Car and Personal Loans....

[minux]

Lying to an insurance company is just stupid. The form will ask if the car is under finance, say no then have an accident and go to claim and they find out you lied they will crucify you. Ask Norti the lengths insurance companies will go to so they can get out of a claim if they suspect anything.

My ex husbands father many years ago insured his van claiming he only used it for personal use, if you state business the premium is higher. Anyway he had an accident and submitted a claim. They suspected he used it for work. So they sent an employee to his work place (he was a fencing contractor) and asked the receptionist if Bill Blogs was around. She replied 'no' and then he said 'he still drives the white mitsubishi star wagon around?' Of course she replied innocently 'yes.' Had him.

By law, you only have to disclose if the car is financed under a secured agreement. When I bought my senator, I got a 10k loan to pay the balance, bank didnt record what for due to being unsecured, so i did not have to disclose it as being financed. As a matter of interest I asked my broker and the response I got was secured, you have to tell, unsecured, don't have to say a word as technically the car is not under finance. An unsecured loan is as good as cash.

I got a laugh at taking out a 7 year car loan though, seriously wtf? 12k, should be paid off at most in 3 years, any longer and its just a waste of money.

[Zeussy]

Lying to an insurance company is just stupid. The form will ask if the car is under finance, say no then have an accident and go to claim and they find out you lied they will crucify you. Ask Norti the lengths insurance companies will go to so they can get out of a claim if they suspect anything.

Who ever said anything about lying to an insurance company?? That IS stupid.. So is driving an unregisterable vehicle/defectable vehicle, as the insurance company will not hesitate to tell you to go jump - come claim time..

If you get a loan from any bank, unsecured, it can be used for anything, cars, bikes, a crazy weekend away with plenty of booze and hookers etc.. They don't give a toss. You don't need to tell your insurance company, as the loan wasn't FOR the car. In their eyes they just gave you a loan, and you happened to spend the money on a car. If that makes sense?

If you have a loan for a car - finance, then yes you would need to tell the insurance company its under finance.


To the OP If you can get your oldies to go on the insurance, with you as a registered driver, it MIGHT be cheaper. Although a V8, and an under 25yr old driver whether its in your name or your parents name is still going to cost a shit load, maybe try Shannons, but when I got a quote off them, they weren't exactly competitive.

With the loan idea, if you have a steady job, and have been working there for a while - as in the jobs not going to dissappear in 6 months, I'd say go for it, but don't pay much more/if any, than 10% p/a interest.

And to the people saying just save up the money, ehh, have you tried saving 12,000 +?? **** me, I saved up around three, and that took long enough. If I want something, I don't want to wait three or so years to save up, I want it now. And am willing to pay it off, with a bit extra on top - interest.

I had two loans, one for 15,000 for my car, (over 5 years, worked out to be roughly $150 a fortnight) I had it for 12 months, then got another loan of 10,000 for a dirt bike, mags, and random stuff like that, (over 4 years, roughly 110 a fortnight) so one week I was paying $150, then the next week $110, and so on.. Ended up paying it off at the end of my apprenticeship, with my holiday pay/saved up RDO's etc, and NEVER regretted doing it..

So if you can definatley pay it, its not that bad an idea, but I wouldn't even think about going for a loan with out a permanent - secure job.. Thats just suicide..

[Zeussy]

I got a laugh at taking out a 7 year car loan though, seriously wtf? 12k, should be paid off at most in 3 years, any longer and its just a waste of money.

^^^ Didnt think I'd say this, but -- AGREED, he speaks the truth..

[Disturbed_vegeta]

i thought abbout getting a loan for a gsxr1000...was getting it for around 6k so i was cheering(its a 04 model with mild mods) so if worse came to worse i could sell it and pay the loan off...but ended up just using my dads bike insted....oh but my ex got a 13g loan to buy a gx impreza(its a shit box but she loves it) and has been paying it off over the last 2 years....now she got the loan extended by 15g and went to tailand and got a boob job...so now she owes around 35 she recons with interest ect. Btw shes a bit of a dumbass....but meh...shes got massive norks now so im happy so long as i get to play with them ^_^.

[danja]

Personally I think it's ridiculous to take out a loan to purchase a rapidly depreciating asset which don't make you any money.

Putting things in perspective, you have a car, so it's not something you NEED to get by, you just want it. You say you're getting a job, well then why not just save? V8's are getting cheaper every day, and if you take out a loan you'll just end up paying more than you have to, simply because you're impatient. You could spend $15k on a $12k loan, and end up with just a car, or you could save, and get the car for $10k, and have $5k to spend on all the mods you're inevitably going to want. There's no shortage of V8's out there, trust me.

Also remember to factor in rego and insurance into whatever decision you make. If you do get a car loan, I'm sure you'll need comprehensive insurance on it. Don't underestimate the cost of that.

[J3zza]

Lying to an insurance company is just stupid. The form will ask if the car is under finance,

the bank actually told me that if you have an unsecured loan , you dont have too tell the insurance company that its financed

[J3zza]

I got a laugh at taking out a 7 year car loan though, seriously wtf? 12k, should be paid off at most in 3 years, any longer and its just a waste of money.

Well i wanna have a life and not stay at home every weekend , ill take as long as I want !!

[Jesterarts]

Persoanlly, I'm not a fan of loans for cars. But I'm one of those people who can save fairly easily and am willing to wait it out.

Every car I've owned I saved for and paid cash.

Plus interest on car loans it mental.

At the moment I'm saving for a house deposit and car. Though I'm just going to do a bigger loan on the house and pay cash for the car.

Better interest rates on a home loan than a car loan. Plus I know I wouldn't be able to justify modifying a car that I'm taken a loan out on.

Modifying a car the bank owns, just doesn't sit right with me.

But this is all my my opinion and my mind set, everyone is different.

[TheForgotten]

Modifying a car the bank owns, just doesn't sit right with me.

not to mention if you default on payments you lose the car plus the mods.....

i know with my loan there was fine print in the contract, ANY mods (outside replacing worn parts with factory or equivalent aftermarket items) required written permission from financier.

if you do decide to go with a loan no matter when you sign the dotted line, read and understand ALL the fine print before you even ask for a pen. if they let you, take it home a go over it 100 times. i wish i had, but ultimately my nose wasn't out of joint by the end

[Cobez]

Personally I think it's ridiculous to take out a loan to purchase a rapidly depreciating asset which don't make you any money.

Putting things in perspective, you have a car, so it's not something you NEED to get by, you just want it. You say you're getting a job, well then why not just save? V8's are getting cheaper every day, and if you take out a loan you'll just end up paying more than you have to, simply because you're impatient. You could spend $15k on a $12k loan, and end up with just a car, or you could save, and get the car for $10k, and have $5k to spend on all the mods you're inevitably going to want. There's no shortage of V8's out there, trust me.

Also remember to factor in rego and insurance into whatever decision you make. If you do get a car loan, I'm sure you'll need comprehensive insurance on it. Don't underestimate the cost of that.

First time ever i think, but, agreed. With the way fuel prices are going, people are turning to smaller, and more fuel efficient cars. I'm gonna buy a daily 4 banger shit heap soon and keep the Senator and rebuild it all.

Better to own your car outright than have the bank own it. I regret getting the loan i got ages ago, and realised afterwards what a shit idea it was, so hammered off a $10,000 loan in 2 and a bit years and was done with it.

The only other loan i will end up getting is a home loan. But that's different, it's for a roof over mine and my familys head's. It's something i can do "mods" to, and price doesn't mean shit to me, because i LIVE in it.

Cars are shit with value appreciation. They never appreciate unless they are rare models, or classics. Houses, you almost never lose money on, as they don't depreciate all that much. Lucky i LOVE VS HSV's enough to not give a fryer tuck whether it loses money, as long as it's mine and i love driving it, i don't care.

[vlv8vic]

We got a 5 yr loan for the Captiva, but by paying half in cash and budgeting to pay the rest off in 12 months the interest is stuff all. A loan is fine if you really need one - when my car died we brought the plan forward to buy the new car which was the only reason i took a loan. Had my old car lasted another 6-12 months we'd have bought the Captiva (or whatever else was around at the time) outright.

If you have a working car forget a loan for another one. I agree with the others who said it seems silly taking 12k over 7 years. People like that are a bank's wetdream! If "having a life" is the excuse for taking so long then the person has clearly bitten off more than they can chew.

[Maci]

i took a 5 year loan only last year (through the IMB) with loan insurance (pays out if i die, if i loose my job they cover my repayments for 2 months etc.) for $10000 unsecured.

car - $4500
rims+tyres - $1600
Car Insurance - $1600
Loan Insurance - $1100 (and if i pay it off early i get a % back)
Remainder - back on loan

in 18 months i only have $4k left to pay off, and being 19, i get a great credit rating from the get go.
Im making double repayments and putting any extra cash straight onto it, and still enjoy life

[minux]

We got a 5 yr loan for the Captiva, but by paying half in cash and budgeting to pay the rest off in 12 months the interest is stuff all. A loan is fine if you really need one - when my car died we brought the plan forward to buy the new car which was the only reason i took a loan. Had my old car lasted another 6-12 months we'd have bought the Captiva (or whatever else was around at the time) outright.

If you have a working car forget a loan for another one. I agree with the others who said it seems silly taking 12k over 7 years. People like that are a bank's wetdream! If "having a life" is the excuse for taking so long then the person has clearly bitten off more than they can chew.

Agree with your first part, get a loan but pay it off fast(providing it isnt fixed rate), i paid off the 10k borrowed on the senator in 12 months. I can't justify having to fork out money for an asset that will never gain value(well not for at least 30+ years if it is ever going to increase). I prefer to have no life for 12 months then pay for something over 7 years lol...i just dont get that logic. I dont own cars long enough to warrant 7 years either .

i took a 5 year loan only last year (through the IMB) with loan insurance (pays out if i die, if i loose my job they cover my repayments for 2 months etc.) for $10000 unsecured.

car - $4500
rims+tyres - $1600
Car Insurance - $1600
Loan Insurance - $1100 (and if i pay it off early i get a % back)
Remainder - back on loan

in 18 months i only have $4k left to pay off, and being 19, i get a great credit rating from the get go.
Im making double repayments and putting any extra cash straight onto it, and still enjoy life

lol, you borrowed extra money just to pay it back on the loan?

Anyways, just so your aware, in Australia there is no such thing as a good credit rating, you either have no rating or a bad one. The only things recorded on your file are defaults/judgements and applications, occassionly a bank will list that you were approved for a loan for X amount, but I don't know anyone who has had this happen yet.

[Maci]

lol, you borrowed extra money just to pay it back on the loan?

yeah, i did. i didnt know how much the insurance would be, i didnt know exactly how much the rims/tyres would cost etc.
I already had everything i needed, why would i keep 2k in my account that i could just put towards getting my debt cleared and paying less interest sooner?

[J3zza]

"having a life" is the excuse for taking so long then the person has clearly bitten off more than they can chew.

Did you read my post mate? im not paying it off over 7 years i will be paying it with 4-5 years if not quicker as soon as my car sells im putting that straight on the loan !!

[vlv8vic]

Did you read my post mate? im not paying it off over 7 years i will be paying it with 4-5 years if not quicker as soon as my car sells im putting that straight on the loan !!

Nope, i was commenting generally that it was a stupid thing to do based on the discussion about such a condition.

Now i have read your post and i still think the same thing, 12k over 5 years? I know people earn varying amounts but if you have to stretch it even over 4 years you are still only having to put aside 3k per year. That's a measly $60 a week, or a couple of packs of 40's.....

If you live at home then that should be a piece of piss even for a new apprentice... if not then i stand by my suggestion that someone has bitten off more than they can chew in the first place. Anyway, i don't judge you by it - it's completely your choice... this is how lenders make their money and I'm sure they have a huge amount to love and respect for you.

[J3zza]

Nope, i was commenting generally that it was a stupid thing to do based on the discussion about such a condition.

Now i have read your post and i still think the same thing, 12k over 5 years? I know people earn varying amounts but if you have to stretch it even over 4 years you are still only having to put aside 3k per year. That's a measly $60 a week, or a couple of packs of 40's.....

If you live at home then that should be a piece of piss even for a new apprentice... if not then i stand by my suggestion that someone has bitten off more than they can chew in the first place. Anyway, i don't judge you by it - it's completely your choice... this is how lenders make their money and I'm sure they have a huge amount to love and respect for you.

I live at home pay board , earn shit , so im gonna hammer it as much as I can but im trying to say im not just gonna sit at home and do nothing

[JC_VE6]

another idea you can use which is a bit more involved is this.
First you will need a credit card and a good credit rating.
If you buy the car using your credit card you can do a balance transfer to another card at a low interest rate.
Ive thought about doing this, but have decided i need to save 6k first.
Citibank have a platinum credit card which offers a 4.9%pa rate on Balance transfers for the life of repayment. The drawback is... the card cost $200pa, and will prob have a limit of only 8k-10k, so you would still have a little bit to handle on your own.
So if you could save say 5k, then use it to buy the car with the other 7k on the credit card (at the rate of 10-20%) then do a transfer 0- you lock in a 4.9%pa rate until you pay it back.
This avoids getting pumped by personal loan interest rate between 10-15% and obviously the credit card rates of 10-20%.
A note of caution though - dont do too many balance transfer as banks etc get shitey about it as they are afraid you will bail on them and as such wont be a loyal customer... Low rates are how banks try and attract customers, so continually doing BT's will make them dubious on you and reluctant to loan in future.

Best of Luck with it all.

JC.

[TMM]

Personally I think it's ridiculous to take out a loan to purchase a rapidly depreciating asset which don't make you any money.

Agreed. Especially when the OP has a working car to begin with.

Also if you can't afford to insure it, you can't afford to buy it!

[Grennan]

Yeah I got a 15 grand loan for my car, I am a person who wanted to avoid a loan like the clap, but it couldnt be avoided as I needed a car and my current one was a money pit to keep running (and eventually it carked it).

I was willing to pay it off over 3 years however they would only give it to me for 6, however I have increased my payments so Im paying what I would be for 15,000 / 3 years.

If you dont NEED the car then I would avoid it if you could, if its one of those things where you just WANT a new car, well... you cant afford it if your worried about things like insurance.