Applying for a Car Loan with Centrelink Payments
How To Get Centrelink Car Finance
Some Centrelink income forms can be accepted as income towards a car loan. When you have a ‘supplementary income’ you’ll be more likely to be approved for a car loan on Centrelink. This can be from part-time work or superannuation payments.
Which types of Centrelink payments are considered?
The type of government benefit you receive will determine if it can be counted towards a car loan.
Centrelink payments that will be accepted by lenders include:
- Age Pension
- Carer’s Allowance
- Disability Pension
- Child Support Payments
- Family Tax Benefits or Parenting Payments
- Overseas Pension
- Veteran’s Pension
With most of these income forms, you’ll need to show a supplementary form of income to support your application. As this won’t be sufficient to cover car loan payments on their own.
Youth Allowance, Austudy and Newstart aren’t accepted income forms to qualify for a car loan on Centrelink. If you receive one of these payments, you will need to wait until you have a regular income stream. These could be income form sources such as employment to apply for your car loan.
Can you afford Centrelink car finance?
To qualify for a car loan on Centrelink payments, is to demonstrate your capacity to make repayments. This is the primary hurdle that you need to cross in order to get car loan approval.
To do this, give yourself enough time to save the amount you want to spend on the car loan. A period of three months is recommended to get this done.
This will show you have the income to support car loan payments. And it will also give you a extra amount to cover costs once you buy the car. These includes registration, insurance and maintenance.
Case Study: Melanie gets a car loan on Centrelink |
Income and Centrelink payments Melanie is a part-time carer for her father, who is undergoing chemotherapy to treat leukaemia. She receives part of her income from a part-time role two mornings a week working at the local library, and the remainder from a Centrelink carer’s pension. Car trouble springs up She’s currently driving an old Toyota Corolla. It has a major oil leak which will be very expensive to fix. She can’t go without a car. As public transport to get to her father’s appointments takes hours, and is exhausting for him. Finding a solution Melanie speaks to a car loan broker at Loans for People With Bad Credit about her options. She is looking to get a small car loan to buy a used car. With her income from the library, her Carer’s Payment and her father’s Income Protection payment, they should be able to afford a loan together. Melanie decides to test this out first. Saving a deposit Melanie sets a task for herself to save $200 per fortnight towards buying a new car. This will help her demonstrate that she and her father can afford a car loan. She does this for 10 weeks, saving $1,000. Getting approved for Centrelink car finance Now that Melanie has some savings and can show on her bank statements that she can afford the loan. She submits a joint car loan application with her father. The car loan is approved for $7,000. And she will use this money to buy a reliable Mazda 2 that they will be able to use for the next 3-5 years. |
Take out a car loan with someone else
In the example above, Melanie increases her likelihood of approval by taking out a joint car loan with her father. Her father will be benefiting from owning the car too. With two incomes to rely on for the car loan payments, the lender is confident that Melanie will meet the repayments on time.
Consider asking a parent or family member to be a guarantor for you by co-signing the car loan.
When you have a guarantor for your car loan on Centrelink, they are not responsible to make the regular repayments. But if you default on the loan they will be called on to cover the difference between the market value of the car and the remaining balance on your car loan.
Is your income secure?
There are some issues that lenders have with accepting a car loan on Centrelink. One of them is that your benefit can change if you no longer meet the criteria for the payment that you are on.
Changes in government policy can also affect your income.
Lenders are under an obligation under the National Consumer Credit Protection (NCCP) legislation to lend responsibly. This means that if they can’t show that you can afford the loan, then they legally cannot give you a car loan. Of course, all decisions are based on your income and bank statements.
Do you have a supplementary income?
Working part-time will help your Centrelink car finance application. Even if it is just one or two days a week. You can demonstrate your supplementary income using your tax returns, payslips, or bank statements.
You might also use invoices for work you’ve done, or items sold.
Ready to apply?
If you are ready to get more information about Centrelink car finance, speak to a car loan broker. This will ensure that you’re directed to lenders who will consider your application for approval.
You can ask them what you need to be eligible for Centrelink car finance, and get your car loan application started.

Mary Campbell
I’m trying to apply for loan to get car because I have 3 kids and I was saving
Some money
Angela Monroe
Hi Mary, thanks for your comment. We can possibly help, depending on your exact situation. The best way to get an answer is to phone us on 1300 769 384, or to submit a quick quote form.
When you do this, you’ll get a call from a lending manager who will be able to talk with you about your situation and provide some car loan options.
Jorita Malay
I would like to a apply for a car loan under Centrelink income and I would like to give you the information a bout me
my name is Jorita maree Malay. DOB 17/04/1993
Add 7 panton st derby wa 6728 mobile number 0467871966
Angela Monroe
Hi Jorita, I’ve passed your information on to our lending staff. Someone will call you shortly. Thanks for your enquiry!
Nicholas trent Collier
Car loan
John woods
Looking to get car finance with dad pension plz
Samantha Risati
Hi I would like to ask Please if I can apply for a car loan while im on Centrelink payment
Tammy biles
Need a car loan been knock back from some lender it be good if you can give me a go
melisa
hi do you do cash loans at all please
Sonia lansen
I’m new I’m just trying it out see if it’s works
Nathan risby
Need loan asap
Gloria Flanagan
Need a car for me and family
Jeremy Burgess
Hi my name is Jeremy I’m on disability pension looking to get vehicle finance on a ford fgx xr6 2015 sedan for 28000 I receive 940 a fortnight and spend only 200$ on rent 50$ unexpected food and power are included in rent hoping someone can help me get finance born 27/06/1993 Jeremy John Burgess no fixed address postal address 29 Anderson street Toormina nsw. full name Jeremy John Burgess income type permanent disability pension
Delina Wailu
I would like to apply for a car loan I have four children and another on the way ..it would be nice to be able to have my own car, instead of relying on my partners car to go to work ,that I’m driving now.. Thanks
sophia
hello would like to speak to someone about getting a loan for a car. My car the engine blew up its a honda crv sports 2003 model.
Need a car as im a agency chef, and need to get to my destinations in sydney. I also have a 11 year old little girl…
hope to hear from you soon kind regards
sophia mousis
Caroline Williams
Really need a car and i would like to finance
Marlene Murphy
I need to get loan because i got 5 kid and to pay my rent and my fine to
Marlene Murphy
I need to get loan for my kids and to pay my rent and my fine and because I got 5 kid
Elronette Ginger
I would like to apply for a loan!
Sophie Walla
I would like to apply for loan to buy my self a furniture and white goods.
Sebatina Guyiyiwuy
I need to get loan for car
Jayshiri Narayan
Hi do you finance people with a credit score of 340 ? I’m in desperate need of a car not only for myself but for my kids please help find a car I’ve tried a few lenders and they won’t accept my application because of my credit score if you can help me please contact me
Kind regards
Jay
Yasmine
I’m single mother with five kids and I live half an hour from Darwin and I find it hard to go and do shopping
danny jelicic
need a loan for a car
Paul Metzger
Car repair and tires and rego and medecal
Zouhur Abu-dabat
Wondering if I could get a loan for $10,000?
Anastasia
Need a loan for car
Anastasia
Can I get a loan for car
Leah
I am unable to get a loan due to a default yet I have a full time job
Micha wilson
I need a loan through my family tax
To get a car for me in my 2 kids so they can go to school
Shona-Leigh Watt
I need a car to drive my kids to school and I’m moving in to a new house with frunituer and beds me me and my kids I’m a single mother and i need help at the moment thank you.