Over 60 and told “no” by the bank? Here’s how Australians are still buying cars on monthly payments

Many Australians over 60 find that a traditional bank’s criteria do not always reflect their real financial position. Yet monthly payment options do exist through reputable non-bank lenders, dealer finance, salary-packaging arrangements, and even car subscriptions. The key is understanding how these products work, what documents you can use if you no longer receive payslips, and how to check that any agreement is fair, safe, and clearly disclosed.

Monthly-payment models available to older drivers

A number of structures can spread the cost of a vehicle into predictable monthly amounts. Secured car finance from a non-bank lender is common, using the car as collateral and offering fixed terms. Personal loans used for a car can be unsecured and may suit smaller amounts or older vehicles. Dealer-arranged finance is convenient but can include add-ons, so compare disclosures carefully. If you are still employed, a novated lease via salary packaging can consolidate running costs into pre- and post-tax deductions. For small-business owners, a chattel mortgage or commercial hire purchase may suit business-use vehicles. Finally, car subscriptions from specialist providers bundle the vehicle, registration, and often maintenance into a single monthly fee, though you do not own the car.

Documentation accepted instead of payslips

If you are retired or semi-retired, many providers accept alternative documentation to show consistent income and expenses. Common options include Centrelink age pension statements, superannuation pension or annuity statements, recent bank statements showing regular deposits, and ATO Notices of Assessment for any taxable income. Investment or rental statements can demonstrate additional cash flow. You will also need standard identification (driver licence, passport), proof of residence (utility bill or rates notice), and details of existing debts and living costs. Some lenders use secure bank-statement retrieval services; always review the privacy policy and only provide read‑only access to the periods they request.

Key factors providers assess for suitability

Age itself should not determine the outcome; lenders focus on serviceability and suitability over the full term. They look at total income (pension, super, employment, investments) against regular expenses and debts to assess repayment capacity. Credit history, recent credit enquiries, and any defaults influence pricing and approval. The loan-to-value ratio matters: newer cars as security may attract more favourable terms than older, high‑kilometre vehicles. Providers may cap the vehicle’s age at the end of the term. A reasonable deposit can improve affordability, while balloon payments lower monthly amounts but raise end‑of‑term obligations. Providers also consider whether comprehensive insurance will be maintained, and that the term is appropriate for your circumstances.

How to identify risks in non-bank arrangements

Non-bank finance can be suitable, but risks vary by product and provider. Watch for very high rates, frequent fees, and add‑ons such as warranties or insurance that you did not request. Check for early termination charges, account‑keeping fees, and the real cost if you miss a payment. Offers that claim “guaranteed approval” or require large upfront fees are red flags. In dealer yards, be cautious with rent‑to‑own or lease‑to‑own agreements; some are not traditional credit contracts and may limit your rights. Ensure any security interests over the car are correctly recorded on the Personal Property Securities Register (PPSR). If an application requires screen‑scraping access to your bank, confirm the company’s security standards and revoke access after verification.

Steps to ensure the offer is safe and transparent

Before you commit, verify the lender’s Australian Credit Licence (ACL) on ASIC Connect and confirm membership of the Australian Financial Complaints Authority (AFCA) for dispute resolution. Request a credit guide and full pre‑contractual disclosures, including the comparison rate, which reflects interest plus most mandatory fees for a typical example. Ask for a written schedule covering establishment, monthly, and early payout fees, and clarify any balloon or residual values. Read the Target Market Determination (TMD) to ensure the product is designed for your situation. Compare at least two reputable offers or speak with a licensed broker who can explain options in your area. For used vehicles, obtain an independent inspection and a PPSR report to check for finance owing or previous write‑off. Keep copies of every document you sign and avoid pressure to decide on the spot.

Examples of established providers that operate in Australia include the following. These are not recommendations; they illustrate the types of services available through non‑bank and fintech lenders that may consider a range of income sources when assessing suitability.

Monthly-payment planning and affordability checks

Whatever structure you choose, build a simple budget before applying. Include fuel, insurance, registration, servicing, tyres, and any subscription or toll costs—these can be significant on fixed incomes. Test different terms and deposits to see how they affect monthly payments, and be realistic about a balloon amount you could comfortably clear at the end through savings or the sale of the vehicle. If a lender offers hardship support, note how it works should your circumstances change. Where possible, keep an emergency buffer so that an unexpected expense does not jeopardise repayments.

Considering local services in your area

Access to trustworthy help can make a difference. Community legal centres and financial counsellors offer free guidance on reading contracts and understanding your rights. Licensed brokers can map options across multiple lenders and help you present documentation if you rely on pension or super income. When comparing local services, prioritise transparency, responsiveness, and clear written explanations over verbal assurances. If something is not documented, assume it is not part of the deal.

Putting it all together

Being over 60 and declined by a bank does not end your path to a reliable vehicle. Many Australians secure monthly payments through non‑bank finance, personal loans, novated leases, or subscriptions, using documentation that reflects pension or investment income. The safest outcomes come from careful affordability checks, verified providers, and crystal‑clear disclosures that leave no surprises during the life of the agreement.