First Option Credit Union New Car Loan

Information verified correct on December 3rd, 2016

Get a New Car Loan with a competitive fixed rate for the first six months and look forward to repayment flexibility.

You can apply for the First Option Credit Union New Car Loan if you’re considering buying a new car or a demo car that has travelled less than 1,500 kilometres. In your hunt for a new car, you can even make use of the free car buying service that's on offer. This car loan comes with a promotional fixed rate for the first six months, after which you start paying a competitive variable rate.

This car loan does not charge any ongoing account-keeping fees and you can make extra and early repayments without worrying about penalties. Accessing extra payments you make is easy using the redraw facility.

Product NameFirst Option CU New Car Loan
Interest Rate (p.a.)From 6.99% (variable)
Comparison Rate (p.a.)7.4%
Interest Rate TypeVariable
Maximum Loan Term5 years
Min Loan Amount$1,000
Application Fee$295
Monthly Service Fee$0

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 Credit Union 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 credit union 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 $1,000 and the maximum depends on your ability to repay and the car you wish to buy. Loan terms can extend up to 5 year(s).
  • Interest rate. For the first six months a low fixed rate of 5.99% p.a. will stay in place, and for any terms extending beyond this period a variable rate, currently  will apply.
  • 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: $295 ()
  • 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 Credit Union 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 Credit Union 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.

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