How a pre-approved car loan could fund your post lockdown vehicle purchase

By Polly Fleeting · · 2 min read
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young woman sitting in her vehicle bought with pre approved car loan

Been holding out to buy a car once post-lockdown? Well, it may be time to think about getting pre-approved for a car loan.

Not only could this speed up the process of buying a new or used vehicle, it can give you the peace of mind that you have already been approved for lending from a car loan provider. 

Plus, it can give you a better idea of what car prices you can go for as well as how far you need to go if it comes to negotiating the price. 

But what is car loan pre-approval? 

Car loan pre-approval is when a lender conditionally agrees to loan you money before you purchase a vehicle.

Note the word ‘conditionally’. This means that the loan isn’t set in stone, rather the lender sets conditions in order to fully approve the loan for the purchase of a car. Conditions may include things like loan limits and vehicle types. 

It’s also important to remember that pre-approvals only last for a certain amount of time before they expire - in Australia that’s usually around one to three months. 

So with this in mind, if you are planning to go car shopping post-lockdown it may be a good idea to have a look online and see what’s available within your price range right now. That way you will have done your research and won’t waste time once you’ve been pre-approved. 

Do pre-approvals affect credit score? 

Like all lending, pre-approvals can impact your credit score. The golden rule when applying for a loan or pre-approval is not to make multiple applications at once. Other lenders and tax reporting agencies may see this as a negative. 

Remember, to be granted pre-approval on a car loan you need to have a healthy credit rating as it gives a potential lender the indication that you are a trustworthy borrower. So if your credit score isn’t looking good right now, it may be worth focusing on repairing it by paying off your current debts, before seeking out more forms of credit.   

So wait, does pre-approval guarantee a car loan? 

As mentioned, in the case where a borrower receives pre-approval, there is no guarantee of a car loan. 

Some of the reasons someone may not receive lending after pre-approval: 

  • The pre-approval period has expired 
  • The car they are looking to purchase is too expensive (above the pre-approved loan amount)
  • The lender doesn’t cover a particular vehicle type

How do I apply for car loan pre-approval? 

First off, you’ll have to find a lender that offers pre-approval, as not all of them do. 

Once you have, like a normal car loan application, the lender will assess your finances and check over things like your credit history, transaction and savings accounts as well as your employment status. That way, the lender will be able to determine how much they think you can afford to repay over the life of the loan. 

If you receive pre-approval on a car loan, you will then be provided with funds to make a vehicle purchase. 

Ready to start comparing car loans? Have a look at these options or head to our car loan hub for even more!

Compare car loans

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Last updated 10 July 2025 Important disclosures and comparison rate warning*
  • Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    6.45% p.a.to 21.65% p.a.
    6.45% p.a.to 21.65% p.a.based on $30,000
    over 5 years

    NOW Finance is a winner in the 2025 Mozo Experts Choice Awards for Excellent Credit Used Car Loan. You have the option of getting a secured or unsecured car loan with Now Finance, with loan terms lasting between 18 months up to seven years. There are no fees attached to this loan, including zero upfront fees or early exit fees. Must be an Australian citizen or permanent resident to apply (see T&Cs).

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.45% would cost $35,176.93 including fees.

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  • Used Car Loan

    Fixed, Secured, No vehicle age limit, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $100,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for 1 month. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.28% would cost $35,033.88 including fees.

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    Details
  • Better Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.
    6.40% p.a.based on $30,000
    over 5 years

    This competitive fixed rate car loan is available for new and used cars, as well as caravans, motorcycles, boats and trailers. Just note, you must be borrowing a minimum of $20,000 to apply. You can make unlimited additional repayments on this car loan without paying a fee, so you could pay your loan off sooner. If needed, you can also redraw those extra payments at any time. No monthly or annual fees apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,085.67 including fees.

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    Details
  • New / Demo Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.
    7.12% p.a.based on $30,000
    over 5 years

    Rate cut now live! Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,670.67 including fees.

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  • Mozo Expert Choice Badge
    New Car Loan

    up to 4 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.
    6.34% p.a.based on $30,000
    over 5 years

    Fast online conditional approval. No monthly account fee. Unrestricted additional repayments. No penalty for early payout, and a fast application process. Borrow up to $125,000. Apply online in under 10 minutes.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,040.67 including fees.

    Compare
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    Details
  • New Car Loan

    Fixed, Secured, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $100,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for 1 month. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.28% would cost $35,033.88 including fees.

    Compare
    Go to site
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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