What pre-approval actually is
Pre-approval is a lender's conditional yes before you've picked the exact car, van, boat or home. It tells you how much you can borrow and roughly what the repayments look like, so you can shop with a firm number instead of a guess.
It's conditional because the lender still needs to see what you're buying and confirm nothing has changed. But it does most of the heavy lifting up front, so once you find the right one, the finance can move quickly.
Pre-approval for a used car
You can get pre-approved for a used car from a dealer or a private seller. The approval is for an amount, not a particular car, so you can shop around and bring the lender the one you choose. Before it pays, the lender checks the car itself.
The car matches its paperwork
The VIN and rego match what you were told, and the seller owns it.
There's no money owing on it
The lender checks the national register of money owed on cars (the PPSR), so you don't take on someone else's debt.
The price makes sense
Lenders want the price in line with what the car is worth, which protects you too.
It's not too old for the lender
Many lenders cap how old a car can be by the end of the loan. Tell us the year early and we'll point you to the right lender.
Why get pre-approved
Shop with a real budget
No falling for a car you can't finance, and no guessing what the lender will say. You know your ceiling before you walk in.
Negotiate like a cash buyer
A dealer who knows your finance is sorted has to compete on the price of the car, not bundle it into a finance deal.
Move fast when it counts
Private sales and auctions don't wait. With pre-approval in hand, the loan can settle quickly once the seller says yes.
More on why this matters at the dealership in dealer finance or a broker.
What lenders need for pre-approval
Your income
Payslips if you're employed, or tax returns, BAS and bank statements if you're self-employed.
What you already owe
Credit cards (the limit, not just the balance), personal loans, car loans, buy now pay later accounts and any home loan.
Your living costs
Lenders check your repayments fit comfortably alongside your usual spending, so recent bank statements matter.
What you plan to buy
The type of vehicle or asset, new or used, and your deposit or trade-in if you have one. Our guide to car loan deposits covers how much helps.
Making the most of it
Check how long it lasts
Pre-approvals are only valid for a set period, often somewhere between one and three months. If you need longer, ask for it to be extended rather than applying again elsewhere.
Don't change jobs or take on new debt
The lender approved you on your situation at the time. A new job, a new credit card or a missed payment can undo it.
Get the seller's details early
For a private sale, the lender will check the seller owns the vehicle and that there's no money owing on it. Our private sale guide covers what they look for.
Pre-approval questions
Does pre-approval affect my credit score?
Pre-approval usually involves a credit check, which is recorded on your file. That's why we compare first and only apply with the lender most likely to say yes, rather than asking several.
Is pre-approval a guarantee?
No. It's conditional. Final approval depends on the lender checking what you're buying and confirming your situation hasn't changed. It's a strong indication, not a promise.
Can I get pre-approved for a private sale?
Yes. Many lenders will pre-approve you for a private sale, then check the vehicle and the seller's ownership before settlement.
What's the difference between a quote and pre-approval?
A quote is an estimate of your rate and repayments based on what you tell us, and it doesn't touch your credit file. Some sites call this pre-qualifying. Pre-approval comes next: the lender checks your documents and credit file and gives you a conditional yes for a set amount.
Can I get car loan pre-approval online?
Yes. You start online in about 3 minutes and we compare the panel. Then you apply once, to the lender that fits. Some approvals come back in as little as 10 minutes once everything is in, but it depends on the lender and how quickly your documents arrive.
What if I find something that costs more?
If it's within your approved limit, you're fine. If it's over, we can go back to the lender and ask whether the limit can be increased.
Can I get pre-approval for a home loan?
Yes. Home loan pre-approval works the same way and is well worth having before auction day. See home loans.
Ready to shop? Car loans, caravan loans and boat loans can all be pre-approved. And read five things that wreck a loan application before you apply.
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