender has specific lending policies and guidelines, so please use the tips as a general guide only.)
• Ensure your bank account conduct is at an acceptable level (avoid overdrawing your account, ensure no direct debit payments are dishonoured and cancel any debits that are no longer current).
• Make sure your rent/board or mortgage payments are up to date. Most finance institutions will perform a residential check with your landlord.
• Having defaults is OK! However, it always helps if you can show the financier that you have made arrangements to pay them off or to get them resolved.
• Be truthful during the application process. Finance institutions have access to many tools to check the accuracy of the information that has been supplied.
Am I Getting a Fair Deal on the Car Finance?
Although there are set fees/charges and interest rates the credit providers are allowed to charge, there are many credit providers that are either knowingly breaching the code or simply working around the legislation.
A common way of enticing customers into high-cost loans is to offer inviting interest rates on the finance (that fall within the government requirements) on used vehicles. The catch? The vehicle must be purchased through their authorised car yards at often exorbitant prices. So a vehicle might normally be worth $3,000 but have the sell price listed as $8,000!
Loans are within your reach even if you’re on Centrelink
Being a Centrelink customer shouldn’t mean you miss out on basic transportation. Even if you are on Centrelink, car loans are within your reach.
You should always check all your options before you borrow and ensure that you use the free resources available throughout Australia to assist you when borrowing funds of any nature. For information about other options for managing bills and debts you can ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor. Alternatively, contact our friendly team to discuss your circumstances and options with a finance expert.
Centrelink Car Finance
Zoom Car Loans provides flexible fixed rate low repayment vehicle finance options to help you get back on your feet.
Bad Credit Car Loans
Paid or unpaid defaults? Discharged bankrupt? Few too many inquiries? Let us help you find the perfect finance package!
Flexible terms & repayments
You select the repayments and terms of the loan to meet your budget needs. Car loans available from $2000.00
Same Day Approvals
Zoom Car Loans provides quick response to all loan applications. Our loans are usually approved within 24 hours.
100%, no deposit finance
No savings? or simply want to hold on to your cash? Zoom’s loan products can cover the full cost of your car
You are in control
You can purchase your car through anywhere in Australia. Both private and dealer purchases are accepted.
Car Finance is what we do
Zoom Car Loans was founded to give all Australians the opportunity to obtain a car loan no matter what their current situation is. Whether you are receiving centrelink payments or made a simple mistake or two in the past, Zoom Car Loans is here to help. We provide car loans Australia-wide and have access to leading finance providers, including our own, to get you the best approval possible.
With Zoom Car Loans, you can be sure that you are dealing with an organisation that knows and understands the needs of all Australians. We are a local company, 100% owned and operated in Australia – and proud of it!
Our Finance specialists are here to help and ready to answer your questions whatever they might be. Call us now on 1300 138 273 or complete our easy online application and one of our finance specialists will be in touch with you straight away.
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I am extremely satisfied with the service provided by Zoom Car Loans. Their dedication to my requirements was reflective in the loan approval offered – and accepted!S Dallinger from QLD
I would like to thank you all for your help. Not only did you make the process fast and easy, but you even managed to get me the cheapest loan possible – Even our bank manager couldn’t beat it!J Harrison from NSW
Thank you to the whole Zoom team for helping us with our car purchase. We highly recommend others to take advantage of unbeatable customer service that you offer…N Dewstow from QLD
Perfect. Till we speak again!! Thanks for making this a breeze and thank you for getting the private sale organised so quickly! You’ve been awesome to deal with and I look forward to dealing with you again.P Sabados from VIC