loan

[alex2_s]

Hi y'all just wondering if people can advise the best thing to do in this situation.
Basically I'm looking at taking out a loan for a 2nd hand car, probably around $20k... I can qualify fine based on my income and time period etc, but.... the banks say I can't without a co borrower as I haven't had a loan before.

Problem is neither of my parents want to committ to being a co borrower and I'm not sure they would even qualify for the loan themselves baed on income etc either, which they need to do so to be a co borrower....

So am I just going to have to go without?

[Junny]

call around and ask..
if that fails just go to a car finance place.. might be higher interest but most of the contracts u can back out of it in a year by then you can switch over to a bank

[alex2_s]

thanks mate... do you mean like those GE Money etc?

[Cúl-Báire]

Hi y'all just wondering if people can advise the best thing to do in this situation.
Basically I'm looking at taking out a loan for a 2nd hand car, probably around $20k... I can qualify fine based on my income and time period etc, but.... the banks say I can't without a co borrower as I haven't had a loan before.

So am I just going to have to go without?

Sounds to me like you don't have much of a credit history (i.e history with loans, credit cards, etc...), I would go get yourself a credit card, buy some stuff and pay it straight back... A credit card will be seen as a liability when applying for a loan, but if you have a good payment history it will make it easier to get a loan / finance.

[alex2_s]

Nil credit history, never had a loan etc haha ... I didn't realise just having a credit card and not being naughty with it would be enough history for a loan....

[CSP]

You need proof of decent financial commitment. That's all. A good, regular savings history is what got me my first ever loan, but that was a home loan. I don't believe in financing a depreciating asset.

[Demonica]

I don't believe in financing a depreciating asset.

+2 for that. Save your money and buy a car outright, so much better than paying a ridiculous amount of interest on top of your loan and by the time you pay it off your car wont be worth anywhere near what you paid for it.

[Junny]

thanks mate... do you mean like those GE Money etc?

yeah one of those high interest buggers.....
like what other people said its to show the banks that you can pay them off....

+2 for that. Save your money and buy a car outright, so much better than paying a ridiculous amount of interest on top of your loan and by the time you pay it off your car wont be worth anywhere near what you paid for it.

true... usually you cant talk down the price as much on finance as if you have the cash in your hand

[Ace_VP]

Problem is in your situation someone will give you a loan but it will most likely be with a stupidly high interest rate.

You dont have to go without but you will need to wait. Start saving like crazy, open a separate savings account and deposit the fortnightly repayment in there every fortnight for a few months to show the bank that you can save it and repay it, then you also have a nice deposit to add to the loan which further impresses the bank. Dont rush getting into debt, i did it when i was 24 to start a business that we eventually closed and Im still paying for it. If i could have my time over I would do it differently.

Its better to go without for a little bit longer and save some cash, not only will it help you get a loan it will also lower the repayments because you have to loan less.

[Zeussy]

(Aparaently) You can't get a 'good' credit rating, its more the fact that you don't have any defaults against your name. Like its not on your record anywhere that "this person is a good person to lend money too..."

Seening as how you're in Newcastle, go and check out Companion Credit Union. They were the best we found around, cheapest interest rate, with minimal fee's aswell.
My girlfriend just borrowed $15,000 off them at 8.71% interest rate, with only one fee ever, $150 application/approval fee (no monthly fee's).
While still being able to pay it out early with no penaltys or fee's.
Interest calculated daily, charged monthly. So, if you pay it out in a week, you pay only a weeks interest, not the whole 4 years worth ontop of the principle loan amount.

My girlfriend went for a GE money finance card a little while back, but got knocked back because she didn't have any credit history. (had $1500, needed another $1000, for a laptop, the one I'm typing on! ) Saved up and payed cash for it the week after...
Her mother was going to go guarantor for the loan, but when we asked about it, we were told she didn't need it.

Anyway, enough of our life story Make sue you REALLY want to do it (get a loan) Before you go signing up for anything.


Don't listen to the people that say "I wouldn't finance a depreciating asset..." blah blah blahhhhh. Thats nice, the O/P didn't ask if you would, from what I read from the first post, he wants advice on how to go about it.
I've done it a few times, payed them all off early, and I'm doing just fine. At the time I was 20 with $25,000 in debt, (two loans, one for a car, and one for a bike and mags etc...)
You just have to decide if its the way you want to go about it, I can't save for shit, but will pay my debts off before wasting any money I do have, so inturn it forced me not to piss my money up the wall..

[Jecs]

i went to a truck finance place and said give me money, they said 'sign here' then went to HSV and said give me a maloo they said 'sign here'


not actually how it happen, but felt like was in and out and driving a maloo in the same day lol

[CSP]

My girlfriend went for a GE money finance card a little while back, but got knocked back because she didn't have any credit history. (had $1500, needed another $1000, for a laptop, the one I'm typing on! ) Saved up and payed cash for it the week after...

Are people these days really of the impression they need everything NOW NOW NOW??? Jesus!!!

Her mother was going to go guarantor for the loan, but when we asked about it, we were told she didn't need it.

I suppose with dumb parents, anything is possible. I shouldn't really be surprised.

[Zeussy]

Are people these days really of the impression they need everything NOW NOW NOW??? Jesus!!!

Yes... Basically, who thinks "ohh I might want a new car in 3 years time, I might start saving now for it..."

I suppose with dumb parents, anything is possible. I shouldn't really be surprised.

So, because someone has a different opinion to you, that automatically makes them stupid?
Can see why you got banned before...

[stocky]

Yes... Basically, who thinks "ohh I might want a new car in 3 years time, I might start saving now for it..."

Plenty of people. I've got years of savings behind me and never plan on getting a loan, especially for a car. Only loan I would get is a home loan. I was going to blow all my savings on a VY SS, but changed my mind because it was much smarter to put that money towards a house instead. This is much more important than spending thousands + interest just to get a new car when there is really no point, other than for the sake of having it.

[Zeussy]

Plenty of people. I've got years of savings behind me and never plan on getting a loan, especially for a car. Only loan I would get is a home loan. I was going to blow all my savings on a VY SS, but changed my mind because it was much smarter to put that money towards a house instead. This is much more important than spending thousands + interest just to get a new car when there is really no point, other than for the sake of having it.

Hahaha, well good for you then.

There are more points to having a new(er) car "other than for the sake of having it"
Insurance costs are less = safer car,
Maintanence costs are lower,
Reliability, knowing that the car will be waiting when you need it, not sitting in the mechanics shop being repaired...

Just to name a few.

[stocky]

Hahaha, well good for you then.

There are more points to having a new(er) car "other than for the sake of having it"
Insurance costs are less = safer car,
Maintanence costs are lower,
Reliability, knowing that the car will be waiting when you need it, not sitting in the mechanics shop being repaired...

Just to name a few.

I would disagree on all those points really. Compare my VR to the VY i wanted.

Insurance would've been a lot higher. I pay $500 compared to the 1500+ for the VY.
Maintenance is lower for the VR. I can also do all work myself without having to worry about warranties, or dealers doing work for me, and probably not doing it right in the first place. I can do all work yself, without having to worry about any annoying safety features getting in the way, or taking it into holden whenever some service message pops up on the screen.
Reliability. Holden 5L is a reliable engine, and the drivetrain hasn't changed much up until the VE. Any problems I have in one, I would probably encounter in the newer car anyway. My car has never needed to go to a mechanics. I've also seen plenty of newer engines, mainly alloytecs, that are getting tired around 150,000km. I am confident my engine will still be going just as strong after 300,000km.
If you want to talk about safety, I would bet that my car could stop quicker than a stock braked VT-VZ, and the only thing I don't have is airbags, which doesn't really bother me, and can be found in up spec models anyway. Not to mention the blind spots on some new cars are just horrible.
Performance wouldnt be much different either. I can get my car to 100 quicker than 6 seconds, which is quick enough for me, and having a similar suspension setup to later models, isn't much different around the corners either.
So on those points, I didn't see the point in spending an extra 15 grand just for a few creature comforts.

[Zeussy]

I would disagree on all those points really. Compare my VR to the VY i wanted.

Insurance would've been a lot higher. I pay $500 compared to the 1500+ for the VY.
Maintenance is lower for the VR. I can also do all work myself without having to worry about warranties, or dealers doing work for me, and probably not doing it right in the first place. I can do all work yself, without having to worry about any annoying safety features getting in the way, or taking it into holden whenever some service message pops up on the screen.
Reliability. Holden 5L is a reliable engine, and the drivetrain hasn't changed much up until the VE. Any problems I have in one, I would probably encounter in the newer car anyway. My car has never needed to go to a mechanics. I've also seen plenty of newer engines, mainly alloytecs, that are getting tired around 150,000km. I am confident my engine will still be going just as strong after 300,000km.
If you want to talk about safety, I would bet that my car could stop quicker than a stock braked VT-VZ, and the only thing I don't have is airbags, which doesn't really bother me, and can be found in up spec models anyway. Not to mention the blind spots on some new cars are just horrible.
Performance wouldnt be much different either. I can get my car to 100 quicker than 6 seconds, which is quick enough for me, and having a similar suspension setup to later models, isn't much different around the corners either.
So on those points, I didn't see the point in spending an extra 15 grand just for a few creature comforts.

Well, again, good for you,

Maybe i should've written "in our case" at the start of my last post.
For my girlfriend to insure a 6 year old car worth 6-8000 (an Astra) is $800 a year more than what she's paying now, for a car double the price, but new. (2010 Barina)

I'm glad you didn't waste all those years worth of your hard earned and saved coin.

I don't really care much how your VR is sooo much better than the VY 'SS' you were looking at, at the time. To me, its all irrelevent to the O/P and is just diverting away from the original topic.

If all the Alloytecs that you have seen are getting tired around the 150,xxxkms mark, then maybe it reinforces my point that a new(er) car IS better, because you know the service history and driving style that the car has been exposed to.

I am a Plant Mechanic, and I never take a car to a dealership for the servicing/repairs of anything.

But for my girlfriend it is not like she will be paying a lot for services if she chooses to get Holden to do the servicing, she'd be lucky to do 15,000kms a year, so one service a year, for 3 years (to get the '6 year extended warranty') would hardly break the bank. Its a brand new car anything that breaks is warranty, and servicing costs will be minimal as well, it wouldn't need 'expensive' items like a timing belt, CV joints, or probably even spark plugs.

[stocky]

I don't really care much how your VR is sooo much better than the VY 'SS' you were looking at, at the time. To me, its all irrelevent to the O/P and is just diverting away from the original topic.

I never said better. Of course a newer car will be better in some ways, but I can't justify the cost. If you're going to talk with an attitude like that then there is no point wasting my time on you. I honestly couldn't give a shit about your girlfriend or her barina either.

[minux]

My girlfriend went for a GE money finance card a little while back, but got knocked back because she didn't have any credit history. (had $1500, needed another $1000, for a laptop, the one I'm typing on! ) Saved up and payed cash for it the week after...
Her mother was going to go guarantor for the loan, but when we asked about it, we were told she didn't need it.

Your girlfriend either a. Has bad credit or b. does not make enough income/has no savings.

There is no such things as a credit history, the only things recorded on your history are bad credit defaults and applications, lenders only see bad history(not details but alerts). If you have credit, no company knows unless you tell them.

OP, banks will refuse based on criteria, ask them what it will take for you to get a loan. Otherwise, just go to a dealer and use their on site merchants. Bigger dealers generally have more pull, so best to use these.

Yes... Basically, who thinks "ohh I might want a new car in 3 years time, I might start saving now for it..."

err, most people I know always think ahead. Buying a car for me is no different than buying one of our houses. We plan in advance and save up to the date we are buying. Relying on finance gets you into bad situations unless you have good amounts of disposable income or large savings you can shift around.

I would disagree on all those points really. Compare my VR to the VY i wanted.

Insurance would've been a lot higher. I pay $500 compared to the 1500+ for the VY.
Maintenance is lower for the VR. I can also do all work myself without having to worry about warranties, or dealers doing work for me, and probably not doing it right in the first place. I can do all work yself, without having to worry about any annoying safety features getting in the way, or taking it into holden whenever some service message pops up on the screen.
Reliability. Holden 5L is a reliable engine, and the drivetrain hasn't changed much up until the VE. Any problems I have in one, I would probably encounter in the newer car anyway. My car has never needed to go to a mechanics. I've also seen plenty of newer engines, mainly alloytecs, that are getting tired around 150,000km. I am confident my engine will still be going just as strong after 300,000km.
If you want to talk about safety, I would bet that my car could stop quicker than a stock braked VT-VZ, and the only thing I don't have is airbags, which doesn't really bother me, and can be found in up spec models anyway. Not to mention the blind spots on some new cars are just horrible.
Performance wouldnt be much different either. I can get my car to 100 quicker than 6 seconds, which is quick enough for me, and having a similar suspension setup to later models, isn't much different around the corners either.
So on those points, I didn't see the point in spending an extra 15 grand just for a few creature comforts.

$500 for a VR Senator? At your age? Who is your insurer? Even my broker could not compete with that.

[Zeussy]

I never said better. Of course a newer car will be better in some ways, but I can't justify the cost. If you're going to talk with an attitude like that then there is no point wasting my time on you. I honestly couldn't give a shit about your girlfriend or her barina either.

Hahaha, now who has the attitude...

Your girlfriend either a. Has bad credit or b. does not make enough income/has no savings.

Probably a bit of B. = no savings, and C. has not held a full time position for XX amount of time.

There is no such things as a credit history, the only things recorded on your history are bad credit defaults and applications, lenders only see bad history(not details but alerts). If you have credit, no company knows unless you tell them.

Thats what I was trying to say in my first post..

err, most people I know always think ahead. Buying a car for me is no different than buying one of our houses. We plan in advance and save up to the date we are buying. Relying on finance gets you into bad situations unless you have good amounts of disposable income or large savings you can shift around.

I mustn't be one of those people, nor the O/P seeing as how he was asking about loans.
I think its more an old school way of thinking to save up, there seems to be a lot of the younger generation getting loans to buy cars, instead of saving away for years. Where as my Dad has the opinion to save up and buy, instead of getting loans...

For my girlfriend, living rent free with me, working permanent part time, at full time hours means she has a fair bit of disposable income, so (for her) it works out nicely.

[stocky]

$500 for a VR Senator? At your age? Who is your insurer? Even my broker could not compete with that.

That's third party. Didn't see the need to get full comp on an old car. They're cheap enough to fix. Even full comp was less than 1,000 if I picked a higher excess, which is still a lot cheaper than a VY would cost me at my age. Third party on a VY was going to be over 1500.

What was strange though is a HSV was cheaper to insure with RACV than an ordinary executive. It must be because there are a lower number of HSV's on the road, resulting in lower statistics.

[walesy]

I can't save for shit, but will pay my debts off before wasting any money I do have, so inturn it forced me not to piss my money up the wall..

same story as me, ive only got $800 left to pay off my caprice which will be paid off in 2 weeks, im $13,500 in front and paid it off 2 years early, but i also agree with the people that say it wont be worth anything near what you paid for it once its paid off, my 02 caprice is nowhere near the 25k i paid for it 3 years ago, but i still love it just as much

[alex2_s]

haha thanks for the input guys....

yes i have weighed up the options and i am keen to go ahead still haha. thanks Zeussy i will suss out Companion....

[Grennan]

Loans are great, if you can pay it off quickly. I took out a 15 grand loan for my VX because I needed a car. I was borrowing one and was gimped by public transport with the hours I work. Ive had my car just on a year now and have paid more than half of it off (they wanted it paid off over 5). If youre committed to get rid of the debt as fast as you can, they arent bad. They become bad when you have them for 5 years and you car drops 5 grand in price.

[Bravotwozero]

lol@ all the JC financial gurus. If depreciation was such an issue you certainly wouldn't be buying a Commodore!