CommBank cuts its car loan rate, here’s how much you’ll save
From busted heating to an ancient stereo system, it’s not uncommon for many Aussies to be at their wits end with their car.
And for many Aussie drivers, opting for a car loan may be the solution to getting the car of their dreams and ridding themselves of a motor nightmare.
So if you’re an Aussie keen for a fresh set of wheels, CommBank has recently cut the rate of its Secured Car Loan from 8.49% to 6.99% - a discount of 1.50%.
“With all the bad press CommBank have received over hiking their home loan rates, I’m not surprised they’re looking for ways to get back into their customers’ good books,” said Mozo Product Data Manager, Peter Marshall.
To find out whether the newly discount rate is really worth its salt, we decided to pull out our car loan repayment calculator.
Say you wanted to purchase a new car and decided to borrow $30,000 to be repaid over five years at the original rate of 8.49%, according to the calculator, you’d have to make monthly repayments of $615. Or if you were interested in buying a used car and only borrowed $10,000 to repay over three years on the same rate, your monthly repayments would total $316.
However, with the new rate of 6.99%, buying a new car on the same terms would cost you $594 per month and a used car at $309 per month - a minor difference of $21 and $7, respectively.
The loan itself features a hefty $250 application fee and $10 service fee and while this still might tick the boxes for many Aussies, Marshall has reminded buyers that these expenses can add up over time.
“While a $10 monthly service fee might not seem like a big deal, if you’ve got a five year loan, it’s going to cost you $600. There are many other car loans on the market that offer great rates and no service fees, so check the total cost of the loan before committing,” he said.
And with that thought in mind, we had a look into our database and pulled the top 4 of the lowest fixed and variable car loan rates. They were:
Top 4 fixed car loan rates
- Loans.com.au, New Car Loan - 5.44% (5.99% comparison rate*)
- People’s Choice Credit Union, Discounted Personal Car Loan - 5.64% (5.99% comparison rate*)
- Beyond Bank, Low Rate Car Loan Special Offer - 5.69% (5.97% comparison rate*)
- Police Credit Union, Fixed Rate Car Loan - 5.69% (5.96% comparison rate*)
Top 4 variable car loan rates
- Illawarra Credit Union, Online Personal Package - 5.25% (5.89% comparison rate*)
- Catalyst Money Online Personal Package - 5.25% (5.89% comparison rate*)
- Community First Credit Union, New Car Loan - 5.34% (6.11% comparison rate*)
- MOVE Bank, New Car Loan - 5.39% (5.66% comparison rate*)
But if none of these car loans have gotten you revved up, you can check out our car loan comparison tool for even more options.