Car loans for pensioners
Some lenders will count a pension as income for a car loan, but the repayments have to be affordable on it, so the amounts are smaller and the cost can be high. On 10 October 2026 Money3 published pensioner car loans of up to $12,000 for first-time customers whose income is all from Centrelink, with comparison rates of 34% to 36% in its own examples; Westpac accepted a government statement of your pension as proof of income. For repairs or registration, a No Interest Loan of up to $2,000 costs nothing.
- There is no Centrelink car loan; Services Australia can pay part of your payment early as an advance, repaid from later payments
- Moneysmart’s No Interest Loans lend up to $2,000 for car repairs and registration, with no interest or fees
- Money3 publishes pensioner car loans up to $12,000 when all your income is from Centrelink (10 October 2026)
- Westpac accepts a government statement of your pension as proof of income; Pepper Money requires direct applicants to be employed
- Small, high-fee loans can carry comparison rates above 30%; compare the total repaid
Which lenders count a pension as income?
Policies differ, and most lenders do not publish a pension rule. What they did publish on 10 October 2026:
| Lender | What it publishes on pension or Centrelink income |
|---|---|
| Money3 | Considers the Age Pension, Disability Support Pension, Carer Payment, Veterans' Affairs pensions and other Centrelink payments; up to $12,000 for first-time customers with all income from Centrelink, up to $75,000 when Centrelink is less than half of total income; at least $480 a week of income |
| Westpac | Accepts a government authority statement confirming your pension or allowance, from the last two months, as proof of income; recommends a before-tax income of at least $25,000 |
| ANZ | Minimum income of $15,000 a year for a personal loan used to buy a car |
| Pepper Money | Direct applicants must be currently employed and not on probation |
Whatever the lender, it has to check that the loan is not unsuitable for you: that you can meet the repayments without substantial hardship. ASIC's responsible lending guidance (RG 209) sets out what lenders must do. A pension that only just covers your living costs will not support a loan, however keen the lender.
No Interest Loans and advance payments
If what you need is to keep an existing car running, start here. Moneysmart (updated 24 August 2026) lists No Interest Loans of up to $2,000 for essential goods and services, including car repairs and registration, with no interest, no fees and no credit check. To be eligible you must earn less than $70,000 before tax as a single person or $100,000 with a partner or dependants, or have experienced family or domestic violence in the last 10 years, or hold a Health Care Card or Pension Card, and show you can afford to repay it. Good Shepherd runs the scheme on 13 64 57.
Services Australia can also pay part of your income support payment early as an advance payment, which you repay out of later payments (its page, updated 20 September 2026). It is not a car loan, but it can cover a smaller cost.
What a pensioner car loan costs
Small loans with large fees have very high comparison rates. Money3's own pensioner examples, published on 10 October 2026:
- $5,000 over 24 months: $7,076.61 repaid in total, comparison rate 35.86%
- $7,500 over 36 months: $12,438.31 repaid, comparison rate 36.46%
- $10,000 over 36 months: $16,109.29 repaid, comparison rate 34.14%
WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Personal loan comparison rates are based on a loan of $30,000 over 5 years, secured or unsecured as the lender states. Money3's examples state their own loan amounts and terms.
Work out the total you will repay, not just the weekly amount, and check it against a cheaper car, savings or a No Interest Loan. If you are struggling with existing debts, a free financial counsellor on the National Debt Helpline (1800 007 007) can help you weigh it up.
A car loan broker can check which lenders consider pension income before an application is lodged, so you do not collect declined credit enquiries. The bad credit car loans guide covers the specialist lenders in more detail.
More car loan guides
WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rates are calculated on a secured loan of $150,000 over 25 years for home loans and a loan of $30,000 over 5 years for car and personal loans, unless the lender states another basis. Business loans and equipment finance for a business purpose have no mandatory comparison rate.
Car loans for pensioners FAQs
Can I get a car loan on the Age Pension?
How much can I borrow for a car on a pension?
What is the $5,000 car loan from Centrelink?
Can I get a No Interest Loan for a car?
How much does a pensioner car loan cost?
Check what your income supports
Get matched with a licensed broker who can check which lenders consider pension income and whether a loan is affordable. No obligation.