First Option Bank offers the stability of a fixed rate loan for a new or used car.
First Option Bank, like other credit unions, is a member-owned financial institution and it began operations in 1965. The name First Option Credit Union came into existence only in 2005 after the merger of TAB Credit Union (NSW) and Flying Horse Credit Union (Victoria). Now it is among the leading credit unions servicing leisure, gaming, hospitality, energy and telecommunications industries in Australia.
This credit union gives its members the ability to get car loans for new and used cars and it also has a Special Fixed Rate Car Loan on offer. It provides a number of other financial services and products, which include access and savings accounts, home loans, personal loans, business banking solutions and financial planning advice.
Compare First Option Bank car loans
- Money Magazine Best of the Best Awards, 2014 and 2015. First Option’s Kids Bonus Saver Account awarded Best Kids Savings Account.
The kinds of car loans that are available
First Option Bank provides different car loans to suit different needs and you can look forward to getting one no matter whether you’re buying a new or used car. Details of your options are as follows:
- New Car Loan.
You are given a fixed rate of 6.45% p.a. for 7 year(s), with a comparison rate of 6.69% p.a. The loan also comes with a redraw facility, free car buying service and the ability to be pre-approved for a loan. You will not pay any monthly or account-keeping fees, and can make additional repayments or pay off the loan early without being charged a fee.
- Used Car Loan.
You can get this loan for a used car up to seven years old, and receive a 6.45% p.a. fixed rate for 7 year(s). You do not pay any ongoing fees, and have access to a redraw facility and a free car buying service. You can also make extra payments or pay off your loan early without penalty.
- Special Car Loan Offer.
This loan is available for new car buyers between the ages of 18 and 24 years old. You receive a 2.99% fixed rate for the first 6 months, with a comparison rate of 7.21%. You will not pay any application fee or monthly fees and can make additional repayments without penalty.
Features and benefits of a First Option Bank car loan
- Fixed rates. The rate you receive will stay the same for the entire term of your loan.
- Extra and early repayments. You can make additional repayments towards your car loan at any time, and by paying the loan off sooner than scheduled you can save on interest. What helps is that First Option does not charge any penalties for extra and early repayments.
- Redraw facility. While making extra repayments can help lower interest, if you end up needing this money you can get access to it via a redraw facility. There is a minimum limit to how much you can redraw and a redraw fee of $10 applies.
- Flexible repayment options. The easiest way to make repayments is via salary deduction or direct debit, given that you don’t have to remember to make the payments each time. You can also make repayments using First Option’s Internet, mobile and phone banking platforms.
- Free car buying service. First Option connects you with a free car buying service so you don’t have to run around too much in your hunt for a new or used car. Car Search Brokers is a totally independent organisation that relies on long-term dealers with reputable histories and guarantees after-sales support.
- Simple application process. If you choose to submit an online application you can do so in a matter of minutes, and you can expect a quick answer informing you of the application’s status.
What other products are on offer?
- Transaction accounts. While the Access Saver Account gives you easy access to your money in various ways, the Deeming/Over 65 Account is for individuals who receive government pensions or allowances. These accounts come with debit cards.
- Savings accounts. When it comes to savings accounts, you get numerous options from which to choose. Some of your options include Budget Saver Account, Cash Management Account, Kids Bonus Saver Account, GST/Tax Saver Account and Christmas Saver Account. If you’re considering long-term savings, you can open a Term Deposit.
- Home loans. You can get a variable rate home loan from First Option to buy or build a home, and you have the option of getting a fixed rate for the initial period. You can get a Bridging Loan if you’re considering buying or building a new home while waiting for your existing one to sell.
- Credit cards. First Option provides two different Visa credit cards. While one is a low rate card, the other card rewards spending.
- Other products. First Option can assist you with your requirements for foreign currency when you’re travelling overseas and it can also take care of your travel insurance needs. It provides insurance solutions, tax and accounting services, financial planning advice and more.
How to apply for a car loan from First Option Bank
Applying online is easy and takes little time, and you can also apply over the phone or by visiting any First Option Bank branch. The application process requires that you provide a range of information, so keep the following close at hand:
- Proof of identity
- Proof of residential address
- Last two payslips or a letter from your employer with details of your income, or any other documentation that can serve as proof of income
- Self-employed individuals should provide copies of tax returns for the last two years
- Details of all existing debts like loans, credit cards and overdrafts
Turning to First Option Bank to get a car loan can serve you well, given that these loans don’t charge penalties for extra and early repayments, but since you can find other car loans with similar features, it’s best that you compare a few before deciding.