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People’s Choice Credit Union Car Loans

Thinking about a People’s Choice car loan? Read about what they have to offer right here with Savvy.

Written by 
Thomas Perrotta
Thomas Perrotta is the managing editor of Savvy. Throughout his time at the company, Thomas has specialised in personal finance, namely car, personal and small loans, although he has also written on topics ranging from mortgages to business loans to banking and more. Thomas graduated from the University of Adelaide with a Bachelor of Media, majoring in journalism, and has previously had his work published in The Advertiser.
Our authors
, updated on April 10th, 2024       

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As one of Australia’s leading credit unions, People’s Choice Credit Union (PCCU) offers a wide range of products across property, personal and investment finance, credit cards, insurance and banking. Crucially, though, they also offer loans for Australians looking to purchase cars.

With so many options on the market when it comes to car loans, it can sometimes seem difficult to find the one best suited to your needs. Fortunately, that’s where Savvy comes in handy.

We’ve broken down the key areas of PCCU’s car loan to give you all the information you need to make a clear and educated decision, as well as compare a variety of other loans from lenders around Australia when you apply with Savvy.

*Please note that People's Choice does not currently offer a designated car loan product. This page is reflective of its Discounted Personal Loan product, which Savvy does not represent People's Choice for. All information in this article is correct as of 10 April 2024.

The features and benefits of People’s Choice car loans

Rates from just 6.49% p.a.

With a minimum comparison rate of 6.84% p.a. for its standard car loan, PCCU's interest rates are among the lowest in terms of Australian lenders right now.

No monthly account fees

You won’t have to worry about paying more for your loan each month than you need to, as PCCU doesn’t charge any ongoing fees on their car loans on top of principal and interest.

Flexible repayment schedule

Depending on whether you receive your income on a weekly, fortnightly or monthly basis, you can adjust the schedule on which you submit your car loan repayments to ensure that you’re comfortable.

Take up to ten years to repay your loan

Unlike most car and personal loans, you can choose to take up to ten years to repay your finance deal, although the term you’re approved for will depend on your profile as a borrower.

Purchase a new or used vehicle

Regardless of whether you’re wanting to pick out a brand-new car or purchase a used one from a dealership or private seller, you’ll be able to finance its purchase with this car loan.

Access to a redraw facility

If you need access to extra repayments already made towards your car loan, you can utilise a redraw facility instead of applying for a separate loan and paying more in fees and interest.

The pros and cons of People’s Choice car loans

PROS

Competitive interest and fees

Compared to other lenders in the market, particularly the big banks, PCCU offers reasonable interest rates and fees, which could potentially help you save on your loan.

Free early repayments

If you’re in a position to pay above the minimum required amount for each instalment, you can further cut down on the potential interest and fees paid without being penalised.

Discount for green vehicles

If you're purchasing an electric, hybrid or hydrogen car with a PCCU loan, you can qualify for an interest rate discount, with these rates starting from 5.69% p.a. (6.04% p.a. comparison).

CONS

Minimum of $20,000 loan amount

PCCU’s car loans are only offered from a minimum of $20,000, making it more difficult to use one to purchase a less expensive vehicle or pay a portion with your savings.

High application fee applies

Although it comes without ongoing maintenance fees or early repayment charges, you’ll still have to pay a relatively expensive application fee of $250, which is built into your repayments.

Fixed rate for five years only

As mentioned, car loan terms can reach up to ten years with PCCU. However, it only offers a fixed interest rate for a maximum of five years before reverting to a variable rate for the remainder of your term.

People’s Choice car loans explained

How do I apply for my People’s Choice car loan?

With PCCU, you can either apply online (via their secure web portal), over the phone (on 13 11 82) or at your nearest branch. The process of applying includes:

Complete your application for pre-approval

In most cases, your application will be completed online, as this is generally the most accessible and easiest way to do so. This form is found on their website and will only take you a matter of minutes to complete. Once submitted, it won’t take you long to receive an outcome.

Use the pre-approval to choose your ideal car

With pre-approval in hand, you can take as long as 90 days to find the right vehicle for your needs. The major benefit of pre-approval is that it gives you a strong hand when negotiating on the price of the vehicle with your seller, whether that be a private one or a new or used car dealership.

Return to PCCU for full loan approval

With information on the car you want to buy, you can complete your formal loan application process with PCCU. You’ll have to supply all the required documentation at this step, including information on the vehicle you’re looking to purchase.

Have the funds sent to your seller on approval

If PCCU is satisfied with your application, they’ll approve it and send through a contract for you to sign confirming the details of the agreement. After signing and sending it back to them, they’ll release the approved funds and send them directly to the seller of your car, who can, in turn, release the ownership of the vehicle and transfer it to you.

It’s important to note, though, that applying with Savvy not only gives you access to a hands-off approach handled by expert consultants, but also a wide range of more than 40 lenders on our panel. Our consultants will hand-pick the best loan based on your profile, giving you peace of mind that you’ll drive away with a great deal.

What information will I need to apply for my car loan?

When applying for your car loan, there are a number of key areas you’ll need to have covered in terms of information and documentation to ensure that you’re approved. Make sure you have each of the following ready to include in your application:

  • Personal identification in the form of your driver’s licence
  • Residential and employment details for the last three years
  • Information on your income, such as your last three months of payslips, rental income, pensions and child support
  • Details around your expenses, including record of rent, bills, fees and regular grocery expenses 
  • Your assets, such as cars, savings, property, shares and furnishings 
  • Your liabilities, such as debts, credit cards and any active buy now, pay later accounts 

Common queries about People’s Choice car loans

Can I purchase a caravan with a People’s Choice car loan?

Yes – PCCU’s discounted personal loan product also extends to caravans, provided they meet the eligibility criteria that any car would be required to. You can qualify for the same low interest rate that you’d receive on a car loan by purchasing a caravan, which you can also do when you apply for caravan finance with Savvy.

Is there a minimum redraw amount?

Yes – you’ll only be able to redraw a minimum of $250 each time you access the additional funds paid towards your car loan. As such, you should always ensure that you have a specific and important need for the funds, as withdrawing too often can undo the good work you’ve done in paying down your loan debt.

Do I have to be a member when I apply for my PCCU car loan?

No – when applying for pre-approval, you won’t have to have been a PCCU member. However, you’ll need to become a member of the credit union before your loan deal is finalised, which is a fast and easy process.

Do I have to use the car I buy to secure my People’s Choice personal loan?

Not necessarily – while in most cases you would use the car you’re purchasing to act as security for the loan, you may not have to supply security at all if you don’t wish to. You can instead look to an unsecured personal loan, which sidesteps the requirement for you to use an asset as collateral for the loan in return for higher rates and fees.

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