Pepper Money Review

Pepper provides reasonably competitive fixed-rate consumer and commercial car loans across a variety of asset classes. However, their credit policies can be very strict and turnaround times are slower than almost every lender on Driva's panel.
Best for
  • Open to customers of all credit scores, often accepting credit scores from 250
  • No minimum time in current employment - provided industry is consistent, Pepper can accept customers that have only just started in their role
Draw backs
  • Very limited willingness to accept past credit events (e.g. late payments, defaults etc.) even though they technically accept applicants of all credit scores
  • Slow to approve and settle - with approvals sometimes taking ~1-2 days to come through, and even longer for settlements

Pepper Money overview

Pepper is a global non-bank lender, offering a wide range of loan products for auto, equipment, and personal loans after diversifying from their original specialty of mortgages. Once listed on the Australian stock exchange, the group offers relatively competitive rates to a fairly broad range of customer types.

Pepper has a long history and a solid reputation, but it’s worth noting that Pepper is particularly strict on past credit events, such as late payments or defaults. Their loan application process is fairly slow and manual, and so not recommended if you are in a hurry to get your wheels on the road.

How to apply for a Pepper Money car loan

On paper, Pepper is a specialist lender open to customers of all credit scores and income levels. This means you can apply to Pepper with a bad credit history and won’t be automatically knocked out, and there’s no minimum amount of income you need to earn per year.

In practice however, Pepper has fairly strict lending criteria which means even though you won’t be knocked out based on your score or income alone, other factors like defaults, late payments, ability to service the loan or other poor conduct might make you ineligible.

Pepper does have more favourable employment policies than most other lenders and doesn't have a minimum time in current employment (provided that you have not changed industries recently).
Driva tip: If you select Pepper as your preferred loan option, a Driva lending specialist will assess your application based on your financial situation to ensure you’re likely to be approved before lodging it. This protects your credit score.
See if you qualify for a Pepper loan in 60 seconds
Find my rates
Fixed rates from:
6.99% (8.51% comparison rate*)
Loan amounts:
$5,000 - $100,000
Loan terms:
1-5 years
Loan types:
Consumer and commercial loans
Min. credit score:
N/A
Min. income:
N/A
Co-applicants?
Yes (if residing at the same address)
Fees:
  • Establishment fee: $449 dealer sale, $600 private sale
  • Monthly: $8.90
  • Early termination charges: $150 flat fee plus $650 variable fee (reduces as you pay down the loan)
  • Brokerage up to $990

Big no-no's (automatic declines)

  • Any payday loans or enquiries within the last 6 months (loans under $5k)
  • If you’ve been self-employed for less than two years

Other hot tips

  • Visa holders are accepted with Pepper - so long as the visa lasts longer than the loan term!

Pepper Money - Frequently Asked Questions

01

How does Pepper Money decide what rate to charge me?

For their secured car loan product, Pepper looks at three key factors when determining what interest rate to charge:

  • The age of the vehicle being purchased
  • Employment status
  • Living situation (e.g. renter vs. owner)

Unlike many other lenders, Pepper does not provide more favourable rates for people with better credit scores (i.e. no risk-based pricing).

With Driva, the hard work of figuring out exactly what interest rate Pepper will give you is done for you. Just enter some basic personal information to see what these tailored interest rates (and comparison rates) are from Pepper (and the other lenders on our panel) without impacting your credit score. You can then play around with vehicle age in the rate calculator to determine how it impacts your rate.

Learn: what other lenders look for when pricing your loan

02

Does Pepper Money charge fees?

Like all lenders, there are some fees associated with a Pepper loan.These include: Establishment fees: $449 for a dealership, $600 for a private saleMonthly fees: $8.90 Early termination fees: $150 flat fee plus a $650 variable fee (which reduces over the life of the loan) Don't forget that every lender charges fees and that these charges (including any money that lenders pay to Driva) are already built into the monthly repayment quoted.

Like all lenders, there are some fees associated with a Pepper loan. These include:

  • Establishment fees: $449 for a dealership, $600 for a private sale
  • Monthly fees: $8.90
  • Early termination fees: $150 flat fee plus a $650 variable fee (which reduces over the life of the loan)

Don't forget that every lender charges fees and that these charges (including any money that lenders pay to Driva) are already built into the monthly repayment quoted.

03

How does Driva get paid by Pepper Money?

We get paid for sending Pepper high-quality customers that have been pre-vetted to ensure they meet all policies before they are lodged. This payment generally includes two components:

  • Brokerage: up to $990
  • Commission: Up to 2% of the amount financed

As with all lender fees, these are not payable from you to Driva directly and are not required to be paid upfront. Instead, Pepper incorporates this payment into your total loan amount, which is paid off over the life of the loan.

04

Driva’s rate quotes for Pepper Money are higher than what I’ve seen elsewhere!?

All car loan brokers have access to the same rates, and Driva can match the rate you would receive from Pepper by going directly. This means that if you’ve spotted a lower rate for a Pepper loan somewhere else, it could be because you’re seeing generic comparison rates that have not factored in the age of the vehicle or your living situation.

If you still think our monthly loan repayments are higher than you’re seeing them elsewhere, we’re confident we’ll be able to beat it. Email us at hello@driva.com.au.

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