Cars on installments for young people in Australia are more accessible than ever in 2025, thanks to flexible finance options, first-time buyer programs, and low-deposit dealership offers.
Cars on Installments for Young People in Australia: 2025 Finance Options, Requirements & Real Tips
In Australia, owning a car has become a key step toward independence, especially for young people balancing work, study, or both. But with vehicle prices rising and the cost of living high, many can’t afford to buy a car outright. That’s why cars on installments for young people — via dealership finance, bank loans, or car subscriptions — are increasingly popular across the country.
This article breaks down how car installment plans work in Australia, what options are available for young buyers in 2025, and what you need to qualify. Whether you’re in Sydney, Brisbane, Perth, or a regional town, there’s likely a car finance option tailored to your needs.
1. Can Young People in Australia Buy Cars on Installments?
Yes — and in 2025, it’s easier than ever. Dealerships, banks, and alternative lenders offer various ways for young Australians (typically aged 18–30) to finance a car through:
- Personal loans
- Secured car loans
- Dealer financing
- Novated leases (if employed)
- Car subscriptions (short-term option)
Many providers are now offering low-interest or even zero-deposit financing for eligible first-time buyers.
2. Car Loans for Young Australians – Who Offers Them?
a) Commonwealth Bank – Car Loan for First-Time Buyers
- Loan amount: $5,000 – $100,000
- Interest rate (2025): ~6.99% p.a. for secured loans
- Terms: Up to 7 years
- Special features: Pre-approval, redraw facility, early repayments allowed
- Eligibility: Must be over 18, with stable income and good credit
b) NAB Personal Loan for Car Purchase
- Secured loan rate: From 6.7% p.a. (comparison rate ~7.2%)
- Unsecured option available for those without collateral
- Minimum income: ~$15,000/year
- Online application: Easy for tech-savvy young users
c) Credit Unions & Community Banks
- Examples: Teachers Mutual Bank, People’s Choice Credit Union
- Often have lower fees and more flexible requirements for young or student borrowers
- Supportive customer service and local approvals
3. Dealership Finance – Pay Monthly, Drive Away
Almost every major dealership in Australia now offers installment-based car finance, with many targeting young buyers with:
- Low or zero-deposit options
- Fixed monthly repayments
- Free servicing or insurance for 12 months
- First-car buyer bonuses
Example (2025):
Toyota Australia is offering a $0 deposit finance deal for new Yaris and Corolla models with 5-year terms starting at $110/week.
Other brands with youth-friendly finance options:
- Hyundai Australia – i20 and Venue models from ~$100/week
- Kia Australia – First-car buyer packages with capped servicing
- Mazda – Young driver finance with co-signer options
4. Novated Lease – For Young Professionals
If you’re employed and your employer offers salary packaging, a novated lease might be an option:
- Car lease + running costs deducted from your pre-tax salary
- Tax-effective solution
- Often includes insurance, registration, maintenance
- Popular with government, healthcare, and education employees
Companies like Fleetcare and Smartleasing offer novated leases suitable for employees aged 18+.
5. Car Subscriptions – No Loan, No Commitment
Car subscriptions are gaining traction among young drivers who want flexibility:
- Providers: Carly, HelloCars, Motopool
- Pay monthly (e.g. $130–$250/week) for a car, insurance, servicing
- Cancel anytime or swap vehicles
- Great for students or renters unsure of long-term car ownership
Though more expensive monthly, it’s an all-inclusive, commitment-free option.
6. What Do You Need to Qualify?
| Requirement | Typical Minimum |
|---|---|
| Age | 18+ |
| Residency | Australian citizen or permanent resident |
| Employment | Part-time, full-time, or Centrelink accepted |
| Income | $400–$600/week (minimum for most lenders) |
| Credit History | Clean or limited (low credit may require co-signer) |
| ID & Proof of Address | Passport, driver’s licence, utility bill |
Many lenders also accept gig workers or apprentices with regular income.
7. Co-Signer Options for Students and First-Time Borrowers
If you don’t have a long credit history or steady income, a co-signer — usually a parent or guardian — can help:
- Shared responsibility for the loan
- Increases your approval chances
- Often lowers your interest rate
- Required by some banks for borrowers under 21
8. Tips for Young Buyers
- Avoid balloon payments unless you plan to upgrade
- Compare total loan cost, not just weekly repayments
- Don’t skip insurance — many deals bundle it in
- Ask about early repayment fees
- Consider a used car for lower monthly payments
9. Example: Realistic Car Financing Scenario (2025)
Jake, 21, from Brisbane
- Income: $650/week from part-time job
- Credit score: 710
- Chooses a 2022 Mazda2 from a dealership
- Price: $19,500
- Deposit: $2,000
- Loan: $17,500 over 60 months
- Weekly repayments: ~$95/week (interest 7.2% p.a.)
Jake’s loan is approved with NAB after using a guarantor and submitting three months of bank statements.
10. Government Resources and First-Time Buyer Support
While there are no national grants for car purchases, the Australian government provides:
- MoneySmart Car Loan Calculator: https://moneysmart.gov.au/car-loans
- Financial literacy tools for youth
- Apprenticeship subsidies (can indirectly assist with car costs for transport)
Conclusion: Yes, You Can Buy a Car in Australia on Installments
Owning your first car in Australia doesn’t mean emptying your savings. In 2025, there are more options than ever for cars on installments for young people, from bank loans and dealership finance to novated leases and subscriptions.