Can You Get Car Finance Under 21 in Australia?

Short answer: Yes. Once you're 18 you can legally take out a car loan in Australia, and there's no separate rule for people under 21. The challenge is usually a short job history and a thin credit file, so lenders tend to look for steady income, a modest loan and sometimes a deposit or guarantor.

Why age matters less than you think

Being 19 or 20 isn't usually the problem in itself. What lenders assess is the same as for anyone: can you afford the repayments, and do you have a track record that shows you'll make them? For younger borrowers the gaps are usually:

• Little or no credit history. If you've never had a phone plan, credit card or loan in your name, there's not much for a lender to go on.
• Short employment. Many lenders want you to be past probation, or at least three to six months into a job.
• Lower income. Apprentice and junior wages limit how much you can borrow.

What helps an under-21 application

• Stable work. Full-time or permanent part-time is easiest. Casual work can be accepted, usually with a longer history.
• Savings. A deposit, even a small one, and a savings pattern in your bank statements show you can manage money.
• A realistic car. A reliable used car rather than something new and expensive. Remember insurance for young drivers can be costly, and lenders expect comprehensive cover on a financed car.
• Clean bank statements. Lenders read 90 days of transactions. Regular overdrawing, gambling or heavy Buy Now Pay Later use count against you.
• A guarantor. A parent or other adult with good credit can guarantee the loan. They become legally responsible if you don't pay, so it's a serious commitment for them.

Documents to have ready

• Driver licence (a provisional licence is usually fine)
• Last two or three payslips, or an employment letter if you're new
• 90 days of bank statements
• Details of your rent or board and other regular costs
• For apprentices, your training contract can help show your job is ongoing

Watch the total cost

Young borrowers are often offered higher rates because of limited history. Look at the comparison rate, fees and the total repayable, not just the weekly figure.

Example only: $12,000 over 4 years at 9% p.a. is about $299 a month, and roughly $2,330 in interest over the life of the loan. At a higher rate, both numbers go up.

Add registration, insurance, fuel and servicing to see whether the car really fits your budget. Moneysmart has free calculators for this.

Related guides

• Car finance if you've just turned 18
• Car finance options for apprentices
• How guarantor car loans work

General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.