First Option Credit Union Special Car Loan Offer

Information verified correct on December 9th, 2016

Get a special rate for five years with a competitive loan that allows extra and early repayments and charges no ongoing account-keeping fees

First Option Credit Union provides a special fixed rate car loan where the interest rate stays the same for the course of the loan. While the standard loan term is five years you can make extra repayments whenever you want without paying penalties and there is also no penalty for paying the loan off before the term expires. You can access your extra repayments using a redraw facility and you don’t have to pay any monthly or annual fees. If you need help narrowing down on a suitable car, you can make use of a free car buying service.

Product NameFirst Option CU Special Car Loan Offer
Interest Rate (p.a.)From 6.99% (fixed)
Comparison Rate (p.a.)7.4%
Interest Rate TypeFixed
Minimum Loan Term5 years
Maximum Loan Term5 years
Min Loan Amount$1,000
Application Fee$295 (paid at funding)
Monthly Service Fee$0
Loan SecuritySecured

Things to consider about the First Option Credit Union Special Car Loan offer

If you’re looking for a fixed rate car loan so you don’t have to worry about fluctuating interest rates or repayments, this special Car Loan offer by First Option Credit Union is worth considering. You can use proceeds from this loan to buy a new car, and to help you look for cars within your buying capacity First Union provides free pre-approval. To help you find a suitable car, they also put you in touch with a free car buying service.

Once you get the loan you can make extra repayments at any time and you can also pay the loan off completely ahead of time. The fact that this loan does not attract any ongoing account-keeping fees is a plus as well.

The standard and 'Special' features of this loan

This special offer Car Loan provided by First Option Credit Union comes with various features, and here are the details to know about:

  • Fixed interest rate. This car loan attracts a fixed interest rate of 6.99% p.a. through the entire loan term, and this ensures that there is no change in the interest rate or repayment size anywhere down the line. If you want to stick to a budget and don’t want the uncertainty that comes with a variable rate loan, this one can help.
  • Free pre-approval. First Option provides free pre-approvals and getting one before you begin your search for a car helps base your search on the amount you're qualified to borrow.
  • Extra repayments. This loan does not charge any penalties for additional payments and you can make them as and when you want. Making extra repayments reduces your balance, and therefore the interest you're required to pay.
  • Early payouts. You can pay the loan off earlier than scheduled, and doing so does not attract any penalties.
  • Redraw. If you, at any time, end up needing the money you’ve paid towards the loan as additional repayments, you can access these easily using a redraw facility. This service comes with a fee of $10 and you have to redraw a minimum amount.

What costs will apply?

Repaying the loan entails repaying the amount you borrow along with the interest it attracts, and there are also other fees and charges associated with this loan. First Option gives you a loan offer document that lists all associated fees and charges and going through these before you accept the contract is always a good idea. While there are certain fees like the loan administration fee that you have to pay, you can avoid ones like direct debit dishonour fees. This is what the basic fee structure looks like:

  • Loan administration fee: $295 (paid at funding)
  • Monthly/ annual account-keeping fees: $0
  • Redraw fee: $10

How you can take up this offer

You can apply in-person by visiting any First Option Credit Union branch, you can apply by speaking to a First Option representative over the phone, or you can submit an online application. Applying online does not take much time, but before applying, establish if you meet the following criteria to qualify:

  • You are over 18 years of age
  • You have good credit history

Successfully completing the application involves providing a variety of information, which includes the following.

  • Personal details like name, date of birth, marital status, and number of dependants
  • Your residential address, residential status, phone number, and email address
  • Your employer’s name and contact details along with your employment status
  • Details about your income and expenses

This fixed rate car loan brings with it a certainty about repayments along with several features, but since this is not the only car loan of its kind, comparing a few before deciding makes sense.

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