NAB is a big bank with two unsecured car loans on offer, one with a variable interest rate, and the other rate fixed. The good thing about buying a vehicle with some help from this provider, is that you don’t encounter fees for repaying your debt before required. Continue reading for other benefits and potential drawbacks of using NAB to help you get on the road sooner...
|Product||Interest rate from||Comparison rate from*||Upfront fee|
15.06% p.a. based on $30,000
14.56% p.a. based on $30,000
* The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are for the amounts and terms quoted, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans, and apply only to these examples. Different amounts and terms will result in different comparison rates. Full comparison rate schedules are available from lenders. Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.
† Mozo may receive a payment from financial providers listed on the site. Customer reviews are in no way affected by any commercial relationships Mozo has with providers.
NAB car loan interest rates may not be the most competitive in the market, one reason being because they are unsecured, where your car isn’t tied to the contract. We’ll go through this in the next FAQ, but first, here’s the difference between fixed and variable rates:
A fixed rate is set for the entire car loan term, so you’ll know how much interest NAB will charge you from the get go. This loan doesn’t come with a redraw facility for access to extra repayments, which is why you may prefer a variable rate loan instead. Unlike fixed rates, variable rates may be adjusted while you’re repaying the loan. This could work in or against your favour, so it’s a good idea to budget for potential rate changes if you choose a variable rate loan.
It all comes down to personal preference. Secured loans are generally cheaper, as they are known to have lower interest rates. But that doesn’t mean you should rule out NAB’s unsecured loans, they have flexible features and don’t involve the paperwork attached to secured loans.
First, you’ll need to have a clean credit history so NAB can trust your loan repayments will be made on time. Another possible barrier to taking out a car loan is not being employed. Remember, the bank will only lend you what you can afford to borrow, and loan amounts range from $5k to $55k. If you want to buy a more expensive set of wheels, head to our comparison hub and check out other car loans in the market.
You can pick between weekly, fortnightly or monthly loan repayment frequencies. This can help you get the timing just right for your budget.
Your car loan contract can be written up for 1 year, and 7 years is the longest length. Something to keep in mind is that repayments are spread across loan terms, so what you repay each month on a 2 year term will be different to a 5 year term.
Absolutely, if you have a little extra cash sitting in your bank account and want to shave off some of your debt, you can make additional repayments.
There are none. With NAB, you don’t need to wait around for the last repayment due date and are free to clear your debt without being charged fees.
Good question, a redraw facility (only available with NAB’s variable rate car loans) gives you access to any extra repayments you’ve made, similar to withdrawing money from a regular bank account.
No, you don’t have to. In fact, as these loans are unsecured, you aren’t confined to certain cars and can pick any one you like.
It’s a scenario you should try to prevent, so you maintain a reputation for paying your dues. Set up automatic payments and you’ll be all up-to-date (provided you’re keeping funds in the “from” account).
It’s a painless process, just be prepared to give NAB details they need such as:
Next, head right over to NAB in person, give them a call...or the easiest method of applying is likely right here online!