Can I get a car loan if I can't supply documentation?

Supplying documentation for a loan can be an ordeal. Different lenders can want to see different things, and you may not always have what they will want. That’s where low doc loans can be useful. Low doc loans are a type of loan that requires less documentation compared to traditional forms of lending.

If you apply for a low doc loan, depending on your circumstances, you may only need to prove your identity and income, among other things. This makes low doc loans a good choice if you are self-employed, as usually, you can opt to supply your lender with tax returns instead of payslips.

Read on below to find out more about supplying documentation for car loans.

Can I get a car loan if I can't supply documentation?

Like with most loans, your credit score might impact whether or not your loan application is approved. You might also be struggling to provide all of the paperwork that lenders generally need to see to approve a loan.

If you do have bad credit, your lender may require additional paperwork to prove your income. However, this can prove difficult if you are self-employed. You might not have the traditional income documentation, such as payslips. That’s where you might find a low doc loan helpful. Low doc car loans involve using less documentation than normal. Generally, you will still be required to prove your identity.

These type of loans are generally suited to those who don’t earn a regular income, who are sole traders, the self-employed, and contractors. Some lenders offer low doc car loans for both personal and business use. This may prove helpful for someone who is self-employed and uses their car as their business vehicle and personal vehicle.

What will I need to supply?

In the case of a low doc loan, you may not need to supply as much as you would if you were to apply for a traditional loan. While each lender may have differences in what they will need to see, generally, you may be asked to provide:

Personal details such as your name, address and proof of your identity. These can usually be provided in the form of your licence or passport.
Bank statements of any accounts in your name, and personal tax returns
Your ABN number
The value of the car you are wishing to purchase
If the car will be used as a business vehicle, your lender may need to see financial records relating to your business.

What other loans are available?

As well as low doc car loans, there are many different car loans to choose from. Some of these loans may include:

Specialist bad credit loans – Bad credit loans are designed for people who have struggled financially in the past. Intended to help people with bad credit, anyone who has any type of bad credit can generally apply for a bad credit loan. Bad credit loans differ from standard loans in that they are targeted to help those who have experienced bad credit or bankruptcy. Those who have experienced these financial troubles can often find it difficult to be approved for a loan and may find a bad credit loan helpful.

Guarantor car loans – Applicants who might not be eligible for a car loan may have better luck being approved if they have a guarantor on their loan. The person who acts as a guarantor then becomes responsible to pay back the loan if the borrower defaults. This type of loan is less risky for the lender, as most of the risk rests with the guarantor.

Secured and unsecured loans – Generally, the most common type of car loan is a secured loan. The interest rates on secured car loans are usually fixed, which means that your repayment amounts will stay the same throughout the term of your loan. Usually, the car being purchased often becomes security for the loan. If for some reason, you fail to repay the loan, your lender can sell the secured car to recover the unpaid funds. Unsecured loans can be risky for lenders because generally, no security asset is provided by the borrower.

Where does Tiger Finance come in?

We have helped countless Australians with both good and bad credit ratings to be funded for their dream car. The lending criteria from other lenders can be unfairly strict when you have bad credit, and it can hold you back.

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. You won’t find an easier way to get approved for a car loan.

How we can help

Our loan experts can make the entire process simple and pain-free. We can find you the right loan quickly and easily. If you’re ready to drive away in your new car, call us today for your free initial consultation with one of our loan specialists.