How to Get a Car Loan in Australia (2025 Step-by-Step Guide)
Buying a car is exciting – but figuring out how to get a car loan can feel confusing, especially if it’s your first time or you’ve faced credit challenges before.
This complete guide walks you through how car loans work in Australia, the steps to apply, what lenders look for, and how to improve your chances of fast approval — even if you have bad credit or no deposit saved.
What Is a Car Loan?
A car loan is a type of finance that lets you buy a new or used vehicle and pay for it over time with regular instalments. Instead of paying the full amount upfront, you borrow from a lender and repay the amount (plus interest) over a fixed term — usually between 1 and 7 years.
Car loans can be:
- Secured: The car acts as collateral, meaning lower interest rates and easier approval.
- Unsecured: No collateral needed, but rates can be higher.
When you apply with Zoom Car Loans, your broker helps you find the most suitable option from a network of over 30 Australian lenders.
Step-by-Step: How to Get a Car Loan in Australia
Step 1. Check Your Finances
Before applying, take a clear look at your financial situation.
- Review your income, expenses, and savings.
- Use a car loan calculator to estimate repayments.
- Make sure the monthly amount fits comfortably within your budget.
If you already have debts or credit cards, consider paying some down first — it can improve your borrowing capacity.
Step 2. Review Your Credit Report
Your credit score plays an important role in getting approved. Lenders use it to assess your reliability as a borrower.
You can get a free copy of your report from Equifax, Experian, or illion once a year.
If you find any errors (like old defaults or incorrect listings), dispute them before applying. A small correction could boost your chances of approval.
Step 3. Decide on the Type of Car Loan
Choosing the right loan depends on your goals and financial position.
| Lender / Product | Key Features | Why It’s Considered Among the Best |
|---|---|---|
| OurMoneyMarket (secured) | Fixed rates from ~6.28% p.a. Mozo | No monthly fees, no exit penalty, flexible terms |
| IMB Bank New Car Loan | Fixed rate from ~5.99% p.a. Mozo | Fast conditional approval, no monthly account fees |
At Zoom Car Loans, brokers help you compare all these types and choose one that matches your credit profile.
Step 4. Get Pre-Approved
Pre-approval gives you an estimate of how much you can borrow before shopping for a car. It helps you:
- Set a clear budget
- Negotiate confidently with dealers
- Avoid wasting time on cars outside your price range
Zoom Car Loans offers fast pre-approval, often within 24 hours of receiving your documents.
Step 5. Gather the Right Documents
Having your paperwork ready speeds up approval. Most lenders will ask for:
- Proof of ID (driver’s licence, passport)
- Proof of income (payslips, bank statements, or tax returns)
- Proof of address (utility bill or lease)
- Car details (if you’ve already chosen a vehicle)
If you’re self-employed or an ABN holder, you may need BAS statements or business bank records instead of payslips.
Step 6. Apply for the Loan
You can apply directly with a lender or through a car finance broker like Zoom Car Loans.
Why use a broker?
- They compare multiple lenders for you.
- They know which lenders are more flexible with bad credit or low-doc applicants.
- They help protect your credit file by only submitting applications likely to be approved.
Once your application is reviewed, your broker will present you with the best available offers.
Step 7. Get Approved and Drive Away
Once approved, your lender pays the dealer or seller directly. You’ll then start making repayments according to the agreed schedule.
You can usually:
- Choose between weekly, fortnightly, or monthly payments
- Make extra repayments without penalties (depending on the loan)
- Refinance later if your credit score improves or interest rates drop
What Lenders Look for When You Apply
To decide if you qualify, lenders consider:
- Your income and employment stability
- Your credit history and current debts
- How much you want to borrow versus the car’s value
- Your ability to make repayments
If you’ve had financial problems before, don’t worry – lenders in Zoom’s network assess your current situation, not just your past.
Tips to Get Approved for a Car Loan Fast
- Pay bills and existing loans on time – recent consistency matters most.
- Avoid multiple applications – too many credit checks can reduce approval chances.
- Choose the right car – newer vehicles often have better approval rates and lower insurance costs.
- Save for a deposit – even a small deposit can reduce interest and improve approval odds.
- Apply through a broker – Zoom pre-assesses your application, helping avoid unnecessary rejections.
Why Choose Zoom Car Loans
Zoom Car Loans helps Australians from all backgrounds – including first-time buyers, ABN holders, and bad credit applicants – get fast, affordable car finance.
Here’s why drivers choose Zoom:
- Access to 30+ lenders nationwide
- 9 out of 10 pre-assessed applicants approved
- Low-doc and no-deposit options available
- Personalised support from real finance experts
- Fast turnaround times – drive away in as little as 48 hours
We’re 100% Australian-owned and accredited by the FBAA and Credit Ombudsman Service (COSL), ensuring transparent, ethical service.
Frequently Asked Questions (FAQs)
1. How long does it take to get a car loan approved?
Most applications are approved within 24-48 hours once documents are submitted.
2. Can I get a car loan with bad credit?
Yes. Zoom works with lenders who specialise in bad credit car loans, focusing on your current income and ability to repay.
3. Do I need a deposit for a car loan?
Not necessarily. No deposit car loans are available if you meet income and affordability criteria.
4. Can I get car finance if I’m self-employed?
Yes. ABN car loans and low-doc options are available for self-employed borrowers and small business owners.
5. How much can I borrow for a car loan?
Loan amounts typically range from $5,000 to $100,000, depending on your income and lender.
Final Thoughts: Getting a Car Loan Made Simple
The process of getting a car loan doesn’t have to be complicated. With the right preparation – and expert help from a trusted broker — you can secure a great deal that fits your budget and financial situation.
At Zoom Car Loans, we simplify every step of the process, from pre-approval to settlement, so you can drive away with confidence.
Apply online today at Zoom Car Loans – How to Get a Car Loan and get expert help securing the right finance for your next vehicle.