Here’s How To Identify ‘How Much Can I Borrow Car Loan?’

Feeling overwhelmed and wanting to know the answer to your online search for ‘How much can I borrow car loan?’

Getting a vehicle loan in Australia can seem daunting, but it doesn’t have to be. At SocietyOne, we’re one of Australia’s leading digital finance platforms, and we’re here to simplify things for you. As you read along, you’ll learn the different factors affecting an auto loan size so you can make informed decisions.

Understanding car finance options in Australia

If you’re searching for terms like ‘How much can I borrow car loan?’ it’s best to know the basics of car or auto loans first. A car loan is a financial solution that allows you to acquire a vehicle without a hefty upfront payment, providing you more flexibility with your finances while securing your desired vehicle.

It’s a commitment where you generally borrow a certain car loan amount from a lender to finance your purchase, then pay back the principal with any interest over an agreed period.

Who offers car loans in Australia?

In Australia, car loans are accessible through various institutions. Dealerships often have tie-ups with lenders, offering loans at the point of sale. Traditional banks could also offer car loans.

And, finally, there are lenders like us at SocietyOne who offer car loans online. Generally, online car loans may offer quicker and more convenient loan processes than traditional banks. Online loans also usually have less stringent criteria, catering to a wider range of borrowers who are looking to purchase a car.

Are there different loan options when it comes to car financing?

Yes, there are multiple loan options when it comes to car loans, and a prime example of this variety is the range of options we offer at SocietyOne. We pride ourselves on offering unsecured and secured personal car loans. Our unsecured personal car loans provide the freedom of borrowing without collateral, with flexible terms spanning two, three, or five years.

Meanwhile, our secured personal car loans may potentially provide larger amounts, lower rates, and longer terms that allow for up to seven years. That’s because you can use the car you’re looking to purchase as collateral, thereby reducing the risk.

Your borrowing capacity for car purchase

What role does my income play in determining the maximum amount I can borrow?

Looking up ‘How much can I borrow car loan based on my income?’ Your income may influence your borrowing capacity, but it’s not the only thing lenders consider.

Lenders like us at SocietyOne are responsible for ensuring that you can comfortably make repayments before granting you a certain loan amount, and your income will help us in this assessment. However, it doesn’t always mean that the higher your income, the larger the loan amount you can borrow. We also need to consider other factors in our assessment, and those will be discussed below.

What factors will contribute to how much I can borrow?

Aside from your income, other factors may affect your borrowing limit – one of which is the type of loan you opt for. As we mentioned, our secured personal loans could allow you to borrow larger amounts, and the value of your collateral may also contribute to this.

Your credit score also plays a critical role when you’re looking to find out ‘How much can I borrow car loan?’ A good credit score not only increases your chances of loan approval but also influences the loan amount, interest rate, and terms.

At SocietyOne, we recognise the importance of a good, unique credit profile. We offer risk-based pricing, meaning the better your credit score, the lower your rate could be, at times below what traditional banks can offer.

Eligibility for car loans

Common criteria for car loan approval

When finding out the answers to your search for ‘How much can I borrow car loan?’ you may also be wondering if you’re eligible. Each lender will have its own set of criteria, but at SocietyOne, our requirements are designed to ensure responsible lending. To apply for a personal car loan, you must:

• be at least eighteen years old;
• be an Australian citizen or a permanent resident;
• earn an annual salary exceeding $30,000; and
• have a good unique credit profile.

Necessary documentation for car loans

When you’re ready to apply for car loan with SocietyOne, it’s best that you have the right information and documents ready:

• your personal details, such as your name, address, and date of birth;
• a driver's licence or passport;
• proof of your address;
• proof of your income in the form of payslips or bank statements; and
• details about your day-to-day expenses and any other debts.

If you’re applying for a secured personal car loan, you’ll also need to provide asset details as part of our verification process. The specific documents may depend on your ownership of the vehicle, but it will help to have these things handy:

• registration certificate;
• proof of insurance; and
• dealership invoice (if you are purchasing a vehicle).

Frequently Asked Questions (FAQ)

How does SocietyOne’s loan application work?

Now that you know the answer to ‘How much can I borrow car loan?’ it’s time to learn about our process. Our online application process is straightforward and efficient, allowing you to get your rate in as little as two minutes. Most applicants complete their loan application in as little as five minutes. If approved, you can expect the funds in your account in as little as one business day!

Are there any restrictions on the type of vehicle I can finance with a car loan?

It will depend on the specific lender. For traditional banks and car dealerships, you may be limited to securing a new car, or the car may need to meet other qualifications, like the year it was made. But with SocietyOne, flexibility is key. We may be able to help you, whether you’re eyeing a unique collector’s car, a practical second-hand car loan, or even a new car.

What should I do if I want to increase my chances of getting a car loan?

One way to increase your chances of car loan approval is to improve your credit score.

At SocietyOne, we make understanding and enhancing your credit score straightforward. Simply download the MONEYME app to check your credit score for free without impacting it negatively. We’ll provide practical tips on how to improve your credit score, and as it improves, it can also open doors to other credit opportunities.

SocietyOne: making personal loans simple

SocietyOne is a trusted Australian finance provider that is now part of the MONEYME Group, so you can count on us for faster, fairer deals. We offer both secured and unsecured personal loans while providing an efficient online experience. Instead of just looking up ‘How much can I borrow car loan?’ apply for our personal loans at SocietyOne today!