Commonwealth Bank (CBA) Car Loans
As Australia’s biggest retail banking provider, the Commonwealth Bank has a suite of car loan products for both individuals and businesses. Their Retail Banking Services division is dedicated to providing simple, convenient and affordable banking services to meet the financial needs of personal and business loan applicants.
With 1,100 branches, 3,700 Australia Post outlets and 4,300 ATM’s right around Australia, the Commonwealth Bank has the largest range of customer access points. They also offer 24/7 real time support, the first bank in Australia to do so.
Commonwealth Bank (CBA) Personal Car Loan
A Commbank car loan can be precured for both new and used cars from a registered dealer, or private seller. CBA car loans can be structured in a number of different ways depending on your circumstances and preferred loan method.
- Secured car loan - Using the car you purchase as security will lower the interest rate. The interest rate is fixed for the life of the loan and repayments can be made weekly, fortnightly or monthly. The minimum loan amount is $10,000 and the loan term can be between 12 months to five years.
- Fixed rate personal loan - Interest rates are fixed for the life of the loan, with loan terms from 12 months to seven years. You can borrow between $5,000 - $50,000 with weekly, fortnightly or monthly repayments.
- Variable rate personal loan - Very similar to the fixed rate personal loan, except interest rates fluctuate, you can make additional repayments without incurring a fee, and you can redraw any additional repayments you’ve made should you need the money during the life of the loan.
A CBA car loan comes in various guises to suit your personal preference. You can choose a loan product that fixes in the repayment amounts so you know exactly how much is due weekly, monthly or fortnightly. Alternatively choose a product that offers an interest rate that may decrease, saving you money in the long run.
Should loan applications be submitted prior to midday from Monday to Friday, loan approvals can be made on the same day, with funds transferred straight to the dealer for a secured car loan, or into your bank account for a personal loan.
Once the funds have been transferred to you or the car dealer, you can use NetBank to monitor and service the loan. You can set up automatic transfers so you don’t need to remember to make your repayments, make additional repayments, redraw any extra loan repayments you have made, and view statements and keep an eye on the balance.
Commonwealth Bank (CBA) Business Car Loan
As you would expect from Australia’s biggest bank, the Commonwealth Bank also has a wide range of options for businesses wishing to purchase cars or other equipment.
- Chattel mortgage - Own your car from the moment you buy it and take advantage of the tax benefits, including GST and depreciation. Interest rates are fixed and you can choose a loan term of between 2-5 years. Should you wish to reduce your loan repayments, there are balloon repayment options as well.
- Hire purchase - Very similar to a chattel mortgage, except you hire the car or equipment from CBA and take ownership at the end of the loan.
- Finance lease - Very similar to a hire purchase agreement, but instead of owning the vehicle at the end of the loan agreement, you offer to buy the vehicle at an agreed price.
- Novated Lease - Similar to a finance lease, but for individuals who wish to buy a car for personal use by salary sacrificing. This means your employer makes loan repayments on your behalf from your pre-tax salary. Minimum loan amount is $10,000.
Once CBA has everything they need to process the application, approvals can be completed in as little as four hours. Repayments can also be structured to align with your company’s projected cash flow, ensuring you’re never short when the periodical repayments are due.
We highly advise you talk with your accountant to determine which of these options is best for you and your business from a taxation point of view.
Commonwealth Bank (CBA) Programs
The Commonwealth Bank has been long term supporters of many Australian initiatives and ventures. Their community focus in supporting educational, research, youth, the arts, and environmental projects is widely admired. Partnerships include:
- The Arts - Australian Chamber Orchestra; Bangarra Dance Theatre, Australia’s leading indigenous performing arts company
- Health - Breast Cancer Institue of Australia, helping raise over $3.1 million; Prostate Cancer Foundation of Australia as major sponsor of the Great Aussie Barbie
- Social and environmental support - Australian of the Year, major sponsor for over 30 years; Red Cross, National Humanity Partner; Great Barrier Reef Foundation
- Cricket - Major sponsor of the Australian men’s and women’s teams, annual international Test Match series, and a wide range of state-based, junior, club and community programs.
- Community programs - StartSmart, classroom based workshops that teach students how to make confident money decisions; Clown Doctors, professional entertainers who bring joy to sick children.
- School Banking - The Commonwealth Bank has had a school based savings program since 1931. Primary School children open a Youthsaver bank account, deposit their money and learn about good savings habits.
These are just a handful of the many initiatives CBA are associated with in the form of partnerships, educational programs, indigenous engagement, helping young Australians, sustainable business practices and community support.