Interest rate from
5.99% p.a.
Comparison rate from
6.77% p.a.based on $30,000
over 5 years
Upfront fee
$206

Mozo editorial review Defence Bank Car Loan - last updated: 19 July 2022

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What's hot
  • Competitive variable rate of 5.99% p.a. (6.77% p.a. comparison rate*)
  • Extra repayments and redraws allowed
  • No exit or early repayment fees
What's not
  • $206 upfront cost
Mozo snapshot

If a low variable rate is what you look for in a car loan, Defence Bank might offer what you need. This product not only has a competitive rate to offer, it also allows for flexible repayments and won’t charge you if you pay off your debt early! Plus, no matter whether you are looking for something brand spanking new or a preloved gem, you can use this loan for new or used cars up to five years old.

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Key features

The Defence Bank Car Loan comes with a low 5.99% p.a. variable rate (6.77% p.a. comparison rate*) and a bunch of features that allow customers to pay back their debt in a way that suits them. 

Let’s start with the repayment schedule options. Loan amounts range from $1,000 and $250,000 and loan terms are between 1 and 7 years. Borrowers have the choice of making either weekly, fortnightly or monthly regular repayments, which makes it easy to align repayments with when the paycheck rolls in. Plus, Defence Bank offers free extra repayments as well as a redraw facility allowing customers to make extra contributions (and access them later) if they wish to. 

Now let’s talk fees. The good news is that Defence Bank doesn’t charge exit or early repayment fees, meaning customers that make additional repayments and pay down their loan ahead of time won’t cop a hefty penalty for doing so. There are a few other costs to be mindful of, for example there’s $206 worth of upfront costs to consider and an ongoing $10 monthly service fee - so the longer the loan the heftier this cost gets. Also don’t forget, there’s a $20 late payment fee for any missed or delayed regular repayments.

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Who is it good for

This Car Loan from Defence Bank could be a solid option for customers looking for a low rate variable rate car loan with flexible repayment options and no early repayment penalty.

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Any catches

While Defence Bank no longer only offers financial products to those working in the Australian Defence Force but to the wider community as well, you must be a member to apply for this loan. To become a member you must be over 18 years old, an Australian resident and not a foreign tax resident.

Details

Rates and fees information correct as at 14 August 2022. Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.
Rates

Variable

5.99% p.a.variable

6.77% p.a.based on $30,000
over 5 years

Fees

$206.00

$10.00

$20.00

$0.00

$0.00

Other financial bits

$1,000.00

$250,000.00

1 Year

7 Years

Vehicle

Features

Weekly, Fortnightly, Monthly

yes

yes

Available for new cars or used cars up to 5 years old.

none

WARNING: 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 calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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