If you're looking for a centrelink loan for car, you probably won't be able to afford it with cash. Read on to find out if getting a loan will allow you to operate the vehicle you want.

Can you get a car loan on Centrelink?

Yes, but it depends on your specific situation. There are also pensioner car loans. When evaluating car loan applications, lenders assess many factors, including payment capacity and credit history. Depending on these factors, you may still be offered a low car loan rate and repayment terms, which is good news because the higher the interest rate you get, the more debt you can accumulate over time. If Centrelink payments are your sole source of income, it's important to note that not all lenders offer car loans for customers with government income support. In this case, apply with Centrelink Auto Loans, which will count Centrelink payments as income to help get you approved!


Centrelink is a government organization whose core responsibility is to provide payments for any Australian resident below the poverty line. Centrelink payments have various categories of recipients, but all recipients can be classified into one of five key groups: Students require financial assistance from Centrelink due to the discrepancy between their actual earnings (which are very low) and family income threshold levels set by the government.

Car loans for Centrelink recipients

This part of the article deals with obtaining car financing if you're unemployed or on a disability pension. In these cases, it's preferable to work with a car finance broker because they're typically skilled in evaluating a person's credit rating and helping them acquire extended funds. When you reach out to a reliable and reputable finance company, they'll understand which lenders will probably be able to increase your overall credit limit. With their assistance and expertise, you should end up securing loan approval for one of the many financial services providers in the marketplace!

They will look at your average income and evaluate how much you spend on regular living expenses, paying off debt and saving for emergencies. They'll also see if you have a lot or a little credit history.

Car loans for unemployed

Unemployment payments are like money from a trust fund or an inheritance. The government is essentially lending you the money until you're able to find another source of income. You might want to look into taking out a cheaper personal loan to bridge the gap if your unemployment benefits aren't enough on their own. Once you've found a new job, it will be much easier to make your repayments on time, and if you can pay the loan off early, you could save some serious percentage points in interest fees!

Car loan for disability pension

If you're on a fortnightly disability pension, this income is considered permanent (unlike unemployment benefits). You can use the same strategies to make your repayments more affordable as if you were unemployed - take out a longer repayment term, and borrow less. Another option would be to arrange to make your car loan repayments fortnightly instead of monthly. Arranging to make repayments every two weeks will mean that you'll also need to take out a secured car loan and have someone who can act as your guarantor.

Bad credit car finance on Centrelink

If you have bad credit, you won't have as many options for getting a loan approved. You should improve your track record by paying off any outstanding bills and staying up-to-date with loan payments to have more government vehicles than you had bad ones.

How to get a car loan on Centrelink payments

As you begin to look for the vehicle and even financing options, you should plan how much you can afford to repay for your new ride. It's important to create a budget that realistically maps out your Centrelink income and your regular expenses to get a sense of what is reasonable. As a potential car buyer, you should first apply for pre-approval finance through one of the many reputable companies like Freedom Car Loan. 

Once you choose and pay for your car, a good way to make your regular repayments more manageable is to align them with the timing of your Centrelink payments. In other words, make your car loan repayments fortnightly via direct debit rather than monthly. That way, you won't over-consume other things or miss any repayments.

Visit our website for more on centrelink loan for car; we also provide pensioner car loans. Visit now!

Source URL  : https://www.freedomcars.com.au/news