Replacement credit

The applicant would be any of the following entities as long as no trust is involved, which include an individual, a sole trader, a company or a family partnership. The applicant is trading in a car with current finance that is checkable by way of credit reference, or has had a comparable car loan paid out within six months at the time of application which was conducted well.

As long as the new payment or the new net amount financed does not exceed a certain value on their existing or previous car loan, then this could be approved under a replacement credit policy, which would mean no documentation required other than proof of identification.

Self-Declaration (“Self Dec”)

The applicant would be an ABN registered entity with no trust involved, which would include a company, a sole trader or a family partnership. The ABN would be registered for a minimum of twelve months in most cases.

Dependent on lender, they may require the ABN to be registered for a minimum of 24 months and may require GST registration for a minimum of twelve months, but there are lenders available that will allow a non-GST registered ABN holder to apply that has had their ABN active for a minimum of twelve months.

In addition to the ABN and/or GST registration, the lender would also require any of the following to satisfy a self-declaration policy:

  • Home Owner
  • Home Buyer (has current mortgage)
  • Combination of 30% trade in equity and/or cash deposit

Other entity options

The reason entities involving trusts or partnerships that aren’t a family partnership would not be classed as a No Documentation Car Loan, are that a trust deed or partnership agreement may be required, so this would be classed more as a low documentation car loan.

There are exceptions to these circumstances though, for example if the entity is using the same lender and the lender already has these documents on file from a previous application, then these entities would qualify for a no documentation car loan.

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