RACV Car Loans

Formed in 1903 to support motor vehicles and their owners in Victoria, the RACV now has 29,000 Club members and over two million regular members, offering various services and facilities. These include:

• Roadside assistance
• Insurance - road, home contents, and travel
• Loans - personal and car
• Education - a multitude of driving courses and programs
• Home services
• Tourism and resorts

RACV has a car loan product for both individuals wishing to purchase a car for private use, and a business car loan for those wishing to purchase a car for commercial use.

RACV Personal Car Loan

RACV offers a car loan product with competitive interest rates and features when compared against any of the major banks and financial institutions. Features include:

• Fixed interest rate only
• Loan is secured, generally against the vehicle you purchase
• Flexible terms of 1-7 years
• Repayments made fortnightly or monthly, through either direct debit, BPAY, cheque or in person at any RACV store or Australia Post outlet
• Minimum amount borrowed is $15,000
• No ongoing monthly service fee or any other charges (there is a $369 establishment fee)

RACV Business Car Loan

The RACV has a range of business car loans to suit the accounting practices and practical needs of your business.

• Hire Purchase - RACV buys and owns the vehicle on your behalf, then you take ownership of the vehicle once the loan has been repaid.
• Leasing - RACV buys the vehicle and you rent it for the term of the lease agreement. At the end of the lease agreement you have the option to purchase the vehicle or not.
• Chattel Mortgage - You source and buy the vehicle with finance from the RACV, taking ownership from the moment you agree to the loan.

You are able to buy a new or used car, and unlike many finance providers, RACV isn’t particularly concerned about the age of the car. In most instances you are able to borrow 100% of the finance needed, meaning you don’t have to outlay any of your business capital to get started.

RACV also offers a salary packaging solution for those businesses that wish to offer their employees the opportunity to purchase a car from their pre-tax salary (novated leasing). RACV offers this product through EPAC Salary Solutions, a 100% owned subsidiary of the RACV. EPAC offers novated leasing, and fleet financing and management solutions.

Each type of business loan outlined above has its own tax benefits, including depreciation and claims on GST and interest repayments in your Business Activity Statements. You will need to discuss these benefits with your accountant to determine which business car loan is right for you.

As with car loans for private use applicants, RACV business car loans have no ongoing fees.

RACV initiatives and programs

As an organisation that has been around for over 100 years, the RACV has deep roots in the Victorian community. They provide financial aid and volunteer assistance where needed, particularly projects that:

• Improve the quality of life
• Relieve suffering and help the disadvantaged
• Strengthen safety and security
• Encourage community innovation
• Protect the environment

RACV’s community programs are focused on serving five specific areas - the arts, environment, health and wellbeing, mobility and safety, and welfare. RACV has one community partner for each focus area:

• Circus Oz - two year workshop program for participants to get a deeper understanding of circus arts
• CERES - One of the most visited community environment centres in Australia, this two year partnership will see 130 Victorian schools take part in the Energy Smart Choice Program.
• Little Athletics Victoria - Development of children with a focus on a healthy lifestyle.
• Travellers Aid Australia - Ensures all people can fulfil their everyday travel needs by providing simple and practical transport related support.
• FareShare - Producing more than one million nutritious meals free of charge for charities who feed the homeless.

RACV’s major community partner is the Phillip Island Nature Parks, made up of four popular tourist attractions - the Penguin Parade, Koala Conservation Centre, Churchill Island Heritage Farm, and the Nobbies Centre. These attractions are designed to give visitors an up-close and personal experience with Phillip Island’s natural wildlife, without disturbing the area’s precious eco-system.

The RACV Community Foundation was set up in 1997 to provide funding to Victorian charities and community organisations who strive to improve the quality of life for locals. Grants of up to $20,000 are available, with in excess of $3.7 million granted to over 300 charities since its formation.

Benefits of a RACV Car Loan

The application process is very quick, with an approval or rejection response given within five business hours of all required documentation being submitted.

RACV offer what they call a ‘Best Deal Guarantee’, which means if you’re not happy with your loan, you can repay it within 21 days without any financial penalty. All interest charges will be refunded and any fees outstanding will be waived. It gives you peace of mind that if you have a change of heart within three weeks of receiving the funds, you can pull out of the loan agreement and it won’t cost you a cent.

If you are a RACV member, you may be entitled to an interest rate discount. Your Years of Membership Benefits Discount will be determined by the number of years you’ve been a member. The longer you’ve been a member, the bigger the reduction in the interest rate you’ll be charged.

If you couple your car loan with RACV car insurance, you could be entitled to a 10% discount on the cost of your insurance for the life of the loan.

Applying for a RACV Car Loan

To apply for a RACV car loan, you must be at least 18 years-of-age, have a good credit ratings, be an Australian resident or permanent citizen, and are employed with a steady income stream.