Can I Get A Car Loan Without Paperwork?

When it comes to getting a loan, business owners, entrepreneurs or self-employed people may find themselves with fewer options. Even if you are in a good financial condition, a loan provider may consider you as a risk if you don’t get a regular salary. If you think that it is difficult to prove your stable income and are searching for a loan to finance a vehicle, a low doc car loan may be an option for you.

How Low Doc Car Finance Actually Work?

Low doc car finance includes the moneylender approving a loan by using less documentation than is typically required. These finances are generally considered risky because it is difficult to prove to the moneylender that you are in a stable or good financial condition. Moneylenders who offer these types of loans will usually charge higher rates and expenses to balance the risk they take on by loaning to you.

These kind of loans are generally for the individuals who don’t have a consistent income; this incorporates freelancers; the individuals who get paid in cash; the self-employed people; and contractors. Moneylenders offer low doc car loans for business as well as personal use, and some lenders may offer loans for a car that will be utilized for both.

Things to Consider Before Applying for Low Doc Car Loans

Low doc car loans include various features which must be taken into consideration while applying for such type of loan. Here are a few points to consider when comparing your options:

Low Doc Car Loans

What are the expenses related to the loan?

You must check the upfront chargers that you will have to pay to the lender in order to get the loan, and also any ongoing fees. Also verify whether you will be charged for any features of the loan, for example making extra repayments.

What interest you will have to pay?

Low document loans usually require the borrower to pay higher interest rates, so ensure you get the best deal available. Check if the rate is variable or fixed and whether the promoted rate is just an early offer.

What type of documentation do you require?

Lenders those offer low doc loans don’t require evidence of your income, however, they may require detailed info with respect to your funds, business activities, resources and obligations to analyze your financial situations.

What are the terms and conditions associated with the loan?

You must guarantee that the total amount and terms that are being offered by the lender meet your borrowing needs. Car loans usually range from $4,000 to $100,000 and for in between one and seven years.

Are there any confinements on your loan?

A few low doc loans may have certain confinements, for example, the whole amount of the loan may just be permitted to be used to finance the vehicle, or you may not be permitted to make extra repayments. Ensure these repayments don’t confine the way you plan to utilize the money.

Does the loan offer you flexibility?

As compared to other types of loans, Low doc loans usually do not offer the same flexibility since they are less secure to the lender; however, some low doc loans might be more flexible than others so you must analyze your choices before settling on any deal.

The Pros and Cons of Low Doc Car Loans


  • Low doc loans are an option for individuals who may find it difficult to prove their regular income
  • These credits can be utilized to finance a vehicle for a private venture


  • These loans tend to have higher expenses and rates than other types of loans
  • Stricter loaning criteria due to irregular income

Final Words

A low doc car loan is a good option if you don’t have a fixed income to show to the bank or lender. However, before applying you must calculate the amount you will have to pay back to the lender. This will give you a rough idea of the amount that you can borrow.

While selecting a car loan, make sure to consider your own needs and circumstance before you apply. Because this is a low doc loan, it isn’t up to the lender to decide your capacity to pay back the advances since they won’t have the information to make any decision. Rather, it depends on you to choose what you can and cannot afford.

Author Bio: Alex Smith is an editor and works at GCC Business Finance. He enjoys creating, uncovering and disseminating new and interesting perspectives on finance, investments, and mortgages. GCC business finance provides business loans and property finance services throughout Australia.

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