Quick answer: Start with budget and lender fit, then obtain indicative/pre-approval where appropriate, choose the vehicle, verify the seller/vehicle, provide the purchase invoice and insurance details, then complete final lender approval and settlement. Avoid committing to a non-refundable vehicle purchase before finance conditions are understood.
Questions borrowers commonly ask
- Do I get the finance first, then choose the car, then arrange insurance?
- The bank says the car must be registered before drawdown but the dealer says it cannot register until paid — what now?
- Should I sell my old car first, put a deposit on the new car first, or finalise finance first?
Step 1 — set the true car budget
Use a realistic rate and include running costs.
Step 2 — check borrower policy before formal submission
Employment, visa, credit issues and loan size should be checked before an avoidable enquiry.
Step 3 — choose and verify the vehicle
For used/private cars, PPSR and vehicle details matter. For dealer cars, obtain the contract/invoice with VIN when available.
Step 4 — final credit and security conditions
The lender may require comprehensive insurance, invoice, VIN, registration or other settlement evidence depending on product.
Step 5 — settlement
Secured car finance commonly pays the dealer/seller or existing financier through a controlled settlement rather than simply depositing unrestricted cash to the borrower.
General information only. Approval, pricing, fees, income treatment and vehicle eligibility depend on the lender, borrower circumstances and contract.
Frequently asked questions
Should I get finance before choosing the car?
Knowing likely budget first is useful; final secured approval usually needs vehicle details.
When should I arrange insurance?
Before settlement/delivery where the lender requires comprehensive cover.
Does the lender pay me or the dealer?
Secured products often settle directly to the dealer/seller/financier.
What if the dealer and bank disagree about registration timing?
Escalate the settlement conditions before signing or paying.
Can I shop lenders first?
Yes, but avoid unnecessary formal applications.
Sources and verification
Related GPS Finance resources
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