Getting a car loan as a new immigrant or 457 visa holder
Having a car can often be necessary so that you can get to work and you can take children to and from school. Unfortunately if you've just moved to a new country, you may not have the money upfront for a car loan. Here are some tips if you are a new immigrant or 457 visa holder (a work sponsored visa).
Reduce the term of the loan
If you only have a work sponsorship visa, it can be useful to reduce the term of the loan that you are looking for. If you are only on a short term stay in Australia it can be sensible to have a loan that is for this shorter period as this reduces the risk for the lender and increases the chance of your loan being approved. If you have a work contract for a guaranteed period this can often be a sensible duration for a loan. This will result in a higher monthly payment than a longer term loan, so you may need to reduce the total budget for the car if you can't afford a higher monthly payment.
Provide proof of income
If you are a new immigrant, you may not have a range of payslips to provide the lender. Instead, you can provide evidence of any Centrelink payments that you receive or a letter from your employer detailing how much money you receive. This can help prove that you can meet monthly payments as you have a steady source of income.
Provide a deposit
If you do have some savings that you can contribute as a deposit, this can reduce your monthly payments and provide some security that they will not suffer any losses if you suddenly decide to leave the country. It demonstrates more commitment to the loan and can help improve your chances of getting a loan approved.
Get references from other people
If you have other commitments and links to the community such as church leaders or leaders from other volunteer organisations, this can often help support your application for a car loan. These help to show that you are likely to stay in the area.
If you need some help applying for a car loan due to your limited history in Australia, it can be useful to get some help from a loan broker. They have experience in choosing loan providers and structuring loans in a way that maximises the chances of approval. They can also ensure you get the best rates and terms.