Bank Australia, with its focus on sustainability, tailors its car loan offerings to align with its eco-friendly ethos. Here's a snapshot of what it offers:
Bank Australia car loan review
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Bank Australia's car loan offerings reflect its commitment to environmental sustainability, catering to the growing demand for green finance solutions.
These options provide an avenue for consumers to align their vehicle financing with their ecological values.
While it doesn’t have a dedicated green car loan option, unlike a lot of banks, it has plans to stop funding loans for the purchase of fossil fuel cars by 2025.
It also promises to charge lower interest rates on funds used to purchase low emission or electric vehicles.
Low emission vehicle rates
Is your dream car a low emissions or electric vehicle? You might be eligible to fund it with a Bank Australia LEV Car Loan.
The product offers a lower rate than the bank’s traditional car loan to those financing the purchase of certain sets of wheels.
To be eligible for the loan, a person must be buying an electric, plug-in hybrid electric, or regenerative hybrid vehicle, or one that produces less than 125 grams of CO2 per kilometre travelled.
If you’re unsure how much CO2 your car emits per kilometre, you can find out by searching for its make and model on the Green Vehicle Guide.
Fees on Bank Australia car loans
Bank Australia charges a $150 fee to establish a new car loan.
Though, that fee is waived for those signing up to the bank’s LEV Car Loan.
Phasing out petrol car loans
Bank Australia is looking towards to future, with plans to discontinue financing for petrol and diesel cars by 2025. This aligns with its commitment to sustainability and positions them as a leader in eco-conscious financing.
Moreover, the bank offsets the emissions estimated to have been created by a car it has financed over the life of the loan.
Fixed rates: Take it or leave it
Bank Australia exclusively offers fixed rate car loans, as opposed to variable rate options.
Fixed rate loans mean that the interest rate set at the beginning of the loan term remains constant throughout the duration of the loan. This consistency lets borrowers plan their finances with certainty, knowing that their repayments will not fluctuate with market changes.
However, a fixed rate borrower might end up paying more than their variable rate counterpart in the instance interest rates drop. The bank also only offers secured car loans, though it does provides unsecured personal loans that could feasibly fund a car purchase.
The nitty-gritty
Bank Australia provides car loans with maximum terms of seven years for new cars and five years for used cars, for the purchase of a vehicle as old as seven years.
It will lend a minimum of $1,000 and offers weekly, fortnightly, and monthly repayments.
It allows car loan borrowers to make additional repayments but doesn’t offer redraw facilities on car loans.
