Car Loan for 457 Visa Holders

Car loan applications are welcomed from 457 visa holders by many of the major banks, though the application criteria and process is slightly different than if you where a citizen or resident, as the banks are unable to access your credit profile from your country of residence.

Car Loan applications from 457 visa holders are assessed on their individual merits, though all lenders will insist that your car loan term expires before the expiry date of the Visa.

A selection of car loans available to 457 Visa holders are featured in the comparison table below along with our repayment calculator which enables you to get an estimate of what each loan will cost you each month, based on your preferred term and loan value.

Eligibility Criteria for 457 Car Loans

The eligibility criteria for 457 Visa Car Loans differ slightly by lender, though as a general rule each lender will request the following as part of your application:

Visa status - A copy of your visa, which you’ll find in your passport, this will serve as evidence of your visa and also confirm the expiry date of your visa. This expiry date will be critical in determining the loan terms that the lender will be prepared to offer you, as they will only offer loan terms that finish before the expiry of your visa.

Employment Status - To be accepted for a 457 Visa car loan you will need to be able prove that you are full time employment by providing a letter from your employer or the contact details of your employer so the lender can conduct their own validation by telephone.

Annual Salary - By providing your wage/salary slips you will be validating your current income level, most lenders will only consider 457 applicants who are earning in excess of $50,000 p.a.

Deposit - The larger the deposit you are putting toward the car purchase the better as this reduces the risk the lender is taking, a good benchmark is to aim for a 30% deposit, though some lenders will accept less than this.

Type of vehicle you are purchasing - Lenders will generally not lend on used cars which are older than 7 years old at the time you take the car loan out. Loans are available for cars purchased either privately or from a dealer, and in both cases the lender will require you to use the vehicle as security against the loan.

Australian Bank Account - All lenders will require that you have an Australian Bank Account as this will be needed to manage the loan repayments, which generally occur via direct debit from your bank account. You bank account may also be useful to the lender as a source of information on how well you manage your money and as such they may request your last 6 months bank statements.

 

Documents needed to apply for a 457 Car Loan

  • Photo ID - Australian Drivers License, or Passport
  • Bank statements - showing your name and address as the account holder
  • A utility bill, (gas, electricity, telephone) or rent receipt - to confirm your residential  
  • A recent pay slip - to validate your income level
  • Car registration papers - to include registration and VIN of the car you are buying

 

Compare Car Loans for Temporary Residents

Having established that you are eligible to apply for a Temporary Resident Car Loan the next step is to compare Car Loans, a selection of which are featured in the comparison table above. To select the best car loan to make you car purchase a reality you should consider including a number of criteria within your personal loan comparison:

1. Interest Rate

The interest rates on Car Loans can vary significantly by provider, a handy hint is to compare the Comparison Interest Rate as this is a standardized rate that represents the total annual cost of each car loan including the interest rate and any fees.

The table above also features our car loan repayment calculator designed to help calculate your monthly repayments based on your desired loan amount and preferred loan term.

 

2. Application and ongoing fees

Compare the fees between various lenders as these can vary widely with some charging an upfront application fee and others opting to charge a monthly fee.

 

3. Unsecured car loan vs. Secured car loan

Most car purchases are made using a secured cal loan as these offer the lowest rates, unsecured loans are certainly an option though tend to feature highwer interest rates. Our guide to Secured vs Unsecured Personal Loans maybe worth a look tohelp you assess the options.

 

4. Loan Term

You can generally choose to pay the loan from between one and seven years, depending on your financial circumstances and when your visa expires. A factor common with all lenders is that the term of the loan must fall within the period left on your visa, so if you have 4 yeras left to run on your Visa the absolure maximum loan term which will be aceptable to the lenders will be 4 years, but more likely 3 to 3.5 years.