How to use a NAB Personal Loan to buy a car

Borrow up to $55,000 with flexible terms and get behind the wheel of your new car.

If you’re searching for a personal loan to provide the finance you need to buy a car, the NAB Unsecured Personal Loan is well worth a closer look. With competitive fixed and variable rates available, this loan allows you to borrow up to $55,000 to cover the cost of a new vehicle.

You can tailor your repayment schedule to suit your budget and there are no early repayment penalties if you pay the loan out ahead of schedule. And if you ever need access to those extra repayments, a redraw facility is also included for added flexibility.

How does the NAB Unsecured Personal Loan work for buying a car?

The NAB Unsecured Personal Loan allows you to borrow between $5,000 and $55,000 to buy a car. You can repay the loan over a term of your choice (between 1 and 7 years). Also, as this is an unsecured loan, you don’t need to provide your vehicle as collateral for the loan.

You can choose between the security of a fixed rate and the flexibility of a variable rate, and then make repayments on a weekly, fortnightly or monthly basis. Early repayments can be made without penalty, while a redraw facility provides added convenience if you ever run short of cash.

If you’re an existing NAB customer and you apply for a NAB unsecured personal loan in-store before 2pm, you can enjoy same-day access to your funds, which allows you to start car hunting right away. Conditional approval is also available and is valid for up to three months, providing increased negotiating strength when buying your next set of wheels.

What features come with the NAB unsecured personal loan?

The NAB Unsecured Personal Loan provides the following features:

• A variable interest rate of 15.69% p.a. If you choose a variable rate loan, you can access an interest rate of 15.69% p.a. and a comparison rate of 16.55% p.a.
• A fixed interest rate of 11.99% p.a. If you prefer the security of a fixed rate loan, you can access an interest rate of 11.99% p.a. and a comparison rate of 12.87% p.a.
• Apply for between $5,000 and $55,000. Whether you want a cheap car to get you from A to B or a more expensive, modern vehicle, NAB can offer a loan amount to suit.
• A loan term of between 1 and 7 years. You can repay the loan amount over a term of between 1 and 7 years.
• Same-day funds. Existing NAB customers that apply in-store before 2pm can take advantage of same-day access to their funds. Once approved, the loan amount can be in your bank account within two hours.
• Flexible repayment schedule. You can choose to make repayments on a weekly, fortnightly or monthly basis to suit your budget.
• Early repayment allowed. You can make lump sum repayments towards your NAB Unsecured Personal Loan at any time without any extra charge, and there is no penalty for paying off your loan early.
• Redraw facility. If you make extra repayments towards your variable rate loan, you can access those funds through a redraw facility.
• Conditional approval. NAB offers upfront conditional approval for up to three months when you apply for an unsecured personal loan online. This gives you increased bargaining power when shopping around for the right vehicle.

How much does this loan cost?

There are two main fees that you need to be aware of with the NAB unsecured personal loan:

• The one-off application fee of $150
• The ongoing loan service fee of $10 per month

It’s also important to point out that if you miss a repayment, a $35 default fee will be charged.

What should I consider before applying for this loan?

Before choosing this or any other loan product, make sure to carefully consider any potential downsides. One factor you need to be aware of with the NAB Unsecured Personal Loan is that because this product is not secured by your car, the interest rates are higher than what would be offered for a secured car loan.

This is also an all-purpose personal loan rather than a dedicated car loan, which means it doesn’t come with some features specific to car loans, such as insurance add-ons.

Finally, you should always consider whether you can afford to borrow and repay your chosen loan amount. Calculate your regular repayment amount and make sure it is realistically affordable for your budget.

If you’re looking for a personal loan to help you buy your next car, compare the NAB unsecured personal loan with a range of other similar lending products before deciding whether it’s right for you.