Bank First Car Loans

Wanting to find out more about Bank First car loans? Learn all there is to know about them right here with Savvy.

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, updated on June 30th, 2023       

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Bank First is a Victorian-based mutual bank which was formerly known as Victoria Teachers Mutual Bank, offering services across banking, finance and insurance, including car loans.

When you’re in the market for a car loan, it’s important to know exactly what each lender and product can offer you before you ultimately decide on which is best for you.

Savvy is here to help you do that. We’ve broken down the key aspects of Bank First car loans so you can decide more accurately whether it’s the best option for you. You can apply directly with us today and have one of our dedicated consultants help you along your car finance journey.

*Please note that Savvy does not represent Bank First for their car loan product.

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Bank First car loan features and benefits

Fixed interest rates from 8.29% p.a.

Bank First car loan rates start at 8.29% p.a. (8.57% p.a. comparison), enabling you to lock in your interest from the outset and budget more effectively around your repayments.

Take up to seven years to repay

It’s crucial to be able to choose the loan term which best suits your income requirements, so you’ll be able to choose terms as short as one year up to as many as seven to stagger your instalments.

Borrow from $5,000

You can borrow amounts big or small as part of your car loan, with a minimum of $5,000 enabling you to choose whether to make a deposit towards the purchase.

Make free additional repayments

By paying above and beyond the minimum required amount each week, fortnight or month, you can minimise the amount you end up paying for your car loan.

Buy new or used up to 12 years old

Bank First are flexible when it comes to what vehicle you can buy, with brand-new and used cars up to the age of 12 at the point of purchase able to be financed.

Access free redraws

On top of making additional payments, you can access these payments via your car loan’s redraw facility for whatever purpose you need without any fees charged.

The pros and cons of Bank First car loans

PROS

No ongoing fees

By taking ongoing monthly or annual fees out of the picture, you’ll have one less additional charge to worry about mounting up over the course of your loan term.

Rate discounts for green cars

If you plan on buying a more environmentally friendly vehicle, you can take out a Bank First green car loan and secure a 0.5% p.a. discount on the standard new car loan rate.

Online applications

You can apply for your car loan online, saving you the hassle of doing so in a local branch or dealership, with a quick ten-minute application via their website.

CONS

Bank First car loan rates are less competitive

You’ll find a wide array of car loan interest rates lower than the minimum advertised by Bank First, giving you plenty of better options in terms of saving money.

Establishment and early repayment fee

You’ll be required to pay an establishment fee of $195 as part of your car loan and, while you’re able to make additional payments, you’ll be charged a fee if you pay out your loan early.

Fixed rates may not last your whole term

Bank First only offers fixed interest rates up to five years in length, meaning your interest over the last two years of a seven-year loan term may differ from the first five.

Bank First car loans explained

Which car loan products does Bank First offer?

There are three main car finance products offered by Bank First, which will be informed by the type of car you’re looking to buy. All three products come with many of the same features, such as free redraws, no ongoing fees and flexible repayments. However, it’s important to apply for the right one, as doing so can not only save you time and hiccups in the process but also money in some cases. These products are:

New car loan

As the name suggests, this loan is designed to help you purchase a brand-new car. They come with interest rates starting from 8.79% p.a. (9.07% p.a. comparison) and offer you the ability to borrow from $10,000 and up over a maximum term of seven years.

Used car loan

In contrast, used car loans start at an increased rate of 9.79% p.a. (11.15% p.a.) and are designed for the function of purchasing a pre-owned vehicle. It must be less than 12 years old at the point of sale. Additionally, you can qualify for a smaller loan of $5,000 and up when you purchase a new car.

Green car loan

A Bank First green car loan is used as an incentive for borrowers to purchase environmentally friendly vehicles. These are available to car buyers looking at purchasing a model whose CO2 emissions add up to a maximum of 180 grams per kilometre (g/km). This is likely to include electric, hybrid, new cars or those built in either the current or previous calendar year.

If you’re wanting to work out how much different car loans might end up costing you, you can use Savvy’s car loan calculator on Bank First loans or those of any other lender to give you a rough estimate.

What information will I need to provide as part of my Bank First car loan application?

Your online application form will require you to fill out information in a range of different areas to ensure you paint an accurate and complete picture of yourself as a borrower. The key areas of consideration for Bank First are:

Information about you

Alongside details about the loan you’re applying for, you’ll need to tell the lender about your current residential situation, as well as any recent past locations, and your contact information such as phone numbers and email addresses.

Information about your vehicle

You’ll have to state the make, model and year of manufacturing of your vehicle, as well as its VIN, registration and engine numbers. You’ll also need to provide details on the insurance policy which is covering, or will cover, it.

Information about your employment and income

This pertains largely to your place of employment, position and recent history (if any). Bank First, as well as all other lenders, will want to know that you’re earning a stable and consistent income without any major risks of your available funds running dry. As part of this, you’ll also need to state your income and provide recent payslips or two years’ worth of tax returns and Notices of Assessment if you’re self-employed.

Information about your assets and liabilities

Firstly, the assets you own and their value will be disclosed here, which may include property, cars, investments, savings, super and more. Lenders generally prefer borrowers who are asset-backed, as they’re seen as safer. On top of this, any outstanding loans or debts, such as a mortgage, personal loan, credit card and more, will be covered here also.

Information about your expenses

Finally, you’ll need to indicate what your monthly expenses are, which will largely relate to areas such as general food and clothing, utilities, education, insurance and more.

Frequently asked Bank First questions

Can I apply for a joint car loan with my partner?

Yes – Bank First allows joint applications for car loans, meaning you can more easily share the responsibility of repaying a loan debt with your partner if you’re purchasing a car together.

What happens if I’m self-employed and don’t have all the documents I need?

If you find yourself in this position, you’ll likely need to apply for a low doc or ABN car loan instead. This type of finance utilises alternative business documents in place of tax returns, such as BAS, profit and loss statements, income declarations, ABN and GST registration and more. However, this option is only available to buyers looking for a business-use car loan, so private-use purchases aren’t allowed under this finance model.

Can I get a novated lease with Bank First?

No – however, you can find and compare a range of novated leasing options through Savvy. These offer a number of tax benefits which makes novated leases and car loans important to compare, namely that their salary sacrificing model reduces the amount of income tax which you’re liable to pay. You can speak with one of our consultants today to find out whether novated leasing is right for you.

Is it better to compare car loans before applying?

Yes – you should always compare car loans before committing to one, which you can do through Savvy. not only that, but our experienced consultants do much of the heavy-lifting and comparing for you to save on time and take advantage of our strong relationships with our panel of more than 25 lenders. Doing so will help your chances of securing a lower interest car finance deal and save. You can also use our calculator on a Bank First car loan or any of our partnered lenders to see what you might end up paying overall.

Do I have to be a member to apply with Bank First?

Part of the application process when seeking finance through a mutual bank typically involves becoming a member of the bank if you aren’t already. If you’re unsure, you can speak with a member of their team to find out more.

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