Resources

Read about interest rates, insurance, fees and other important details. Our fine print is easy to read!

Interest rates & fees

Discover how our interest rates work, what the standard fees are, and what borrowing from us may cost you.

Understanding interest rates

Our interest rates range from 9.25% p.a to 20.25% p.a and are fixed for the full period of the loan (unless amended pursuant to the loan agreement). The rate charged will depend on your personal circumstances, taking into account your income, financial commitments and credit history, as well as:

information provided by credit bureaus and other third parties
your credit history with Auto Finance Direct, if you’re a recent customer

When we charge interest on loans

We calculate and add interest to your loan on the last day of the month. Talk to us if you would like to know more about how interest is calculated.

Missed payments penalties on secured loans

If you miss a payment, we’ll let you know by text, phone or email. If you don’t make the full payment amount, missed payment penalties may apply. You may also have to pay missed payment penalties if you break other rules of your loan contract, including:

continuing to not make repayments
not insuring your asset

Loan and missed payment fees on secured loans

Your loan may incorporate some or all of the following fees. Talk to us if you have questions.

Loan fees

Establishment fees

When your loan is processed through AFD, you can expect the following fees to be included and payable at the time your loan is advanced:

Fee	Description	Amount
Establishment or Direct Establishment	For the processing, assessing, and approving an application for finance originated through an Introducer OR;	$180.00
Establishment or Direct Establishment	For the processing, assessing, and approving an application for finance originated directly through AFD.	$210.00
PPSR	To search and maintain a security interest on the Personal Property Security Register.	$9.20
Co-Borrower	Applicable only when a Co-Borrower is included, for the processing and assessing of a Co-borrower for finance.	$25.00

Third party fees

When your loan is processed on behalf of an AFD Dealer/Introducer, you can expect the following fee to be included and payable at the time your loan is advanced:

Fee	Description	Amount
Dealer/Broker	For the processing of an application for finance. As charged by the dealer/Introducer.	Up to $395.00

Account processing fees

The following fees apply to maintain your Credit Contract. These are added to your balance and payable at the time of processing.

Fee	Description	Amount
Monthly Loan Administration	To cover the monthly administration costs of your loan account, charged at the end of each month.	$5.00 per month
Refund	Where a request is received to return overpaid funds from your loan. This means that we will deduct this fee from the amount to be refunded to you	$10.00
Early Settlement	Where a loan is settled in full before the scheduled maturity date.	$35.00
Statement	To provide an additional statement requested by the You outside standard issuing cycle.	$5.00
Payment Arrangement	When a payment schedule is changed.	$20.00
Waiver Claim Processing	To cover the administration costs of an AFD Waiver claim.	$45.00
Third Party Authorisation	Where a request is received and processed to authorise a third party to obtain information about your loan on your behalf.	$15.00

Loan Variation Fees

The following fees apply if your Credit Contract is varied. These are added to your balance and payable at the time of processing.

Fee	Description	Amount
Credit Contract Variation	In the event a Credit Contract variation is required, approved, and processed.	$90.00
Substitution of Goods	In the event a security swap is required, approved and processed.	$70.00
Top Up Establishment	In the event a Credit Contract Top Up is required, approved, and processed.	$100.00
PPSR	To search and maintain a security interest on the Personal Property Security Register.	$9.20

Default & Collection Fees

The following applies in the event a scheduled repayment is missed and is payable from the date of the missed repayment and when a Reminder Letter is issued:

Fee	Description	Amount
Payment Dishonour	When a scheduled Direct Debit payment (incl. Payment Promise) is dishonoured.	$10.00
Missed Payment	When a scheduled Automatic Payment (incl. Payment Promise) is missed.	$10.00
Default Interest	Default interest is charged from the time You fail to make a payment until the arrears are paid. Default interest charges are calculated by multiplying the amount in arrears at the end of the day by a daily default interest rate. The daily default interest rate is calculated by dividing the annual Default Interest Rate by 365. Interest is charged to Your Loan account at the end of each month.	5% P.A plus the annual interest
1st Reminder Letter	When an instalment is due and is not received, resulting in a reminder letter being sent.	$15.00
2nd Reminder Letter	When an instalment is due and is not received, resulting in a second reminder letter being sent.	$15.00

Repossession Costs

The following fees apply if repossession action is taken. These are added to your balance and payable at the time of action.

Fee	Description	Amount
Repossession Warning Notice	When a default has occurred and has not been remedied to the satisfaction of Auto Finance Direct.	$40.00
Repossession Authority	When Auto Finance Direct commences repossession of the financed vehicle(s).	$110.00
Post Possession Notice	When Auto Finance Direct prepare and send a Post Repossession Notice.	$100.00
Field Agent Instruction	In the event Auto Finance Direct instructs a field agent to deliver AFD’s documents to you.	$150.00
Field Agent Instruction	Payable and charged to the account at the time the Field Agent is authorised by AFD.	$150.00
Issue Court Proceedings	As a result of Auto Finance Direct enforcing our rights under the Credit Contract in the case of breach or default, including third party and agent fees. Payable and charged to the account at the time the Court Proceedings are issued.	$170.00

Loan repayments

Want to pay the loan off early or can’t make a repayment. All the information you need to know is below.

How repayments work

You can make repayments weekly, fortnightly or monthly for the term of your loan. Loans can run from three months to five years. Your repayments are withdrawn automatically by direct debit from your chosen bank account. If you need to change your repayment frequency or make additional payments, please let us know.

Repay your loan early

You can choose to repay the entire balance of your loan before the end of your contract. However, you’ll pay an ‘early repayment’ admin fee that will be included in the total amount to clear your loan. We’ll help you work whether it’s worthwhile paying your loan off early or if you’re better off continuing with the loan.

See our rates and fees for more information

Can’t make a repayment?

The earlier you can let us know that you’re having difficulties, the more options we have to help.

Repayment waiver

If you chose the Lifestyle Waiver option with your loan, we may be able to waive your loan repayments if the unexpected happens. Depending on your cover, if you’re unable to work because of redundancy or serious illness, your lifestyle waiver will help out.

If you can’t manage your repayments for any other reason, we may be able to help you find another solution. Just talk to us as soon as you can. Find out more about repayment waivers.

Helping you when life changes

We know life can take unexpected turns. If your circumstances change because of an unforeseen event, you may be able to request changes to your contract. This is called a ‘hardship application’.

Your application must give a reasonable cause for why you can’t meet your repayments, for example:

illness
injury
loss of employment
end of a relationship

Any changes you request to the terms of your contract must be fair and reasonable for both us and you. You can request to:

extend the term of your loan and reduce each repayment
postpone or change the dates repayments are due
extend the term and postpone, for a specific period, the dates repayments are due

We might ask you to provide evidence about your unforeseen event. This might include:

medical certificates
redundancy letter
separation agreement
any other document we request to support your application.

Once received, we’ll contact you within five working days to discuss your circumstances. Please read the government guidelines on hardship if you’d like more information.

Payment waivers

AFD offers two waiver products, which we have summarised below. These summaries do not replace the waiver terms and conditions. Always refer to your waiver documents in full.

AFD Lifestyle Waiver

Optional cover provided by us to help if you are unable to make loan repayments due to death, terminal illness, accident or sickness, redundancy or bankruptcy. Some of the key benefits of this policy (subject to relevant exclusions) are:

Redundancy benefit for up to 12 months or $10,000 maximum
Full repayment of your loan in the event of your untimely death
Accident & sickness cover to a maximum of $5,000
Full repayment of your loan if diagnosed with a terminal illness
Helps protect your credit rating

AFD Retail Waiver

If your vehicle is involved in an accident and written off, your insurance company will pay the value of the vehicle towards your remaining loan balance. The insurance pay-out may be lower than the balance remaining on the loan. An AFD Retail Waiver can help you get back on the road by covering the difference between the insurance pay-out and the loan balance, so you can start fresh. The AFD Retail Waiver is a form of guaranteed asset protection product – see above for further details.

Insurance

There are many different products available in the market to help cover you for different things that may happen during the term of your Credit Contract. We’ve summarised a number of these products below.

Mechanical Breakdown Insurance

Mechanical Breakdown Insurance (MBI) can be taken out when you’re buying a used vehicle. MBI is designed to protect you against the costs that come with repairing unexpected mechanical faults, subject to relevant exclusions. When your car breaks down, an appropriate MBI policy can help you get vehicle parts repaired or replaced, so that you can get back on the road again.

Guaranteed Asset Protection

Guaranteed Asset Protection insurance (GAP) is an insurance cover offered to protect you against losses that may occur when your vehicle is confirmed as a total loss under a Comprehensive Vehicle Insurance policy and the claim payment is less than the outstanding loan amount you owe, subject to any relevant exclusions. Where applicable, GAP insurance pays the shortfall between your total loss claim payment and the balance outstanding on the original loan contract owed to the financier.

Lifestyle Protection Insurance

Lifestyle Protection Insurance covers you in case you have to stop work because of illness, an accident or redundancy, subject to relevant exclusions. It is designed to help protect your lifestyle by covering your financial commitments and expenses. You choose the level of cover and you can also include family members in the policy.

Credit Contract Indemnity Insurance and Payment Protection Insurance

Credit Contract Indemnity Insurance and Payment Protection Insurance are both designed to cover your loan repayments if you have to stop work because of illness, an accident or redundancy (subject to relevant exclusions). It also helps to protect your credit rating during times of unforeseen hardship.

In the case of Payment Protection Insurance, the policy cover options are generally specific to your source of income at the time of taking out the loan. In either case, the benefits are typically payable directly to the finance company.