Bad credit can make obtaining car finance more difficult, but it does not automatically prevent approval. Many lenders specialise in assisting borrowers with poor credit histories and offer loan products designed for their circumstances. However, applicants must still meet several basic requirements.

Income is one of the most important factors. Lenders review earnings, deductions and overall affordability to determine how much can be borrowed and repaid. Self-employed applicants are often asked to provide at least two years of tax returns and may also need bank statements to verify income.

Employment stability is another key consideration. Borrowers with bad credit are generally expected to have been with their current employer for at least twelve months. A consistent work history helps reassure lenders that repayments can be maintained.

Applicants are usually required to be at least 18 years old and Australian citizens. Those under 18 commonly need a co-signer.

Bankruptcy history is also assessed. Previous or current bankruptcy filings can affect eligibility and borrowing limits, making accurate disclosure essential.

Lenders also examine any vehicle repossessions, whether voluntary or involuntary. Recent repossessions may influence lending decisions and should be disclosed where relevant.

Understanding these requirements before applying can reduce delays, minimise frustration and improve your chances of securing car finance despite a poor credit record, while saving time and helping you prepare the necessary documentation in advance.