Public transport is not only convenient, it also has that cost factor that commuters simply cannot ignore. But nothing beats sliding in behind a wheel and listening to a compilation of some favorite songs while heading out on the open road. This requires either a substantial savings account or finance, as purchasing a car can be a costly process. National Australia Bank Auto Loan provides customers with the means to purchase the dream vehicle in their affordability range. This review takes a look at the only auto loan product this bank has to offer and compares it to some of the best in the world.
One of the best ranges of auto finance is from Credit Agricole.
About National Australia Bank
National Australia Bank was founded in the eighties and benefits from having a completely modern outlook on life. This bank provides customers with ease of transactions through various digital channels. Furthermore, the bank is also known to be one of the major players in ensuring Australia moves to a cashless society. Currently, the bank is working hard to retain and increase their customer base as the current political climate makes it difficult to retain ratings from the international ratings agencies.
We also did a full review on National Australia Bank to provide a holistic view of its products and services.
Auto Loan Maintenance and Other Tips
One of the best things to do when it comes to auto finance is by finding a car that suits the budget a little more than it suits the lifestyle. Lifestyle purchases tend to put users a little over the edge and can cause a comfortable installment into something that is barely manageable. But there are some other tips to ensure the journey on the road is a long and comfortable one.
Choose the Best Insurance You Can Afford
Going with the cheapest option can leave customers out of pocket when something serious happens. Try to go for a comprehensive insurance that has high 3rd party cover. Furthermore, customers have the option of lowering their excess amount by paying slightly more each month. This is ideal for those moments where cash flow is low and disaster strikes.
A Service and Maintenance Plan For Those Who Travel A Lot
Service and maintenance events can cost a bunch, especially for those who are on the road a lot. With the right service plan, however, customers have the peace of mind that their services will take place uninterrupted. Also, that the funds to cover it is not an issue.
Purchase Through Reputable Dealerships
When something mechanical goes wrong straight after driving the car off the showroom floor, a reputable dealership will still take some ownership for the issues. Others who sell their cars as is can renege any responsibility for the faults. There could legal recourse, however, customers are often left out of pocket due to attorney costs. Those who wish to purchase privately should take the car for a full check such as an automobile association, etc. If there are any maintenance issues, these checks should pick them up.
Save Up for Emergencies
Even with all the fancy plans and cover in place, there are the few occasions where a few extra dollars are needed. This includes changing tyres, excesses on insurance, and other costs that can accumulate. This prevents the need to access further finance to cover these costs and allows customers to be proactive in the maintenance of their car.
National Australia Bank Auto Loan Product Offerings
Personal Loan For A Car
This is the ideal finance type for those who wish to get on the road for the first time or to add to their personal fleet. Furthermore, customers have the option between variable or fixed rates.
- Customers who apply before a certain time can have their finance approved and funds deposited the same day.
- The repayments on the loan are flexible and customers can decide between weekly, fortnightly, and monthly repayments.
- Furthermore, the loan provides customers with the option to make lump sum deposits at no extra charge. This also allows them to settle their finance before the end of the term without penalties.
- Customers can borrow anywhere from $5,000 to $55,000 and the loan term is from 1 to 7 years.
- A redraw is possible on amounts paid in extra on the loan when customers have a variable rate loan.
- Finally, customers can accept the contract online through Internet Banking. This means they don’t have to go to the branch during this process.
Other personal loan options by National Australia Bank have been reviewed in full.
Practical Tips for Applicants Applying for Finance
Before applying for finance, applicants want to have the fastest response on their applications. In order for this to take place, a little bit of preparation goes a long way.
- In the event of a joint application, both parties need to be present to apply for the loan.
- Customers who don’t bank with NAB will need to provide their latest payslip.
- Furthermore, those who are self-employed can provide a financial or tax statement.
- Also, customers who wish to consolidate their debt will need to provide their credit card or store card statements.
- Finally, identification is important.
Eligibility to Apply
Different banks have different basic criteria for customers to apply for their product. At National Australia Bank, customers need the following:
- Be 18 years or older.
- Have a regular income or wage.
- Have a good credit rating.
- Be able to afford the loan repayments.
- Hold Australia citizenship or permanent residency.
- Be a New Zealand citizen or hold a 457 Visa.
- Live in Australia.
- Finally, customers who wish to apply online need to be NAB customers.
Before Finding the Vehicle
Customers have a number of options before heading out to find the perfect vehicle. The bank provides different tools to determine the ideal price range for their budget. They will also have an idea of the installment they expect to pay. Some of the online tools include:
- A budget planner calculator
- A savings calculator
- A tool that allows customers the ability to see how much they can borrow
- The potential repayments on their loan
- Finally, a balance transfer tool that calculates general fees and options.
What We Like About Bank of Australia Auto Loan
As with many of the personal loan products, this is a simple loan type that provides customers with access to a simple loan that is easy to manage. Furthermore, this loan type is also quite flexible. Those who wish to go out and find their dream car, have the means to apply and ride in just a few short hours.
What makes this loan another keen contender as one of our favorites, is that it’s not the typical installment sale or hire purchase. It works the same way a personal loan would. Customers have up to 7 years to repay, which gives them the opportunity to free up their cash flow.
Finally, the bank offers customers a smorgasbord of tools in order to plan out their finance. Whether they wish to calculate their repayments or their savings, there is a tool for every need.
What We Don’t Like About National Australia Bank Auto Loan
The mere mention of loans, when there is only one loan choice, is something that needs some consideration. Customers who are not too concerned about the finer details where tax is concerned will find the options suitable. However, those who require something that is a little more tax advantageous will find this option very restricting.
Another aspect that is hard to ignore, is that the finance does not cover other assets such as motorcycles, boats, and more. This is not really a restriction, as the loan is styled as a personal loan which means customers can purchase these items if they like, however, might not even know it.
Finally, the reason many customers prefer to have access to vehicle finance as opposed to straightforward personal loans is that the rates are often far lower on vehicle finance. This is because the asset acts as a form of security, therefore, mitigating the risk.
Critical Reviews Rating National Australia Bank Auto Loan – 6 of 10
There are a number of reasons we have to consider rating this product down. The most prevalent reason, however, is the lack of choice for customers. This is something that might lose the bank some of their customer base, especially those who are keenly aware of their options where tax is concerned. Also, there is the fact that customers don’t really have many options in terms of shopping around for the product with the right amount of bells and whistles.
Furthermore, there is no mention of deposits or the security aspect of the vehicles. This makes it tough for customers to negotiate where their interest rate is concerned. That is if the interest rate is negotiable at all.
In conclusion, the singular product the bank has available is a good product when compared to other personal loans. When compared to auto loans, however, it does miss the mark.
Although National Australia Bank didn't do too well in this review, they gave a great performance in their credit card review.