NAB Car Loan
Here are the ins and outs of NAB’s car loan to help you choose the best one for your needs with Savvy.
Fact checked
As one of the Big Four banks in Australia, NAB offers a multitude of products to help you buy property, house and build your savings and run your business. They also have personal finance offers on their books designed to help you purchase your next vehicle.
Of course, before you sign onto any loan, it’s crucial to understand how it works and have a firm grip on all of its conditions and features. Fortunately, Savvy does the hard work for you and has broken down NAB’s car finance deal so you can easily analyse it and decide whether it’s right for you.
*Please note that NAB does not currently offer a specialised car loan product (a loan using a secured vehicle). Savvy does not represent NAB for their personal finance product.
The features and benefits of NAB car loans
Unsecured finance
Unlike a secured car loan, NAB offers unsecured financing for car purchases, meaning you won’t be required to use the car as collateral for the loan, thus lifting any restrictions on condition or age.
Access amounts from $5,000
You can use NAB car finance to purchase a vehicle for as little as $5,000, which is lower than many of Australia’s biggest lenders, enabling you to purchase cheaper vehicles or use more of your own savings.
Repay over one to seven years
You can decide to take as many as seven years to pay off your loan debt or elect for a term as short as 12 months, although the length you’re approved for will vary for each person.
Personalised interest rates
You’ll receive a rate tailored to your individual profile, meaning NAB car loan interest rates will be different for each applicant and positive credit histories will be rewarded.
Flexible repayment schedule
On top of deciding on the length of your loan, you can also choose whether to make weekly, fortnightly or monthly repayments in line with what’s most comfortable for you.
Redraw facilities available
You can make free additional repayments towards your loan and, if you need to, can access these funds down the track thanks to your car loan’s in-built redraw facility.
The pros and cons of NAB car finance
PROS
No early repayment fees
Not only can you pay above the minimum required amount, but you won’t be penalised for completing your car loan repayments ahead of schedule, giving you the option to cut down on interest and fees.
Funds approved within one business day
Because the loan is unsecured, you can generally receive a faster outcome and have the funds you need sent directly to your account inside one day, potentially on the same day you apply.
Fixed or variable interest rates
Unlike other secured car loans, NAB enables you to choose between a fixed or variable interest rate, giving you more choice when it comes to how to customise your loan.
CONS
Increased interest rate
As a result of the lack of asset security provided by your car, you’ll be required to pay higher car loan interest rates with NAB, starting from 6.99% p.a. (7.91% p.a. comparison rate).
Lower borrowing cap
Another drawback of opting for an unsecured personal loan is that they come with greater borrowing restrictions, meaning you won’t be able to borrow more than $55,000 to buy your car.
Monthly and application fees
Finally, NAB charges monthly fees of $10 and an establishment fee of $150, which would cost you an additional $750 over the life of a five-year loan if you pay it to term.
NAB car loans explained further
How should I apply for a NAB car loan?
The application process for a NAB car loan comes without any major differences from similar processes with other lenders; they follow the same broad strokes. However, it’s important to note that applying with Savvy will provide you with a greater number of affordable finance options and expert guidance from one of our consultants, who will do the heavy lifting for you. The NAB application process is as follows:
Calculate your borrowing power
Before all else, you should make sure that you’re capable of comfortably repaying the amount you’re applying for. If NAB isn’t fully confident in your ability to service the loan consistently across your term, you won’t be approved. Fortunately, you can use Savvy’s personal loan borrowing power calculator to give you an idea of the amount you might be approved for.
Ensure that you’re eligible to apply
Once you’ve crunched the numbers on how much you can borrow, review NAB’s eligibility criteria to determine whether your application is able to be accepted at all. These points are:
- You must be 18 years or older
- You must receive a regular, stable income
- You must be an Australian or New Zealand citizen, an Australian permanent resident or be living here on an accepted visa
- If submitting your application online, you must be applying by yourself (joint applications must be submitted in personal at a branch)
Submit your application
Complete your application either online or at your local branch. This will require you to supply the various pieces of documentation required for loan approval. The form shouldn’t take long for you to fill out and send off.
Receive conditional and formal approval
You’ll receive an outcome on your application within 60 seconds of applying for your car loan. If conditionally approved, NAB will look over your profile and documentation in closer detail and decide whether to formally approve you for financing.
Sign your contract and receive your funds
If you’re also granted full loan approval, NAB will send through a loan contract for you to sign, confirming the terms of your agreement. You can return these online via their Internet Banking or in branch. Once they’ve received and processed the contract, the funds you’ve applied for will be advanced directly into your bank account for use however you like, providing you with the ability to purchase your car.
What are the documents I’ll need for my NAB car loan application?
As part of your NAB car loan application, you’re required to submit an array of documents to help paint a picture of your profile. This helps them determine whether you’re a suitable candidate for a loan. The documents you’ll need are:
- Personal ID: one of either your Australian driver’s licence, passport or Medicare card
- Income details: payslips and/or bank statements to prove your pre- and post-tax income
- Information on assets: this may include any other cars you own, property, shares or anything else valuable and of note
- Information on liabilities: outstanding loan debts, such as your mortgage, personal loans or credit cards
- Employment information: record of employment over the past three years, which may include your contract or confirmation letter from your employer
- Record of regular expenses: note what your commonly recurring expenses are, such as groceries, school fees, utilities, insurance and more