Apply For Bad Credit Car Loans Up To $10,000

Bad credit car loans may be a great way to help cover the cost of a vehicle. Monzi works with lenders potentially offering bad credit personal loans from $300 to $10,000. In turn, consumers can put their personal loan towards the purchase of a vehicle.

Monzi is a lender-finding service. We do not offer financial advice. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Please note

Bad credit car loans found through Monzi’s lender-finder service are personal loans. Moreover, any loan over $2,100 is secured. However, consumers cannot use the vehicle they are looking to buy as security. Instead, consumers will have to use one of their own existing assets as collateral against the loan.

First things first – what is a car loan?

Having a car of your own equals freedom. Indeed, getting your P plates and your first set of wheels is like taking your first step across the threshold into adulthood.

Purchasing a car, whether it be brand-spanking new or a well-loved second-hand motor, can often be expensive. As a result, most people will find themselves applying for car finance at some point in their lives.

The most traditional ways of financing a car include:

  • Bank loan
  • Using a credit union
  • Bad credit car loan dealership financing
  • Personal loan

What are bad credit car loans through Monzi?

As the name suggests, they are personal loans available to borrowers with poor credit, designed to cover car-related expenses. Specifically, this could include:

  • Purchasing a vehicle
  • Covering registration
  • Repairing a vehicle
  • Any other vehicle-related cost

Moreover, you could even use your personal loan to purchase things like a jet ski or a motorcycle.

If in the past, you have defaulted on credit, declared bankruptcy or entered into a Part IX Debt Agreement, you may be considered risky to traditional lenders. As a result, car loans bad credit may be an option.

Things to consider before applying

Before shopping around for personal loans online, there are certain things you should first consider. Specifically, bad credit loans may vary between lenders; these differences may have a big overall impact on repaying your loan.

So, when considering a loan product, ask yourself the following questions:

What is the interest rate?

Interest is paid by borrowers to lenders on top of the principal sum, expressed as an annual percentage rate.

Obviously, the interest rate will play a huge part in determining how much you will pay in total. As a result, it is always important to know exactly what the interest rate is on your loan.

Bear in mind, lenders will charge higher interest to consumers with poor credit. Therefore, if you have bad credit, you are unlikely to be offered the best car loan rates in Australia.

What is the repayment term?

Depending on the lender, as well as the loan product you apply for, your repayment terms may range anywhere from several months to years.

A short repayment term can decrease the overall amount of interest you pay on top of the principle, allowing you to get out of debt sooner. However, the regular repayments will be higher.

Alternatively, a longer repayment term lowers your regular repayments but will increase the total amount of interest you pay, as well as take you longer to settle your debt.

Weigh up your financial objectives and pick the option that best suits you.

Do you have the option of making extra repayments?

Consider how flexible repayments are for bad credit rating car loans. Specifically, are you able to make additional repayments if you wish? Moreover, will you be charged a fee for paying your loan out early?

For example, if you’re the type of person who would like to put any spare cash you have at the end of the month towards your loan, a loan without early payout fees is probably ideal.

What fees are charged on car loans for bad credit?

Besides the principal amount and interest, your repayments may also incorporate any additional fees and charges. While lenders can all vary, typical fees and charges include:

  • Upfront fees (e.g. establishment fee)
  • Ongoing fees (e.g. monthly or administration fees)
  • Penalty fees (e.g. direct debit dishonour fees)

Monzi – Australia wide

Our business model is 100% online. This means no paperwork, no phone calls and no trips to a physical branch. However, being 100% online also means we can help borrowers from any corner of Australia.

Below are some examples of the types of loans our past customers went on to be approved for with a lender:

Bad credit car loans AustraliaAmount (AUD)Approved
Bad credit car loans Brisbane$2,500
Sydney bad credit car loans$4,000
Car loans Adelaide bad credit$4,600
Bad credit car loans Perth$8,000
Bad credit NSW car loans$10,000

Please note, the above examples may not necessarily reflect the loan amount you may eventually be offered.

Tips for buying a second-hand car

Purchasing a second-hand car might be a sensible decision for anyone looking to save. After all, the value of a new car plummets as soon as you drive away from the dealership.

The one downside to buying used cars is, obviously, risk. Used cars are often not backed by the manufacturer’s warranty, and as a result, require buyers to do their own research before pulling out their wallet.

To make life easier for you, we’ve included a few of our favourite tips for purchasing a used car.

1 – Contact the seller

If you have your eye on a particular vehicle, get in contact with the seller to find out more about the car. After all, a few pictures online can only tell you so much.

You could, for example, consider asking questions like:

  • How long have you owned the vehicle?
  • Why are you choosing to sell it?
  • Has the car ever been damaged or in a crash?
  • Are there any issues with the car not shown in the photo?
  • Will it pass a roadworthy inspection?
  • Do you have the car’s service history?

Keep in mind, obviously, sellers may not be forthcoming about the negative aspects of their car. So take everything with a grain of salt. In short, it is always best to inspect a vehicle yourself.

2 – Condition over kilomteres

The fewer the kilometres on the car the better. However, this may not be the be-all and end-all, especially with older vehicles. Therefore, always consider the condition of the car itself.

For example, rubber seals and hoses will wear out eventually, regardless of the kilometres on the odometer.

A good rule of thumb is to look at the interior cabin of the car. Ask yourself, if the previous owner has been driving around in a mobile rubbish bin, what level of care would they have put to the engine?

3 – Inspect thoroughly

Always try and inspect the car physically before committing to any purchase. If you aren’t an expert, here are some of our tips:

  • Always aim to line up inspections during daylight. Checking a car in the dark may hide any scratches, dents, rust or other defects.
  • Inspect for rust around the car, as it may indicate the car has been repaired after a crash.
  • Look under the car for any signs of oil leaks.
  • Check around the oil filler cap for a white substance. This could be an indication of a leaking head gasket (a very expensive fix).
  • Check the tread on all tyres, including any spares.
  • Always make sure every seatbelt is safe and works correctly.
  • Try and start the car when it’s cold, as this can quickly reveal any issues. If the seller has warmed the car up before you, it may be an attempt to hide certain problems.

4 – Faulty airbags

Between 1999 and 2017, around 2 million cars were sold with faulty Takata airbags. Since then, these cars have been recalled to have their airbags replaced for free. Obviously, however, some car owners are yet to get around to it.

You can check whether the car you’re looking to buy is affected on If the car model has been affected, ask the seller for documentation of the airbag replacement. If they do not have the documentation, do not purchase the car. Faulty airbags can cause serious harm and potentially even death.

5 – Shop around

There has never been a better time to nab a great deal on a used car. Not only are there more cars than ever, but the number of platforms to buy and sell vehicles has exploded.

From well-established websites like Carsguide to newer platforms like Facebook Marketplace and Gumtree, as well as used car dealers, there are so many options for consumers.

While the sheer number of available cars may be overwhelming, the level of choice can only be a good thing. Therefore, spend a good amount of time shopping around to find a good deal on a set of wheels.

off-white Ford Mustang purchased with bad credit car loans

How can Monzi help with bad credit car loans?

We are a lender-finder service that could potentially point you in the right direction.

Over time, we have built up a strong network of trusted credit providers. Moreover, these lenders may be able to offer personal loans for consumers with all sorts of credit histories. Additionally, our lenders could potentially offer up to $10,000!

Monzi, in short, saves you the hassle of applying with multiple different lenders online. Instead, lodge one application on our website, and we’ll try our best to match you with a potential credit provider.

Am I eligible?

Don’t worry, you don’t need to jump through hoops to qualify for our lender-finder service. In fact, there are only four requirements you will need to meet:

  • At least 18 years of age
  • Hold Australian Citizenship or Permanent Residency
  • Have at least 3 months of regular income into a personal account
  • Have a personal email address and phone number

And that’s it! Consumers can start with Monzi if they meet all four above criteria.

How does the application process work?

Unlike picking your new set of wheels, lodging an application on our site is incredibly easy and straightforward. In fact, you may even be able to lodge an application in less time than it takes to change a tyre.

Here’s how it all works:

Step 1

Select the amount you wish to apply for and begin. Consumers are shown examples of what their weekly, fortnightly and monthly repayments might look like. This, however, is just a guide. The actual cost of your loan may vary.

Step 2

Fill in all the information we need. If you are applying for a secured loan, you may be required to provide the details of the vehicle you wish to use as collateral. Keep in mind, you must use an existing vehicle as security; you cannot use the one you are looking to purchase.

Step 3

Once you submit all the information we need, we try and match you with a potential lender. If a lender is able to make you an offer, they will first assess your application and get in touch if you’re approved.

If unfortunately, we could not match you with a lender at this time, it does mean none of the lenders within our network could offer you a loan. However, you may be eligible in the future. Once your circumstances change, re-apply and we may be able to pair you with a credit provider.

What can I use as security?

Any loan $2,100 and above requires security. Generally, lenders are able to accept a car, caravan, motorbike or boat. However, consumers will need to already be the registered owner of the asset.

In other words, you cannot use the car you are planning on buying as security.

What bad credit car loans can I apply for?

Our network of lenders can potentially offer personal loans ranging from $300 to $10,000. Within this, however, are three broad categories of personal loans.

Firstly, small personal loans are available from $300 to $2,000. These loans are unsecured, meaning you will not need to own an existing vehicle to apply. Generally, the repayment term for these small loans is 12 months.

Medium personal loans, on the other hand, range from $2,100 to $4,600. Unlike small cash loans, medium personal loans are secured. Therefore you will need to already own a vehicle to use as security against the loan. Repayment terms may range from 13 to 24 months. This, however, may vary between lenders.

Finally, large personal loans are potentially available from $5,000 to $10,000. These loans are also secured, and therefore you will need to attach an asset as collateral. In addition, the repayment terms may also range from 13 to 24 months, depending on the lender.

Monzi may also be able to match you with a lender offering $10,000 to $30,000; you can find out more about these loans here.

Can you guarantee me bad credit car loans?

Unfortunately, no; credit providers should never be offering bad credit car loans guaranteed approval. In fact, any lender offering guaranteed approval should be treated with caution.

In short, there is a chance these lenders may be a scam. After all, Australian law requires all lenders to lend money responsibly.

Responsible lending, specifically, revolves around making sure a loan product is suitable for the consumer. A loan product is considered suitable for a consumer if:

  • The loan meets the borrower’s needs and objectives.
  • The borrower is able to afford repayments without undergoing significant hardship.

So it stands to reason, lending responsibly and offering guaranteed approval loans are mutually exclusive. As a result, if you run into any lenders promising the world, be very cautious.

As the age-old adage goes: if it sounds too good to be true, it probably is.

Before applying for bad credit car loans – can I improve my credit score?

You may not need to apply for car finance for bad credit history if you improve your credit score. The good news is anybody is able to improve their credit score.

In short, the information in your credit file determines your credit score. As a result, you can improve your score by showing good borrowing habits. Specifically, you can improve your credit score by:

  • Making your loan repayments on time.
  • Paying off utility bills as well as rent on time.
  • Limiting your applications for new credit.
  • Consolidating multiple loans/credit card debts.
  • Paying credit card off in full each month.

Admittedly, your score will not improve overnight. However, anybody can improve their score, it may just take a bit of time and hard work.

Can I get a car loan with a credit score of 500?

Keep in mind, approval always rests with the lender themselves. After all, lenders assess your application and offer you cash at their discretion.

As each lender is a separate entity, Monzi cannot speak on their behalf. Therefore, we cannot guarantee whether or not your credit score will hinder your application.

What we can say, however, is bad credit lenders will aim to focus on other aspects of your application. Namely, lenders will consider the following:

  • Regular income and expenses
  • The consumer’s banking history

Are there car loans for Centrelink customers with bad credit?

Potentially, yes! If you apply through Monzi, we may be able to match you with a lender willing to consider Centrelink customers with a less-than-sparkling credit file.

Moreover, certain lenders may be able to regard regular Centrelink payments as a form of income. Specifically, lenders will look to confirm the repayments will fit comfortably within your normal budget.

If lenders can see your budget will reasonably cover your normal expenses and the loan’s repayments, you might be considered for approval.

What about car loans for pensioners with bad credit?

Pensioners can definitely use Monzi to apply to match with a lender. After all, age is just a number right?

So, if you’re looking for a new car, or a caravan to join the grey nomads, you could consider Monzi. We’ll do our best to match you with a potential credit provider.

Keep in mind, however, you will need to show you are earning a regular and consistent income.

How much deposit do I need to buy a car?

Unlike purchasing a house, you may not always need to provide a deposit when purchasing a car.

If a lender does demand a deposit, keep in mind it is generally not a set amount, so aim to pay as little as possible. In addition, if you’re purchasing privately, get your deposit agreement in writing.

Not only is it good to have a record of all transactions, but you may also be able to refund the deposit if your finance application falls through or if you are not satisfied with the car inspection.

Ready to buy a car? Consider the following

Unfortunately, cars cost a lot more than just their purchase price. Specifically, consumers will still need to cover all the costs associated with owning and maintaining a vehicle. For example, you may need to cover registration, as well as:

  • Insurance
  • Roadside assistance
  • Fuel
  • Repairs and maintenance
  • Tolls

To give you a better idea, you can download ASIC’s MoneySmart Cars app. This free app can help consumers figure out the true cost of buying and running a car.

Finally, always check the Australian Government’s Personal Property Securities Register (PPSR) before buying a used car. Here, you can make sure your car won’t be repossessed if the seller still owes money on it.

Let’s go!

Apply online on our website now by scolling up to the loan slider.

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months


20% upfront establishment fee

+ 4% monthly fee


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Loan amount

$2,001 - $4,600


13 months

24 months


48% annual percantage rate

67.41% comparison rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months

24 months


21.24% annual percantage rate

48% comparison rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.