Low Doc Car Loans

Low Doc Car Loans

Last updated 01 Mar 2021
A low doc car loan is a type of vehicle finance product often used if you are self-employed, or own a small trade business, and are similar to secured car loans. They are commonly used to finance a vehicle if you cannot provide the financial statements necessary for standard car finance.

The main difference between low doc car loans and other car loans is the required supporting documentation used for approval and how you verify your income (which may include a signed income declaration, and extensive details on any open contracts or agreements which may affect your income).
Key Features
Loan Size
$5k to $100k
Loan Term
2 to 8 years
Interest Rate
5% - 10%
Approval Speed
Medium
Common Uses of Low Doc Car Loans
Low doc car loans are especially popular with Australian tradies, who have trouble providing traditional verification of income.
They are also commonly used by other self-employed individuals or owners of a small business, who do not qualify for other types of vehicle finance.
Keep in Mind
As the assessment and approval process is slightly more complex with low doc car loans, it’s a good idea to prepare your documents before applying with a lender.
This includes standard documents such as identification, proof of address, and details about the vehicle you are buying. You may also need to prepare details about your business (if you are self-employed) and specifics around any contracts or working agreements you have which may affect your income.
Australian tradies looking to finance a vehicle primarily for business use may want to see if they qualify for a chattel mortgage instead of a low doc car loan.
Who Qualifies for a Low Doc Car Loan?
Low doc car loans provide access to vehicle finance when the borrower is unable to provide sufficient documentation required for standard loan approval.
You will generally qualify for a low doc loan if you are unable to meet qualifying criteria for a standard car loan, and cannot provide proof of income and tax returns for the past two years.
To qualify, you may be asked to sign an income declaration, and prove your ability to meet repayments. You’ll still need to meet basic lender criteria, be an Australian citizen or permanent resident, and may be required to hold an ABN (Australian Business Number).
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