Car Loans for Part 9 Debt Agreement
If you’re stuck in a Part 9 debt agreement but need a loan for your next car, the door isn’t totally shut on your finance options.
A Part 9 (or Part IX) debt agreement can often feel like it’s put all your financial plans on hold, but it doesn’t have to mean giving up on getting a car. Mainstream lenders typically won’t approve your application if you’re in one of these agreements, but there are specialist providers who look past your history and focus on how you’re managing your money right now. We can help match you with one of our flexible partners who can offer car loans for Part 9 debt agreements and give you a second chance.
Can I get a car loan with a Part 9 debt agreement?
Yes, it’s possible to get a car loan while you’re in a Part 9 debt agreement, though your options will be more limited than someone with a clean credit history. A Part 9 is a formal arrangement set up through AFSA that lets you repay part of what you owe instead of going bankrupt, which stays on your credit file for at least five years.
While you probably won’t be approved if you’ve only just entered into your debt agreement, some lenders can accept applications from those who’ve maintained good financial conduct for at least six months. You’ll still need to meet their lending criteria to be approved.
Once your agreement is fully paid out, though, your options will open up further. More specialist lenders will be in a position to work with you after it’s discharged, as is the case with bankruptcy.
How much can I borrow on a car loan with a Part 9 debt agreement?
If you’re under a Part 9 agreement right now, you could potentially borrow as much as around $60,000. After the agreement finishes, though, this could rise to as much as $150,000 with some lenders. Your borrowing power comes down to the same things any lender looks at:
- Income (lenders generally look for a minimum of around $480 a week)
- How you receive your income (whether it’s from employment, Centrelink or both)
- Existing expenses and commitments, including repayments under your Part 9 debt agreement
- Your financial track record since your debt agreement started
- Whether your Part 9 agreement is still active or has been fully discharged
- Whether you own property, even without significant equity
- Savings buffer or deposit you can put toward the loan
Every person’s borrowing power is different, so if you’re not sure how much you could be approved for, get in touch and we can talk through your options.
How to apply for a car loan under a Part 9 debt agreement
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1
Complete our online application
Give us a few details about your situation and the type of car loan you're looking for.
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2
Provide your supporting documents
We'll ask for proof of income, identification and details of your Part 9 agreement so we can match you with the right lender.
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3
Speak with your broker
Your broker will call to talk through your options and answer any questions about your situation.
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4
Choose your car
Not sure what you're after yet? Our in-house car broker service can help you find one through our network of dealers.
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5
Submit your application
Once you're ready to move forward, your broker will get your application ready and submit it on your behalf.
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6
Get approved and settle
Approval can come through in as little as one business day, and we'll take care of settling your loan from there.
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7
Pick up your keys
Sign the final paperwork and your car is ready to drive away.
Why us?
Fast loan approval
We work hard behind the scenes to match you with a suitable lender and have your loan approved and funded in as few as 48 hours.
100% online
Where ever you are across Australia, you can apply for a bad credit car loan using your laptop or even a smartphone.
Trusted brand
For more than a decade, we've been helping borrowers with bad credit get approved for their car loans across Australia.
Bad credit car loan eligibility and documentation
Eligibility
- You must be 18 years of age or older
- You must be an Australian citizen, permanent resident or eligible visa holder
- You must be employed and earning a stable income that supports your car loan payments, which can start from as little as $480 per week
- You mustn't currently be bankrupt
- Your chosen car must satisfy your lender's vehicle eligibility criteria
Documentation
- A valid driver's licence, front and back (passports can also be accepted)
- Your two most recent consecutive payslips
- 90 days of bank statements and/or Centrelink income statements
Top Tips
Top tips for getting approved for a car loan with a Part 9
Maintain positive credit behaviour
Keeping up with your rent, utilities and any other bills you're paying shows lenders how you're managing your money right now and why you can be trusted with a loan.
Apply for an amount that matches your budget
Asking for a loan that comfortably fits your income and expenses gives you a better shot at approval than stretching for a more expensive car.
Save toward a deposit
Even a small deposit can improve your approval chances and reduce how much you need to borrow. In some cases, a deposit may be necessary, but it usually isn’t.
Wait until your agreement is discharged, if you can
Your options open up considerably once your Part 9 has been fully paid out, so if your situation allows for it, waiting can work in your favour.
Common Part 9 debt agreement car loan questions
Do I have to tell a lender about my Part 9 debt agreement?
Yes, lenders will find out regardless through a credit check, so it's best to be upfront about it from the start. Being honest about your situation means we can focus on matching you with a lender who's actually likely to consider your application, rather than wasting time on one who isn't.
Can I apply for a car loan if I'm receiving Centrelink payments?
Yes, you can be approved for a car loan on Centrelink, provided your payments are ongoing and count as assessable income. This includes payments like the Age Pension, Disability Support Pension and Carer Payment. Lenders will still look at your overall financial position alongside your income, including your Part 9 agreement and any other expenses.
Can I get pre-approved for a car loan before I start looking at cars?
Yes, and it's worth doing if you can. Pre-approval gives you a clearer idea of your budget before you start car shopping, and it can put you in a stronger position when negotiating with a seller or dealership.
Can I be approved for a car loan with a default on my file?
Yes, a default on its own doesn't rule you out, whether it's paid or unpaid. Lenders will look at your overall financial situation, including your Part 9 agreement, your income and how you've been managing money since the default was listed, rather than declining you on the default alone.
Having a non-finance default, such as on a phone or utility bill, often isn’t a major concern for lenders, but finance defaults, such as on a personal loan, may harm your approval chances.
Can I get a car loan if I'm a single parent with a Part 9 debt agreement?
Yes, being a single parent doesn't affect your eligibility on its own, and government payments like the Parenting Payment or Family Tax Benefit can count toward your income. Lenders will still assess your overall financial position, including your Part 9 agreement, your other expenses and how much room you have in your budget for a new repayment.