How much can I borrow for a car loan based on income?

The amount you can borrow for a car loan in Australia depends on your income, credit score and existing debts. Lenders usually allow you to borrow up to a certain percentage of your income, often around 30%-40%, but it varies by lender.

What is the minimum credit score for a car loan in Australia?

The minimum credit score for a car loan in Australia varies by lender, but generally, a score of 650 or higher is preferred. However, some lenders may offer loans to those with lower scores, albeit with higher interest rates.

Do you need a deposit for a car loan Australia?

While it is not always required, having a deposit for a car loan in Australia can improve your chances of getting loan approval and reduce the loan amount and interest paid. Some lenders offer no-deposit car loans , but these often come with higher interest rates.

What is the most tax effective way to buy a car in Australia?

The most tax-effective way to buy a car in Australia may be through a novated lease if you are an employee, as it allows pre-tax salary deductions for the car payment. Another option is to buy the car under your business's name if you are self-employed, potentially allowing you to claim depreciation and operating costs.