How long does it take to get approved for a car loan from a dealership Australia

Itching to get your hands on a new set of wheels? Unless you’ve saved up enough cash to purchase a car outright, buying a vehicle can involve endless searching for a car loan that will suit your situation now and for years to come. The good news is that the car loan approval process is easier than ever, and you might not have to wait as long as you think to get the go ahead from a lender.

What is a car loan? 

There are various types of car loans but, broadly speaking, a car loan requires a customer to enter into an agreement with a lender to borrow money. The customer then repays the amount owed (along with interest) over a set period of time (the loan term).

When you apply for a car loan with Rapid Finance, you’ll get your own personal finance assistant who will identify your financial strengths and then negotiate with lenders on your behalf. We ensure that car loan approval times are as low as possible and work for you to get your loan approved fast.

Call us now on 1300 467 274 to speak to one of our friendly finance experts.

Choosing a car loan

Before you apply for a car loan, why not use our popular car loan calculator to figure out how much you can afford? You can find out an estimate of your loan term, interest rates and repayment schedule in just a few minutes.

What does the car loan process involve?

Whether you’re after a home loan, a personal loan or a car loan, we created the Rapid Finance process to make it simple and stress free for every customer.

First, you apply online or over the phone, which takes less than 15 minutes.

Then, we find finance options to suit you. Your dedicated finance specialist will gather and review your documents and negotiate with lenders on your behalf. This also includes checking your credit history for mistakes and assisting you in correcting them.

Once you get approved by a lender, you’re ready to purchase your car and hit the road!

So, how long does car loan approval normally take?

Car loan approvals generally take a couple of days. Although some lenders promise car loans with guaranteed same-day approval (or even 60-second approval), this is rarely possible. 

For same-day or next-day approval, the applicant may  need to provide proof of good credit history, regular income and have a vehicle downpayment.

What can delay car loan approval?

• Not providing all required documentation
• Having poor credit history
• Not providing enough information about the vehicle
• Being inflexible about what vehicle you want

Preparing all necessary documents ahead of time will make the car loan approval process a whole lot easier. When assessing your application, we’ll need proof of your identity and evidence that you can pay back whatever car loan you’re applying for. These documents can include:

• Proof of income and sometimes bank statements
• Personal information (such as driver’s licence and medicare card)
• Proof of assets and liabilities
• Information about the car
• Proof of insurance (which we can assist with)

Ready to find your perfect car loan?

We’ve been helping people just like you to get finance for almost two decades and know all there is to know about car loans. As finance experts, we can help you navigate the often-confusing world of car loans, bad credit car loans, used car loans and interest rates. Get in touch today and get one step closer to driving your dream car.

Give us a call on 1300 467 274 or apply online today.

Car loan approval can take as little as 1 - 2 days

Consumers should be wary of lenders that promise car loans with 'guaranteed same day approval'. The truth is that while same day approval is possible in some cases, it is not available in all. Generally for same day or overnight approval to be feasible, the applicant will need to provide some or all of the following.

• Good credit history
• Vehicle down payment
• Proof of regular income
• Details of Australian citizenship or permanent residency
• All required ID and address documentation

If you can provide all five of these things, in most cases, approval can be arranged in 48 hours. Roadblocks can still occur, however, providing all of the above will give you the best chance at the fastest possible approval.

Approval for bad credit car loans may take longer

A poor credit history can delay your approval. This is because some lenders will not offer loans to those with bad credit. And while other lenders do, they often require additional documentation. Therefore seeking out a loan that is suitable for your circumstances may take longer.

Being denied elsewhere, credit defaults and previous bankruptcy can all result in a poor credit history, so if you've experienced any of these issues, it's worth making arrangements for a lengthier approval process. Remember, approval may still be possible, it just might take longer.

Why it might pay to wait

You may not have the option of waiting, especially if you need the car for work. But if you do, it may be worth doing so.

A larger deposit, a better deal on the car you want, or an improved credit history can all save you money in the long term. So, if you can, consider whether now is the right time to buy.

For more handy car loan tips, see our Guide to Buying and Financing a New or Used Car.

What else can delay approval?

Not providing all relevant documentation. Different lenders have different requirements when it comes to documentation and many will not begin processing an application until all documents have been received.

For more information on specific lenders, speak with a Rapid Finance loan specialist. They can help you to identify and track down all the information needed.

Not providing enough information about the car. If you're applying for finance on a specific vehicle, you'll most likely need to provide relevant details about that vehicle.

Diligence here is especially important when purchasing a used, older, or classic car. As there are more variables with a used car, more details are needed. In some cases, a manual evaluation may also be required.

Not keeping your options open. The more flexible you can be in terms of car and loan choice, the more options will be available to you and the more stream-lined your application will be.

While it can be helpful to have a specific car and loan type in mind, being flexible enough to rethink your options based on the findings of your application can help to speed up the process.

What about no deposit loans?

As is the case with bad credit loans, not all lenders provide no deposit loan options and those that do may require additional documentation.

Because of this, no deposit loans may take longer to be approved. For more information on no deposit car loans, check out our recent article, Can I Get a Car Loan with No Deposit?

Can I drive away as soon as I get approval?

Once approval has been arranged, the last thing that remains is some car dealer paperwork. If you've gotten approval with Rapid Finance, we'll take care of this for you.

Most sellers will release the vehicle once the funds are cleared to them. This will happen when the finance has been settled. However, some sellers will release the vehicle as soon as they receive the confirmation of the finance settlement.

How long does Rapid Finance take?

Life moves fast. We get it. Whether it's for your day job, the daily commute, or family commitments, sometimes you need a car loan without the wait. That's why at Rapid Finance, we offer a fast approval process, so you can get on the road sooner.

Ready for car finance? You can apply with Rapid Finance online or over the phone on 1300 467 274