How To Get A Car Loan If You're A Casual Employee

Casual employment is pretty common in Australia, with more than two million Aussies currently working on a casual basis. It can be a great lifestyle option for many people, whether you’re a university student or a busy parent, but being casually employed does make it a bit harder to get approved for a car loan. This is largely because lenders will view casual workers as riskier and less likely to be able to meet their loan repayments, due to the more unstable nature of their work. 

However, working casually doesn’t automatically exclude you from getting a loan, and there are definitely lenders out there who are willing and able to help you get approved for a car loan. Today we’re answering some of the most commonly asked questions when it comes to getting a car loan as a casual, so you can be as informed as possible.

What is the minimum income for a car loan?

Whether you’re a casual worker or not, in order to qualify for a car loan you’ll need to be earning a minimum annual income of $26,000. 

Keep in mind that this minimum income doesn’t always need to be completely derived from your casual employment; some lenders will accept certain types of Centrelink income like Carer Payments, Family Tax Benefits, Age Pension and Disability Support Pension.

Can I get car finance without payslips?

If you’re a casual worker, you’ll need to provide evidence of your consistency of income. You’ll need to ensure that your hours and income remain stable for a substantial period in the lead up to your loan application, and you will need to provide evidence of this with recent payslips. 

You can get car finance without payslips if you’re taking out a low doc loan, but these are only available for commercial car loans. 

Can you get a car loan if you are unemployed?

If you’re unemployed and receiving Centrelink payments, some lenders may view these ongoing payments as regular income, and you may be able to get approved for a car loan. You’ll normally need to reach a specific minimum income before lenders will consider approving your car loan.

How do I qualify for a car loan as a casual worker?

In order to qualify for a car loan as a casual worker, there are several key criteria that you’ll need to meet:

  • Income. You’ll need to be earning a required minimum income of $26,000 in order to qualify for a loan. This may not need to be fully derived from your casual employment; some lenders will also accept certain types of Centrelink income. 
  • Consistency of income. It’s imperative that you ensure your hours and income remain stable in the lead-up to your car loan application.
  • Length of employment. Because lenders want to steer clear of risky borrowers, you’ll need to have been employed for 3 months as a minimum, but 4+ months is preferred. If you have been employed in the same industry doing the same role for a longer period of time, but have started at a new company less than 3 months ago, there may still be loan options available to you.
  • Age and residential status. You’ll also need to meet the basic eligibility criteria that apply to all car loans. You must be over the age of 18 and either an Australian citizen or permanent resident (or in some cases, holding an eligible visa).

How do I know which car loan is right for me?

When you get your personalised quotes with Driva, you’ll be able to see all of your best loan options in one place. When it comes to comparing your loan options and deciding which one will suit you best, you’ll need to consider a number of important factors including interest rate, loan term, loan repayment type and what fees you’ll be charged (ie: early repayment fees or monthly fees). 

Depending on some personal circumstances, your credit history and the age of the car you’re after, you’ll either be getting a secured loan or an unsecured personal loan.

What’s the best way to find the right lender?

The best way to ensure you’re finding the right lender for you is to compare all of your personalised loan options in one place, and Driva can help you do just that.

Tips for increasing your chances of approval

There are a few things that casual employees can do to improve their chances of getting approved for a car loan:

1. Consider buying a second-hand vehicle

If you’re open to buying a second-hand vehicle, not only will you be able to save a substantial amount on the purchase price, but you’ll also find it easier to qualify for a loan since your loan amount will be smaller.

2. Avoid making multiple applications

Every time you apply for a loan, this is recorded as an enquiry on your credit file. This can negatively impact your credit score, and make it more difficult for you to get approved for future loans. When you get your personalised interest rates with Driva, we’ll run a soft credit check, which means we’re able to access the score that lenders will use to price your rate without recording an enquiry on your file. 

3. Check your credit score and history

Before you apply for a car loan, it can be a good idea to check your credit file to ensure that there are no errors. If there are any errors, you should get these amended by a credit agency like Equifax before you start applying for car loans. 

4. Save for a deposit

If you’re able to save for a loan deposit (even 10% or 20%), this can be a great way to decrease your loan amount and minimise loan defaulting risk in the eyes of the lender. Thus, making it easier to get approved for a loan.

Final thoughts

So there you have it, our complete guide to car loans for casual workers. If you’ve got any more questions about the car financing process, from personal loans vs secured loans to how the application process works, feel free to reach out to our friendly finance team!

Give us a call on 1300 755 494 or email us at contact@driva.com.au, or if you're ready to get your personalised quotes (without impacting your credit score), head to our Driva Dash.

Maddie Barclay

Maddie is the Marketing Coordinator at Driva and our resident blog writer on all things car finance. When she’s not discussing the ins and outs of vehicle loans, you can probably find her at the beach or spending time with family and friends. 

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