Low Doc - Sub Prime Car Loans

The following is a guide to the types of situations we encounter and the possibility of getting car finance for low doc - sub prime clients.

The major criteria for sub prime finance lenders relate to the vehicle and how it is purchased and can be summarised as follows:

• All vehicles must be purchased through a licensed dealer - strictly no private sales
• Can be used for business or personal use
• Commercial vehicles up to 7.5 tonne
• Vehicles cannot be older than 9 years - Exception: higher risk and low doc clients may be subject to maximum 6 year old vehicles
• Minimum loan size $8,000 (Consumer), $10,000 (Commercial)
• Chattel Mortgage and Hire Purchase available on commercial deals
• Weekly, fortnightly or monthly payments in advance (Commercial only) or arrears
• Rates are fixed for the term
• Balloon/residual payments are ok for commercial but is restricted
• Some postcode exclusions apply

Low doc - sub prime available for:

• PAYG - Consumer and Commercial use
• Low Doc Consumer use (Minimum 2 years ABN)
• Low Doc Commercial use (Minimum 2 years ABN)
• Start Up Business - Commercial (Must have moved from same industry)
• Loans up to $120,000 available

When clients are credit impaired, the finance lenders look for stability in employment and residential status. Short term employment is often not too much of a problem as long as there is a consistent work history dating back 3 years.

Low doc easy - will look at bank statements for 3 months and average income for the year to see if it lines up with clients declaration

There are a lot of grey areas but generally we can give you a good idea if the deal is likely to go ahead. If a loan is declined, lenders will often provide some guidance on how it can be approved in the future eg time frames, payment of defaults etc.

What information needs to be provided?

• PAYG
• Last 2 payslips
• Centrelink income statement (available from Centrelink or online)
• Last 3 months bank statements - all accounts held
• Low Doc
• Last 3 months bank statements - all accounts held

Which car financing product is right for you?

Deciding on the right car finance option for your situation can sometimes be confusing. commercial hire purchase, chattel mortgage, car lease? are just a few of the car financing options, Platinum Direct Finance can assist with your decision making and make the process simple and easy. Use our "Which car financing option is right for you?" today!

Why use Platinum Direct Finance?

The Platinum Direct Finance group of companies will finance over 800 million dollars worth of equipment and car finance this year! Due to this volume and buying power, we can give our clients access to the best boat finance rates and boat financing products across Australia.

Need further information?

If you require further car finance or car leasing assistants, either complete our friendly enquiry form or call an experienced finance consultant on 1300 554 553 today.

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