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RAA Car Loan

Find out all there is to know about RAA finance and car loans with Savvy to help you pick the right product to buy your car.

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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RAA is one of South Australia’s leading insurance providers across motor, home and travel, with over 800,000 members from around the state. However, they also offer a car loan product to their members and other Australians alike.

They represent just one of the countless financiers operating around the country, which makes it important to delve deep into each potential offer before deciding on the one which best suits your needs.

Fortunately, Savvy does the legwork for you in analysing RAA’s car finance product so you can make a more informed choice on whether it’s right for you, as well as provide you with a suite of offers from our panel of lenders to consider when you apply.

*Please note that Savvy does not represent RAA for its car loan product. All information in this article is correct as of 10 April 2024.

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The features and benefits of RAA car loans

Interest starting at 8.60% p.a.

Comparison rates start from as low as 8.97% p.a. for members. However, if you aren't a member, the minimum interest and comparison rates are 9.60% p.a. and 10.12% p.a., respectively.

Fast pre-approvals in seven working hours

When you apply for your car loan, you can receive a pre-approval or response to your application in as little as seven working hours afterwards, allowing you to start looking for cars the same day.

No ongoing fees

There aren’t any monthly charges which apply to your RAA car finance deal, meaning you won’t have to pay more than the principal and interest of your loan over each instalment.

Make fortnightly or monthly repayments

You can decide whether to contribute to your loan on a fortnightly or monthly basis, giving you the ability to cut down on the cost of your loan by paying more regularly.

Borrow up to $100,000

You can buy a vehicle and have it fully financed up to $100,000 with RAA, with loans also available for as little as $8,000 if you’re looking for something less expensive or are buying with a deposit.

Take up to seven years to repay your loan

You have the ability to take your time with your loan repayments and ensure that your repayments are comfortable, with terms available up to a maximum of seven years.

The pros and cons of RAA car loans

PROS

Discounts for members

If you’re an RAA member, you can qualify for an interest rate discount of 1% p.a. to access the lowest available rate, which isn’t otherwise available for non-members.

More suitable for smaller amounts

With a minimum available loan amount of $8,000, RAA offers borrowers greater choice when it comes to the size of loan they can access, with cheaper cars available.

Rapid formal application process

When you formally apply for your car loan, your funds can be processed and sent off within just 24 to 48 hours, enabling you to get on the road in your new set of wheels sooner.

CONS

Steep establishment fee

Even with the $100 discount on the loan’s establishment fee for members, you’ll still have to pay $255 to open your account, with non-members having to shell out $355.

Lowest rates unavailable for smaller loans

The minimum 8.60% p.a. interest rate is only available for members accessing loans of $55,000 and above, meaning the lowest rate you can access will be higher if you only need a small loan.

Minimum three-year term

If you were only looking to take out your car loan over a period of one to two years, an RAA car loan wouldn’t be the best option for you, given they implement a three-year minimum term.

More about RAA car loans

What is the process of applying for car finance with RAA?

There are several key steps to learn in the car loan application process with RAA. It’s important to familiarise yourself with these before commencing the process, as this will hold you in good stead and place you well to succeed with your application. The steps you’ll need to take are:

Make sure you’re eligible

First and foremost, you should always ensure that you’re eligible to take out a loan with your lender before commencing your application. In the case of RAA, all applicants must be at least 18 years old and a permanent resident of either South Australia or Broken Hill.

On top of this, you’ll need to show that you’re earning a regular income and haven’t been bankrupt in the last five years (or currently under a debt agreement). Finally, the vehicle acting as security for the loan must be registered in SA or Broken Hill and have any co-owners listed on the application.

Gather all the documents required

You should also have all of your required documents handy before you submit your application. Not having these documents can lengthen the process and draw it out longer than it needs to be, so it’s always recommended to account for the required documents first. You’ll need:

  • Proof of identity (namely your driver’s licence)
  • Record of your income via payslips and bank statements
  • Information on any current assets and liabilities, as well as regular expenses
  • Two years’ worth of residential and employment details

Submit your application

You can send through your initial application, which should only take you around ten to 15 minutes to complete. This is designed to provide you with a pre-approval, or conditional approval, which provides an indication of how much you can be approved for based on the information provided in your application (although it isn’t a guarantee that you’ll be approved for the same amount, or at all, in the future).

Receive pre-approval and choose your car

If RAA is satisfied with your application, you’ll be pre-approved for a set amount. You can use this to help you buy a car within your price range and place you in a stronger position to negotiate on the price of your vehicle with your seller. Once you’ve agreed on a price with your seller, you can proceed with your application.

Apply for formal approval and submit your documents

From here, you can apply formally to RAA. This application will include all the documentation you gathered from earlier, as well as information on the car you’re looking to purchase.

Sign your loan contract

Once you’ve formally applied for your loan, RAA will consider your application and whether to approve it. In the event your application is accepted, you’ll be sent a loan contract to sign and, after this has been completed, your funds will be sent directly to your vehicle’s seller so they can then pass your car onto you.

It’s important to note that Savvy offers a streamlined application process which takes much of the hard work out of your hands. We’re partnered with over 25 car loan financiers to give you the best shot at securing a low rate for your loan.

Common queries about RAA car loans

How long does my RAA car finance pre-approval last for?

Once you’ve granted pre-approval for your car loan, it remains valid for the next 30 days. This means you can take up to a month to consider your options and enquire about car sales around the state. Once this time passes, your pre-approval will no longer be considered valid and you likely won’t be able to use it as part of price negotiations on a car.

Can I be approved for financing as a temporary resident?

No – RAA only offers car loans to Australian citizens and permanent residents, so visa holders won’t be able to take out a car loan with them.

Am I required to submit a deposit as part of the loan agreement?

No – you can be approved for up to 100% of the cost of your vehicle as part of your loan agreement, so no deposit is necessary when applying with RAA. If you were to purchase an imported vehicle, however, you may be required to pay a portion of the cost upfront. The same applies for motorcycles and jet skis.

Are car loan interest rates fixed or variable across the finance term?

RAA offers fixed interest rates throughout your repayment term, meaning it will remain locked in place over the course of your repayment period. This makes it easier to budget around your repayments, as you’ll know how much you’ll be paying each month compared to a variable rate, which is open to fluctuation.

Does RAA Insurance and Finance offer commercial car loans?

No – if you’re looking for a car loan to purchase a vehicle for your business, you’ll have to look elsewhere, as RAA doesn’t offer any products for this purpose. This includes vehicles purchased to use for ridesharing.

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