Car Loans for Unemployed People

Being unemployed can make getting approved for a car loan difficult, but it doesn’t automatically rule you out. Many people searching for car loans while unemployed are actually still earning income from streams that lenders can assess in place of full-time or part-time employment. Whatever your situation, it’s worth understanding what’s realistically possible before you apply.

Can I get a car loan if I'm unemployed?

Yes, you can get a car loan while unemployed, provided you’re earning an eligible income from another source, such as Centrelink payments. Whether your application is accepted will come down to the nature of your income and whether it’s enough to support the repayments of the loan you’re after.

If you have no income at all, though, getting approved for a car loan is very unlikely. Lenders are required to assess your ability to comfortably meet repayments under responsible lending obligations, and without any income, there’s simply nothing for them to base that assessment on.

What income sources can help me qualify for a car loan while unemployed?

A range of Centrelink pensions and payments and other income sources may be considered by lenders in place of full-time employment, including:

Age Pension
Carer Payment
Disability Support Pension (DSP)
Family Tax Benefits A and B
JobSeeker Payment (in conjunction with wage income or family allowance payments only)
Parenting Payment
Service Pension for Veterans
Special Rate (Totally and Permanently Incapacitated) Pension
Rental income from an investment property
Superannuation income if you’re retired

Lenders will want to see evidence of this income, such as Centrelink statements, bank statements or tax returns, to confirm it’s both genuine and sufficient to support your loan repayments. The more consistent and verifiable your income, the better your chances of approval.

However, applications are considered on a case-by-case basis and it’ll ultimately be up to your lender’s discretion whether to accept your income source/s.

Can I get a car loan if I'm unemployed and have bad credit?

Yes, it’s possible to be approved for a car loan if you’re unemployed and have bad credit, provided you satisfy all your lender’s qualification criteria. Specialist lenders who work with bad credit borrowers tend to be more open-minded when it comes to credit scores and less conventional income sources.

That said, combining unemployment with bad credit does narrow your options further than if only one of these applied to you. Working with a broker can help you identify which lenders are most likely to consider your specific situation.

How much can I borrow for a car loan if I'm unemployed?

Borrowing power for unemployed applicants depends heavily on the strength and consistency of your alternative income source. Generally speaking, those relying primarily on Centrelink payments will be looking at a more modest borrowing range, typically between $5,000 and $20,000. You could be eligible to borrow more if you’re earning a sufficient amount through rent or your super, though.

Deposits aren’t always necessary, as many lenders offer up to 100% financing, but putting one down can work in your favour. Without a steady employment income, a deposit demonstrates financial discipline and reduces the amount you need to borrow, which can make your application more attractive to lenders.

The amount you’re ultimately approved for will come down to several factors, including:

The type and consistency of your income source
Your regular living expenses and existing financial commitments
Whether you have any bad credit on your file
Whether you’re able to put down a deposit
The lender you apply with, as borrowing caps vary
How much the car you want to buy is worth

How to apply for a car loan if you’re unemployed

1

Fill out our online application form

Tell us about yourself and your current financial situation, as well as the loan you're after.
2

Send through any necessary documents

We'll need to see documentation to verify your current finances and your identity.
3

Have a chat to your broker

Your broker will give you a call and discuss your loan options.
4

Lock in your chosen car

If you haven't already, we can help you find your car through our in-house car broker's national dealer network.
5

Get your application submitted

Once you're happy to proceed, your broker will prepare your application for formal submission.
6

Receive approval and settle your loan

You can be approved as soon as within one business day, after which we'll handle loan settlement.
7

Drive away

Simply sign off and the car is yours!

Apply now

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.

Unemployed 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

How to improve your chances of getting a car loan while unemployed

Avoid major life changes where possible

Lenders will treat inconsistencies in your profile, like frequent changes of address, as a red flag on applications, particularly when you’re unemployed. Where possible, try to maintain a stable address and avoid other major changes in the lead-up to your application to demonstrate stability.

Consider a guarantor

Having a parent or grandparent agree to guarantee the repayment of your loan can strengthen your application significantly if you’re unemployed. It's worth keeping in mind that your guarantor will be responsible for the debt if you default, so it's a decision that shouldn't be taken lightly by either party.

Be realistic about your loan amount

The less you need to borrow, the easier it is for a lender to approve your application without full-time employment behind you. Opting for a more affordable vehicle can lower your loan amount, reduce your interest bill and improve your chances of getting across the line.

Work with a broker

A broker who specialises in non-standard income car loans can match you with lenders that are most likely to approve your application. By applying with us, you can be matched with one of our flexible lending partners, provided you satisfy their criteria.

Frequently asked unemployed car loan questions

Can I get a car loan while unemployed as a student?

Yes, students can be approved for a car loan while unemployed, provided they’re receiving income from an eligible source. Centrelink payments like Youth Allowance, Austudy or ABSTUDY can’t be accepted as income on a car loan application, though. As with any application, approval will come down to whether your income is sufficient to comfortably support the loan repayments.

Can single parents get a car loan while unemployed?

Yes, single parents can be approved for a car loan while unemployed if they're receiving an eligible income source such as the Parenting Payment or Family Tax Benefits. Lenders will assess whether this income, combined with your living expenses and those of your dependant/s, is sufficient to support the loan you're applying for.

What happens if I get a job while paying off my car loan?

Nothing changes with your existing loan, as your repayments and terms stay the same regardless of any changes to your income. However, once you’ve been working there and earning a consistent income for some time, you may be eligible to refinance to a car loan with more favourable terms. This may mean being able to access a better rate, for instance.