What is pre-delivery car finance?

Pre-delivery car finance are loans for motor vehicles which are arranged and conditionally approved before the vehicle is available for purchase or delivery. Vehicle manufacturers often offer a pre-order opportunity, or expressions of interest, on cars ahead of their availability in local dealerships. This is a common practice with high-demand, limited stock and limited-edition models.

Buyers that are keen to purchase these cars can place their order ahead of the release and ensure they have secured their vehicle. Pre-ordering may require a holding deposit to be made or simply an expression of interest. Typically, pre-orders do not carry the obligation to proceed if the buyer changes their mind when they get to inspect and test-drive the vehicle. The holding deposit should be refundable, depending on the conditions of individual offers.

Before pre-ordering, many buyers will want to be assured that they do have access to the financing to finalise the purchase when the vehicle is available. These buyers can apply for a  pre-delivery car loan.

Pre-delivery Car Finance Specifics

Pre-delivery car loans are essentially pre-approved loans but often arranged further in advance than most pre-approved loans. Pre-delivery loans may be sought many months ahead of taking delivery. Where the pricing has not been confirmed by the manufacturer, buyers will need to estimate the amount they need for their loan. Dealers will generally provide a price guide that buyers can use for this purpose. The buyer applies for their loan based on that price guide and their current financials and credit profile. The interest rate will be based on rates at the time of application.

The loan is conditionally pre-approved as the interest rate and repayments will be subject to the timing of when the loan is required and the exact loan total. The approval is deemed ‘conditional’, which means approval is conditional on the final pricing and loan required, and interest rates at the time that the loan is finalised. Rates may change over the time between applying and delivery. The buyer’s financial position may also change. This may result in the rate and repayments differing from the figures advised with the pre-delivery loan.

When the delivery date nears, buyers can contact their Jade broker to have their loan confirmed based on the final figures. These would include the loan required based on the specific vehicle purchase price, and the current interest rates. If rates and the buyers credit position have not changed in the interim, the loan repayments would be the same as pre-approved, subject to any loan total variations.

If the buyer is happy with that loan offer, the loan is finalised based on the exact figures and the buyer can take delivery of their vehicle. If the buyer decides not to proceed, any loan offer made with the pre-delivery loan approval does not need to be accepted. There is no obligation attached to pre-delivery loans.    

What type of loan is pre-delivery car finance?

Finance arranged prior to taking delivery of a vehicle is not limited to any one type of loan. Approval before delivery can be arranged on all vehicle credit products. The same features and benefits of the product will apply, regardless of when the loan is applied for, approved and finalised.

Buyers of new vehicles for private use will typically select a Secured Car Loan, where the vehicle is used as the loan collateral. Fixed rates, terms and repayments apply.

Business vehicle buyers can select from Lease, Chattel Mortgage or Commercial Hire Purchase. The vehicle is accepted as loan collateral, a balloon or residual is available, tax benefits are available, and fixed rates, terms and repayments apply. Many business buyers can be approved for no deposit financing.

What is the advantage of car finance before delivery?

An advantage of pre-delivery loans is that buyers who are unsure if they will be approved for the loan amount required can receive their answer. With finance approval received, buyers can confidently commit to the pre-order and be assured that they will obtain their vehicle. This can be especially beneficial where only limited stocks of a vehicle are set to be available.

With conditional pre-approval, buyers can budget their finances ahead of taking delivery to allow for the repayments. They may also consider including accessories and any upgrades or extra packs in the vehicle order prior to delivery.

Who needs pre-delivery car finance?

Many buyers may choose to apply for their car loan well ahead of taking delivery of the vehicle. They may be unsure of their borrowing capacity and credit rating and want to be assured they will be approved for finance for the amount they require.

Delayed deliveries and short supply are another good reason to consider getting the loan approved early. During COVID, many vehicle manufacturers were facing manufacturing issues which caused delivery delays of a range of popular models. Many buyers placed pre-orders to ensure they received their vehicles when the first shipments arrived. Reports at the time were that many of the shipments were 100% pre-orders. Many of those buyers will likely have obtained conditional pre-delivery loans. 

While those issues seemed to be resolved, there are makes and models which are previewed and teased ahead of arrival in Australia. A current example may be buyers keen to confirm their order on the new Ford F-150. Key details, including pricing, of the new F-150 Platinum have been released, and dealers are accepting orders. Delivery is scheduled for early 2026. Keen buyers can apply for pre-delivery loans to confidently place their order.

To apply for pre-delivery car finance, contact Jade Car Loans 1300 000 003 by phone or online.

DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.