Can I get pre-approval for new car finance before I shop?
Yes – and it’s the smartest move you can make before visiting a dealer. Pre-approval means a lender has reviewed your finances and agreed, in principle, to lend up to a set amount for your new car finance, subject to final checks and the car itself.
Picture a couple with two kids, a dog and a hatchback that’s run out of boot space. They get pre-approved midweek, spend Saturday test-driving three mid-size SUVs, and only talk money once they’ve found the one they love.
Because their finance is locked in, nobody can steer them towards ‘what weekly repayment suits you?’. They negotiate the drive-away price, and that’s it.
Is dealer finance better than a car loan?
Not automatically. Dealer finance is quick, but you’re choosing from the lenders that dealership works with, and the loan is often packaged into the sale. A new car loan arranged separately is easier to compare – and much harder to muddy.
| Dealer finance | Broker-arranged loan | |
|---|---|---|
| When it’s arranged | At the dealership, during the sale | Before you shop, away from the showroom |
| Lender choice | The dealer’s own lender panel | A panel of 60+ lenders and funders |
| Negotiating | Price and finance discussed together | Price negotiated on its own, like cash |
| Add-ons | Protection packs and warranties may be bundled | Only what you choose to include |
| Makes sense when | A promotional offer genuinely beats the alternatives | You want a wide comparison and a clean negotiation |
What are new car finance deals really costing?
The headline figure is built to catch your eye, so read everything underneath it. Before you sign, check these five things:
- Drive-away or plus on-roads? Drive-away should include rego, CTP, stamp duty and dealer delivery. A ‘from’ price usually doesn’t.
- Is there a balloon? A low weekly figure can hide a hefty lump sum due at the end.
- What’s been added? Paint protection, tinting and extended warranties quietly lift the amount you borrow.
- What are the fees? Ask for the total cost of the loan, not just the repayment.
- Where did the discount go? A promotional finance offer can replace the price haggle you’d otherwise get.
Eyeing something premium? Luxury car tax applies to the part of a car’s value above the ATO threshold – $80,809 for most vehicles in 2026–27, or $91,661 for fuel-efficient ones. It’s baked into the price, so it’s baked into what you borrow.
How much deposit do I need for a new car?
You may not need one at all. Some lenders will fund the full price of a new car for borrowers with steady income and a sound credit history.
A deposit still pulls its weight. It shrinks the loan, lowers repayments and can widen your choice of lenders if your credit file has a few marks. Common sources include:
- Savings you’ve put aside
- The trade-in value of your current car
- Equity left in your old car once its loan is paid out
- Manufacturer deposit contributions on selected models
When’s the best time to buy a new car?
Timing can matter as much as haggling. Dealers chase monthly, quarterly and annual targets, so the last days of a month – and June, before the financial year closes – can bring sharper offers.
- Run-out stock – when a new model year arrives, outgoing cars are often discounted.
- Demonstrators – lightly driven, with most of the factory warranty left.
- Late December – dealers clear stock before the calendar ticks over.
Carmakers also face CO2 targets under the New Vehicle Efficiency Standard, which started on 1 January 2025 and tightens over time. If you’re cross-shopping a hybrid or EV, see our electric car loans page for green car loan options.
What you’ll need
- Photo ID, such as your driver licence
- Recent payslips or other proof of income
- The dealer’s quote or tax invoice once you’ve chosen
- Trade-in details and a payout figure for any current car loan
- A summary of your regular living expenses
- Details of existing debts, including credit card limits
Who it usually suits
- 18 or older with a regular, verifiable income
- An Australian citizen or permanent resident – some lenders also accept visa holders
- Room in your budget for repayments after living costs
- A credit history lenders can assess – a few blemishes don’t rule you out
- A car bought from a licensed dealer for new-car loan options
