Car Loans

[White Ghost]

Want to upgrade my VE Sv6 to an Ss, Ss-v or Clubsport in the new year.

What's the best deal going round? Rates etc.

Am in Brisbane.

[belly]

Lenders have rates starting from the low 7's % at the moment. Various factors will influence the final rate though. Business use or Commercial loans are normally about 1% lower then personal or Consumer loans. Also depending on factors such as: The amount you are borrowing versus the Finance Companies "Book Value" as a percentage can influence their rate. Also they "book" you as a client risk also. Home buyer vs boarder or renter will score you better, longer term in your current job etc. It's basically rate for risk. Almost all lenders will have an early termination penalty in their loans, whcih normally works out to be around $10 - $12 per month for any month early you pay your loan out, but don't forget that you will also be rebated on your interest as you will only pay interest up until the day you pay your loan out, so this could far outweigh your penalty fee. Some companies have no penalty fee, but ther interest rate can be a little higher than the likes of the one I have used above (rate quoted above is from their current Matrix). I haven't mentioned names as I was not sure if I could. Yes, obviously I am a Finance Broker and have access to over 20 different lenders. If you need any more info, drop me a line, I run a branch in Melbourne of a national brokerage business, which has offices in every state, and heaps in QLD.
Regards
Chris

[White Ghost]

Mate,

Would like to find out more.

Wife and I are both looking to upgrade.

I have been employed full time for 4 yrs and wife over 10yrs full time.

We own our home with no mortgage.

Where on the northside of Brisbane is there an office?

Thanks

Cannot send PM

[Ridin-High]

White Ghost here are your options.

- Secured loan against the car: probably 10-15% interest rate, establishment fee (probly $150+, monthly fee ($10-12)

- Line of credit against house and draw down to fund car purchase: Seeing you said their is no mortgage against your house you would probably have to register one (few hundred $$, rates probably 7-8%, their will probably also be a monthly fee because the amount is so low and a mortgage discharge fee when you pay off the loan? (don't know the last point never paid off a home loan before)


Personally for me, if i required to burrow for a car i'd use the line of credit attached to my house and pay it down fast as possible

Regards,

RH

[nobraino]

Secured loan against the car: probably 10-15% interest rate, establishment fee (probly $150+, monthly fee ($10-12)

You should be able to get a secured car loan (over $20,000) for less than 9% p.a. Try this site (http://www.infochoice.com.au/personal-loans/loan-interest-rates.aspx) for some ideas, but try a few local credit unions. I recently funded my new car with a credit union, paying 8.7% fixed for 5 years, no monthly fees, redraw available, extra repayments etc. Est. fee was $120. Have already knocked nearly 10 grand off in 4 months (sold my old car) If you go over the 5 years, variable rate is around 10.??%, so not the end of the world if you need to stretch it out.

[UTESRULE]

You should be able to get a secured car loan (over $20,000) for less than 9% p.a. Try this site (http://www.infochoice.com.au/personal-loans/loan-interest-rates.aspx) for some ideas, but try a few local credit unions. I recently funded my new car with a credit union, paying 8.7% fixed for 5 years, no monthly fees, redraw available, extra repayments etc. Est. fee was $120. Have already knocked nearly 10 grand off in 4 months (sold my old car) If you go over the 5 years, variable rate is around 10.??%, so not the end of the world if you need to stretch it out.

thats not bad was it an easy step on applying for the loan

[Hos]

I have done things the same way as Nobraino in the past. Savings and loanscredit union are easy to deal with, fixed terms with fixed interest rates, no fees, no early payout penalty etc.

Probably easier than offsetting against your house, depends on how much you need for both yours and your partners new cars.

[nobraino]

That's not bad was it an easy step on applying for the loan?

I had to drop my credit card limits (they were ridiculously high anyway), apart from that easy as. They assigned one person to handle my application, and kept me up to date on the phone during the process. Only time I had to go in there was to pick up the cheque for the dealer. Might be a bit more legwork if you wanted to buy privately (lack of purchase invoice etc). I found it nice to be able to go into the dealer with the finance already pre-approved, no trade-in needed etc. Saves a lot of hassle.

[White Ghost]

Thanks for all the info.

Am looking at Savings & Loans.

Under 9%, 5yr fixed, $195 application fee and NO monthly fees.

Current lender won't budge from 12% and the monthly fees.

Instead of getting 2 cars, the wife can have mine and I get the new/near new one and consolidate.

[SS_ute]

I know im prob going to get flamed for this but why dont you just hold out and save?

You already have a VE why not wait 12 months save, trade the sv6 in and own it outright?

I cant understand taking out a loan for a car, bike, credit etc.

[tmob]

I know im prob going to get flamed for this but why dont you just hold out and save?

You already have a VE why not wait 12 months save, trade the sv6 in and own it outright?

I cant understand taking out a loan for a car, bike, credit etc.

may i :flamin:?
The OP is looking at buying a new ss/ssv/clubby.. so we're talking $45-60k... Less tradein of $15k (? guessing), therefore would need savings of $30-45k to buy the car outright. That is quite a substantial amount of money to 'save', and also means waiting another year or so to step into a new car.

Without a doubt, buying the car outright is a better move financially in the long run, but where do you draw the line between sacrificing luxury/lifestyle, for financial gain.

The alternative is to finance the car, and be driving it immediately.
Yes, its going to cost you more financially, but you get the gain in pleasure & lifetyle straight away...

White Ghost, depending on how many km's you do per year, maybe even look at a novated lease or similar, if its an option with your employer. Part of the payments can be made as pre-tax salary sacrifice, which may in turn lead to a tax saving that will offset part of the interest.