Wanting to apply for your First Car Loan? Read this first.
- candice7664
- May 29
- 6 min read
Updated: Jun 6
There’s nothing quite like the feeling of shopping for your first car. It’s one of those life moments that sticks with you, your first taste of independence, freedom, and responsibility. While picking the car is the fun part, organising finance can be where things start to feel overwhelming.
At Inspired Asset Finance, we work with lots of first time borrowers, and we get it, you’ve got questions (we have heard them all). From credit scores to guarantors, deposits to job history, we’re here to make your journey as smooth, supported, and exciting as possible.
Here's your complete guide to getting approved for your first car loan.
Can I Get Finance If I Have No Credit Score?
Yes, absolutely, and it’s more common than you think!
If you’re applying for your first car loan, there’s a good chance you haven’t had a personal loan, credit card, or other finance before. That means you might not have a credit score just yet, or your score is still in the early stages of development. The good news? That doesn’t mean you can’t get approved.
While a credit score is one of the things lenders consider, it’s far from the only factor. Many of our lending partners look at the full picture, your income, your employment history, how you manage your money, and your overall financial habits.
We’ll work with you to highlight your strengths, such as:
A steady income or recent promotion
Consistent rental or savings history
Clean bank statements (i.e., no dishonours or excessive Afterpay use)
Responsible spending patterns
Because we work with a wide network of lenders, including those who specialise in helping first time borrowers or applicants with limited credit history, we can find finance options that won’t penalise you just for being new to credit. Instead of focusing on what you don’t have, we focus on what you do, and how to best position your application for success.
So don’t let the lack of a credit score hold you back, there are still plenty of options, and we’re here to guide you through them every step of the way.
Do I Need a Deposit?
Not necessarily, but it can work in your favour.
One of the biggest myths around car finance is that you must have a deposit to get approved. The truth?
Many lenders offer 100% finance, especially if the rest of your application is strong.
That said, having a deposit, even a small one, can be a great advantage.
Here's why:
It reduces the amount you need to borrow, which means smaller monthly repayments
It can strengthen your application and improve your approval chances
In some cases, it can also lead to better interest rates or more flexible loan terms
It shows lenders you’ve planned ahead and are committed to your purchase
We’ve helped plenty of client's secure car loans with little to no deposit, so if you’re not quite there yet with your savings, that’s okay! We’ll look at your full financial picture, explore alternative options, and help you figure out what works best for your situation.
At the end of the day, there’s no one size fits all answer. Whether you’ve got a chunk of savings ready to go or are just starting out, we’ll tailor a solution that works for you, no judgment, just support.
Can I Use a Parent or Family Member as a Guarantor?
This is a common question we get from first-time borrowers, and the short answer is: not usually.
Most asset finance lenders, particularly in the car finance space, don’t allow guarantors, even if it’s a parent or close family member. Unlike home loans where guarantor support is more common, car loans are structured differently, and lenders typically assess each borrower on their own ability to repay.
But here’s the reassuring part: in most cases, you won’t need one anyway.
At Inspired Asset Finance, we work with a broad range of lenders who are first time borrower friendly. Whether you’re just starting out, have minimal credit history, or are working casually or part time, we know which lenders are open to flexible applications and how to present your situation in the best light.
Rather than relying on a guarantor, we focus on:
Strengthening your application with the right documents
Exploring secured vs unsecured loan options
Looking at your overall affordability and financial habits
Using any savings, trade-ins, or deposits you may have to your advantage
So, if you were feeling unsure about needing family to co sign or guarantee your loan, breathe easy. With the right guidance, you may be closer to a “yes” than you think.
And if you're still worried about how your situation stacks up, we're happy to take a look and talk through your options. That’s what we’re here for.
How Long Do I Need to Be in My Job to Get Approved for a Car Loan?
This is one of the most common questions we’re asked by first time borrowers, and for good reason! When you’re just getting started in your career or have recently changed roles, it can be hard to know what lenders are looking for.
Typically, lenders prefer to see that you’ve been in your current job for at least 3 to 6 months.
Why? Because employment stability helps build confidence that you’ll be able to manage regular repayments over the life of the loan. A solid job history shows consistency and reduces the lender’s risk.
But don’t stress if you’ve only just started a new job, it doesn’t automatically mean your application will be declined.
At Inspired Asset Finance, we work with a wide range of lenders, including those who:
Accept applications from borrowers who have only been in their role a few weeks
Are comfortable with recent job changes if you’ve been in the same industry or profession for a while
Consider casual, contract, and part-time work (not just full-time roles)
Are flexible with applicants still in their probation period
We take the time to understand your full employment picture, not just how long you've been in your current role. For example, if you’ve moved from one hospitality job to another with better pay, or you’ve just graduated and landed your first full-time gig, we know how to frame that positively in your application.
Our job is to match you with a lender who will see the full story, not just the numbers on paper.
So whether you’ve been working for years or you’ve just started, don’t count yourself out. With the right guidance, your loan application can still be strong, well structured, and completely achievable.
Is There an Age of Vehicle That’s Allowed?
Yes, this is an important one to know before you fall in love with a car!
Most lenders have a vehicle age limit, typically around 10–12 years old by the end of the loan term. That means if you're taking out a 5 year loan, the car should ideally be no more than 5–7 years old now. However we do have lenders that will finance vehicles up to 20 years at the end of the loan term.
If you’re unsure, we’ll happily review the car you’re looking at and give you options that work for your budget and the car’s age.
Secured vs Unsecured Loans, What’s Better?
Secured car loans are the most common type. They use the car itself as security for the loan, which gives lenders confidence, and that means better interest rates and terms for you.
These loans usually come with:
Lower interest rates
Longer repayment terms
Higher chances of approval
Unsecured car loans don’t use the vehicle as security. They’re typically used if you’re buying a car that doesn’t meet secured loan criteria (like an older model), or if you want to include additional costs like insurance or rego in the loan amount.
These loans may have:
Higher interest rates
Lower lending limits
If you’re unsure which one suits you, don’t stress, that’s exactly what we’re here for. We’ll look at your goals, your car, and your finances to recommend the best option for you.
Bonus Tips for First Time Car Loan Success
Check your credit file early - It's free and can help you spot and address any potential issues ahead of time.
Know your repayment comfort zone - Work out a weekly/fortnightly or monthly budget and stick to it.
Keep your documents handy - Payslips, ID and Bank statements will speed things up and help us paint a clear picture for lenders.
Get Pre Approved - It gives you a budget, negotiation power, and peace of mind when you start shopping.
Work with a broker - We guide you every step of the way, from application to approval and beyond.
Celebrate this milestone the Inspired Way
Your first car loan is more than just a financial step, it's a milestone worth celebrating, and at Inspired Asset Finance we're all about turning milestones into memorable, supported experiences.
With use you will never feel lost in finance jargon or stuck guessing what's next. We break it down step by step, give you the confidence to make a decision and help you drive away in a car you love, knowing you have made a smart, informed choice.
Let's make your first car loan experience hassle free, personal and inspired. Reach out today and let's take that exciting first step, together.
📞 Call us at 0439 698 123
📧 Email us at candice@inspiredassetfinance.com.au
🌐 Visit us at www.inspiredassetfinance.com.au
Let’s get you into your dream car!
Candice @ Inspired Asset Finance
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