Learn about the finer details of Defence Bank car loans right here with Savvy today.
Fact checked
Defence Bank (formerly Defence Force Credit Union) is an Australian financial institution which offers loan and banking products to members of the Australian Defence Force, as well as other non-members around the country.
One of these loan products is a car loan, so it’s important to get in-depth with all the different features and conditions you could experience before you commence the application process. It’s crucial to survey the market to ensure you’re getting the best available deal.
Fortunately, Savvy compares a wide variety of car loans and delves into the ins and outs of each offer, including that of Defence Bank, to ensure you’re best placed to make the right call on the best car finance product for your needs.
*Savvy does not represent Defence Bank for its car loan product. All information in this article is correct as of 29 July 2024.
By applying for a car loan with Defence Bank, you can access an annual rate from 6.90% p.a. (7.67% p.a. comparison rate) on your finance deal.
You get to choose whether to purchase a new vehicle fresh out of the dealership or a used car up to five years of age at the time you buy it.
Whether you receive your income on a weekly, fortnightly or monthly basis, you can choose a repayment schedule to fit your needs and ensure you’re comfortable meeting them.
Defence Bank allows for car loans of any amount from just $1,000, giving you carte blanche to select any car you like provided it meets the eligibility criteria and you can afford it.
Another factor in making sure your repayments are manageable is selecting a repayment term which suits your needs, with shorter terms coming with larger repayments and vice versa.
You’re not required to rigidly stick to the minimum repayments set by Defence Bank; you can go above and beyond by making extra or larger repayments whenever you like.
Without any penalties for paying out your loan early, you can benefit significantly from a shortened loan term, potentially saving hundreds in interest and fees overall.
You also aren't limited to cars when it comes to Defence Bank’s car loan product, as you’re also able to purchase a new or used motorcycle (up to five years old).
The approval process for your car loan application is a quick one, with the time taken between your initial application and owning your car only a matter of days.
You won’t be able to purchase a used vehicle above five years of age and finance it with a car loan from Defence Bank, with its personal loan the only option at a minimum of 10.49% p.a. (11.45% p.a. comparison).
Although Defence Bank's application fee of $150 is waived for New and Used Car Loan products, you'll still need to pay $10 per month as part of your agreement.
You have to become a member to apply for your car loan, either prior to your application or as part of the process, which you don’t have much choice about.
Defence Bank is no different from many other lenders across Australia when it comes to their application processes. It’s fast and simple, with only a few steps along the way until you can be fully approved and funded for your Defence Bank new or used car loan. These are as follows:
Get pre-approval
Once you’ve worked out a rough idea of what you want out of your car loan, you can submit your initial application via Defence Bank’s website. This is more to tell your lender about you as a borrower and let them know more about the type of loan and car you’re looking for. It shouldn’t take long for you to be granted pre-approval, which will give you a clear idea of what you’re likely to be approved for.
Choose the car you’re after
With pre-approval in hand, you can head out and start looking for your car. It not only serves as an indication of the amount your lender is willing to approve you for at that point in time but also a clear limit for sellers to negotiate within. For example, if you approach a seller with a $30,000 pre-approval, they already know you won’t be capable of borrowing much beyond that and will have to adjust their price to get the deal done.
Apply for formal approval
After you’ve found your car and agreed to purchase it, you can go ahead and submit your final loan application. This will have all of the relevant documentation you need, particularly information on your car, and will be similarly easy to submit. Ensure you double and triple-check the application before applying, as you’ll want to avoid any potential mistakes.
Sign your loan contract and take ownership of your car
If Defence Bank is satisfied with your application, they’ll give you the green light to buy your car and send through a loan contract for you to sign. After this has been completed and returned, the funds will be released to your seller and you’ll be able to take ownership of your car.
There are various fees which you’re likely to come into contact with over your time repaying your car loan with Defence Bank. It’s important to be aware of these before you sign up, as they can make a significant difference to the amount you end up paying for your finance.
One of the fees you won’t have to pay is an application fee. This is typically charged for $150 on their personal loan products, but it isn’t payable for new and used car loans. This represents a notable saving on many other car loans whose lenders do enforce the establishment fee. The other fees payable on your loan include:
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
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© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
