As with so many of Australia’s financial institutions, BankSA has a long and dignified history, starting out small, to follow a long and winding path to get where it is today.
Opening its doors in 1848, BankSA started life as The Savings Bank of South Australia, lodging deposits aggregating 172 pounds, six shillings on its first business day.
Today, under the Westpac umbrella, it has South Australia’s largest network of branches and ATMs, with one in four South Australians choosing to bank with BankSA.
As a financial services provider, BankSA offers everything from insurance and super, to bank accounts, credit cards and loans.
And what about car loans? If you’re looking to compare car loans, BankSA has some car financing options that you may want to look into. And no, don’t worry, you don’t need to be a resident of South Australia to apply.
Secured Personal Loans
If you choose to take out a car loan with BankSA, you will be applying for for a secured personal loan. What does this mean exactly?
A secured personal loan is a loan that is secured against some form of collateral. As this is a car loan, your loan will be secured against your car, so that your car is your collateral.
When a lender offers you money in the form of a loan, it needs to know that it has a good chance of getting that money back. Which is why most lenders carry out credit checks on potential borrowers.
Looking at each borrower’s credit history tells the lender how well the borrower is likely to deal with credit in the future. So, someone with good credit history is more likely to get approved for a loan than someone with bad credit history. A good credit history gives the lender a sense of security.
Another form of security for the lender, is of course, to offer the loan against some form of collateral. That way, if the borrower cannot repay the loan, the lender can take the collateral to make back some of its losses.
What does this mean for you? As the lender feels more secure in the loan, it can usually offer lower rates on its secured loans, compared to its unsecured loans. That can help you save money, as you should pay less in interest over the life of the loan.
Looking at Interest
Do you want a fixed rate car loan or a variable rate car loan? As BankSA offers both fixed rate and variable rate car loans, it pays to know a bit about each.
A fixed rate car loan will have a fixed rate of interest over the life of the loan. That means you will always know how much your repayment will be, making budgeting that much easier.
With a fixed rate of interest, you can also protect yourself against interest rate hikes in the future. But, it does mean that if interest rates fall, you won’t benefit from lower loan repayments.
On the other hand, a variable rate car loan has a variable rate of interest applied over the loan term. If interest rates fall, you could end up paying much less in interest on your loan, but if they rise, you could be paying significantly more.
BankSA’s variable rate car loan can be taken out over a period of one to seven years, while its fixed rate car loan is available over one to five years.
Deciding on the loan term can be made easier using a car loan calculator. Use the calculator to check out the various term options, to find a balance of affordable repayments, without paying too much interest over an overly long loan term.
Don’t forget fees
When working out the overall cost of a car loan, always take into account fees. Both the BankSA variable rate and fixed rate car loan feature an establishment fee and a monthly administration fee. Also check the fine print for any other fees that may apply.
Before applying, it’s important to compare all your options – and to read the small print in detail. With the BankSA car loan, you can borrow $3,000 to $80,000 to buy a new or used vehicle. But, bear in mind that the vehicle you buy must not be more than 12 years old when the loan expires.
Also, if you plan to purchase the vehicle in joint names, the car loan must be in joint names as well. That may not be the best news if one of the applicants happens to have poor credit history.
Lastly, features. Some car loans have some pretty nifty features. With the BankSA variable rate car loan, you have the flexibility to pay off the loan sooner (with fees that apply), plus there is a redraw feature available to you as well (again, with fees being applied).