First Option Credit Union has now been rebranded to First Option Bank. All product information below is correct.
First Option Bank New Car Loan
Last updated:
Get a New Car Loan with a competitive fixed rate for the first six months and look forward to repayment flexibility.
$175
Application Fee
From 8.99% (fixed)
Interest Rate (p.a.)
9.24%
Comparison Rate (p.a.)
$100,000
Max Loan Amount
Details
| Product Name | First Option Bank New Car Loan |
|---|---|
| Interest Rate (p.a.) | From 8.99% (fixed) |
| Comparison Rate (p.a.) | 9.24% |
| Interest Rate Type | Fixed |
| Min Loan Amount | $2,000 |
| Max Loan Amount | $100,000 |
What to know before financing your car with First Option
The low promotional fixed rate that stays in place for the first six months ensures that your repayments remain the same to start with. Not having to pay any ongoing account-keeping fees is a definite plus, and the fact that you can make extra repayments or an early payout without paying any penalties is an added advantage.
If you want to buy a used car, you can consider applying for a First Option Bank Used Car Loan, and if you're looking for a fixed rate car loan, take a look at the Special Fixed Rate Car Loan that this bank provides.
Features and benefits of the loan
Knowledge about the features this car loan offers should hold you in good stead in case you're thinking about applying, and here's what you need to know:
- Free pre-approval. First Option provides free, no-obligation pre-approval for car loans. Once you get pre-approved you know how much to budget for in your car search.
- Free car buying service. First Option connects possible car buyers with Car Brokers Australia, a car buying service that you can use for free. This service simplifies looking for a car, given that you have professionals doing the groundwork for you.
- Various loan amounts and loan terms. The minimum you can borrow through this loan is $2,000 and the maximum depends on your ability to repay and the car you wish to buy. Loan terms can extend up to 7 years.
- Interest rate. This loan comes with a fixed interest rate of 8.99.
- Extra repayments and early payouts. You can make extra repayments towards your car loan as and when you like, and by doing this you can pay the loan off sooner while saving in the form of interest. First Option does not charge any penalties for extra repayments or early payouts.
- Redraw. You can access your extra repayments using a redraw facility. This service attracts a $10 fee and you have to redraw a minimum amount.
Fees and charges
If you take this New Car Loan you'll have to repay the amount you borrow, plus interest and other applicable fees and charges. While First Option lists all applicable fees and charges clearly through the loan offer document, it is your responsibility to go through this, and you should ideally do this before you accept the contract. Given below is a list of commonly applicable fees.
- Loan administration fee: $175
- Account-keeping fees: $0
- Redraw fee: $10 (charged each time you redraw)
How you can apply for the New Car Loan
One way is by visiting a First Option Bank branch, another is to apply online, and you can also get started over the phone. Applying online takes around 10 to 15 minutes, but before you start, establish if you meet the following eligibility criteria.
- You're over 18 years old
- You have source of income
- You're a member of First Option Bank or willing to become one
To complete the application, prepare to part with the following information:
- Personal and contact details including your complete name, home address, phone number, email address, date of birth, marital status, and number of dependants
- Employment-related information like your occupation, employment status, and employer's contact details
- Details about your existing financial situation (income and expenses) and proof of these as well
The repayment flexibility this car loan offers along with its introductory rate make it worthy of your attention, but since certain other loans offer similar features, compare a few before deciding.
