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RAC Car Loan

Looking to buy your next car in WA? Consider the key details of RAC car loans right here with Savvy before you apply for vehicle finance.

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, updated on April 8th, 2024       

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The Royal Automobile Club of Western Australia, more commonly known as RAC or RAC WA, is the state’s leading insurance provider across car, home, travel, health and life. They also offer other products, such as travel, roadside assistance and car and personal finance.

You should always look for the best deal available for your financial profile by comparing as many options as possible in the lead up to your application, which is made simpler when you apply with Savvy.

We’ve broken down RAC’s car loan offer so you can see whether it’s right for you, but you can gain access to a wider range of car finance deals when you apply directly with us and reap the rewards fast.

*Please note that Savvy does not represent RAC WA for their car loan product. All information in this article is correct as of 8 April, 2024.

RAC Logo

The features and benefits of an RAC secured car loan

Interest rates from 7.80% p.a.

You can lock in a RAC car loan with a comparison rate as low as 8.30% p.a., though these rates are only available on loans of $65,000 or more.

Borrow up to $100,000

RAC enables you to borrow as little as $8,000 and as much as $100,000 when it comes to securing your car loan in Perth or WA, expanding the range of potential options at your disposal.

Repay over up to seven years

Perhaps most importantly, you’ll be able to spread your repayments out to ensure they’re comfortable for you to manage across your entire loan term.

No ongoing fees

You won’t have to worry about paying regular fees each month on top of your interest charges, as RAC doesn’t charge any monthly account-keeping fees as part of their car loans.

Fast car loan pre-approval

If you want to find out how much you’re likely to be approved for before you know exactly which car you’re going to buy, you can receive an indicative figure via a rapid loan pre-approval process.

Available to self-employed workers

It’s not just PAYG employees who can access financing to purchase their vehicle through RAC; self-employed workers can be approved, provided they satisfy the lending requirements.

The pros and cons of RAC car finance

PROS

Electric vehicle discount

If you decide to purchase an EV and finance it through RAC, you may qualify for an interest rate discount of 0.5% p.a. This offer doesn't apply to hybrid vehicles, however.

Seven-hour pre-approval

RAC car loan pre-approval can take place in as little as seven business hours after you submit your application, ensuring you can keep the ball rolling throughout the process.

Online applications

You don’t have to leave your home or worry about messy paperwork. RAC car loan applications can be completed 100% online, as well as over the phone or in person.

CONS

Lower rates for larger loans

The lowest available car loan rate only applies to loans of $65,000 and above, with an $8,000 to $29,999 loan garnering a minimum 12.15% p.a. rate instead (12.77% p.a. comparison)

Higher minimum loan terms

While the maximum seven-year term is standard, you'll have to take a minimum of three years to repay your car loan.

Application fee applied

You’ll still be required to pay an application fee of $299 to set up your loan, as well as an $8 PPSR fee and a $225 early termination fee (if you repay in full within two years).

RAC car loans explained

How do I apply for a RAC car loan?

The application process for an RAC car loan is no great departure from the process in place with other lenders across Australia. Applying for your car loan will look like this:

Submit your quick quote and/or application

You can get a quick quote through RAC to give a rough estimation of what you might pay on your car loan depending on its size and term. You can also submit your formal application at this point, which will go straight to an RAC representative, who will then assess your suitability for car financing.

Receive an outcome

From there, you can receive pre-approval from RAC within seven business hours (although the time it takes to receive this may differ between individuals depending on your circumstances). If you haven’t yet found your car, you can use this to secure a better price for yourself.

Supply documents

Once you have your car picked out, you’ll have to send through related documentation and your personal documents to verify your identity and financial situation.

Receive formal approval and sign your contract

RAC will once again assess your application and, if approved, will send through a contract for you to sign, which confirms the details of your agreement. Once you’ve signed and returned it, the approved funds can be released to either you or your seller and you can drive away in your new car.

What are the eligibility criteria for RAC car loans?

RAC implements a list of key eligibility criteria when it comes to getting approved for a car loan. These include:

  • You must be 18 years or older
  • You must be an Australian citizen or permanent resident
  • You must be living in WA
  • You must be receiving an income
  • Your car must be registered in WA at the point of loan settlement
  • You must hold a valid driver’s licence or learner’s permit
  • You must be free from bankruptcy for at least seven years

If you don’t meet all of the required criteria, you’re unlikely to be approved for finance with RAC. However, you can apply for a car loan with Savvy and reap the rewards of accessing our panel of more than 40 lenders nationwide with a diverse range of eligibility criteria. You can get approved for car finance in Perth or anywhere else around the country. Get the wheels in motion today and receive a fast outcome and funding by applying with Savvy.

More questions about car finance

Can I get a car loan if I’m self-employed and don’t have my tax returns?

Yes – if you’re in a situation where you don’t have all the required documents traditionally required for a car loan (such as if your business has been in operation for less than two years), you can take out a low doc or ABN car loan instead. These utilise alternative documentation, such as ABN registration, BAS, profit and loss statements and income declarations. However, they’re a more specialised product offered by fewer lenders and come with higher interest rates. You can also only use these products to purchase a vehicle for business use, ruling out a private-use car purchase with this loan.

Will I be able to lease my car in Perth instead?

Yes – again, Perth car leases are available for business operators looking to gain access to a vehicle for business purposes. This follows a different ownership model whereby you don’t own your vehicle throughout your term (which can be one to five years) and are required to deal with a mandatory residual payment at its conclusion, which you can either:

  • Pay out of pocket and keep the car
  • Refinance and continue to lease the car
  • Cover the cost of by selling your car
  • Cover the cost of by trading in your car and starting a new lease with a different car
How can I work out my car loan repayments?

Fortunately, it’s not too difficult to work out your car loan repayments. You can use Savvy’s car loan repayment calculator to crunch the numbers based on varying loan amounts, interest rates and term lengths, as well as deposits.

Should I take out an unsecured car loan instead?

When it comes to car finance, secured loans are the most common due in large part to their lower rates and extended borrowing power. However, there may be situations where an unsecured loan is required, such as if the car you're buying is too old, in poor condition or doesn't meet your lender's vehicle criteria. At Savvy, we can help you get approved for secured car financing for vehicles up to 20 years old at the time of purchase if you don't meet RAC's lending criteria.

Do I have to be an RAC member to access car finance?

Yes – RAC car finance is only open to members. However, if you aren’t a member, you’ll automatically become one once your car loan is settled, so being a member before your application isn’t a prerequisite.

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