[Elizabeth Swann]

Is there anywhere that will give loans for a car to a non-working single parent on a Carer Payment? We had an accident last week and although insured, by the time I pay the excess, towing and disposal, I have $900 which is better than nothing, but won't pay a car.

I'm needing something cheap to maintain, so sticking with a 4 cylinder which is lower rego than a 6, and also needing a reliable car. No point getting a cheap car that's at the mrchanic every few weeks. That's not a clever financial move.

Cheapest I can find is $7,990 unless I travel elsewhere, costing more money in travel.

Before anyone says take a bus, we have no bus service, and while 16km/day walking to and from her school might suit some people, my daughter has a disability and would have to walk 8km, no closer school either. So we can't walk or take public transport.

[Justaduck]

Not sure...but the towing and disposal should all be covered under your insurance. In fact, if it is a write off the insurer will sell it (and keep the money) to a wrecker or scrap metal yard

[Elizabeth Swann]

Nope, didn't work that way.

Has anyone been approved a loan for around the $8,000 mark on a Carer Payment?

[anna_garny]

What size car exactly? You said a 4 cylinder but that can range from a Barina to a Camry. Do you want a sedan or a hatch? Have you spoken to dealers/the wrecking yard where your car was disposed of?

My dad runs a wreckers and a lot of the time they get perfectly good cars sold to them that people don't have time to sell privately or have been traded in but aren't worth much to dealers, but are perfectly good cars. (Mid 90's wide body Camry that he sold to a family who wrote off their Excel for $1500. Perfectly sound and exactly what they needed).

Don't just look at dealers, think outside the box and you can get some serious bargains. But as far as the loan goes you'll probably need to approach your bank and speak to them about your options.

[justthegirls]

Hate to say it OP, but unless you use a third tier lender it can't be done. I'm on Carer Payment also and although I certainly meet capacity to service a loan, I was told by Centrelink and the financial lenders that I couldn't get a loan. The reason being that Carer Payment is not considered to be an income support payment and therefore cannot be used as income for the purposes of obtaining loans, credit cards etc... They see it a supplement type thing to provide reimbursement to the care provider.

Sucks big time...

[Sinister Bonnet]

PP I think you are talking about Carer Allowance. Carer Payment is the carer pension and most certainly is considered as income.

[Elizabeth Swann]

Well I had a call back, I can borrow up to $16,500 on an income of Carer Payment, Carer Allowance and Family Tax Benefit Parts A and B with 1 dependent. Not that I want that much but it's an option.

[hiddensecrets]

Hate to say it OP, but unless you use a third tier lender it can't be done. I'm on Carer Payment also and although I certainly meet capacity to service a loan, I was told by Centrelink and the financial lenders that I couldn't get a loan. The reason being that Carer Payment is not considered to be an income support payment and therefore cannot be used as income for the purposes of obtaining loans, credit cards etc... They see it a supplement type thing to provide reimbursement to the care provider.

Sucks big time...

PP I think you are talking about Carer Allowance. Carer Payment is the carer pension and most certainly is considered as income.

Although you can meet the income criteria with the pensions you often cannot get a loan on a pension. I was told my income "met" the lending criteria until I submitted an application and then, because it wasnt actual work income, I was unable to get a loan. So yes it is considered income, but only a certain percentage of it was counted. Most of the lending places said that it was unfortunate but most places will not give a loan to someone on pensions alone. It was really confusing.

Well I had a call back, I can borrow up to $16,500 on an income of Carer Payment, Carer Allowance and Family Tax Benefit Parts A and B with 1 dependent. Not that I want that much but it's an option.

Who is this with?

The reason I ask is I was told the same thing. Only to apply and find that I got rejected because centrelink was my only income. I wouldnt necessarily go by what you got told over the phone unfortunately. This was with a good credit rating too. Basically it was after I applied and got rejected that I was told it was due to centrelink being my sole income. If i had a casual job even one day per week it would have been a different story.

I need a car that can fit in two wheelchairs but unless my parents are willing to go guarentor I have no chance.

[naturalgoodness]

have you looked at a No Interest Loan (NILS) or a Low Interest Loan. They are usually processed through not for profit organisations and are designed for low income people that can service debt but cannot usually qualify for standard finance. They can be used to purchase a motor vehicle and are a better (and safer) alternative to non-standard lenders.

[jayskette]

This is strange. why did you have to pay the excess AS WELL as the disposal and towing? and why isn't your policy giving you the equivalent of a new car if the car was totalled? are you sure you aren't being ripped off?