First vehicle finance guide
First Time Car Buyer Finance
Buying your first car can be exciting. Understanding how car finance works can help you compare options with more confidence.
First car finance basics
Finance Support For First-Time Car Buyers
New Cars
Compare finance options for eligible new vehicles purchased through dealers.
Used Cars
Used car finance may be available depending on vehicle age, value and lender policy.
First-Time Buyers
Some lenders may consider applicants with limited previous finance history.
Flexible Options
Loan terms, deposits and repayment structures can vary between finance providers.
The basics
Buying Your First Car
Buying your first car is a big step. The right finance structure can help you understand repayments, compare lender options and choose a vehicle that suits your budget.
First-time buyers may have limited credit history, no previous car loan experience or uncertainty about deposits, repayments and approval requirements.
Comparing finance options can help you understand what lenders may look for before you commit to a vehicle.
First-time buyers may need to consider:
- Loan amount and repayments
- Vehicle age and value
- Deposit position
- Income and employment stability
- Credit history
- Insurance and running costs
Finance options
Finance Options For First-Time Buyers
New Vehicle Finance
Finance options for eligible new cars purchased through a dealer.
Used Vehicle Finance
Used car finance may be available depending on vehicle age, condition and value.
Electric Vehicle Finance
Explore EV finance options for eligible new and used electric vehicles.
Private Sale Finance
Finance options may be available for eligible private sale vehicle purchases.
Lender assessment
What Lenders May Consider
Income
Stable income helps lenders assess whether the proposed repayment is affordable.
Credit History
Limited credit history may still be acceptable with the right lender and overall profile.
Deposit
A deposit may improve lender comfort and reduce the amount being borrowed.
Loan Amount
Borrowing within budget is important, especially for first-time buyers.
Want to understand how your credit history may affect your finance options? Visit our Credit Score Guide for additional information.
Common mistakes
Common Mistakes First-Time Buyers Make
First-time buyers often focus only on the monthly repayment. While repayments matter, it is also important to consider the total loan cost, insurance, registration, maintenance and whether the vehicle suits your longer-term needs.
Comparing finance options before committing to a vehicle may help avoid applying with the wrong lender or choosing a loan structure that does not suit your situation.
Compare Finance OptionsWatch out for:
- Buying more car than your budget allows
- Focusing only on repayments
- Ignoring insurance costs
- Not checking your credit profile
- Not comparing lender options
EV finance
First-Time Buyer EV Finance
Electric vehicles are becoming more popular with first-time buyers, especially as more affordable EV models enter the market.
Lenders may assess EV finance based on similar factors to standard car loans, although some may offer EV-specific pricing or policy settings.
Explore EV FinancePopular EV brands include:
- Tesla
- BYD
- MG
- Hyundai
- Kia
- Polestar
Ownership costs
Costs Beyond The Car Loan
Registration
Registration and licensing costs should be included in your budget.
Insurance
Insurance can vary significantly depending on age, vehicle type and driver profile.
Fuel Or Charging
Petrol, diesel or EV charging costs should be considered before choosing a vehicle.
Maintenance
Servicing, tyres and repairs can affect the real cost of owning your first car.
Compare First Car Finance Options
Explore flexible finance options for eligible first-time car buyers across new, used, private sale and electric vehicles.
Compare Finance OptionsCommon questions
First-Time Car Buyer Finance FAQs
Can I get a car loan with no previous finance history?
Potentially. Some lenders may consider first-time borrowers depending on income, employment, deposit, credit history and vehicle type.
Do I need a deposit for my first car loan?
Not always, but a deposit may strengthen the application and reduce the amount being borrowed.
Can I finance a used car?
Yes, used car finance may be available depending on vehicle age, condition, value and lender policy.
Can I finance an electric vehicle?
Yes, electric vehicle finance may be available for eligible new, used and private sale EVs.
Does my credit score matter?
Yes. Credit score and repayment history can influence lender options, rates and approval outcomes.
Can I buy from a private seller?
Yes, some lenders may support eligible private sale purchases, subject to ownership, PPSR and asset checks.
Related resources
Helpful Finance Guides
Credit Score Guide
Learn how credit history and repayment conduct may affect lender options.
Electric Vehicle Finance
Compare finance options for new and used electric vehicles.
Car Loans
Compare vehicle finance options across new, used and private sale cars.
Compare Finance Options
Compare lending pathways across different buyer and vehicle scenarios.
Loan Calculator
Estimate repayments across different loan amounts, rates and loan terms.
