Car Loan FAQs

Check out our car finance and car loan FAQs.

About us

Affordable Car Loans is an Australian company, specialising in motor vehicle finance. Affordable Car Loans has expanded to offer finance throughout Australia.

As an alternative finance provider to the major banks and other car finance providers, we strive to treat every customer as an individual. We believe that applying for a car loan should be a simple process so you can focus on the important things in life.

You can count on Affordable Car Loans to tailor a simple, easy to understand car loan to your individual needs.

Put us to work to find your car from our extensive network of dealerships and wholesalers, Australia-wide. We can even take care of the negotiations for you and get you a highly competitive price!

Call us on 1300 782 226, Mon-Fri 8:30am to 5:00pm or have a chat to one of our friendly staff via our online chat facility.

Application and approval

By either contacting our call centre on 1300 782 226, Mon-Fri 8:30am to 5:00pm or completing the online quote.

Before you apply, please read the below eligibility criteria. We will not be able to assist you with car finance if you do not meet the below minimum criteria.

  • you must have a regular income;
  • be a permanent Australian resident or have a valid visa;
  • be at least 18 years of age; and
  • have a valid driver's licence (including learners permit).

Yes, you can purchase a vehicle through a dealership or private seller. The vehicle must be registered, and be in road worthy condition in the applicable state of purchase.

Before you receive final approval on your car loan application, you will need to provide us with the following documents:

Proof of identity

Primary identification documents (50 points)

  • Drivers Licence
  • 18+ Card
  • Passport
  • Birth Certificate

Secondary identification documents (25 points)

  • Bank card
  • Medicare Card
  • Pension/Health Care Card

Note: Only one document from Primary identification documents is to be used per applicant. This is a guide only; other forms of secondary identification may be acceptable. We require 100 points of identification.

Proof of income

Recent payslip and 60 days bank statements where paid directly into the bank account.

If you are self-employed, your most recent tax return/financial statement and/or associated notices of assessment.

Cash in hand employment requires a letter of employment from the employer evidencing remuneration.

Bank statements

Individual

  • Statements must include your name and current residential address
  • Last 60 days of transactions

Self Employed

  • Statements must include your name and current residential address
  • Last 120 days of transactions

We may require 90-120 days of transactions in some cases i.e. if you’re paid monthly.

Depending on the details of your application, we may also require other documents in addition to those listed above.

In most cases it only takes 1-2 business hours from when we receive all of the requested documentation to get an answer back from our Credit Assessment department.

If all completed loan documents are received before 4:30pm AEST funds will be disbursed the same business day. All completed loan documents received after this time will have the funds disbursed on the following business day.

Fees, charges and interest

Our car loans start from just 9.99%* (Comparison Rate 13.90%^), however interest and payments vary depending on the finance product identified as best suiting your circumstance.

All our car loans feature fixed interest rates. This makes it easier for you to budget as repayment amounts stay the same throughout the life of the loan.

Interest is calculated daily and charged to your account on a monthly basis.

Non-refundable Upfront Fees

These are included in the amount of credit, unless you have paid them directly to us.

Description Fee

Establishment Fee

This fee is charged on all car loans and is for assessing your application (if approved) and establishing your account.

$400

Account Management Fee

This fee is for managing your account for the life of the contract, assuming you make all payments as and when they fall due. This fee is charged on all car loans and is based on the term of your loan i.e. 2.5 year term would have an Account Management Fee of $500.

$200 per year

Risk Fee

This fee is charged on all car loans and is based on your credit and risk assessment.

Variable

Not all fees are listed above. There may be other fees that are payable such as a Broker Fee. All applicable fees will be listed on your contract.


Other Fees and Charges

The following credit fees and charges will apply in the specified circumstances. These amounts are immediately payable by you when we ask you to pay it.

Description Fee

Early Termination/Payout Fee

We do not charge an early payout fee or any other hidden fees and charges. You can payout your car loan at any stage without penalty.

Nil

Payment Handling/Processing Fee

We do not charge any payment processing fees.

Nil

Dishonour or Missed Payment Fee

If you miss or fail to make a payment in accordance with the repayment schedule or when we are notified of a dishonour by our bankers for a payment you made, this fee may be debited to your account and form part of the balance on which interest (if any) is charged.

$22

Arrears Management Fee

If your account falls into arrears at any time, in order to manually monitor it until your account is brought up to date, for every month or part thereof that it remains in arrears, this fee may be debited to your account and form part of the balance on which interest (if any) is charged.

$22

Arrears Notice Fee

If your loan is in arrears and we find it necessary to issue a letter or Default Notice, this fee may be debited to your account and form part of the balance on which interest (if any) is charged.

$5.50

Additional Statement Fee

If you request us to supply you an additional statement of account, this fee may be debited to your account and form part of the balance on which interest (if any) is charged.

$11.00

We do not charge an early payout fee or any other hidden fees and charges. You can payout your car loan at any stage without penalty.

Car loans

Our car loan allows you to borrow money from a lender to purchase a motor vehicle. The lender will use the vehicle as security and register an interest in the vehicle. You make regular payments based on a simple principal and interest payment schedule. At the completion of the loan term the Lender will remove its security and you will own the vehicle outright.

Certain terms and conditions apply. Please speak with one of our consultants to verify.

The minimum car loan amount is $5,000 to a maximum amount of $30,000. The approval and maximum loan amount you can borrow is subject to lending criteria and will depend on your current financial situation.

The minimum car loan term is 2 years, with a maximum of 4 years. A longer loan term will mean your regular repayments will be lower, however the total payable interest will be more than a shorter term loan.

Yes, you own the car right away! The lender will use the vehicle as security and register an interest in the vehicle.

Yes, you can end the loan early, but you must have our consent and have settled your finance obligations under the contract.

Yes, you can sell or trade the car, but you must have our consent and be provided with clear title from us. You must also settle your finance obligations under the contract.

Customers

Yes, you can make advance payments of any amount at any time via direct internet transfer, BPAY, credit card or into our account at any Commonwealth Bank branch. A full list of payment options can be found here.

No, you are responsible for insuring the car. If the car is not insured and something happens to it, you will have to pay for all costs and repairs. It is also a requirement of our car loans that you must have comprehensive insurance over the vehicle at all times.

It’s all good. We understand that life does not always go according to plan and financial circumstances change. If you fall on hard times and find it difficult to meet the financial obligations you can apply for financial hardship by contacting our Customer Solutions Department on 1300 851 119, Mon-Fri 8:30am to 5:00pm.

Contact our Customer Solutions Department on 1300 851 119, Mon-Fri 8:30am to 5:00pm to update your contact details.

Yes, regular servicing is recommended however it may be a requirement for your warranty coverage (please contact your warranty provider for more information).

Once you have lodged a claim with your insurance company, contact our Customer Solutions Department on 1300 851 119 and provide the details of the accident including your insurance company and claim number. You will need to continue your weekly payments until your insurer covers the cost to repair the car.