Car loan approval follows a fairly consistent process across lenders. Knowing it helps you prepare and avoid delays.
1. Application
Your personal details, employment, income, expenses, debts and the car or amount you want.
2. Identity checks
ID is verified, often electronically, to meet anti-money-laundering rules.
3. Credit check
The lender requests your credit report: repayment history, defaults, enquiries and existing accounts.
4. Income and expense verification
Payslips, bank statements (often pulled electronically), tax returns if self-employed. Lenders must make reasonable inquiries and verify your finances for consumer loans.
5. Serviceability
The lender calculates whether you can afford the repayments without substantial hardship, using your income, expenses (or its benchmarks) and existing commitments.
6. Credit decision
Approved, conditionally approved (more information needed), or declined.
7. Vehicle checks
For secured loans: the car's details, value, age, PPSR status, and the dealer invoice or private-sale details.
8. Documents and settlement
You sign the contract, often electronically, provide proof of insurance, and the lender pays the seller. The lender registers its security on the PPSR.
Tips
- Be complete and accurate upfront.
- Have documents ready.
- Don't take on new credit while waiting.
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General information only. Processes vary by lender. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
