People's Choice Credit Union Car Loans
People’s Choice is one of Australia’s largest credit unions, with more than 375,000 members across Australia. The member-owned financial institution has branches and advice centres in South Australia, Victoria, the Northern Territory, Australian Capital Territory and Western Australia.
People's Choice has more than $10.7 billion of funds under management and advice. The credit union employs about 1,000 employees.
People's Choice Credit Union car loan repayment calculator
Total interest paid
Total amount to pay
People's Choice Credit Union car loans rates
- No ongoing fees
- No penalties for additional repayments
- No penalties for early payout
- Loan terms of up to 10 years
- Redraw facility
- Application fee charged
- Reverts to standard variable rate after first 5 years
- Higher interest rate for smaller loan sizes
Features of a People’s Choice Credit Union car loan
People’s Choice provides secured and unsecured car loans for both new and used vehicles.
Borrowers may apply for a car loan between $2,000 and $100,000 and pay it off over a maximum loan term of 10 years. However, note that you may get a higher interest rate if you take out smaller loan amounts and if you go for an unsecured car loan.
People’s Choice charges a one-off establishment fee on its car loans. But there is no monthly fee and you can pay off your loan early without being penalised. There’s also a redraw facility with the car loan.
Secured car loans have fixed rates for the first five years, then reverts to a variable rate. Unsecured car loans have fixed rates for the entire term.
People’s Choice Credit Union car loans – customer service
Customers can contact People’s Choice by phone, social media and online enquiry form. You can also drop into a branch for customer support. People’s Choice’s phone line can be reached from 9am to 8pm (ACST) on weekdays, and 8.30am to 4.30pm (ACST) on Saturdays.
Who is eligible for a People’s Choice Credit Union car loan?
- Must be over the age of 18
- Must be a permanent resident of Australia
How to apply for a People’s Choice Credit Union car loan?
You can apply for a People’s Choice car loan online, over the phone or in a branch. Here’s how to apply for a car loan with them online:
- Go to People’s Choice Car Loans and select ‘Apply online’.
- Fill out the application form.
- Review your indicative quote and repayment.
- If you’re happy with it, proceed with the application and submit it.
You’ll need to have the below information ready when you apply for the car loan:
- Income details – pay slips, rental income and commissions.
- Expense details – utility bills, rent, any loan repayments, credit cards.
- Asset information – cash savings, property, vehicles, shares.
- Residential and employment details for the past three years
- Australian driver’s licence number and expiry date
People’s Choice Credit Union car loans review
People’s Choice is a major credit union and may suit borrowers who prefer reputable lenders with history. It may also suit people who want different loan options.
But to qualify for a lower car loan interest rate, customers at People’s Choice must take out a secured car loan of $20,000 or more. If you intend to borrow less than $20,000, you may be able to find a car loan with a lower rate with another lender.
The interest rate you can get at this member-owned credit union may depend on various factors, including whether you go for a secured or unsecured car loan, the age of the vehicle being used as security and its value.
But as People’s Choice is a big credit union, its car loan interest rates may not be the lowest on the market.
To find the best car loan for you, it’s worthwhile to compare interest rates, fees and features from several different lenders before committing to a loan.
Today's top car loans products
Find popular car loans lenders from a wide range of Australian. View All >
Yes, you can get a car loan with bad credit, although you’ll probably find the process trickier and dearer than that experienced by people who have good credit histories.
You can find a number of lenders that specialise in bad credit car loans. However, make sure you compare bad credit car loans before you sign on the dotted line, because not all car loans are alike and having bad credit may mean you are more likely to be hit with higher fees and interest rates.
If you have bad credit, it’s important not to take out a car loan unless you can afford the repayments because a default could further damage your credit rating. Conversely, if you make all the repayments and repay the loan successfully, your credit rating might improve.
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.
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.
A pre-approval is a formal document that indicates how much a lender is willing to lend to a consumer – once that person has found the car they want to buy. A lender will assess a borrower’s credit history and financial circumstances before issuing a pre-approval. However, lenders are under no obligation to follow through on pre-approvals, so pre-approvals should be seen as statements of intent rather than rock-solid guarantees.
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.
There are multiple lenders who are willing to provide loans secured by guarantors.
If someone is willing to go guarantor for you and they meet the requirements set out by lenders, you can apply for guarantor finance online, over the phone, or in person.
Some banks also provide guarantor car loans, though because they’re larger banks, they may have higher interest rates than smaller lenders.
You may want to compare guarantor car loans at RateCity, and find a guarantor car loan ideal for your purposes.
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.
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:
- Finance brokers often don’t charge for their services as they work on a commission basis from lenders.
- Brokers will have industry knowledge and contacts within lending companies and is therefore more likely to be able to find the best deal for your circumstances.
- Brokers are qualified professionals who are licensed under the National Consumer Credit Protection Act so have an obligation to follow responsible lending practices and to work in your best interests.
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.
There’s no set number. That’s because borrowing capacity differs from person to person, as well as lender to lender.
Lenders don’t give out car loans unless they’re confident they’ll be repaid. Each person is different, so the amount of money one person can successfully borrow will differ from another person’s number. Also, each lender uses its own formulas to calculate borrowing capacity – so Mr & Mrs Smith might find that while Lender X will give them a car loan for $20,000, Lender Y will offer only $18,000.