Can you get a car loan as a temporary resident?
The short answer is, yes! But it's not as simple as applying for a car loan as a Citizen or Permanent Resident.
Generally to borrow money for a car in Australia you are in most cases required to be a Permanent Resident of Australia or a Citizen. However, if you're a non-resident who holds a current 457 work sponsorship visa with a duration longer than the term of the car loan you're hoping to apply for, you might be able to find a financier willing to consider your application.
It’s important to remember that promises to extend your employment and visa by your employer are not taken into account by financers when you are applying for a loan. Financiers are only interested in your visa as approved by the Department of Immigration.
Likewise, visa extensions still pending with the department won’t be considered by financiers until they are approved.
Some lenders have additional lending criteria for 457 visa holders
Lenders may impose a few other requirements depending on what field of work you are in, like cash deposit to reduce the amount borrowed against the car, this is to minimise the lender’s risk whilst using the car as security.
This requirement was put in place so that if the lender had to repossess the vehicle, or the borrower went back to their country leaving the car at the airport, the wholesale price of the car should nearly cover the loan payout, reducing any risk of loss to the lender.
These requirements are assessed on a case by case basis for 457 visa holders, as not every applicant would be the same in regards to asset position, cash savings or their profession.
This would be determined by the lender to assess the risk and request what conditions they see suited to the actual applicant based on the strength of their overall profile without any credit history in Australia to review, as credit file is normally the first point of call when assessing a normal application for car loans.
Speak to a broker for help getting a car loan with a 457 visa
It is recommended to speak to a professional car finance broker in regards to applying for a car loan whilst on a 457 visa, as from experience they should know which lenders would best suit the applicant’s circumstances in both approval and most competitive deal dependent on their personal profile and strengths.