Yes, you can often get a car loan while you are on probation. Many lenders will consider you, especially if you are in a permanent role, have stayed in the same industry and can show a steady work history. Lender policies on probation vary widely, so choosing the right lender matters more than usual.
This article is general information only and does not take your personal circumstances into account. All loans are subject to lender assessment and approval.
Do lenders approve car loans during probation?
Some do and some do not. Mainstream lenders often prefer you to have finished your probation period, while others will approve you during probation if your new role is permanent and you have a solid employment history. Specialist lenders can be more flexible again, although their rates and fees may be higher.
Lenders are not trying to penalise you for changing jobs. Under responsible lending rules, they must be satisfied that you can afford the repayments, and a probation period adds some uncertainty about whether your income will continue.
What do lenders look at when I am on probation?
Lenders focus on how stable your income is likely to be. A permanent full-time role in the same line of work you have done for years looks very different from a casual job in a new industry, even if both are technically within a probation period.
- Employment type: permanent full-time or part-time roles are viewed more favourably than casual or fixed-term contracts.
- Same industry or role: moving to a similar job with a new employer is usually seen as lower risk than a career change.
- Work history: continuous employment before this job helps your case.
- Credit history: a clean credit file and good repayment history on other debts.
- Deposit or trade-in: putting money in reduces the amount you need to borrow and the lender’s risk.
- The car and the loan amount: a sensibly priced car with a realistic repayment is easier to approve.
What documents will I need?
Expect to prove both your new income and your history before it. Most lenders will ask for your employment contract or a letter from your employer confirming your role, salary, start date and probation end date, plus your first payslips. Having these ready usually speeds up approval.
- Employment contract or employer letter
- Recent payslips from your new role
- Payslips or an ATO income statement from your previous job
- Recent bank statements
- Driver licence and other identification
- Details of the car, such as a dealer quote or the private sale details
What about casual or contract workers?
Casual and contract workers can get car loans too, but lenders usually want to see a track record of that income, and some average your earnings over a longer period. If you are both casual and on probation, the range of suitable lenders narrows, so it helps to know which ones accept your situation before you apply.
How can I improve my chances of approval?
- If the purchase is not urgent, consider waiting until your probation finishes
- Choose a car and loan amount that leave plenty of room in your budget
- Add a deposit or trade-in if you can
- Reduce unused credit card limits and clear small debts
- Avoid applying with several lenders yourself, as each formal application can leave an enquiry on your credit file
- Use a broker who knows which lenders accept applicants on probation
Moneysmart’s guide to car loans is also worth reading before you sign anything.
How SB Finance can help
We compare car finance across our panel of lenders and match you with lenders whose policies suit your employment situation, rather than sending applications out blindly. For car, equipment and asset finance, our brokerage fee is included in the loan amount, and we explain all fees and commissions before you commit to anything. Learn more about car finance and used car loans, read our car finance approval tips, or get a quick car loan quote.
Car loans on probation: frequently asked questions
Can I get a car loan after starting a new job?
Often, yes. Many lenders will consider you from your first payslip if your role is permanent, especially if you have moved within the same industry. Others will ask you to wait until your probation period ends.
Do I have to tell the lender I am on probation?
Yes. You must give accurate information about your employment. Lenders verify employment details, and leaving information out can lead to a decline or cause problems later.
Will being on probation mean a higher interest rate?
Not necessarily. If a mainstream lender approves you, your rate is based on your overall profile. Rates may be higher if you need a specialist lender.
Can I get a car loan on probation with bad credit?
It is harder but sometimes possible through specialist lenders. See our guide to bad credit loans.
