RACV Car Loan

Learn more about RACV Finance car loans with Savvy and find out whether they’re right for you today.

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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The Royal Automobile Club of Victoria serves as one of the more unique vehicle finance providers and insurers in Australia, with a range of resorts and a lifestyle club operating across three states setting them apart from the rest.

However, it’s important to assess each car loan application on its merits before you submit your application, as you should always know the exact deal you’re signing up for prior to commencing the process.

Fortunately, Savvy breaks down car loan offers from our wide panel of partnered lenders, including RACV, so that you can have peace of mind in knowing exactly what you’re signing up for and be in a better position to make an informed choice on which is best for you.

*RACV is among Savvy’s panel of car loan financiers. All information in this article is correct as of 10 April 2024.

The features and benefits of RACV car loans

Rates starting from 7.29% p.a.

Purchasing a car with finance through RACV can help you access interest rates as low as 7.29% p.a. (8.00% p.a. comparison) for new cars.

Age flexibility for used vehicles

You have the freedom to buy used cars of a variety of ages, provided it's no older than 20 years by the end of your car loan term.

Borrow upwards of $5,000

As long as you stick to the minimum loan amount of $5,000, you can take out just about any loan size you wish, provided it aligns with the value of your car and you can afford to repay it.

Enjoy no ongoing fees

Ongoing fees can add up over the life of your loan, potentially costing you thousands of dollars overall, so you won’t have to worry about paying them on your RACV loan.

Repay over one to seven years

Tailor your loan repayments to align with your income schedule and financial needs to ensure that every instalment is manageable for you across your entire term.

21-day Loan Satisfaction Guarantee

RACV offers a Loan Satisfaction Guarantee which enables you to repay the full loan within 21 days if you aren’t happy with it, with no penalties charged and having interest and fees refunded.

The pros and cons of RACV car loans


Lucrative benefits for long-time members

If you’ve been an RACV member for more than five years, you can qualify for a rate discount through their Years of Membership Benefits program, with up to 20% of your applicable rate able to be slashed.

Rapid approval and funding within 24 hours

Once you apply for your car loan, you can be approved on the same day and have the funds sent directly through to you within just 24 hours if you apply directly with RACV.

Discount for electric vehicles

If you're buying a new or used battery electric vehicle, you can take out a loan with a heavily discounted rate as low as 5.79% p.a. (6.49% p.a. comparison)


Rate increase for used vehicles

Used car loans don’t qualify for the same interest rate as new car loans, with a 1.2% increase meaning rates begin at 8.49% p.a. (9.21% p.a. comparison rate).

No weekly repayments available

While many lenders enable you to choose between monthly, fortnightly or weekly payments, you’re unable to pick weekly instalments when applying with RACV.

Steep establishment fee

Although no ongoing fees are charged, the establishment fee on your car loan could exceed $500 (based on the comparison rate provided for a $30,000, five-year loan).

More about RACV car loans

How do I apply for RACV car finance?

While you can quite easily apply for financing directly through RACV’s website, applying through Savvy makes the application process even simpler for you. We help you find the best loan available by considering offers from our vast lender panel. The steps for applying with us are as follows:

Submit your easy application

First of all, you can send through your quick quote to us, which will only take a few minutes to do. You can go ahead and fill out your full application at this point, too, and once your consultant receives this, they can move onto the next phase of the process.

Have your application considered by our consultants

With the details of your application ready, as well as your personal financial information, your consultant can get to work comparing from our lender panel (which includes RACV) to determine which loan is the ideal offer for you. They’ll consider factors such as interest rates, fees and other features which may be useful for you.

Review the best offer available to you

Once this comparison has taken place, your consultant will get in touch with you to let you know what the best available deal is. They’ll run through all the relevant details and, if you’re happy with it, they’ll move ahead with your chosen lender for your application.

Have your formal application submitted

By this stage, you’ll need to have submitted a range of personal and car loan documentation to RACV and your consultant to use for your formal loan application. Your consultant handles this process, preparing your application for you to ensure it meets your lender’s requirements, and should receive an outcome within one day.

Sign off on your loan deal

After your lender approves your formal application, your consultant will let you know and forward you the final loan agreement for you to sign electronically. Once you’ve done this, the funds can be released either to you or to your seller and you can take ownership of your vehicle.

Common car loan queries

Will my profession help me get approved for a loan?

It may – although the type of work you do is secondary to your job stability and income, lenders will often look more kindly on those in certain industries who apply for car financing. For instance, those working in health (such as nurses and other healthcare workers), members of the military and police officers can often find it easier to apply, and get approved, for affordable car loans.

How much can I borrow on my car loan?

There’s a range of factors which go into determining how much you can afford to borrow for your car loan. Some of the ways RACV Finance will calculate your affordability and borrowing power include:

  • Your job and income stability
  • Your credit score
  • Your monthly expenses
  • Any outstanding liabilities (such as other loans)
  • Whether you’ve repaid similar loans in the past
  • The value and condition of your car
What are some of the points to think about when buying my car?

It’s crucial to carefully consider several points when buying your car, as these will help you ensure you pick out the best possible model for your needs. You should ask yourself the following questions when buying a car:

  • Should I buy new or used?
  • How much can I afford to pay?
  • What size loan will I need?
  • Should I put down a deposit?
  • What will I be using my car for?
  • If used, what does each car’s history tell me?
Will I still be able to sell my car under finance with RACV?

Yes – however, selling a car under finance is more difficult than selling an unencumbered vehicle (one without any outstanding loan owed on it). Perhaps most importantly, this will come with a break fee, which is likely to be determined by the amount owed on the loan and the time remaining on your term. If you’re looking to sell your vehicle, it might be worth waiting until you’ve repaid your loan in full.

Can I be approved for a car loan as a single parent?

Yes – if you can meet the eligibility criteria for RACV car finance loans, such as earning above a certain amount and applying for a loan you can manage on top of your existing expenses, you can be approved for financing as a single parent.

What if I want to purchase an older car?

If your car doesn’t align with RACV’s eligibility criteria due to its age, you may have to take out a personal loan to purchase it instead. These loans can be used to purchase anything you like, albeit come with greater borrowing restrictions and higher rates and fees.

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