RACQ Bank Fixed Car Loan

Key features

With RACQ’s fixed interest rate, secured car loan, you can borrow up to $60,000 to cover the costs of either a new or used car. While the maximum loan term for used cars is five years, loan terms for new cars can be spun out over seven years.

There are no monthly service fees with either loans and RACQ charges no penalties for making early repayments. On top of all this, fixed interest rates start from a notably low 5.49% and there’s even an option to make extra repayments to pay the debt off sooner.

And if convenience is what you’re after, you’ll be happy to hear that you can choose to make repayments weekly, fortnightly or monthly, depending on whatever repayment frequency suits you. Plus there are no monthly account keeping fees and you can easily apply for a loan online.

If you are looking for a loan for a used car, it should be noted that the car cannot be more than 12 years old at the end of the loan. 

Who is it good for

This is a good car loan for anyone who is on a fixed budget and wants to lock in their repayments for the duration of the loan term.

Any catches

The loan comes with a pretty substantial upfront $395 application fee along with a $82.50 documentation fee, and make sure that you set up automatic repayments as there is a $20 late payment fee. 

There is no redraw facility, so if you do decide to make any extra repayments, just be aware that you won’t be able to redraw money back out of the loan once you’ve paid it in.