There is a common myth that states that if you receive payments from the government, you cannot buy a car. The truth is, there are ways to do it. As long as you can afford the payments, you may be eligible to receive financing. The following steps will outline how to finance a car with Centrelink.
Step 1: Determine if You Meet the Minimum Requirements
Make sure you meet the minimum requirements before you try to get a car loan. You must receive income totaling at least $400 per week. You may not be eligible if:
- You are under a Part 9 Agreement or are bankrupt
- You receive Youth Allowance or Newstart payments
- You are a non-resident on holiday or a student visa
- You cannot meet the conditions, terms, and affordability check
Step 2: Create a Budget & Figure Out How Much you Can Spend
If you are eligible, it’s time to write out a budget and figure out how much you can afford to spend. Remember to be realistic and honest. Include all expenses and avoid stretching your finances too thin. You must be able to repay your loan and still afford to cover utilities, basic necessities, and any other financial commitments that you are currently under.
Step 3: Review Your Finances & Look for Areas of Improvement
Lenders are required by law to review your financial status. You will have to supply payslips, Centrelink statements, bank statements, bills, contracts, and any other documentation that applies. Make sure you have these available and up to date.
Also look for any potential negative areas, like an overdrawn bank account or missed payment. If you have anything outstanding, make arrangements to pay it. You won’t necessarily be turned down for having defaults, but you must prove that you have taken steps to pay them and restore your financial standing.
Step 4: Find a broker who will show you how to finance a car with Centrelink
Now it’s time to find a car loan. Some banks will not approve anyone on Centrelink. The easiest way to find the best lender is to contact Zoom Car Loans. We treat customers fairly and help every client find the best deal possible based on their individual situation. To learn more about how to finance a car with Centrelink, call our experts at 1300 138 273 or complete our online assessment form.