Important disclosure

Compare Pensioner Car Loans

Living off a pension doesn’t mean you should get the short end of the stick when it comes to car loans. Compare pensioner car loans below and plug into the calculator to find an option that best matches your needs and situation.

Loan Amount

$30,000

Term

5 months

OurMoneyMarket

New Car Loan | No Fee, Excellent Credit

EST Monthly Repayment
Advertised Rate
6.57%
Advert. Rate (p.a)
Comparison rate
Simple, fast, low-rate secured car loans from $2,001 to $75,000 for any new motorised vehicle. No monthly account-keeping fees, no exit fees, and no early repayment fees. Weekly, fortnightly, or monthly repayments are available.
Can be used to buy any used cars without vehicle age limit. Borrow from $2,001 to $75,000 with this simple, fast, low-rate secured car loans with fixed rates. No monthly account-keeping fees, no exit fees, and no early repayment fees. Weekly, fortnightly, or monthly repayments are available.
MoneyPlace

Used Car Loan (Excellent credit)

EST Monthly Repayment
Advertised Rate
6.66%
Advert. Rate (p.a)
Comparison rate
Don't get ripped off by dealer financing, hidden charges, balloon payments or early exit fees. Check your rate today.
Pay ZERO fees on all loans with NOW Finance. That's right - no establishment fee, no monthly fees, no early payout fee on all loans between $15,000-$100,000. What's more, get your guaranteed, tailored interest rate in two minutes without impacting your credit score. Comparison rate can vary from 6.75% to 21.65% p.a.*
Pay ZERO fees on all loans with NOW Finance. That's right - no establishment fee, no monthly fees, no early payout fee on all loans between $8,000-$50,000. What's more, get your guaranteed, tailored interest rate in two minutes without impacting your credit score. Comparison rate can vary from 6.75% to 26.95% p.a.*
NRMA

NRMA New Car Loan (Credit Score +832)

EST Monthly Repayment
Advertised Rate
7.29%
Advert. Rate (p.a)
Comparison rate
There's nothing quite like the thrill of buying a car, but one of the biggest challenges is finance. Ideally you'll want a car loan that offers flexibility and a low competitive rate, and is easy to apply for.
NRMA

NRMA Used Car Loan (Credit Score +832)

EST Monthly Repayment
Advertised Rate
8.49%
Advert. Rate (p.a)
Comparison rate
NRMA used car loans can help you get one step closer to owning your dream pre-loved car.
MoneyPlace

New Car Loan (Good credit)

EST Monthly Repayment
Advertised Rate
10.34%
Advert. Rate (p.a)
Comparison rate
Great value finance for new or ex-demo cars. Borrow up to $50,000 to buy your dream car. Check your rate today.
MoneyPlace

Used Car Loan (Good credit)

EST Monthly Repayment
Advertised Rate
10.57%
Advert. Rate (p.a)
Comparison rate
Don't get ripped off by dealer financing, hidden charges, balloon payments or early exit fees. Check your rate today.
MoneyPlace

New Car Loan (Average credit)

EST Monthly Repayment
Advertised Rate
12.86%
Advert. Rate (p.a)
Comparison rate
Great value finance for new or ex-demo cars. Borrow up to $50,000 to buy your dream car. Check your rate today.
MoneyPlace

Used Car Loan (Average credit)

EST Monthly Repayment
Advertised Rate
13.15%
Advert. Rate (p.a)
Comparison rate
Don't get ripped off by dealer financing, hidden charges, balloon payments or early exit fees. Check your rate today.
NAB

Variable Rate Personal Loan

EST Monthly Repayment
Advertised Rate
12.69%
Advert. Rate (p.a)
Comparison rate
Whether you're upgrading your ride or adding to your garage, a NAB Personal Loan gives you a great rate. If you are an existing customer and apply in- store by 2pm, you could walk away with your money that very same day
Bank of Melbourne

Unsecured Personal Loan

EST Monthly Repayment
Advertised Rate
12.74%
Advert. Rate (p.a)
Comparison rate
Buy the type of car or vehicle you want with interest rates from 12.99% p.a. (comparison rate 14.06% p.a.)
Commonwealth Bank

Fixed Rate Personal Loan

EST Monthly Repayment
Advertised Rate
12.99%
Advert. Rate (p.a)
Comparison rate
We have dropped the rate on our 5 and 6 year loan terms.
NAB

Fixed Rate Personal Loan

EST Monthly Repayment
Advertised Rate
13.49%
Advert. Rate (p.a)
Comparison rate
Whether you're upgrading your ride or adding to your garage, a NAB Personal Loan gives you a great rate. If you are an existing customer and apply in- store by 2pm, you could walk away with your money that very same day
Credit Union SA

Variable rate car loan

EST Monthly Repayment
Advertised Rate
13.60%
Advert. Rate (p.a)
Comparison rate
The variable rate personal loan is unsecured.

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Minimum and maximum loan periods vary between 6 months and 10 years. Comparison interest rates vary between 6.55% and 19.07% p.a. Total interest repayments vary between $4,290 and $14,531 over the life of the loan. *Comparison rate is based on an unsecured loan of $30,000 for a term of 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. These rates can change without further notice. All rates quoted are per annum. For more information regarding fees click on "View fees & additional info +" for each product or contact the provider.

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What type of car loan are you looking for?

Pensioner car loans – Finance that matches your unique needs

If you’re a pensioner, you’ll likely find it an uphill battle trying to push a standard car loan application past a lender’s doors. So, what other options do you have? Read our pensioner car loans guide to find out how your pension or benefit can still get you behind the wheel.

What’s a pensioner car loan?

A pensioner car loan is a special financial fix-it that helps pensioners buy a car when they don’t have the necessary funds. That means you don’t have to be an employee or worker to borrow money for your car purchase. As long as you’re receiving eligible income from the government or Centrelink, you can:

  • Borrow up to 100% of the cash you need depending on the credit provider’s limits and your financial situation
  • Repay the debt over a long period while you drive the car

How do car loans for pensioners work in Australia?

Generally, pensioner car loans don’t give you as much range as standard car loans. For instance, your repayment periods and borrowing capacity might be limited. That’s because pensioner car loans don’t always fit within the income requirements set by most Australian lenders.

Therefore, when you’re on a pension, such requirements may seem to work hard at disqualifying you. But, keep in mind the bulk of any lender criteria is usually set up to guard against one thing: borrowers who can’t afford to repay their debt.

For most employed people, getting past this perimeter is less complicated. A regular salary is easily recognized as income, whereas it’s a grey area for pension payments. While some lenders consider them as an income, they tighten restrictions since the payments are often too small.

Which pension types are accepted?

Australian lenders usually sign off on applications involving the following types of pensions:

  • Aged pensions for seniors and retirees
  • Disability support pensions
  • Parenting pensions
  • Carers pensions
  • Veterans Affairs pensions
  • Centrelink payments

However, you might not be able to use payments for Newstart, Job Seeker, Austudy, and Abstudy as proof of income when applying.

What types of car loans are available to pensioners, retirees, or seniors?

  • Unsecured. Secured car loans generally have lower rates since your car or asset acts as a guarantee. So, if your repayments stop turning up, the lender sells the vehicle as a substitute.
  • Secured. Unsecured car loans carry a higher risk for the lender and higher rates for you due to the lack of collateral. However, the lender won’t repossess your car or asset if there’s a hold-up with your repayments.
  • Variable-rate. A variable-rate pensioner car loan has an interest rate that swings up and down by a few percentage points. As a result, you can expect to adjust your budget here and there as repayment amounts change.
  • Fixed-rate. A fixed-rate car loan maintains the same interest percentage point as when you started. That means a consistent budget and no sudden extra demands on your pocket if the rate increases. But, it also means you automatically cross out any potential savings when the rate falls.
  • New car. A new car loan allows you to hit the road in a brand-new car or one that’s up to 2 years old. It usually has a lower interest rate. But, you’ll need a more robust income to qualify for a larger loan amount.
  • Used car. You can also borrow funds to buy a cheaper, pre-owned vehicle that’s older than 2 or 3 years. However, keep in mind you might not be able to use it for collateral if you want a lower rate.
  • Pre-approval. Pre-approval car loans give you the green light to borrow a certain amount before you even go car shopping. Once you know your pocket’s potential depth, it’s easier to negotiate with a dealer for a better deal.

How do I compare car loans for pensioners to find the best option?

Taking out credit comes at a cost, so it’s worth researching your options. Carrying out a pensioner car loan comparison helps to set you up with low costs and flexible options. Make sure you consider the following before applying:

  • Interest. You’ll need the lowest rate you can find to avoid steep borrowing costs.
  • Fees. Fees and charges also contribute to the true cost of a loan. Find out how much you have to part with to cover upfront application fees, ongoing fees, and early and late payment fees. Checking the comparison rate also gives you an idea of the total costs involved.
  • Amounts and terms. Check if your needs fit within the lender’s minimum and maximum limits.
  • Monthly repayments. Use our handy pensioner car loan calculator to find an affordable estimate for your repayments. The results depend on your loan amount and term. For instance, borrowing more generally blows up your repayment amount. But, if you want to lower your repayments, you can opt for a longer loan term. However, keep in mind you’ll end up taking receipt of more interest charges.

Requirements for pensioner car loans in Australia

Typically, if you’re retired or on a pension, you’ll need to meet or supply the following requirements:

  • Minimum age of 18 years
  • Personal and contact details
  • Australian citizenship/ Valid ID documents
  • Proof of income – pension or supplementary
  • Details about your expenses and assets
  • Details about the car you wish to purchase
  • Ability to afford the proposed loan amount
  • A good credit history

How to apply

  • Find and compare car loans for pensioners in the product table at the top of this page.
  • Check the lender’s requirements to make sure you qualify. A rejected application can hurt your credit score, and it also costs time and money.
  • Click “Go to Site” for the provider you’ve picked.
  • Follow instructions on the lender’s website to complete the online application process.
  • Wait to hear back from the lender, usually on the same day or within a few days.

Car loans for pensioners FAQ

Can I apply if I have bad credit?

Yes, car loans for pensioners with bad credit are available. However, having bad credit might shrink your pool of options even further. To improve your chances of qualifying, consider opting for a secured car loan. Also, if the rate is personalised, the lender will likely charge a higher rate.

How do I improve my chances of approval?

These three options may help you win over the credit provider’s approval:

  • Putting up a deposit – when you borrow less, there’s also less risk to the lender.
  • Choosing a secured car loan – offering collateral guarantees profit for the lender.
  • Supplying proof of supplementary income – this shows you won’t have a problem affording your repayments.

What other costs do I have to budget for when taking out a pensioner car loan?

When creating your car loan budget, consider the following to figure out just how much you can afford:

  • Purchase costs
  • Borrowing costs
  • Insurance
  • Stamp duty
  • Fuel, repairs, and maintenance

Where can I find the right car to buy?

You can import a car or buy one from a private seller, dealer, or auction yard in Australia.

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