Pensioner Car Loans – The Facts

If you’re receiving a pension it can be difficult gaining a car loan, but that shouldn’t mean you miss out on necessary transportation. We help pensioners receiving Centrelink gain suitable car loans to meet their needs and budget.

We’ve provided some facts on car loans for pensioners to help you when deciding on a car loan or cash loan.

Please note: We are not a payday lender. We offer Pensioner Car Finance through various lenders.

Car Loans from $5000 – $8000

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  • Minimum loan amount is $3000
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Most banks use basic affordability guides when assessing loans and access either the Henderson Poverty Index (HPI) or Household Expenditure Measure (HEM) to establish average monthly expenditure.

Lenders will also take into consideration additional expenses such as rent, credit cards and existing loans to establish a suitable affordability level based on your income.

Although these are a guide, you do need to take into consideration your own spending habits and any additional expenses to make sure you can afford a new commitment.


Having a default can make your application for a car loan more difficult with some lenders, however by helping the lender understand the reasons behind why the default happened will only help your application progress further.


Be honest with your application and don’t let pride get in the way as lenders will check the accuracy of the information given to them.

Be Realistic

Taking into consideration lenders guidelines when assessing affordability, rather than have the disapointment of not getting the car you want.

It can be more beneficial to gain a pre-purchase car loan so you know how much you can borrow and repayments before choosing a car.

Pensions that are accepted

Image result for tick icon Disability Support Pension

Image result for tick icon Family Tax Benefit

Image result for tick icon Aged Pension


Read the Fine Print

Always check the loan contract before signing and ask questions.

You’re about to enter into a payment agreement with a lender for a minimum of 12 months, so you need to make sure you understand your obligations.

A low rate loan doesn’t always mean a cheaper loan as some lenders impose high establishment fees and exclusive purchase arrangements with some dealerships.

Pensions that not accepted

Image result for cross icon Newstart & Job Seeker

Image result for cross icon Austudy

Image result for cross icon Abstudy

Supporting Documents

Lenders need to verify your current financial situation and will generally ask for proof of income and bank statement history. Ensure you meet the lenders credit criteria by providing supporting documents to assist with your application.

  • Current Centrelink Income Statement
  • 3 Months Bank Statements
  • Proof of Identity (Photo ID)
  • Rental Ledger, Mortgage Statement of Board Letter


If you’re still searching for that perfect car, you can obtain an upfront pre-purchase loan.

  • Pre-purchase car finance gives you the flexibility of shopping around for a special without having to sort out finances after deciding to buy.
  • Gives you more power in negotiating a better price.
  • Allows you to make a quick decision to purchase without losing the car to another buyer.

To obtain pre-purchase car finance, you will need to go through the loan application process which will record a credit check on your credit file. APPLY NOW.