The answer is a big YES! There are some lenders who are willing to finance those that are receiving Centrelink payments. The rules are a little stricter when processing car loans for pensioners but customised finance solutions are sought in order to find the best fit for each customer and situation.
Here are some pointers that will help you start the process;
Identify the type of pension or Centrelink payment being received
Not all types of Centrelink payment can qualify for a car loan. It is important that you know what type of pension you are receiving. Here are some Centrelink payments that do qualify. These may vary from lender to lender so the best way is to ask whether you qualify or not;
• Disability Support Pension.
• Carers Pension.
• Partnered Parenting Payment.
• Family Tax A and B.
• Aged Pension.
Things that might affect the outcome of a pensioner car loan;
• Pension amount plus any other income received.
• Credit history.
• Existing loans being paid off.
• Savings in the bank.
It is the lenders legal responsibility to make sure that you are financially capable to make the repayments and still able to manage your finances after the car loan is approved.
Documents needed to apply for a car loan for pensioners
• Driver’s license if applicable.
• Centrelink payment statement.
• Income statement from other income if applicable.
Requirements will depend on your situation so it is best to speak with a finance broker in order to assess your needs and financial capability.
Tips to Getting Approved
• Check your credit score – It is good to know where you stand before starting the car loan application process. If you credit score is in the low side, work on a better score before applying for a loan. This will increase your chances of getting approved.
• Manage your existing debt – The best thing to do is to reduce and consolidate so your debts are manageable.
• Budget wisely – If you are able to live within your means and still manage to save some money in the bank, this will prove how healthy you are financially and how well you manage your money. This is a big plus and will play a huge role in getting approved.
It is always good to educate yourself and make yourself financially and emotionally ready before making huge decisions and that includes applying for a car loan. There are no guarantees that you will get approved but making sure your finances are on point increases your chances a hundred fold.
At 1800Approved, we'd love to help you with your new or used car purchase. We have been awarded Australia's Asset Broker of the Year for 2016 and have helped thousands of individuals and businesses finance cars and equipment. Contact us for a free assessment. No obligation.