How To Get Your First Car Loan
If you are new to the world of car finance or simply want to double check that you have everything you need to apply for your first car loan we have created a three-step guide to ensure you are ready to make that all important application.
The key to nailing your first car loan finance application is having the correct information ready to go from the start. Life hack, create a ‘new car file’ that contains supporting information and documentation. If you do nothing else, this one trick will make a daunting process much easier.
Every lender is different however we have listed the key information you will need to stay ahead of the game.
To submit an application you will need to provide some documents (see list below). This list is what is what most financiers ask for but as we said earlier you may need more depending on the lender. Think of this as a ‘must-have’ list.
- Current drivers licence OR passport OR birth certificate
- Current payslip dated within 4 weeks
- Rates notice OR rent receipt (if applicable)
- Centrelink statement (if applicable)
Employment and Residence History
The general rule is, a finance application needs to include a minimum of 3 years employment and residential history. If you have been at the same residence and employment for extended periods this shows great stability and improves your overall profile. This is what financiers look for. If you have had several jobs or several addresses in this period you will need to explain why? For Example, You may have had to move twice in 2 years due to rental properties being sold and you had no choice but to find a new place to live.
This is where dealing with a professional finance broker can be very helpful. They can ask all the relevant questions to ensure not only your current position has been explained but also things that may have impacted your stability in previous years can be clarified before making the application.
What is a Credit File? You definitely need to know about this. It is a financial timeline over the preceding 5 years that lenders use to determine a credit score. Typically, if this is your first loan you may not have a report at all – Your Credit File starts once you request credit!
This worthwhile read contains more detail and we definitely recommend clicking on this link www.veda.com.au/yourcreditandidentity/check/credit-file/whats-my-credit-file
It is not necessary for you to have a copy of your credit file but it is important to understand what it is and what it contains. If you want a copy here’s the link www.mycreditfile.com.au.
You now have all the information and documentation is done, what next?
We recommend going through a professional finance broker. At Red Plum Automotive we have a qualified team who would be happy to discuss your finance needs in more detail and take you through the loan process. Check and evaluate your documents and information and then package everything up and send to a suitable lender.
Turn-around-times can often take as little as (2) hours, so it pays to be organised!