Connecting You To The Australia’s Best Car Finance Experts.
From
13.90%
Variable
14.77%
$150
$4k to $50k
monthly over 5 years
Pros
Cons
New Car | Missed Payment Penalty $20 |
Used Car | Redraw Activation Fee $0 |
Motorcycle | Repayment Type Variable |
Boat | Loan Type Unsecured |
Upfront Fee $150 | Secured By Vehicle |
Early Exit Penalty Fee Fee Applies | Available to 457 Visa Holders |
Borrowing range $4k - $50k | Redraw Facility |
Total repayments $41,790 | Extra Repayments |
Other Benefits
Apply before noon Monday to Friday, and if you’re approved, we’ll give you access to your loan that day. This is unavailable for secured loans, incomplete applications, applications referred to a lending specialist for a more detailed review, where required documentation isn’t provided and where the system is unavailable.
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.
There are four different ways you can get a car loan. You can go straight to a lender. You can get a finance broker to organise a car loan for you. You can get ‘dealer finance’ – which is when the car dealer organises a car loan for you. Or you can organise your own car loan through a comparison website, like RateCity.
Whichever method you choose, you will need to provide proof of identification, proof of income and proof of savings. So you may be asked for any combination of passport, driver’s licence, bank statements, payslips, tax returns and utility bills. You might also be asked to provide proof of insurance.
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.
A guarantor on a car loan is a third party, usually a relative or friend, who guarantees to meet the repayments of a loan for the purchase of a car, if the borrower/owner of the car defaults on the loan.
Guarantor car loans can be useful for people who would otherwise struggle in being accepted for credit to purchase a vehicle. These may include people with bad credit, students and young people who may have no credit history, as well as some pensioners.
Many lenders offer guarantor car loans, guarantor personal loans and guarantor home loans, because of the significantly reduced risk to the lender.
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.
Historically, finding a great car loan would require excess research ranging from visiting an excess of websites or making phone calls, but technology has moved on. Using RateCity, Australia’s leading financial comparison service, you can check out great deals from a range of lenders on the one site.
To start, select the amount you want to borrow and the length of the loan, narrowing your search to show just fixed or variable interest rate results.
Once you’ve indicated your search criteria, you’ll see an immediate list of lenders, ranked by interest rate or application fees. You’ll also be able to view the monthly repayment amount for each result, helping you to know what you can afford.
Up to six products can be compared side-by-side, complete with more information about each car loan, giving you more information about your options.
When comparing your car loan options, it’s ideal to keep in mind some points find a great car loan for your needs. Consider the following:
There are many ways to ensure that you get a great car loan. Ultimately, you’ll end up with the best deal by doing your research and selecting the most suitable product for you.
Lenders that provide bad credit car loans tend to be smaller challenger lenders rather than the bigger banks.
Bad credit car loans are a niche product. The bigger banks tend to focus on mainstream car loan finance for borrowers with better credit histories. That’s why smaller lenders tend to be the ones that provide bad credit car loans.
Bad credit car loans can have high interest rates and fees, so it’s important to compare options before submitting an application.
Single mothers can sometimes find that due to their circumstances the bigger banks can be less inclined to lend to them, but there are smaller companies and specialist lenders who can be willing to provide loans to people in a range of circumstances.
Single mothers could benefit from getting in touch with a car finance broker, as a broker is likely to have knowledge and access to options that are suited to their needs.
Advantages to using a broker:
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.
Student car loans are not a necessarily a product in and of themselves, but what you may be looking for is a guarantor car loan.
A guarantor car loan has a third-party act as a form of guarantee for your loan application, telling the bank or lender that if you default on your loan, someone will pay the loan repayments.
Going guarantor on a car loan is no new thing, and before internet-based credit scores, guarantor car loan applicants would apply for loans with a guarantor or property owner who could vouch for the person borrowing the loan.
To get a guarantor car loan, you’ll need someone willing to act as a guarantor for your car loan.
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.
