Commonwealth Bank car loans

Let’s weigh up the pros and cons of each first. If you want to be charged the least amount of interest during your loan term, a CBA fixed rate secured loan will give you the lowest rate. Because it’s fixed, your rate is guaranteed for the entire loan term.

On the other hand, if you don’t want to secure your car to the loan (more on this below), CommBank’s unsecured personal loans can come with fixed or variable rates. The benefit of picking a variable rate is having access to a redraw facility, where you can dip into any extra repayments you make. Do remember, CBA can increase or decrease variable rates during loan terms.

As you may have noticed in the product tables near the top of this page, CommBank’s secured car loans have better rates than its unsecured personal loans. That’s because a secured CBA car loan involves you giving them permission to repossess your car if you cannot repay your loan. In return, you pay less interest.

You sure can, because as a student the initial signup fee will be wiped.

If you opt for a secured loan, you’ll need to borrow at least $10k, and there is no maximum amount. Unsecured car loans can start a little lower at $5k, up to $50k. Keep in mind, the amount CommBank will lend you will depend on your financial situation.

That’s easy, just set up direct debit payments so you never miss a due date. You can also repay the loan in person at a CommBank branch, or transfer funds to the bank through your online login.

It depends on whether you have a fixed or variable rate CBA loan. When it comes to fixed rate loans, if you keep extra repayments under $1k in total per year, CommBank will not charge you penalty fees. But with a variable rate loan you can make as many as you like.

Whichever CommBank loan you have, when you first take out the loan, you’ll get to pick how frequently you make repayments, such as weekly, fortnightly or monthly.

Yes, but only when it comes to variable rate loans.

Secured car loan contracts can range from 1-5 years, and up to 7 years with the unsecured version, giving you scope to pick a term that suits your financial circumstances best.

With a variable rate CommBank loan, you won’t be penalised for paying off your debt before the contract is up. If you have a fixed rate loan, CBA may charge you for losses incurred as a result of your early loan repayment.

You can buy a used car with a secured CommBank loan if it’s 5 years or younger. Of course, your second-hand ride needs to be in full working order to qualify for security too.

Well, you guessed it. You could lose your vehicle. Even if you opted for an unsecured loan instead, CBA could still try you in court to recoup losses (as opposed to possessing your set of wheels), not to mention you could damage your credit score.

If you’re struggling to meet repayments, contact CommBank to discuss financing alternatives. As we mentioned earlier, setting up direct debit payments can be really useful to ensure those funds get sent to the bank on time.

It’s really quite simple to submit a car loan application. You need to have a reliable source of income and be an Australian resident 18 years or older. It’s also important to disclose personal details like your assets and liabilities in the process of taking out the loan.

With CBA, there are three ways you can apply for funds to buy a vehicle: over the phone, in person or online. Once you’ve submitted the form, you should hear back from CommBank within a couple of business days.