Auto Loans
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What is an auto loan?

An auto loan is a type of secured loan specifically designed for purchasing a vehicle. Unlike a personal loan, which deposits funds directly into your account, an auto loan is typically paid directly to the dealership or seller, with the vehicle serving as collateral for the loan.

Does the type of vehicle matter?

Yes, lenders have specific criteria for the types of vehicles they finance. Most auto loans cover new and used cars, utes, and vans, but some older models, high-kilometre vehicles, or specialty cars may not qualify. Additionally, lenders may exclude vehicles primarily used for leisure or business purposes, such as motorhomes, caravans, motorcycles, or heavy machinery. If a vehicle doesn’t meet lending criteria, a personal loan may be a more suitable alternative.

Are dealership and private sales both eligible?

Yes, auto loans can be used for both dealership and private sales, but loan conditions may vary depending on the lender. Some lenders may have stricter policies for private sales, requiring additional checks, while dealership purchases typically involve a more straightforward approval process.

Why get an auto loan if I can get a personal loan?

Auto loans typically offer lower interest rates than personal loans because they are secured against the vehicle. Unlike personal loans, where funds go directly to you, auto loans are paid straight to the dealership or private seller, ensuring the loan is used only for the vehicle. This structured process reduces misuse and can make financing approval easier for eligible borrowers.

What determines the interest rates?

Auto loan interest rates depend on factors like your credit score, income, loan amount, and the lender’s criteria. Since auto loans are secured, they generally have lower rates than personal loans. Other factors, such as your employment and housing status, credit history length, vehicle condition, and loan term, can also influence the rate.

Summary:

Auto loans are a safe and cost-effective way to finance a vehicle purchase, typically offering lower interest rates than personal loans. Eligibility, loan terms, and interest rates vary based on lender criteria, credit history, and vehicle specifics.

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Have you heard about our buying service?

What is it?

Centsible Buying is a free car buying service that offers exclusive prices and a stress-free experience when buying a new car. We have a professional team take care of the entire process, from researching, sourcing and negotiating.

We have access to hundreds of makes and models as well as top tier financing. Whether you are just looking for one car, or for a whole fleet, our strong buying power ensures you get access to exceptional deals.

All you have to do is sit back and relax.

Why use our buying service?

  • FREE car buying service
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  • Australia's strongest network of valuers and wholesaler
  • Access to premium aftermarket products

How does it work?

  1. First enquiry with soft touch rate quotes
  2. We connect you with our car sourcing team
  3. Our car sourcing team will stay in touch with you until you find your perfect match
  4. Finalising your finance application and terms
  5. Final docs get signed, followed by vehicle delivery or pick up

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Frequently Asked Questions

Here you will find the answers to the most common questions that we get asked.

Eligibility & Rates
Loan Structure & Terms
Commercial Loans 

Can I apply for a loan with poor credit history?

Yes — while your options may be more limited, there are lenders who work with applicants who have defaults or poor credit. We can help you explore what’s available.

How is my interest rate determined?

Your rate is based on several factors — including your credit score, loan type, lender, financial history, and whether the loan is for personal or business use.

What factors impact my loan approval?

Lenders assess your credit score, income, expenses, existing debts, job or business stability, and the asset you’re financing. Even your living situation and banking conduct can play a role.

Do I need a deposit or upfront payment to be eligible?

Not always — many loans offer 100% financing, especially for vehicles. A deposit can improve your approval odds or reduce repayments, but it's not always required.

What does being asset-backed mean and how does that impact my application?

If you own a property or other significant asset, you’re considered “asset-backed.” Even if you’re not using it as loan security, it shows lenders you have financial stability — which can improve your chances of approval, open up more lender options, and help you access better rates.

How does my credit score affect my application?

A higher credit score usually means better interest rates, more lender options, and stronger approval odds. A lower score doesn’t mean you’ll be declined — but it can impact your rate or limit your choices. It also depends on why your score is lower (like missed repayments vs. minimal credit history).

Can I have someone go guarantor on my loan?

Yes, some lenders allow a guarantor to strengthen your application — especially if you have limited credit history or income. The guarantor must meet eligibility criteria and accept legal responsibility for the loan if you can’t pay.

Can I get a loan if I get payments from Centrelink or government benefits?

Yes, depending on the type and amount of payments you receive. Some lenders accept certain Centrelink benefits as part of your income, especially if combined with other income sources. We’ll assess your situation and match you with the lenders most likely to say yes.

What things can't I finance?

Generally, you can’t finance illegal items, unregistered vehicles, or anything used primarily for personal gain in a commercial loan (and vice versa). Some lenders also exclude very old vehicles or items that can’t be properly valued.

What’s the difference between fixed and variable interest rates?

Fixed rates stay the same for the life of the loan — great for predictability. Variable rates can change over time, meaning your repayments might go up or down depending on the market.

How long can I take a loan out for?

Loan terms typically range from 1 to 7 years, depending on the loan type, lender, and your financial profile. Some options may offer longer terms for certain asset types.

Can I pay off my loan early without penalty?

Some lenders allow early payout without extra costs, but many charge early termination fees, which can vary. It all depends on your loan contract — we’ll help you choose a structure that suits your goals.

What is a Balloon? And can I get one?

A balloon is a lump sum (also known as a residual value) due at the end of your loan term. It lowers your regular repayments by postponing a portion of the loan to the end. Balloons are common in vehicle and commercial finance and can help with cash flow — but you’ll need a plan for the final payment. Balloons are available on some loans, depending on the lender and your application.

Are repayments weekly, fortnightly, or monthly?

Most lenders let you choose — weekly, fortnightly, or monthly — depending on what suits your cash flow best.

Can I refinance my loan later?

Yes — many people refinance to get a better rate, reduce repayments, or free up cash. It depends on your current contract and financial position at the time.

How do I know if I am applicable for a low-doc loan?

If you’re self-employed or don’t have standard financials like tax returns or payslips, a low-doc loan could be an option — especially if you have a solid credit history and can provide alternative proof of income like BAS statements or bank records.

What documents do I need for a commercial loan application?

Low-doc loans require minimal paperwork if your credit and business history are solid — usually just some ID, your ABN, and a credit check. For standard loans, lenders may also ask for recent bank statements, tax returns, or other proof of income depending on the loan type.

Can I finance equipment or tools for my business?

Yes! We can help you finance a wide range of business assets — including vehicles, tools, machinery, office equipment, and more.

Do I need a registered business to apply for a commercial loan?

Yes — you’ll need an active ABN or ACN to access commercial loan options. Sole traders, partnerships, companies, and trusts can all apply.

Is there a minimum or maximum amount I can borrow for commercial purposes?

It varies by lender, but commercial loans can start from as little as $5,000 and go into the millions depending on your financials, purpose, and credit profile.

What’s the difference between a chattel mortgage and a standard commercial loan?

A chattel mortgage is a specific type of commercial loan used to finance business-use vehicles or equipment, where the asset is the security. It offers potential GST and tax benefits, most commercial auto loans will be a chattel mortgage.

Why is it harder to get a loan for Uber, Menulog, and similar gig economy jobs?

Lenders usually avoid Uber, Menulog, or gig-related loans because income can be inconsistent and hard to prove, and the vehicle wears down faster, lowering its value as security. Some lenders may still consider it, but usually with higher rates or tighter conditions. If you have another job, including it in your application can really help.