Who else wants a used car loan that does not charge extra or early repayment penalties, and comes with a special introductory rate?
First Option Credit Union provides a Used Car Loan that come with features similar to their competitive New Car Loan. These loans charge a low fixed rate for the first six months and after this period you start paying a competitive variable rate.
When you take on this loan you won't pay any ongoing account-keeping fees and you don’t have to worry about paying penalties for making extra repayments or paying the loan off ahead of time. A redraw facility enables you to access your extra payments. Interested people can also take advantage of a free car buying service.
|Product Name||First Option CU Used Car Loan|
|Interest Rate (p.a.)||From 11.25% (variable)|
|Comparison Rate (p.a.)||10.46%|
|Interest Rate Type||Variable|
|Maximum Loan Term||7 years|
|Min Loan Amount||$1,000|
|Monthly Service Fee||$0|
How does this Used Car Loan work?
If you’re looking for a loan to buy a pre-loved car, First Option Credit Union’s Used Car Loan might be worth consider. While you benefit by paying a low fixed rate for the first six months, the competitive variable rate that applies following this period can lead to long-term savings. You can save even more if you make early payments or choose to pay the loan off early, and you don’t have to pay penalties in either of these scenarios. Not having to pay any ongoing monthly or annual account-keeping fees is another way you can reduce your costs with this loan, and the loan’s redraw facility can encourage you to pay more to your loan.
What features does First Option offer?
The First Option Used Car Loan, as mentioned, comes with a number of features, and here’s what you can expect if you decide to apply:
- Pre-approval. By getting pre-approval before you start looking for a car you get a good idea of your borrowing capacity, and this allows you to narrow down your search to a suitable budget. You can save time as well as effort with First Option Credit Union, and you get a no-obligation pre-approval for free.
- Loan amount and term. You can borrow as little as $1,000 through this Used Car Loan and the car you choose along with your ability to repay has a bearing on the maximum amount. The loan term can go up to 7 year(s).
- Extra and early repayments. Making extra repayments towards your loan gives you the ability to save on what you pay in interest, and doing so does not attract any penalties. You don’t have to pay any penalty if you pay the loan before its term comes to a close.
- Redraw facility. If you require access to money you’ve paid in the form of extra repayments you can use the redraw facility. Bear in mind this service attracts a fee of $10 and you cannot redraw less than a minimum amount.
- Free car buying service. First Option provides a free car buying service through Car Brokers Australia, and taking this route comes with multiple benefits.
The costs to be considered
Going through the fees and charges you might have to pay through the course of the loan is a good idea, and you can do this by reviewing the loan’s offer document. Take into account that while you have to pay certain fees, you can avoid paying certain others. When it comes to fees that apply, here’s what you can expect:
- Administration fee: $175 ()
- Monthly fee: $0
- Annual fee: $0
- Redraw fee: $10 (for each redraw)
How to apply for the First Option Credit Union Used Car Loan
You can apply for this Used Car Loan by visiting any First Option Credit Union branch, over the phone, or online. The process should not take more than 10 to 15 minutes. To apply, you have to meet the following eligibility criteria:
- You’re over 18 years of age
- You are a member of First Option Credit Union or willing to become one
Completing the application requires that you provide different types of information, which comprises the following:
- Personal details like your name, marital status, number of dependents, and date of birth
- Contact details to include your residential status, home address, email address, and phone number
- You employment status and your employer’s name and contact details
- Income details including payslips or tax returns depending on your employment situation
- Details of expenses and liabilities
Getting this Used Car Loan comes with a number of benefits, but since you can find similar features in other car loans, it is best that you compare as many as possible before making up your mind.