Connecting You To The Australia’s Best Car Finance Experts.
From
8.49%
Fixed
9.54%
$150
From $10k
monthly over 5 years
Pros
Cons
New Car | Missed Payment Penalty $20 |
Used Car | Redraw Activation Fee N/A |
Motorcycle | Repayment Type Fixed |
Boat | Loan Type Secured |
Upfront Fee $150 | Secured By Vehicle |
Early Exit Penalty Fee Fee Applies | Available to 457 Visa Holders |
Borrowing range $10k - $100m | Redraw Facility |
Total repayments $36,921 | Extra Repayments |
Other Restrictions
Early exit fees may apply.
Commonwealth Bank offers finance for a range of vehicles, including cars, motorbikes, trucks, caravans and commercial vehicles. Borrowers can take out loans for terms of between one and five years, and repay in weekly, fortnightly or monthly instalments. The minimum loan amount is $10,000; there is no maximum loan amount. Commonwealth Bank also offers bank accounts, credit cards, personal loans, home loans, insurance, superannuation and financial planning. Commonwealth Bank began operations in 1912 and is Australia’s largest bank. It also has operations in New Zealand, Asia, Europe and North America.
As one of Australia’s leading banks, the Commonwealth Bank of Australia (CBA) offers a full suite of financial products and services to its personal and business customers and clients, including access to personal loans and car loans.
Whether your goal is to pay less in interest, to keep your budget simple, or to enjoy greater financial flexibility when you roll away on the four wheels of a new or used car, CBA has several options available.
With Commonwealth Bank branches located across Australia, plus phone and internet banking services, it’s simple to apply for a Commonwealth bank loan to buy your car, boat or motorcycle. Existing CBA customers may also be eligible for special offers when they apply for a car loan.
Car loans from CBA are secured by the value of the vehicle you’re purchasing, allowing you to benefit from a relatively low fixed interest rate, which in turn helps to keep your repayments consistent and manageable for the full lifetime of the loan. With a minimum loan amount of $10k and no fixed upper limit, these loans are ideal for purchasing brand new cars.
CBA’s other personal loan options can be used to borrow from $5k to $50k, making them better suited to purchasing used cars, as well as motorcycles or boats. As unsecured loans, these personal loans tend to provide added flexibility, such as the redraw facility that’s included with the variable rate option.
If you opt for CBA’s car loan, your debt will be secured by the value of the car you’re purchasing, allowing you to enjoy a lower than average interest rate. With its fixed interest rate, your repayments will remain consistently low for the full term of your car loan. Though it’s worth keeping the higher than average establishment fee in mind, as well as the ongoing monthly fee, which chould affect the car loan’s affordability.
CBA’s fixed and variable personal loans can be used for certain car purchases, and while they have higher interest rates than CBA’s secured car loan option as well as the market average, they also have lower establishment fees. And if you opt for the variable rate loan, the redraw facility will allow you to withdraw from the loan any additional payments you make, and enjoy some extra flexibility.
To apply for a CommBank car loan and/or personal loan, you’ll need:
If you’re an existing CommBank customer, you can upload these documents online for faster approval, but if you’re not a customer, or you’d prefer to have a professional talk you through the process, you can visit a CommBank branch.
A secured car loan is a loan that is connected to a form of security, or collateral. Generally, the security for a car loan is the car itself. If you fail to repay the loan, the lender might seize your car, sell it and then use the proceeds to recover their debt.
An unsecured car loan is a loan that is not connected to a form of security, or collateral. Not all lenders provide unsecured car loans – and if they do, they generally charge higher interest rates for their unsecured car loans than their secured car loans.
Poor credit doesn’t necessarily mean you won’t be able to get finance for your car purchase, though your options aren’t likely to be the same as someone with good credit.
In fact, a number of specialist lenders exist offering car finance for customers with poor credit, able to provide access to bad credit car loans.
However having a history of poor credit will likely mark you as a potential risk to lenders, so your car financing needs could see higher fees and interest rates. Alternatively, consider a secured car loan, which is a type of loan that uses the car you purchase as collateral, reducing the risk.
Other options include getting someone close to act as a guarantor for your car loan, or to talk to a broker about a personalised rate specific to your circumstances.
Like all things, there are positives and negatives to guarantor car loans, though one may outweigh the other depending on your needs.
Guarantor car loan pros may include that you’re more likely to be approved for a long if you have no credit or a history with bad credit, that you’re more likely to secure a car loan with a lower interest rate, and that because your guarantor car loan is based on a relationship, you will be more inclined to meet your repayment schedule.
However, there are negatives, as well. Guarantor car loan cons may include leaving a detrimental mark on a personal relationship with added strain if you don’t meet your repayments, and you may take out a loan that you can’t actually afford.
Weighing these pros and cons will give you a greater understanding of whether a guarantor loan is ideal for your circumstances.
While it’s not necessarily a guarantee, having a guarantor on your car loan will improve your chances of having your application accepted, and may mean that you are able to attain a lower interest rate loan.
Having a guarantor with excellent credit history and/or is a property owner reduces the risk to the lender because the payments are guaranteed by someone who is considered to be financially secure and reliable.
As such, even if your credit history isn’t perfect, a guarantor may be able to help you secure a lower rate from some lenders.
A guarantor car loan is a type of loan that features a guarantor on the agreement. The guarantor is a third-party individual, often a friend or relative, who guarantees the loan will be repaid if the borrower defaults on the car loan.
Guarantor car loans are often geared at people who might otherwise struggle being accepted for a secured car loan when purchasing a vehicle. Some of the reasons might include a lack of credit history such as with a student or young person, if there’s bad credit, or age as a factor such as with pensioners.
Being a student is tough enough, and while you might find the odd student discount on movies and technology, the same can’t be said about car loans, as you can’t really get a discounted student car loan.
Lenders make money on the interest and fees that they charge with loans, and the lowest interest and fees are given to the most reliable credit holders: people with excellent credit history.
As a student, you are unlikely to have enough on your credit report to warrant an excellent history. There are however, ways of getting a lower interest car loan if you can’t get an interest-free loan from the bank of mum and dad. One way of doing this may be through getting a guarantor car loan, which can get you a secured car loan by setting your parents up as guarantors.
The role of a guarantor on a car loan is to meet repayments if the borrower of the loan were to default for any reason, such as not being able to afford it.
Useful for loan applicants with poor or bad credit, a guarantor makes it possible for these loans to be made secure, because there’s less risk for a lender overall.
Companies will likely give fair warning before they charge a guarantor for the costs of the loan, or before they repossess anything of the guarantor’s that may have been used as security. Still, it is important for a car loan guarantor to fully understand their responsibilities before they commit to the transaction.
Yes, as long as you meet basic criteria set out by lenders you are eligible for car finance. Your interest rate will be determined based on your financial history which can be found in your credit report, your income and any property you may own.
Comparing car loans for pensioners before you settle on one is important though, if you want to secure the best possible loan for your circumstances.
Yes, some banks will be willing to provide guarantor loans, including Commonwealth Bank, NAB, Westpac and ANZ, though the terms for signing up to a banker-issued guarantor car loan may not necessarily be as good as another lender.
You should keep in mind though that these larger banks, because of their monopoly of the market, tend to have higher interest rates than the smaller lenders.
In comparison, smaller loan companies and credit unions tend to be more competitive in their battle for your business. There are plenty of lenders willing to lend to people with bad credit or no credit history who have willing guarantors.
