Last Updated: 13 May 2026

Car Loans in Australia

Get the right car finance, whether you’re buying your dream car or purchasing a fleet for your business.

Finance a single car or a fleet for commercial purposes
Find competitive rates for consumer and business borrowers
Terms ranging from 1-7 years
Get finance for both used and new cars
$1M Asset finance limits available without financials

How to Apply for Rent to Own with Dark Horse Financial

Contact Our Team

Fill out our online form to apply for a business loan. We’ll get in touch with you fast to understand your situation and make a recommendation.

Submit Application

We’ll expertly handle your application from start to finish. Approval timeframes vary, with some lenders able to approve car loans within hours.

Get Funded

Once approved, documentation is signed electronically, making settlement fast. Once settled, the lender releases funds or pays the seller directly.

Rated by Our Clients on Google

What is a Car Loan?

A car loan is a type of financing designed specifically to help you purchase a vehicle, whether brand new or used. Typically, the loan is secured against the car itself. Once the loan is approved, you agree to pay it back over a set period with interest. Car loans in Australia are available from banks and non bank lenders, with varying interest rates and terms that range from 1-7 years. A personal car loan is for when you want to buy a car for your own use. Meanwhile, you can get a commercial car loan to buy a business car or expand your fleet.

Car Finance for Every Situation

Whether for personal use or business, buying a car requires the right financing. We’ll help you access the right loans for cars:

Personal Car Loans

Whether you’re buying your first car or looking to upgrade, you can purchase a new or used car with vehicle finance.

Commercial Car Loans

Buy new or used vehicles for business purposes with ease. With the right financing, you can get cars to enhance operations and expand your fleet.

Who Can Apply for a Car Loan?

In general, the following individuals or entities may apply for car loans:

Australian Adults: Australian citizens or permanent residents above the age of 18 can apply for a consumer car loan as long as they meet income, credit, and employment requirements.
Sole Traders: If you’re a sole trader, you can apply for a business car loan using your personal and business financials.
Partnerships: Partnership businesses can also apply for business car loans. The eligibility criteria and loan terms are based on the financial status of the partnership and the individual credit profiles of the partners.
Companies and Trusts: Companies and trusts are eligible for business car loans. The personal credit score of company directors or trust beneficiaries may also influence the loan’s approval.

Car Loan Requirements for Consumer Car Loans

To qualify for a consumer car loan in Australia, you must meet a set of baseline criteria.

Age and Residency

You must be at least 18 years old. Most lenders require you to be an Australian citizen or permanent resident. Some visa holders may still qualify depending on the lender.

Income Requirements

A steady income is the most important factor. Most lenders look for consistent income supported by payslips or bank statements. For consumer loans, a weekly net income of $500 to $750 is commonly used as a baseline. Higher loan amounts require higher income levels.

Casual and contract workers can still qualify with alternative documentation showing their income over a certain period.

Credit Profile

A reasonable credit history is expected. While prime lenders prefer scores above 600, there are flexible options available for borrowers with lower scores.

Employment History

You will need to show stability in your employment. This usually means at least three to six months in your current role.

Insurance Requirement

If the loan is secured, comprehensive car insurance is mandatory. This protects both you and the lender.

Documentation Needed for Consumer Car Loans in Australia

Lenders require clear documentation to verify your identity and financial position.

Proof of Identity

Most lenders use a 100 point ID system. Common documents include:

Driver licence
Passport
Birth certificate
Medicare card

Proof of Income

You will typically need:

Two to three recent payslips
Tax returns if you are self employed
Bank statements showing income deposits

Proof of Residence

This can include:

Utility bills
Council rates notices
Rental agreements

Financial Position Documents

Lenders will review around 90 days of bank statements to understand your spending habits and existing commitments.

Vehicle Documentation

The documents required depend on how you are purchasing the car.

For dealer purchases:

Dealer invoice
Contract of sale
Registration details
VIN

For private sales:

Registration certificate
Roadworthy certificate
Seller details

Car Loan Eligibility for Business Car Loans

Business car loans follow similar principles but include different requirements.

Proof of Business

You must operate a registered Australian business. This includes sole traders, partnerships, companies, and trusts. You will need to provide your ABN and confirm GST registration.

Time in Business

Most lenders require at least 6-12 months of trading history. However, there are options available to startups. Contact our team to learn more.

Income and Cash Flow

Lenders assess your business income to determine whether repayments are manageable.

For loans up to $300,000, some lenders may not require full income verification if your ABN has been active for more than 24 months, you’re a property owner and your score is above 500.

For larger loans or more complex applications, lenders may request a read only view of your bank statements and applications up to $1M can be made without financials. For bad credit business car loans or startups, lenders may want to see full documentation.

Credit Score

Both your personal and business credit profiles are assessed. A strong score improves your chances of approval and may result in better loan terms. If your credit is less than perfect, you may not qualify with banks or major lenders, but there are specialist lenders that can provide funding.

Vehicle Information

You will need to provide details about the vehicle, including its make, model, and value. Used vehicles may require condition reports.

Intended Use

Lenders may ask how the vehicle will be used in your business. Vehicles used primarily for business purposes can sometimes lead to better lending terms.

Documentation Needed for Business Car Loans

Full documentation requirements can be required if you have bad credit or if you’re a startup. For full doc applications, lenders may request:

Profit and loss statements
Balance sheets
Business bank statements
ATO tax portals
Asset and liability statements
Details of existing debts and commitments

Lower doc options may be available if you have good credit and a sound financial profile. Loans up to $300,000 might need no income verification needed if your ABN has been registered for more than 24 months. For larger loans, you may need to provide a read only view of your business bank account statements.

Car Loan with Balloon Payment Explained

A car loan with balloon payment involves smaller monthly repayments throughout the loan term, followed by a large final repayment (the balloon payment) at the end of the loan term. The balloon payment is typically a lump sum that covers the remaining balance of the car loan. Car loans with balloon payments can be attractive for businesses looking to keep monthly repayments low, but it’s essential to plan ahead for the large final payment.

Advantages of Balloon Payment Car Loans:

Lower monthly repayments: Because a large portion of the loan is deferred to the end of the term, your monthly repayments are reduced, which can help with cash flow management.
Flexibility to refinance: When the balloon payment is due, you can choose to refinance it, trade the car in for a new one, or pay it off in full.

Disadvantages of Balloon Payment Car Loans:

Large final payment: The balloon payment can be a significant sum, which could cause financial strain if your business is not prepared to make it.
Higher overall cost: Due to the deferral of the principal balance, the total cost of the loan (interest and fees) can be higher over time.

Refinancing a Car Loan

Refinancing can help you extend your loan term and rollover your balloon. Here are some tips on how to refinance a car loan:

Understand your interest rate, fees, and balance of your current loan. Find out what you’d like to change. Do you want to save on interest rates, shorten or lengthen the term, or negotiate on the repayment schedule?

Evaluate your credit score before you apply for refinancing. If your score has improved since the approval of the initial loan, you can possibly negotiate lower interest rates.

Contact our team at Dark Horse Financial to get more information on refinancing your car loan.

Should I Get a New or Used Car Loan for My Business?

Is it better to finance a new or used car? Deciding between a new car loan or a used car loan ultimately depends on your business’s needs, budget, and long-term plans.

When a New Car Loan Makes Sense:

Your business has strong cash flow and wants maximum tax benefits.
You prioritise reliability, warranty coverage, and the latest features.
You plan to keep the car long-term (5+ years).

When a Used Car Loan Makes Sense:

Your business needs to minimise upfront costs.
You’re buying a reliable late model used car.

Car Finance Options for Bad Credit

If you or your business has a low credit score, securing a car loan can be more challenging, but it’s not impossible. Traditional lenders may be more cautious when offering loans to business owners with poor credit, as they are considered higher risk. However, there are still bad credit car finance options available from alternative or private lenders.

You may be asked to pay a deposit of around 10%-20% of the car’s value, and you may be offered higher rates.

If you’re in need of a bad credit business car loan, contact our team at Dark Horse Financial and we’ll connect you with lenders willing to meet your needs.

Salary Sacrificing

Salary sacrificing, also known as a novated lease, is a way for employees to finance a vehicle using pre tax income through their employer.

This structure is commonly used for personal vehicles but can provide financial benefits by reducing taxable income and bundling vehicle related costs into a single arrangement.

The arrangement is typically set up as a novated lease, where:

You choose the vehicle
A lender finances the vehicle
Your employer deducts payments from your salary and pays the lender

Salary sacrificing can provide several advantages depending on your income and tax position:

Reduced taxable income, which may lower your overall tax liability
Simplified budgeting with vehicle costs bundled into one payment
Access to a vehicle without needing to pay in full upfront

Frequently Asked Questions

Do I need a deposit for a car loan?

Usually, you do not need a deposit for a car loan. Many lenders offer no deposit options, particularly if the vehicle meets their criteria and your credit position is strong. Deposit may be required if your business is a startup or if you are a bad credit applicant.

How much can I borrow for a car loan?

The amount you can borrow depends on your income or business cash flow, existing debts, credit profile, and the value of the vehicle. Lenders assess how much you can comfortably afford to repay, rather than simply funding the full purchase price. Business owners who own property can have no income verification options available to them for loans up to $300,000.

Can I make extra repayments on my car loan?

Extra repayment and early repayment policies for car loans vary per lender. Some consumer car loans allow for extra repayments (some with no penalties) that can pay down the loan faster. However, some loans are fixed term contracts and may still charge a portion of future interest if paid out early. Business car loans usually work on fixed term contracts. If you know you want to pay out your loan early it’s important to make sure your chosen lender supports this.

What vehicles can be financed with a car loan?

Most lenders finance a wide range of vehicles, including cars, utes, vans, and light commercial vehicles. Approval depends on factors such as the vehicle’s age, condition, and intended use.

What is a balloon payment on a car loan?

A balloon payment is a lump sum payable at the end of the loan term. It reduces your regular repayments during the loan but requires you to pay the remaining balance at the end. This structure is commonly used in business lending to improve cash flow.

Can I refinance my car loan?

You can refinance your car loan to improve your interest rate or reduce repayments. This is often done when your financial position has improved or when you want to consolidate debt or adjust your loan terms.

How long are car loan terms?

Car loan terms typically range from 1 to 7 years, depending on the lender and the vehicle. Shorter terms result in higher repayments but lower total interest, while longer terms reduce repayments but increase the overall cost of the loan.

Are there tax benefits for business car loans?

Business car loans usually offer tax benefits. This can include deductions for interest, depreciation, or lease payments. You should seek advice from your accountant to understand how this applies to your situation.

Can I finance a used car?

You can finance a used car, but the lender will assess the age, condition, and value of the vehicle. Older vehicles may have shorter loan terms or stricter lending criteria, but there are lenders that specialise in financing used cars and may even have no age limits.

How quickly can I get approved for a car loan?

Car loans can often be approved within a few hours to a few days – the speed of approval usually depends on the lender. We work with lenders across Australia and can connect you with one that can approve finance within your required timeline.

Can I finance multiple vehicles?

You can finance multiple vehicles, particularly for business use where it’s common to need and purchase multiple vehicles at the same time or within a short period. If you’re expecting to make a number of purchases, Dark Horse Financial recommends seeking an asset finance limit and there are limits available up to $1M without financials required for the application process. With an approved limit in place you won’t have a hit to your credit file every time you finance a vehicle.

Do car loans cover insurance costs?

Car loans do not typically include insurance costs as part of the financed amount. The loan is generally used to fund the purchase price of the vehicle, while insurance is arranged and paid separately by the borrower. However, some lenders may allow you to include insurance or related expenses in the total loan amount. Insurance premium finance is also available to cover large insurance premiums without substantial upfront cash payments.