If you’re retired or receive government benefits like Centrelink or the age pension, you could be eligible for a pensioner car loan. Pensioner car loans have emerged as a practical financing solution, providing elderly individuals with the opportunity to secure a vehicle and maintain their independence.


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VariableNew1 yearMore details
  • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Required: Good credit history, stable employment history. Aus citizenship or PR.

loans.com.au – New - Home Owner Special

  • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
FixedNew99 yearsMore details
  • Lower Interest Rates
  • No Hidden Fees
  • A quick and easy, 100% online application. No printing. No paper. No fuss.

OurMoneyMarket – New Car Loan

  • Lower Interest Rates
  • No Hidden Fees
  • A quick and easy, 100% online application. No printing. No paper. No fuss.
FixedUsed99 yearsMore details
  • No ongoing or early exit fees
  • Flexible repayment options

OurMoneyMarket – Used Car Loan | No vehicle age limit

  • No ongoing or early exit fees
  • Flexible repayment options
FixedNew1 yearMore details
  • Required: Good credit history, stable employment history. Aus citizenship or PR.

loans.com.au – Green Car Loan Fixed

  • Required: Good credit history, stable employment history. Aus citizenship or PR.
FixedNew, Used99 yearsN/AMore details

NOW Finance – No Fee Secured Loan

    VariableNew99 yearsMore details

    Macquarie Bank – New Car Loan (Home Owner)

      FixedNew1 yearMore details

      Firstmac – New / Demo Car Loan (Fixed)

        VariableUsed99 yearsMore details

        Macquarie Bank – Used Car Loan Dealership (Home Owner)

          FixedNew, Used99 yearsMore details

          Pepper – Car Loan

            VariableNew99 yearsMore details

            Macquarie Bank – New Car Loan (Non-Home Owner)

              FixedUsed7 yearsMore details

              loans.com.au – Used Car Loan (6-7 years) (Fixed)

                FixedNew1 yearMore details
                • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
                • Available for purchasing new and demo vehicles
                • $5,000 to $150,000 loan amount
                • Required: Good credit history, stable employment history. Aus citizenship or PR.

                loans.com.au – New Car Loan - Special (Fixed)

                • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
                • Available for purchasing new and demo vehicles
                • $5,000 to $150,000 loan amount
                • Required: Good credit history, stable employment history. Aus citizenship or PR.
                Important Information and Comparison Rate Warning

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                The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

                Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes.

                Rates correct as of November 30, 2023.View disclaimer

                What is a pensioner car loan?

                A pensioner car loan is a financing option specifically designed for retirees or individuals who receive government-funded pensions.

                As long as you meet lenders' criteria and prove you can cover repayments - whether that be from Centrelink payments, a disability pension, age pension, investments, etc - a pensioner car loan could help you get the keys to your new set of wheels.

                Who is eligible for a pensioner car loan?

                To be eligible for a pensioner car loan, individuals must meet specific criteria, which may vary slightly depending on the lender. The typical eligibility requirements include:

                • Age - Applicants must be over 18 to apply and be an Australian citizen or permanent resident.
                • Income - Lenders assess the pensioner's income to ensure they are capable of making regular repayments and expenses.
                • Pension restrictions - Applicants may be eligible for a pensioner car loan if you receive the age pension, disability support pension, or Centrelink payments such as parenting or carer payments. Some allowances such as JobSeeker, Youth Allowance, and Austudy may not qualify - you may need to provide proof of additional income.

                How much can you borrow with a pensioner car loan?

                The amount a pensioner can borrow for a car loan depends on their unique financial situation and will likely vary from lender to lender.

                While employment is not a strict requirement for eligibility, pensioners may have more limited options compared to employed individuals. Shorter loan terms, higher repayments, or increased interest rates might be part of the conditions you need to consider.

                When comparing pensioner car loans, lenders may offer varying interest rates based on the borrower's financial position, charging less competitive rates for loans that are deemed higher risk. If you have assets, you could use these as security to reduce the interest rate paid on the loan, ultimately saving yourself money in the long run.

                Before determining how much to borrow, it's important to be realistic about your budget. Assess your pension payments and expenses honestly to work out what you can comfortably afford to repay.

                When determining your borrowing power, a lender will consider: income, credit history, value of assets, proposed loan amount and term, and the type of vehicle you wish to purchase.

                How to compare pensioner car loans

                Before you go ahead and choose the first pensioner car loan you find, it's important to compare various lenders’ to find the most suitable option for your financial circumstances. Here are some factors to consider:

                • Interest rates - Compare interest rates from different lenders to find the most competitive option. Lower interest rates can significantly reduce the overall cost of the loan. Don’t forget to also look at the comparison rate which shows the true cost of the loan as it incorporates any fees payable.
                • Variable or fixed - A fixed rate will remain the same (locked-in) over your loan term while a variable rate will fluctuate based on market changes. In favourable conditions, your interest rate may decrease meaning your repayments do too. But, you can run the risk of paying more if interest rates increase. For pensioners, a fixed-rate car loan may offer more certainty regarding weekly/fortnightly/monthly repayments.
                • Fees - Look out for any upfront fees, ongoing fees, or early repayment penalties associated with the loan. Compare these charges across different lenders to identify the most cost-effective option.
                • Loan term - Consider the loan term options offered by lenders. A longer loan term may result in lower monthly repayments but can increase the total interest paid over the life of the loan. Lenders might offer better rates to those who can pay off the loan in a shorter period of time. Car loans are commonly anywhere from one to five years, though some lenders offer seven-year car loan options.
                • Repayment flexibility - Assess the flexibility of repayment options, such as the ability to make additional repayments or repay the loan early without penalties. These features can help borrowers save on interest and pay off the loan sooner.