How much can I borrow car loan? Before you apply for a car loan, you may want to work out how much you should borrow. A number of factors can influence your borrowing power. We’ll explore them here.
Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.
How much money can I borrow for a car loan?
The amount of money you’re eligible to borrow is known as your borrowing power. In addition, lenders consider a number of different factors when assessing your loan application. This includes, but is not limited to your:
- other debt
- credit history
Moreover, the car you intend to buy can also affect the amount you’re eligible for.
Finally, consider how much you actually need to borrow. In other words, the amount you’re eligible for may exceed the amount you actually need.
Where can I get a car loan?
You may be able to get car finance from a number of banks, lenders or car dealerships. Weigh up your options before making a decision.
In general, dealership finance may be more convenient as it is handled when you purchase your car. On the other hand, dealership loans may only be available for new vehicles.
Alternatively, you could consider a car loan from a lender. There is a huge range of car loans out there, so you’re afforded a lot more choice.
How much can I borrow car loan – assessment
As we mentioned earlier, lenders consider a range of factors when assessing. Moreover, lenders consider these criteria when figuring out if they can lend to you or not. We explore a number of these factors below.
Income & expenses
One of the first things lenders take into account is your income, as well as your expenses. Moreover, this is done to confirm you are reasonably able to afford your repayments.
Lenders may conduct an employment check as part of their responsible lending practices. This affects how much can I borrow personal loan.
Finally, remember that lenders see your expenses as a whole. Therefore, there may be expenses that aren’t immediately obvious to you, like:
- personal items
- medical expenses
Lenders may also consider your any other current debt you may have. After all, the more debt you have, the less disposable income.
Wondering what counts as other debt? Examples include:
- credit cards
- personal loans
- payday loans
- other car loans
How much can I borrow car loan – credit history
Lenders are likely to consider your credit score if you apply for a car loan. Moreover, your credit history is a reflection of you as a borrower. Lenders will, therefore, usually perform a credit check.
After all, a good credit score lets lenders know you are responsible with your repayments. As a result, you may find it easier to secure a loan than an applicant with poor credit.
If, however, you do have poor credit history, you are not devoid of options. Specifically, certain lenders may be able to offer you a car loan even if you have below average credit history.
How much can I borrow for a personal loan?
You may be able to get a personal loan to cover the purchase of a vehicle. Moreover, the assessment process for personal loans is very similar to that of a car loan. Specifically, lenders will take into consideration your:
- repayment history with other lenders
- other debts
Ultimately, each application is assessed on a case-by-case basis. Moreover, each of the above indicators works in unison to help the lender make a decision.
Finally, compare your personal loan options before making a decision.
How much can I borrow car loan if I have a personal loan?
Yes. Obviously, Monzi cannot speak on behalf of all credit providers in Australia; however, many lenders are happy to consider car loan applicants with existing personal loans.
On the other hand, having an existing debt may drive your commitment level up and, in turn, reducing your disposable income. Depending on the lender, as well as the nature of your application, this may make approval difficult.
Does Monzi offer car loans?
No, as a lender-finder service we do not offer loans ourselves. If, however, you need money fast, we may be able to match you with a lender quickly.
Specifically, we may be able to match you with a lender offering personal loans. Moreover, you’re free to spend your personal loan on essentially any personal expense, including:
What happens if I’m approved?
Lenders send through a digital loan contract upon approval. All the fees and charges associated with your loan are included in your contract. Therefore, it is essential you read through your contract before approving it.
Ultimately, read your contract before approving anything.
How much can I borrow car loan – conclusion
In short, Monzi makes it easy. Even if you’re looking for a loan with a bad credit record, we can still try to help.
Put simply, using Monzi is easy. Moreover, it’s free. Apply online now. Monzi is fast and convenient. 100% online with no hassle.
If you want to know how much you may borrow for your car loan, consider finding a borrowing power calculator online.