to loan or not to loan?

[elmaso]

seeing as my cars going to cost WAY more than its worth to roadworthy, it gives me a good excuse to update as well!

so i was wondering is a small loan (say 3500-5000) a smart move?
i only make $500 p/w at the moment leaving me to save around 350ish a week (thats being REALLY tight with money) and was thinking of saving at least 1500-2000 before dedicating to any car.
i was looking at VT II- VX.
just looking for other opinions as to if its worth doing?

[IBLOWN]

Go for it. Its a good start to getting a credit rating. $5000 loan would only be around $50 per week.

[walesy]

As above its good to get a credit rating (as long as you keep it a good one) for when you want to buy a house, but for such a small loan most banks and credit unions will not give you a loan for that much they will tell you to get a credit card instead

also you would be surprised how cheap you can pick up a decent VT/X for these days, ive seen some tidy examples go for as low as $3500 for an auto v6

[elmaso]

yeah, i thought about the credit rating as well, once i get a car i should join the rest of Australia with a phone plan lol

but i'm having a hard time tracing down tidy VT/VX's for 5k and under.
stumbled across a bloody tidy VX S with 140XXX on the clock but not sure about $7000.

[walesy]

when you can pickup a VX SS for 8-9k i think 7k for an S pac is pushing it

[MikeCuzzy]

Only if you are doing it for the credit rating, probs not a good idea to start getting in debt. However, so long as your smart about it, you should be ok - the fact you made a thread shows you are giving it thought.

As fot the VT/VX just keep looking mate, there are plenty of good ones out there. Be aware for 5k it will most likely be a VT, VX's still can hold near on 6k.

[HamaTime™]

Most used car loans will be minimum of $5,000 plus.

Make sure you really understand the terms and conditions of the loan and discuss payment options and early/advanced amount payments with them. Because once you put your signature on that form, you basically have to pay the entire amount of interest.

I personally wouldn't do it, but I'm not a fan of loans for <$20,000 used cars. For many reasons.

[elmaso]

Most used car loans will be minimum of $5,000 plus.

Make sure you really understand the terms and conditions of the loan and discuss payment options and early/advanced amount payments with them. Because once you put your signature on that form, you basically have to pay the entire amount of interest.

I personally wouldn't do it, but I'm not a fan of loans for <$20,000 used cars. For many reasons.

i was making sure of all the variables of a loan before i even consider one, but i did overlook the early/advanced payment option, so thanks for that!

and i would love to go for a $20,000 car, but with P plate restrictions theres not much good things going around at that price lol

[Drawnnite]

i was making sure of all the variables of a loan before i even consider one, but i did overlook the early/advanced payment option, so thanks for that!

and i would love to go for a $20,000 car, but with P plate restrictions theres not much good things going around at that price lol

i love this second part.
Finally Someone Is Using Their Brains!!!!!
now if only most people could think in such ways =P

ok so anyway i went to a bank early this year and spoke to them about a loan...
i was also considering an upgrade. but meh.. id rather save that say $20,000 id spend on a car and put it towards an 8 aswell.
however back to the bank thing.
i think it was a secured personal loan... and it was possible to do it for up to 7 years. however i remember it being possible to pay it off asap.

pretty much it was suggested to me that if you can pay it off in equal amounts, and consistent in the repayments it looks good.
if you pay say $50 here. $300 there. $20.... etc it doesnt look quite as good. *hint for those getting a loan*

if you are really keen on updating then set a goal and stick to it.
i like how you want to save some beforehand. even if it means keeping this amount to always make repayments. its a good idea.
but in my opinion for such a small amount (being reasonable here. $5000 isnt exactly "high") i would just save and then pay in cash.

but goodluck no matter what choice you make

[greenacc]

The idea of taking a loan to get a credit rating is a little bogus to me, maybe that's what the banks want you to do, but just so they make more money from you along the way.
I have always followed a very basic strategy when it comes to money. Work hard, get paid, spend what you need and don't waste your money on stupid shit, save the rest. Over time the rest builds up. As it builds up you start earning interest on it and it grows faster and faster. I bought my first car for $1500 because thats all i could afford to spend at the time. It lasted close to 4 years then i buight my second car for $3300. By doing that you aren't paying interest on your loan on a car which is depreciating like a sinking stone and you can keep saving from the day after you buy it.
Why i tell you this is because the first time i ever applied for a loan was when i wanted to buy a house. So we had saved about 20% by then, which is easy when you live at home, save your money and don't buy shit. The Banks all said "sure no worries you're approved, how much do you want .... "
The fact that you earn 500 a week and can save 350 tells me you live at home yeh ?

[hustlin420]

I wouldn't get the loan for anything less then $15k. Buy a nice car that will last you for about $20-25k. Repayments will be around $360 per month and you have yourself a nice reliable comfortable car. If you don't wanna do this then i'd just fix what you have and save up.

[VS 5.0]

There is no such thing as a "Credit Rating"...well not a positive one anyway. The only things that might get recorded are arrears, defaults, writs etc as a negative Credit Rating.

If you have all your accounts, loans etc with one provider and conduct them well then it will reflect well on you as being a good customer but that is about all.

So if you are only going to take out a loan to get a Credit Rating then don't bother. If you want to take out a loan to improve your lot and are happy paying the interest to do so then go for it.

[Jaymz]

There is no such thing as a "Credit Rating"...well not a positive one anyway. The only things that might get recorded are arrears, defaults, writs etc as a negative Credit Rating.

If you have all your accounts, loans etc with one provider and conduct them well then it will reflect well on you as being a good customer but that is about all.

So if you are only going to take out a loan to get a Credit Rating then don't bother. If you want to take out a loan to improve your lot and are happy paying the interest to do so then go for it.

^^ This.

The only loan that i have taken out was for my house. I went through a mortgage brooker and went through the process, he said exactly the same thing. As long as you have a savings history (of money going into your account basically) you will have a clean credit rating. The whole naming of positive and negative rating makes it confusing. You either have a clean rating or a bad rating.

[VZ Thunder SS]

If you go ahead with a loan, smash off the loan as quick as possible. The less interest you pay the better. I got a loan for $25,000 last November, I now only owe $11,000 on the loan and hope to pay it off within 6 weeks. Credit rating is nothing, no rating is a good rating. If you think you really want that car then go for it, if you know within a year or 2 you'll want an upgrade, wait u til you can afford to buy / get a loan for the car you actually want..

My 2c but hey I'm only an 18 year old kid hah what do I know...

[minux]

Go for it. Its a good start to getting a credit rating. $5000 loan would only be around $50 per week.

As above its good to get a credit rating (as long as you keep it a good one) for when you want to buy a house, but for such a small loan most banks and credit unions will not give you a loan for that much they will tell you to get a credit card instead

also you would be surprised how cheap you can pick up a decent VT/X for these days, ive seen some tidy examples go for as low as $3500 for an auto v6

This is why you do not use forums for financial advice.

There is no such thing as a good credit rating, nor is there such thing as "getting" one.

Australia has a system where only defaults and applications (in which case application is for undisclosed amounts) are recorded, nothing more, nothing less.

Telling people to get a loan to help a credit rating is piss poor bad advice.

[elmaso]

well i wasn't interested in having a good credit rating, i just wanted a reliable car of my own to use, i'm bloody sick of walking and public transport lol ,and to have a small loan paid within a year.
if that adds any veritables to this.

[Drawnnite]

its a shame you werent thinking about this about 2 months earlier.

a nice black vs calais got sold =P


but in my opinion if you "need" a newer car and a loan is the only way for this, then yes do it.
so long as you know you can make all repayments then there shouldnt be a problem

but whats wrong with the current car?
or is it just bugging you?

[elmaso]

its a shame you werent thinking about this about 2 months earlier.

a nice black vs calais got sold =P


but in my opinion if you "need" a newer car and a loan is the only way for this, then yes do it.
so long as you know you can make all repayments then there shouldnt be a problem

but whats wrong with the current car?
or is it just bugging you?

'

current cars going to cost to much to get a RWC, well for a car worth less than $1000, i cant justify spending $2000 on fixing it.
and it just feels old and cheap, after using cars from the years 2000+ it just makes the VS feel very old, like the sound deadening has deteriorated and just doesn't seem as comfortable anymore. if that makes sense lol

[HamaTime™]

Buy my VS, $5k it's on gas...$25 and you go 300k's

No loan.

Problem solved.

haha

[elmaso]

Okay, a kicking an the old thread instead of making another, would a VX exec 250,000kms for 3500 be worth it? May seem like a silly question but don't have anyone to ask, their usual reply is "don't loan, blah blah just because we don't like them" lol a little odd but anyhoo...

Cheers in advanced.

EDIT: also a VS Calais for $2000 with 220,000 on the clock, dunno what I should go for though....

[Full Spectrum]

If you know you can afford to part with the money and are comfortable in your place of employment its truly up to you how much and far you can go.

A friend of mine bought a VX Exec 2 years ago for about the same. Not a bad car for him still drives. With km's of cars today its to be expected some higher than past age vs km's. Today people drive much more, not un normal to see a 2011 VE series 2 Sv6 with 55,000km. As long as you can see its had all that can be done to maintain the running of it - all should be fine. Many years ago i came across a travelling salesman in his VYII Acclaim Wagon. 2004 model had 380,000km. Anything it had wrong would be changed straight away brand new. And the worst thing it had was power steering pump. But other than that it had all the check-ups and was serviced every 10,000km. He said the car ran like clock work.

[greenacc]

The only thing wrong with a VX is its not too much better than a VS. Having said that its still a good 7 years or so newer, and you must already be familiar with the Ecotec engine so its still in your comfort zone. When upgrading your car i reckon jump as many models as possible, but as the important factor for you is cash its more about finding the best car you can afford. Just spend a while on carsales and make sure you can't get anything better for your money.

[elmaso]

Just a quick question how much does an average VT in Victoria sell for?
I've only see then for 5000+ (anything under doesn't seem to have a RWC)
I swear I'll have to stick with VS, every VT put there is priced bloody retarded.

[greenacc]

Whats wrong with your VS exactly other than sound deadening?

[elmaso]

Just to much to get roadworthy, and the feel of a VS just inst as good, if that makes sense? Lol