One of Australia’s largest banking institutions, NAB was founded in 1858 and has operations in New Zealand, Asia, the US and the UK. The bank employs more than 35,000 staff who serve 10 million customers at more than 800 locations around the world.
NAB provides a wide range of personal finance products including home loans, credit cards and of course, car loans.
Car loans are similar to personal loans but are purposefully designed with vehicle purchase in mind. Depending on the car loan you pick, the total cost of your new ride could vary greatly, so it’s wise to shop around.
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Pros and cons
- No penalties for additional repayments
- No penalties for early payout
- Available for 457 visa holders
- Branch access available
- Monthly fee charged
- Application fee charged
NAB car loans rates
$5k to $55k
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$5k to $55k
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Features of a NAB car loan
NAB car loans come with terms of up to seven years and can be repaid in weekly, fortnightly or monthly instalments. Borrowers can take out loans of up to $55,000 for terms between one and seven years.
The bank allows borrowers to make additional repayments and to repay the loan early at no extra cost. But there is an application fee and an ongoing monthly fee, though NAB may waive the application fee from time to time.
NAB offers unsecured car loans only, meaning they loan is not secured against an asset. This may help reduce the risk of losing your asset, but it may also mean a higher interest rate than what you might find on a secured car loan.
NAB provides both fixed and variable rate car loans. The variable rate loan has a slightly lower interest rate but will be subject to change at the bank’s discretion.
NAB car loans - customer service
- Customer service centre (phone)
- Mobile app
- Online banking
- Live Chat
- Mobile banking staff
Who is eligible for a NAB car loan?
To be eligible for a NAB car loan you must be an adult living in Australia and be able to provide proof that you earn a regular income. You don’t have to be a citizen of Australia if you are a 457 visa holder or a New Zealand citizen. If you are self-employed, you must be able to provide your most recent personal income tax return and your most recent notice of assessment.
- Must be 18 years or older
- Must provide proof of a regular income
- Must live in Australia
- Must have a good credit rating.
How to apply for a NAB car loan?
NAB car loans can be applied for in-branch or from the comfort of your own home. The online application process means that you can complete your application in your own time when it is most suitable for you.
When applying online, NAB will let you know if you have conditional approval, your indicate interest rate and repayments within 60 seconds of submitting.
NAB may contact you if they require more information. If everything is in order, the bank will let you know your final interest rate and repayments amount. You can accept the loan online and you should receive the funds on the same day if you are a NAB customer. If you don't hold a NAB account, the bank will arrange the funds transfer for you.
NAB car loans review
If you are looking at a NAB car loan, it is important to consider that:
- they have above-average interest rates,
- the car loan is unsecured and
- they charge an application fee and monthly fees.
It is worth noting, however, that the majority of car loans charge an upfront fee and the NAB car loan fee is below the market average. Another positive aspect of NAB car loans is that they do not charge extra for early repayment of the loan.
Customers of NAB are also likely to enjoy attentive customer service, with the bank offering multiple methods for keeping in touch. This includes branch access and online chat services. If you prefer a lender that allows you to drop in and chat in-person about your financial products, then this may be a plus for you.
It is wise to do your research and compare fees, features and interest rates before committing to a car loan.
NAB top car loans products
Learn more about car loans
Where can I get a student car loan?
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.
Can I get a no credit check car loan?
You may be able to get a no credit check car loan in certain circumstances, although it’s important to weigh up your options before doing so.
Most lenders refuse to provide no credit check car loans, because they don’t want to give loans to borrowers without first confirming that they have a track record of repaying debts. So any lenders that do provide no credit check car loans would take measures to protect themselves against the risk of default.
That’s why no credit check car loans have higher interest rates than other car loans. Also, borrowers often have to provide security and put down a larger deposit.
What is a secured car loan?
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.
How to find a great car loan
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:
- Choosing a low interest car loan can reduce costs
- Selecting an option with low fees and charges is ideal, because these can really add up
- Be aware of penalties, such as early exit penalties if you pay off the loan sooner than expected
- Consider the features that best suit your situation
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.
What is a guarantor on a car loan?
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.
What is proof of income?
Before giving you a car loan, lenders will ask for proof of income – documentary evidence that you earn as much as you claim you earn. Lenders will typically want some combination of tax returns, pay slips and bank statements. The reason lenders want proof of income is because they want to be sure you have the means to repay the car loan.
What is CTP insurance?
CTP insurance, also known as compulsory third-party insurance or a green slip, is compulsory if you want to register a vehicle in Australia. If you’re responsible for a car accident, your CTP insurance will be used to pay any compensation due to anyone who might be injured or killed. However, CTP insurance doesn’t cover you for vehicle damage or theft.
How do you get a car loan?
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.
Can I get a discounted student car loan?
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.
What are the pros and cons of guarantor car loans?
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.
Where can I find lenders who offer no credit check car loans?
One thing to bear in mind is that lenders who offer no credit check car loans are likely to charge higher interest rates and higher fees than on car loans that include a credit check. Also, lenders who no credit check car loans might expect you to pay a higher deposit. You might also be expected to provide security.
Lenders regard no credit check car loans as riskier than other car loans, which is why it’s a niche product that often features special conditions.
Who provides bad credit car loans?
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.
Can I get a car loan with poor credit?
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.
Where can I find lenders who offer no credit check car loans?
You might be better off finding a specialist lender who will look at your credit history and income, who will decide whether or not you are able to responsibility pay back the loan. Alternatively, you could contact a car finance broker.