Wanting to find out more about Bank First car loans? Learn all there is to know about them right here with Savvy.
Fact checked
Bank First is a Victorian-based mutual bank which was formerly known as Victoria Teachers Mutual Bank, offering services across banking, finance and insurance, including car loans.
When you’re in the market for a car loan, it’s important to know exactly what each lender and product can offer you before you ultimately decide on which is best for you.
Savvy is here to help you do that. We’ve broken down the key aspects of Bank First car loans so you can decide more accurately whether it’s the best option for you. You can apply directly with us today and have one of our dedicated consultants help you along your car finance journey.
*Please note that Savvy does not represent Bank First for its car loan product. All information in this article is correct as of 29 July 2024.
Bank First's variable rates start at 6.79% p.a. (8.12% p.a. comparison), which is a promotional discount of 3.00% p.a. on the standard variable rate of 9.79% p.a. (10.07% p.a. comparison). You can also choose to fix your rate for up to five years.
You can take out a loan worth up to 100% of your vehicle's purchase price, with amounts starting from $5,000 for used cars and $10,000 for new models.
It’s crucial to be able to choose the loan term which best suits your income requirements, so you’ll be able to choose terms as short as one year up to as many as seven to stagger your instalments.
By paying above and beyond the minimum required amount each week, fortnight or month, you can minimise the amount you end up paying for your car loan.
On top of making additional payments, you can access these payments via your car loan’s redraw facility for whatever purpose you need without any fees charged.
If you plan on buying a more environmentally friendly vehicle, you can take out a Bank First Green Car Loan and secure a 0.50% p.a. discount (starting from 6.29% p.a. interest and 7.62% p.a. comparison).
By taking ongoing monthly or annual fees out of the picture, you’ll have one less additional charge to worry about mounting up over the course of your loan term.
You can apply for your car loan online, saving you the hassle of doing so in a local branch or dealership, with a quick ten-minute application via their website.
You’ll find a wide array of car loan interest rates lower than the standard minimum advertised by Bank First, potentially giving you better options in terms of saving.
You’ll be required to pay an establishment fee of $195 as part of your car loan and, while you’re able to make additional payments, you’ll be charged a fee if you pay out your loan early.
Bank First only offers fixed interest rates up to five years in length, meaning your interest over the last two years of a seven-year loan term may differ from the first five.
There are three main car finance products offered by Bank First, which will be informed by the type of car you’re looking to buy. All three products come with many of the same features, such as free redraws, no ongoing fees and flexible repayments. However, it’s important to apply for the right one, as doing so can not only save you time and hiccups in the process but also money in some cases. These products are:
New Car Loan
As the name suggests, this loan is designed to help you purchase a brand-new car. They come with interest rates starting from 6.79% p.a. (8.12% p.a. comparison) and offer you the ability to borrow from $10,000 and up over a maximum term of seven years.
Used Car Loan
In contrast, used car loans start at an increased rate of 7.79% p.a. (9.13% p.a.) and are designed for the function of purchasing a pre-owned vehicle. It must be less than 12 years old at the point of sale. Additionally, you can qualify for a smaller loan of $5,000 and up when you purchase a new car.
Green Car Loan
A Bank First Green Car Loan is used as an incentive for borrowers to purchase environmentally friendly vehicles. These are available to car buyers looking at purchasing a model whose CO2 emissions add up to a maximum of 180 grams per kilometre (g/km). This is likely to include electric, hybrid, new cars or those built in either the current or previous calendar year.
If you’re wanting to work out how much different car loans might end up costing you, you can use Savvy’s car loan calculator on Bank First loans or those of any other lender to give you a rough estimate.
Your online application form will require you to fill out information in a range of different areas to ensure you paint an accurate and complete picture of yourself as a borrower. The key areas of consideration for Bank First are:
Information about you
Alongside details about the loan you’re applying for, you’ll need to tell the lender about your current residential situation, as well as any recent past locations, and your contact information such as phone numbers and email addresses.
Information about your vehicle
You’ll have to state the make, model and year of manufacturing of your vehicle, as well as its VIN, registration and engine numbers. You’ll also need to provide details on the insurance policy which is covering, or will cover, it.
Information about your employment and income
This pertains largely to your place of employment, position and recent history (if any). Bank First, as well as all other lenders, will want to know that you’re earning a stable and consistent income without any major risks of your available funds running dry. As part of this, you’ll also need to state your income and provide recent payslips or two years’ worth of tax returns and Notices of Assessment if you’re self-employed.
Information about your assets and liabilities
Firstly, the assets you own and their value will be disclosed here, which may include property, cars, investments, savings, super and more. Lenders generally prefer borrowers who are asset-backed, as they’re seen as safer. On top of this, any outstanding loans or debts, such as a mortgage, personal loan, credit card and more, will be covered here also.
Information about your expenses
Finally, you’ll need to indicate what your monthly expenses are, which will largely relate to areas such as general food and clothing, utilities, education, insurance and more.
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© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
