As one of the Big Four banks, Commonwealth Bank is a name many people rely on for all their banking needs. Offering everything from credit cards and car loans, to bank accounts and super, Commonwealth Bank is a one-stop shop for everything money.
But is it the right choice for your car loan? By choosing a big bank as your lender, you may take advantage of its larger range of products, while benefiting from the peace of mind that comes from dealing with a household name.
However, it is always a good idea to compare your options. While a big bank such as CommBank may offer certain security and a wider range of products and services, the price you pay for all that may be higher than if you were to go to a smaller lender.
Which is why you are here! At Car Loan World, you can check out all your options side-by-side, to find the car loan that best works for you. So, with that in mind, let’s a closer look at Commonwealth Bank, and what it has to offer in the way of car loans.
Commonwealth Bank Car Loans
One of the great things about bigger lenders such as CommBank is that they usually have a few options to choose from when dealing with products such as car loans. In fact, CommBank has three options for you, should you choose to finance your car with them.
Commonwealth Bank Secured Car Loan
First up, the Commonwealth Bank Secured Car Loan. With this car loan, you can pay weekly, fortnightly or monthly, with loan terms available over one to five years. There is no maximum loan amount, which allows you to borrow from $10,000, depending on your circumstances.
As a fixed rate loan, the Commonwealth Bank Secured Car Loan can make budgeting much easier, as you will always know how much your repayments will be for the life of the loan.
This can also provide the added peace of mind that if interest rates rise, repayments will still stay the same. However, it’s also worth noting that if interest rates fall, repayments on the loan will not benefit from any reduction.
Secured vs. Unsecured
As the name suggests, the Commonwealth Bank Secured Car Loan is a secured loan. That means it is secured against the vehicle you buy, so that your new car is used as collateral. Is that really such as good thing?
With the vehicle used as security, the lender can feel more secure in the loan. If the loan goes bad, the lender can sell off the vehicle to recoup its losses. This allows the lender to offer lower rates of interest on its secured loans, compared to its unsecured loans.
As long as you choose a car that you can afford to pay back, making sure to choose a loan that works within your budget, a secured car loan could be a great way to save money on interest over the life of the loan.
If you want to make extra repayments on this car loan, you can. You can make extra payments totalling up to $1000 per year. Take note that these extra payments cannot be redrawn.
Anything else you should know? The Commonwealth Bank Secured Car Loan cannot be used to buy a car that’s more than five years old, and it cannot be used to buy a caravan, motor bike, commercial vehicle or truck.
It’s also not suitable for buying a car that has finance owing on it, and it cannot be used to refinance an existing loan. If that’s not for you, perhaps CommBank’s other loan options may be a better fit.
Commonwealth Bank Fixed Rate Personal Loan
The Commonwealth Bank Fixed Rate Personal Loan provides an alternative option for car buyers looking for financing. Similar to the Commonwealth Bank Secured Car Loan, this loan offers a fixed rate of interest, protecting you against interest rate rises, while making budgeting easier.
With this loan, you can borrow $4,000 to $50,000, with same day funding available. Again, similar to CommBank’s car loan, this loan allows you to pay up to $1000 in extra payments each year, again, without the ability to redraw.
Commonwealth Bank Variable Rate Personal Loan
Another option for car buyers is the Commonwealth Bank Variable Rate Personal Loan, offering loans of $4,000 to $50,000, with loans over one to seven years, and repayment schedules that are paid weekly, fortnightly or monthly.
You can make extra repayments on this loan without paying a fee, allowing you to pay down your loan faster to pay less in interest. Plus, you can choose to redraw your extra repayments, should you need to.
Comparing Loan Options
Finding the right car loan means looking for the repayment schedule that fits your budget, working out how affordable the loan will be, while thinking about how much you will pay back in interest.
However, it’s always a good idea to factor fees into that total cost, to make sure it’s still a good deal. With the Commonwealth Bank Secured Car Loan, Fixed Rate Personal Loan and Variable Rate Personal Loan you will pay an establishment fee plus a monthly loan service fee.
It’s also worth looking into any other fees that may apply, such as early repayment fees and redraw fees.