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

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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Used Car Loan
Fixed, Secured, No vehicle age limit, $5,000-$100,000
Interest rate
comparison rate
Monthly repayment6.57% p.a.to 18.99% p.a.7.19% p.a.to 21.78% p.a.based on $30,000
over 5 yearsGet 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 6.57% would cost $35,528.12 including fees.
CompareCompare- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Upfront fees
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $100,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about OurMoneyMarket car loans
-
New Car Loan
Interest rate
comparison rate
Monthly repayment6.29% p.a.to 19.19% p.a.6.72% p.a.to 20.77% p.a.based on $30,000
over 5 yearsCompetitive rates depending on credit score. No monthly or early repayment fees. No penalties for paying your loan off sooner. Borrow up to $80,000. Your choice of 3, 5 or 7 year terms. One upfront fee applies. Secured by new or ex-demo vehicle.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.29% would cost $35,352.28 including fees.
CompareCompare- Interest rate
- 6.29% p.a.to 19.19% p.a.
- comparison rate
- 6.72% p.a.to 20.77% p.a.based on $30,000
over 5 years
- Interest rate
- 6.29% p.a.to 19.19% p.a.
- comparison rate
- 6.72% p.a.to 20.77% p.a.based on $30,000
over 5 years
- Upfront fees
- $310.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $80,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about MoneyPlace car loans
-
5 Year Variable Interest Vehicle Loan
Interest rate
comparison rate
Monthly repayment5.79% p.a.5.79% p.a.based on $30,000
over 5 yearsFor vehicles up to 36 months old. Make free additional repayments. No application, establishment or additional repayment fees. Borrow between $1K and $200K. Flexible repayment options.
Repayment terms from years to 5 years. Representative example: a 5 year $30,000 loan at 5.79% would cost $34,623.55 including fees.
CompareCompare- Interest rate
- 5.79% p.a.
- comparison rate
- 5.79% p.a.based on $30,000
over 5 years
- Interest rate
- 5.79% p.a.
- comparison rate
- 5.79% p.a.based on $30,000
over 5 years
- Upfront fees
- $0.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $1,000.00
- Maximum loan amount
- $200,000.00
- Minimum loan term
- 0 Years
- Maximum loan term
- 5 Years
- Security required
- Vehicle
Read reviews and learn more about SWSbank car loans
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New Car Loan
Up to 3 years old, Fixed, Secured
Interest rate
comparison rate
Monthly repayment6.25% p.a.6.52% p.a.based on $30,000
over 5 yearsAvailable for new vehicles up to 3 years old. Borrow up to $150K with 1 to 7 year repayment terms. No ongoing fees and flexibility to redraw and make penalty-free extra repayments.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.25% would cost $35,203.67 including fees.
CompareCompare- Interest rate
- 6.25% p.a.
- comparison rate
- 6.52% p.a.based on $30,000
over 5 years
- Interest rate
- 6.25% p.a.
- comparison rate
- 6.52% p.a.based on $30,000
over 5 years
- Upfront fees
- $195.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $10,000.00
- Maximum loan amount
- $150,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about MOVE Bank car loans
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New / Demo Car Loan
Variable, Secured
Interest rate
comparison rate
Monthly repayment5.99% p.a.7.12% p.a.based on $30,000
over 5 yearsRate 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.
CompareCompare- Interest rate
- 5.99% p.a.
- comparison rate
- 7.12% p.a.based on $30,000
over 5 years
- Interest rate
- 5.99% p.a.
- comparison rate
- 7.12% p.a.based on $30,000
over 5 years
- Upfront fees
- $400.00
- Monthly fee
- $8.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $700.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $150,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about loans.com.au car loans
-
New Car Loan
Fixed, Secured, $5,000-$100,000
Interest rate
comparison rate
Monthly repayment6.57% p.a.to 18.99% p.a.7.19% p.a.to 21.78% p.a.based on $30,000
over 5 yearsGet 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 6.57% would cost $35,528.12 including fees.
CompareCompare- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Upfront fees
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $100,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about OurMoneyMarket car loans
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* 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.
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