Finance advice
Been looking for cars with my son this w/end and he has found what he wants .What i want is some advise on finance . The bank can give him a loan at 13.5%. The car yard can give him 9.6% fixed for the term of the loan through G.M.A.C finance co . Both have a penalty for early payout of 11 dollars per month . Just wondering why there is a big difference in interest rates ,and if there is a catch .
there are three types of people in the world , those who can count and those who can't
we like the bun
probably stricter terms for GMAC loan, in aspects other than early payment, e.g. late payment.
Banned
If you have to settle for any sort of loan for a car, never get a loan with penalties for early payout.
<---Brad Quaid = internet stalker
Save his arse off. Get $1000 together and buy a reliable 'bomb'. Best advice i can give.
Donating Member
^^^ agreed, buy him a piece of crap to get him started with, if he nudges poles or stuff like that it doesn't matter.
We got rep back, yaaay!
My dad got me a personal loan for my car when i was 17. loan was for about $4500 and i pay off $100 a month minimum. I wanted a half decent car because if i just got an old bomb i wouldnt have any respect for it and prob end up doing something stupid and crashing it. Also it will be hard finding a $1000 car that is reliable. My car costed $3000 3 years ago and the only money apart from normal maintenance ive spent on it is for a waterpump which went, and that only costed $40. And whats $100 a month for a good reliable car? not much. And later on when he gets a bit more money he can pay the rest off in bulk if you find some1 without a early payment fee
Australia. Love it or leave it
Totally agreed.. my old man handed me down the HZ Kingswood when I got my licence, and it was the best fun I ever had. It nudged poles, gates and fences, towed a couple of four wheel drives twice it's size, and was cheap as chips to run.Originally Posted by vlv8vic
But if you have to go for any finance, i'd take the bank loan. Not for any other reason but that I trust them marginally more.
Most bank loans currently have an interest rate of about 13.5%. Thats typical with whats been happening with interest rates in the past year. Two years ago I got a loan with a rate of 11.2%. Even a 'small' loan at 13.5% isn't too bad but always make sure there's no penalties for early payout. Some simple online research goes a long way.
Car theives should be treated just like horse theives and cattle rustlers in the days of the wild west... Hang them!
Don't be stupid. Power isn't measured by the size of your tacho
Tells it like it is.
How many months is the GMAC finance over (and the other one)? Otherwise look at the fine print. It may not be bad, you just need to read and understand the contract.
Reaper
Site Administrator
Try Personal Loans to compare different loans and a whole lot more if your still want to head down the loan avenue.
I went through Savings & Loans for the VY and didn't have any problems, at the time and by the look of it now they are very much the best out there.
It's very rewarding having no debt over your head thoughNext time round I will be saving the extra cash and buying something outright as the right time, those VE's aren't coming down quick enough though
Thats what he done when he got his license , but now his reliable bomb that he has been driving around in for the last 18 months is starting to become unreliable thats why he wants a newer car .
there are three types of people in the world , those who can count and those who can't
TURN MY HEADPHONES UP
get a personal loan, that way if something goes wrong they don't just take the car. the car yard might be hire purchase, get both the bank and the car yard to calculate the total cost in the end to make sure you get the cheapest one. 9.6% may seem like less but in the end if it's hire purchase it will cost you much more (i forgot the technicalities of it, something like you pay 9.6% of the original amount every year, rather than of 9.6% of the remaining amount every year...)
So Wet For You!
As above, get a personal loan. Rather than a loan for a car.
Mine is thought a credit union, and has no fee's other than the admin fee etc (About 200 when i started the loan). My rate is 12.34 fixed, not sure if thats good or not, but i wont be paying the full amount of interest anyway.
This way, i pay MORE than what i need to a month, currently i'm about 2 months ahead from doing it this way. So if anything should happen unexpectedly, i have abit of time up my sleeve so to speak.
I had my previous loan with BankSA, and you could only pay an extra 5000 for the life of the loan, after that they impose penalties (just waited til i got to 5000 and payed the loan out)
-------------------------------------------------------------------------------------------
* * [] [VP CALAIS INTERNATIONAL] [EFI 304] [T56] [] * *
* * [] [VP BERLINA LX WAGON] [EFI 304] [T5] [] * *
-------------------------------------------------------------------------------------------
STEALTHY's Shed Clean Out! Buy my ****
Exhaust Guru
Everyone is always doom and gloom with car loans. If your son can afford the repayments, go for it. It's his money, his car. A financed car isn't a bad thing. See if you can get the car yard to negotiate a fixed term early payout fee for maybe 1/2 of the loan period, that way at least they get some interest.
Our finance here is through Esanda, (not me, my dealership), they have a penalty for the first 12 months, stops the sales guys from writing up finance for the commission, then paying it out.
I would be looking around at a few more options on finance, but the GMAC one isn't too bad. Anything under 10% is reasonable. Our standard rate is 12.5%.
i would go get the bank loan that dont have the early payout penaltys ... and also with the finance company u will have to be comprehnsivly insured throughout the loan period and if u miss a few payments on the loanj they will just take the car back and leave u with the remainder to pay off...
also how much are u borrowing coz 9.7 seams very low
wrecking VL COMMODORE 5 speed
FOR SALE : supra 5 speed box suite holden v8 $800
Ecotech Power
Agreed, my sister has a car loan through a finance company and they are pretty bad. If she misses one payment they ring her and tell her they come and take the car and are pretty harsh, even if the payment is recieved due to their processing time. Her interest isnt to bad, but they like to add all these hidden charges, and she HAS to go through their insurance company which is something like 80 bux a month on top of her repayments. She has got herself into a huge problem with this loan, caus the car isnt even worth the money she payed for it, and if she pays it out shes still got to pay all the interested and charges for the full term of the contract.
Go through a bank, less hassle and more freedom.
Exhaust Guru
The thing with repo's though is that the person who has the loan tends to ignore the correspondence until it is too late to do anything. The last thing a financier wants is for someone to renege on a loan. It's in their best interest to keep getting payments. Even a personal loan from a bank will need some form of security, usually the car, and it still needs to be insured, only people with a very good credit record or a house can generally get unsecured loans.
hey all.
Car finance is my life.. so i thought i'd put my 2c in.
"Never finance if they have payout fees"
EVERY lender bar a few dodgy ones have payout fees. Most are around $600, then pro rata'd down throughout the loan. If you pay the loan out in half the time your fee is $300.. this is nothing compared to the amount of interest you will save.
"Get a personal loan instead"
Personal loans cost a fortune more, and generally need something shown as security, not nesessarily held as security eg. an asset backed borrower.
"RATES"
This is where people get stung.. everybody wants the cheapest rate..
WRONG... this is what does my head in.. people need it get into their heads CHEAPERS RATES DO NO MEAN CHEAPEST REPAYMENT NOR BEST PACKAGE.
Anyway.. if anybody has any questions, feel free to ask.
Exhaust Guru
^^ Agreed. The cheaper the rate, generally the higher the penalty or the longer the term. Also establishment fees have to be factored in and loan insurance.
If the price of the car is $10k, this is not the amount you will be borrowing.
depends how much u borrow i mean if its for like 10 to 20k u can usualy get it unsecured without having a great credit rating
wrecking VL COMMODORE 5 speed
FOR SALE : supra 5 speed box suite holden v8 $800
OK , my son got a loan for his car theough G.M.A.C . The interest rate is 9.5% fixed for the term of the loan . He only has to pay $4000 interest compaired to 13.5% from the bank . He bought himself a VY Commodore. The dealer threw in 5 free services , Re tinted the windows cos we were not happy with it and paid the transfer and stamp duty. Will have to post some pics of it if he ever comes home lol
there are three types of people in the world , those who can count and those who can't
thats bull**** mate, personal loans dont cost a fortune, nor do they "generally need something shown as security". alot of lenders will gladly throw you $5-$6k in a heartbeat if you have proof of income.
a personal loan also doesnt require you to have comprehensive car insurance on the financed car, nor does it create a situation where the car can be repo'd if you fall behind on repayments.
Quagmire: My fellow Americans, I have not been entirely truthful with you. I did gagoogidy that girl. I gashmoygadied her gaflavity with my googus. And I am sorry.
(Basing figures on $10k car)
Suncorp: Car Loan: $53/pw
Suncorp: Unsecured: $59 p/w
ANZ Car Loan: $52/pw
ANZ Unsecured: $58/pw
2 easy and small examples they ARE more expensive..
And the whole repo thing....
if you can't afford the repayments then you shouldn't get the loan..
i'd much rather a repo, than a court judgement on my CRA file...
Exhaust Guru
A repo comes up everytime you go for finance. Even credit card applications come up. Every time you apply for credit, whether it is approved or not is recorded.
When I was married to my first wife, I bought a car. Made the mistake (in hindsight) of registering it in her name, but taking the loan out in mine. When we separated, the car was legally hers, but I was responsible for the repayments. Esanda advised me to do a "Voluntary Reposession" where I tell them to go and get the car. Turns out that they can't get the car while it is on private property, so I ring the towing company and say "Right, it's on the verge now, go and get it". They turn up, the ex says no they can't have it and they drive away. Long story short, the ex waits until it is out of rego and then says they can come get it. In the mean time, I have 3 missed payments and a repo order on my CRA. It came up every time I applied for a loan, but once I explained the situation the bank was OK about it. Some financiers don't even ask, they just knock you back.
Posting Permissions
LinkBack URL
About LinkBacks
Reply With Quote
