How To Get Centrelink Car Loans

September 30, 2022

There’s no doubt that getting a car loan from Centrelink will be a lot more difficult than having a regular job. But it’s not impossible. If you’re one of the many Australians receiving benefits from Centrelink, you may wonder if car loans are available to you.

We’ll walk you through the process of getting a car loan from Centrelink and how to make the best case possible for yourself. Interestingly, there are a few different ways that Centrelink beneficiaries can go about getting a car loan – even if their credit score isn’t perfect.

This article will explore how to get a car loan as a Centrelink beneficiary and the minimum requirement to qualify for the Centrelink car loan. So whether you’re in the market for your first set of wheels or need to upgrade an old clunker, read on for all the information you need.

Step By Step Guide To Get A Car Loan On Centrelink Payments​

How To Get Car Loan on Centrelink Payments

Set A Realistic Budget

Applying for a car loan on Centrelink payments can be daunting, but it doesn’t have to be. With some planning and preparation, you can get the loan you need to purchase your new car.

The first step is to set a realistic budget. You need to know how much you can afford to spend on a car and be honest with yourself about your income and expenses. Here is an article to help you how to calculate your car loan repayments.

Once you have a budget in mind, you can begin shopping for car loans. There are many lenders who specialize in car loans for people on Centrelink, so shop around and compare interest rates and terms before applying for a loan.

Be sure to read the fine print carefully before signing any paperwork. Once you have found the right loan, you can start shopping for your new car! 

Talk To A Broker

If you’re receiving Centrelink payments and want to apply for a car loan, your best bet is to speak to a broker. Here’s why:

When you apply for a loan, the lender will assess your financial situation and decide whether or not to give you the loan. This assessment includes your income, expenses, and current financial commitments.

If you’re on Centrelink payments, your income may be lower than your expenses. This can make it difficult to get approved for a loan. However, a broker can help.

A broker will assess your financial situation and match you with a lender willing to lend to people on Centrelink payments. This means that you’re more likely to get approved for a loan and get the money you need.

Additionally, a broker can help you understand the different loan options available. Not all loans are created equal, and it’s important to choose a loan that’s right for your needs. A broker can explain the different features of each loan and help you choose the one that’s best for you.

So if you’re receiving Centrelink payments and want to apply for a car loan, talk to a broker today. With their help, you’re more likely to get the loan you need and find the right option for your needs.

Find A Guarantor

One way to improve your chances of getting a secured car loan is to find a guarantor. A guarantor is someone who agrees to cover the repayments if you default on the loan. By finding a guarantor, you can show lenders that you have someone else who is willing to vouch for your ability to repay the loan. 

This can increase your chances of getting approved for a loan and help you get a lower interest rate. However, it’s important to remember that you are responsible for repaying the loan, even if your guarantor does not make the payments.

As such, you should only apply for car finance with a guarantor if you are confident you can make the repayments.

Make An Application

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Applying for a Centrelink car loan is a necessary step in the process of getting the loan for a new car. The loan application process is simple and can be done online or over the phone.

The first step is to gather all of the necessary information, such as your current income, employment status, and any other financial obligations you may have. Once you have the required information, you can begin the application process. 

The first thing you will need to do is choose a lender that offers Centrelink car loans. Once you have found a lender, you must complete an application. The application will ask for basic information about yourself and your financial situation.

After you apply, the lender will review it and decide whether or not to approve your loan. If your loan is approved, you can use the money to purchase a new car.

Minimum Requirements To Qualify For Centrelink Car Loans

Minimum Requirements To Qualify For Centrelink Car Loans

Be Over 18 Years Old

So, you’ve just turned 18. Congratulations! You’re now officially an adult. And what do all adults need?

A car, of course. But if you don’t have the cash to buy one outright, don’t worry – Centrelink can help.

Yes, that’s right – the government benefits scheme can assist you in getting behind the wheel, thanks to their car loan program. The minimum requirement to qualify is simply that you be over 18 years old. From there, it’s all about proving that you can make repayments on a loan.

To do this, you’ll need to show Centrelink a realistic budget detailing your income and expenses. If they’re satisfied that you can afford the loan repayments, you’re on your way to owning a car.

Have Taken Home Income Or Benefits Over $400 A Week

To qualify for a Centrelink car loan, you will need to have taken home income or benefits over $400 a week. This is the income that is required to be eligible for the loan. You will also be responsible for ensuring that you have a source of income sufficient to afford to pay and cover the repayment of the loan. 

It is important to note that you will need to make regular repayments on loan to keep your account in good standing. You can use a car loan calculator to get the approximate monthly loan amounts you should pay. Defaulting on the loan could result in severe repercussions, so it is important to make sure that you, as one of the Centrelink customers can make the payments on time.

Be An Australian Resident

You might be eligible for a Centrelink car loan of up to $10,000 if you’re an Australian resident. The interest rate is lower than most banks and car finance companies. You’ll need to make regular repayments and pay interest on the outstanding balance. The minimum requirement to qualify for a Centrelink car loan is that you’re an Australian resident. 

If you’re not an Australian resident, you won’t be able to apply for a loan through Centrelink. Other lenders might be able to help you, but you’ll need to compare interest rates and fees before you decide which one is right for you. Centrelink car loans are a great option if you’re looking for a low-interest loan and meet the eligibility criteria.

Get Your Income Paid Into Your Bank Account

One of the requirements to qualify for Centrelink car loans is that your income must be paid into your bank account. This can be done by setting up a direct deposit from your employer or transferring your income from another source into your account. 

Once your income is in your account, you must provide the lender proof of income and personal identification. Once approved, you can use the car loan on Centrelink to finance the purchase of a new or used car. 

Be Receiving Centrelink Payments

Applying for a personal loan can sometimes feel like wading through an ocean of red tape. However, when you receive Centrelink payments, there’s one less hoop to jump through: you don’t need a job to qualify. That’s right, as long as you receive the Centrelink benefits payments, you’ll automatically meet the minimum income requirements for a Centrelink car loan. 

So if you’re on the hunt for a new set of wheels and are worried about your employment status, put your mind at ease and apply for a Centrelink car loan today. Who knows, with the money you save on the bus fare, you might even be able to afford to upgrade your Centrelink payments!

What You Need To Know About Centrelink Car Loans

What You Need To Know About Centrelink Car Loans

Centrelink Does Not Mean Bad Credit car loans

Being on Centrelink benefits lists does not mean you have bad credit car loans. In fact, many personal circumstances can lead to someone being on Centrelink. Perhaps they have lost their job and are looking for employment, or maybe they are taking care of young children and are unable to work. 

According to an Australian credit licence, being on Centrelink does not mean someone is automatically a high-risk borrower or has a bad credit history. Plenty of responsible people rely on Centrelink payments to make ends meet, and there is no reason they should be denied access to car loans because of their circumstances.

Centrelink Payments Can Qualify As Income

Applying for car loans can be a bit of a tricky process. One of the things that lenders will look at is your income. This is because they want to know that you’ll be able to make the repayments on time each month. However, many people don’t realize that Centrelink payments qualify as regular income. 

This means that if you’re receiving Centrelink benefits from Centrelink, you may still be able to get a car loan. Of course, there are some conditions that you’ll need to meet. For instance, the payments must be regular and reliable, and you’ll need to have a good history of making repayments on time. But if you can meet these criteria, then there’s no reason why you can’t use Centrelink payments to help fund your new car.

Frequently Asked Questions

Frequently Asked Questions

Can I Get A Loan If I’m On Centrelink?

If you’re among the Centrelink payment recipients, you might wonder if you can still get a loan. The answer is yes – but there are a few things to remember. First of all, when applying for a loan, make sure to disclose your Centrelink income. Failure to do so could result in the lender rejecting your application. 

Secondly, remember that most lenders will require you to have a regular source of income to qualify for a loan. So, you may have difficulty getting approved if you only receive occasional payments from Centrelink. Finally, remember that if you receive Centrelink benefits, it may affect your loan’s interest rate and terms.

Can You Get More Than 2 Urgent Payments From Centrelink?

Most people are aware that they can receive one Urgent Payment from Centrelink if they need some extra money in a hurry. However, many people don’t know that you can receive up to two Urgent Payments in any given year. If you find yourself in a tight spot and need some extra cash, you can rest assured knowing that Centrelink will be there to help you out. 

Of course, receiving more than one Urgent Payment does come with some strict eligibility requirements. For instance, you must have already used your regular payment for the year and faced an impending financial crisis. Nevertheless, it’s good to know that Centrelink is there to help if you find yourself in a bind.

What Year Does The Old Age Pension Stop In Australia?

The old age pension in Australia is means-tested and available to eligible residents aged 66 years or over. The maximum amount that can be paid is currently $766.60 per fortnight for singles and $1,153.60 per fortnight for couples. Several eligibility criteria must be met to receive the pension, including residency requirements and an asset test.

However, one of the most important criteria is the income test. This requires recipients to have an annual income of less than $50,736 for singles or $80,944 for couples. You will not be eligible for the pension if you exceed these limits. So, if you’re wondering when the old age pension stops in Australia, the answer is when you reach retirement age, and your income exceeds the relevant threshold.


Unlike other temporary assistance programs like youth allowance payments, Centrelink car loans can be a great way to get behind the wheel of your dream car. Still, it’s important to know what you’re getting into before you apply. 

At Mad Man Motors, we want to ensure that our people receiving Centrelink payments have all the information they need to make an informed decision about their loan, so we’ve put together this comprehensive guide on how Centrelink car loans work and what you need to do to get approved. 

If you’re ready to take the next step in securing your dream car, contact us today, and one of our friendly team members will help you get started.

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