Get A Personal Car Loan That Fits Your Budget

Your borrowing power comes down to one question every lender has to answer under Australia’s responsible lending laws: can you afford the repayments without financial hardship? That test is called serviceability. Some lenders will finance up to the full purchase price of the car, but the amount you’re approved for depends on your whole financial picture, not the sticker price on the windscreen.

Want a quick ballpark first? Our borrowing power calculator gives you an estimate in a couple of minutes.

Here’s what lenders weigh up when working out your limit:

• Your income and how reliable it is. Base salary carries the most weight. Overtime, bonuses, commission, rental income and Centrelink payments are often only partly counted, or need a track record before a lender accepts them in full.

• How you’re employed. Permanent employees who are past probation are the simplest to assess. Casual workers usually need a longer, consistent work history, and self-employed borrowers are typically asked for tax returns, BAS statements or accountant-prepared financials.

• Your living expenses. You’ll declare what you spend each month, and lenders check it against your bank statements. Many also compare it with the Household Expenditure Measure (HEM), a benchmark of typical household spending, and generally use whichever figure is higher.

• Your existing debts. Repayments on home loans, personal loans and other car loans all come off the top. Credit cards are usually assessed on the full limit, not the balance, so a $15,000 card with nothing owing still counts against you. Compulsory HECS-HELP repayments also reduce your take-home pay.

• Buy now pay later accounts. Since 10 June 2025, BNPL has been regulated as credit in Australia. Expect lenders to ask about every Afterpay-style account you hold and factor it into your commitments.

• Dependants. Each child or dependant increases your assessed living costs, which reduces the amount left over for repayments.

• Your credit history. Your credit report now shows up to two years of monthly repayment history, so a lender can see a missed payment from last winter. A clean record can help you borrow more at a sharper rate. Too many recent credit enquiries can count against you.

• The car itself. With a secured car loan, the vehicle backs the loan, so lenders look at its age, value and condition. Older or higher-risk vehicles may only suit an unsecured loan, which usually comes with a lower limit and a higher rate.

• The interest rate. A higher rate means bigger repayments, which lowers the amount you can service.

• The loan term. A longer term lowers each repayment and can lift how much you can borrow, but you’ll pay more interest overall. Try different terms in our car loan calculator to see the trade-off in dollars.

• Deposit, trade-in or balloon payment. Putting money down or trading in your current car reduces how much you need to borrow. A balloon payment lowers your regular repayments, but it leaves a lump sum owing at the end of the loan.