Car Loans For Single Parents
Getting a car loan shouldn’t be a chore, even if you’re a single parent with imperfect credit. We can match you to your ideal lender today.
Why people turn to us when applying for car loans
Buying a car can seem like a far-off dream when you’re raising children by yourself on one income but, in many cases, it’s closer to reality than you’d think.
Our consultants help single mums and dads with poor credit find an understanding lender which fits their financial situation to give them the best shot at loan approval.
Our accelerated turnaround times mean you can be approved and funded in as few as 48 hours. Apply today to get back in the driver’s seat sooner.
Doing the leg work for you
Our experienced consultants are quick to find you the best loan among our multiple lending partners, saving you the run-around.
Obligation-free quotes
You can test the waters and see what you can afford to borrow without making a formal application or affecting your credit score.
Completely online
Our fully-online application system means you can apply from your computer or smartphone anywhere in Australia.
Features and benefits of bad credit car loans
Multiple incomes accepted
You can count various income streams, such as multiple jobs and fixed government benefits, towards your car loan application.
Early repayment accepted
Making extra payments or paying off your loan early won't cost you, as some of our lenders don't charge early exit or discharge fees.
Fixed interest rate
Locking in an interest rate stabilises your repayments over the life of your loan and makes budgeting easier and more accurate.
Unpaid or paid defaults
If you have defaults on your credit report, you're still eligible to take out a car loan, regardless of whether they're paid.
New or used options
You can choose to buy brand-new or second-hand through a private seller or a dealership anywhere in the country.
Loan terms up to five years
Our lenders offer flexible loan terms, allowing you to pay across one to five years and structure repayments to your needs.
How we can get you approved
Enquire online
Get a quote on our website in a couple of clicks. You have the chance to make an initial application as well, but if you're not quite ready, a consultant will call to discuss your options.
Get matched with a lender
When you apply, your consultant will connect you to a lender who best meets your financial situation using our high-tech software.
Get your application submitted
After locking in your lender, your consultant gets about preparing your application. You'll be asked to supply supporting documents.
Sign your documents
Once approved, your consultant emails you a loan agreement to sign and return so your loan funds can be released.
What factors will impact my borrowing power?
Car value
The value of the car you want will directly correlate to how much you can borrow. Because the loan is being used to purchase the car itself and nothing else, the amount you’re approved for won’t exceed its value (except for any included on-road costs).
Dependents
As a single parent, your children will impact how much you’ll be able to borrow. A lender will ask how many dependents you have to estimate what you can afford to borrow.
Income
Earning more allows you to borrow more. Our lenders factor in multiple streams of income when looking at total earnings, boosting what you can borrow. Payments such as fixed Centrelink benefits and child support are eligible to be included.
Expenses
Ongoing costs such as rent, school fees and child care are some of the expenses lenders check when assessing your loan. Showing a steady saving history and clawing back spending on non-essentials will improve your borrowing capacity.
Employment
Your job status will be a determining factor in your borrowing limit. A permanent full-time worker will likely be able to access more money than a casual worker who has been with a company for under three months. Being able to show you have held down steady work over a long period will also impress lenders.
What should I consider when buying a car?
Finding a car that ticks all the boxes for you and your child can seem challenging. Storage space, ample room for booster seats and being equipped with the latest safety features are some of the factors you’ll be considering. Some of the things to think about before you purchase your next car include:
How much you can afford
Finding a car that fits your price range is the key. It’ll allow you to better afford ongoing repayments and running costs. Your consultant can do a rough budget to see what you can easily manage without your loan causing hardship.
New or used
Weigh up your options when deciding whether to buy brand-new or second-hand. New cars will be more expensive but will have a higher value and cost less to insure. Used cars will be cheaper but may cost more to maintain.
Safety features
As a single mother or father, you’ll be looking for a car that suits the needs of your child. New and used vehicles may include technology such as reversing cameras, emergency braking and lane departure alert. Keep an eye out too for cars with five-star ANCAP safety ratings.
Ongoing maintenance
Choosing a car that requires minimal upkeep will save you time and money. If you’re buying a second-hand car, it’s a good idea to get the vehicle inspected. This checks for any unusual noises in the engine, fan belt problems or leaks in the radiator hoses. It’s also good to take a car-savvy friend or family member with you on a test drive of the vehicle.
Making a down payment
Having a strong saving history and being able to offer up a deposit on your loan will make you more enticing to a lender. Making an upfront payment also reduces ongoing repayments and saves you money on interest over the life of your loan.
Efficiency
Petrol prices are a constant headache for motorists. Picking a fuel-efficient vehicle will let you travel further while paying less, taking the pressure off your budget.
Frequently asked questions about bad credit car loans
Aside from parenting payments, what other Centrelink benefits can be factored in as income?
Our lenders can factor in a slew of government benefits as income if you’re experiencing a period of hardship. Some measures relevant to single mothers and fathers include:
- Family Tax Benefit A and B
- Child care subsidy
- Rent assistance
- Disability (NDIS) pension
Will having credit cards affect my approval chances?
They can – what you owe and how much you can spend on your credit cards will play a role in your chances of approval. Scaling back card limits reduces your overall unsecured debt, which is seen as a positive. Having a credit card which you can pay off in full each month will help you boost your score also.
Should I get a guarantor for my car loan?
Yes – taking out a loan with a guarantor will boost your approval chances significantly. By having a guarantor, the lender has backup in the event you fail to make repayments. However, this option isn’t open to everyone, as your guarantor will need to be someone in a stable financial position who’s deemed reliable enough to take on the payments by your lender should it be required. This is usually a parent, grandparent or another close relation.
Can I include my on-road costs into the amount I borrow?
Yes – you can roll some of the costs involved in getting your car on the road into your loan amount. This includes insurance, vehicle registration or stamp duty.
Can I repay my loan early?
Yes – most of our lenders don’t charge early exit or discharge fees. You’ll also be able to make extra repayments over the life of your loan at no additional cost.
Can I use my car loan funds for other expenses?
No – car loans can only be used to purchase a vehicle. You might need to consider alternative options, such as personal loans, if you want to use your funds for a variety of expenses.
I have defaults on my credit file. Will this impact my approval chances?
Potentially – however, bad credit loans don’t hinge on what’s on your credit report. Paying off or entering into payment arrangements for your unpaid defaults will improve your approval chances, as your lender will see that you’re intent on paying off debts.