Car Finance

biomechanic · 28-09-2006, 04:57 PM

Hey guys

I have a question about car finance - I've applied online for a couple of loans with various banks recently, and all have been rejected. I've checked my credit file and I do have a couple of defaults, both of which were paid out a long time ago, one was a bill I had no idea about. I also have another commercial default, which has also been paid out and due to be erased next year.

Does anyone know of other reputable financial institutions that offer personal loans to people with "blemishes" such as myself, presumably at a higher interested rate?

Kryton · 28-09-2006, 05:47 PM

aussie car loans will do a Second Chance Finance for around 7.5% i think.
the catches are: you have to borrow at least $8000, the car has to be bought from a dealer (you may be able to get around this possibly??), the car can be no older than 1998, and you cant buy an grey import either. aussie built or aussie delivered only.
give them a try.

05MkIIFutura · 28-09-2006, 07:27 PM

Loans are a very expensive way to purchase a car - you should be looking at other options

Outbackjack · 28-09-2006, 07:32 PM

Quote:

Originally Posted by 05MkIIFutura

Loans are a very expensive way to purchase a car - you should be looking at other options

Like what??? Steal one??

dirt 01 · 28-09-2006, 07:47 PM

It doesnt really make much difference to get a loan. I've been doing some sums recently and figure the following :

I buy a car for $19500

Interest at 8% is 1560

So it costs you 1560 in interest for a years motoring with a car of this value.
If you paid cash, you could have had it in the bank and are losing 19500 @ 6.5% 1267.50, so it actual fact a loan is only costing you 292.50 plus any loan fees for a years motoring.

Thats $292.50 plus fees for a $19500 car.
If you are paying it off, the difference is a little more (but not too much).
In both cases it is depreciating by perhaps $5000 per year so makes no difference to get a loan. You are still losing this money, as well as losing the fuel money, reg insurance etc.

crusher · 28-09-2006, 09:56 PM

Im also looking at getting a loan and getting a newer car thats not gonna crap itself any time soon.

Has anyone had dealings with Ford Credit? Is it any good? Worthwhile? The salesman at the local dealer gave me some details and it sounded ok but i would like to know peoples personal experiences.

I know its going to be hard for me as im 18 have no credit history and at the moment only have part time work. Hopefully soon it will be full time but even so that wont make it much easier.

Any body have good experience with a personal/car loan through a bank?

And anybody have experience with an RAC car loan? They offer a good deal if you are a member.

Sorry for all the questions but I would like to get a good idea of what im in for when i approach a bank or whatever hitting them up for money.

biomechanic · 29-09-2006, 11:42 AM

Quote:

Originally Posted by 05MkIIFutura

Loans are a very expensive way to purchase a car - you should be looking at other options

I've looked at Novated Leases and the like, but am unsure what restrictions surround purchasing used cars + modifying them (which is what I want to do)

4.9 EF Futura · 29-09-2006, 12:13 PM

Try a non bank lender. GE or the like, but be prepared to pay through the nose for it

Or a broker. They'll hook up a loan for an unemployed bum so long as they get their upfront and trailing comissions lol.

Could also try a credit union. Large banks have computer models making the decision to approve or reject... computer sees defaults, recommends the bank reject the application. Regarding credit defaults... they're bad mmmkay... I know in my line of work, we'd frown upon a bank's system recommending lending to someone with more than one default (regardless of whether it's paid or not).

No offense - im sure you're a creditworthy person and im sure you'll find the right lender for you... but the data doesnt lie. People with paid defaults are more likely to default again and a computer model should reflect this.

A credit union will actually have a loan officer reviewing it - in which case, they'll be able to take into consideration that your baycorp blemishes have actually been cleared. i.e. they'll be able to "override" these indiscretions (should they choose to do so, and if all the other pieces of the lending puzzle fit into place).

BAFalconXT · 29-09-2006, 12:17 PM

Car yards will usually do alot more for you when getting a loan. You have to watch the fees though. My mate is 19, no credit history and got a loan through Ford on a Holden SS VU for $25000. He had to put $2000 deposit. They also found him insurance(no insurance history either), for $2100 a year full comp.

sarrge2001 · 29-09-2006, 02:41 PM

CAr yards are pretty variable on interest rates too.

When i bought the EL ( couple of years ago), the first offer from the car yard for finance through Esanda was at 11.5% - when i mentioned i would finance it through the bank at 9.5%, he immediately dropped to 10.25% and no fees.

Went home and did my sums - by the time the bank added application fees, loan fees and account keeping costs, there 9.5% loan was $1 a fortnight cheaper than Esanda at 10.25% over 5 years.

Plus the bank wanted 3 working days to approve it and my first born child.

Rang the car yard and gave the go ahead - he took some details over the phone and rang me back 10 minutes later with loan approval.

Pays to shop around!

Kryton · 29-09-2006, 03:27 PM

try this place too: http://www.gorapid.com.au/index.htm

foxtrot · 29-09-2006, 03:30 PM

You want a loan and want someone who will probably give it to you with your blemishes... Im not going to say loans are bad bla bla as i have finance for my car...

Ok.. not recommended but they are the most likely people to say yes

I'd say..

www.gemoney.com.au

2002auxr6 · 29-09-2006, 05:00 PM

i got ****** in the *** by a toytoa dealer in frankston, im paying a intrest rate of 17%, i was so silly i didnt even read it propely, i also sighned a waiver for the cooling off period and i didnt even know about it untill like 2 months after, be carefull of some yards there greedy $$ hungary bastards, would love ot get my hands on the salesan i brought my car off, i did have a couple of defaults on my credit though

DOC · 29-09-2006, 06:00 PM

Quote:

Originally Posted by crusher

Has anyone had dealings with Ford Credit? Is it any good? Worthwhile? The salesman at the local dealer gave me some details and it sounded ok but i would like to know peoples personal experiences..

I have had personal dealings with ford credit, this was in regards a novated lease on a car in my name and after the company i worked for went belly up owing me 3 months wages, all of my super, holidays etc ( lost the lot ) and now a car in my name and no $ ( till i sorted my self ), I would say all lenders are diferent, but i can say that my experience with ford credit was very professional, they were very good in working with me to resolve the issue and i have nothing but praise for the way they handled the situation and the final outcomes achieved, this is probably also due the same level of respect i gave them, so in any situation it is a 2 way street.

AS for loans etc i am currently building a simulator to look at the effect of paying them at different times, the amount of money that can be saved by paying no more is staggering / saving thousands in some cases , all with not an extra penny spent, this is done similar to what you do with houses where you pay weekly instead of monthly or fortnightly.

I am also building extra payment option and sums as low as $5 a week can save hundreds to thousands on your purchse.

i will post it up once complete ( next day or so ) and you can see for yourself how to save $ without spending a cent more.

BAFalconXT · 30-09-2006, 11:09 AM

I would be wary of GE Money, some of there interest rates are insane! They offered me a personal loan of $5000 at 35% interest! That is just crazy!

Full Spectrum · 01-10-2006, 12:18 AM

Quote:

Originally Posted by davway

try this place too: http://www.gorapid.com.au/index.htm

I went through them for a VY, Great people very easy to communicate to and they do all the work over the phone.

But best advice on getting finance, If the car payments are $130 p/w, Pay $170 p/w that little extra could knock a year or more off and save you the extra money on interest.

Kryton · 01-10-2006, 02:42 PM

Quote:

Originally Posted by SlickHolden

I went through them for a VY, Great people very easy to communicate to and they do all the work over the phone.

thats good to hear. i put in an application on Friday through the net, should hear from them tomorrow.

i also tried Aussie car loans first, but because i had a previous mark on my credit rating (which has been paid) they said i would have to go for second chance finance. this would have been ok but i wanted to buy an import and they wouldnt do it unless i had a perfect credit history.

reading up on GoRapid, it might just be the place that can help me out. :eclipsee_ (i hope)

Full Spectrum · 01-10-2006, 05:25 PM

Quote:

Originally Posted by davway

thats good to hear. i put in an application on Friday through the net, should hear from them tomorrow.

i also tried Aussie car loans first, but because i had a previous mark on my credit rating (which has been paid) they said i would have to go for second chance finance. this would have been ok but i wanted to buy an import and they wouldnt do it unless i had a perfect credit history.

reading up on GoRapid, it might just be the place that can help me out. :eclipsee_ (i hope)

Yep they will call you and first go through your past, But i think first you will speak with the guy that will do the deal, But then he should stick you onto his secretary who does all of the checks on you, then after that you should be in contact with the main guy again. They even said emails out also still

.

4.9 EF Futura · 03-10-2006, 01:24 PM

Quote:

Originally Posted by DOC

i will post it up once complete ( next day or so ) and you can see for yourself how to save $ without spending a cent more.

I'd like to have a look!! Not because im looking at a debt facility in the near future, im just interested in the mechanics of your worksheet.

(Yes, in case you're wondering - i am an extremely boring person lol).

dirt 01 · 03-10-2006, 03:14 PM

If you have a home loan, just use the equity you have for cash and get the home loan interest rate.

XR8GRL · 03-10-2006, 04:14 PM

Quote:

Originally Posted by BAFalconXT

I would be wary of GE Money, some of there interest rates are insane! They offered me a personal loan of $5000 at 35% interest! That is just crazy!

I've seen quite a few current affair stories about GE money, some people owing as much as $200,000 for a $5,000 amount loan. If you go with them, I guess you might aswell slash your wrists, the right way.

DOC · 03-10-2006, 04:55 PM

Quote:

Originally Posted by 4.9 EF Futura

I'd like to have a look!! Not because im looking at a debt facility in the near future, im just interested in the mechanics of your worksheet.

(Yes, in case you're wondering - i am an extremely boring person lol).

No drama's at all, it is being put together as part of an overall budget system i am building ( still after about or so years ) will try and post tonight, and am building it also to analyse all loans ie. credit card / multiple / car / store / home etc. ( as if people don't have all of these ), and then direct extra repayments to give the best outcome on 2 levels, 1 being the amont of cashcleared up next round of payments 2. overall savings

but for now will just post the effects of paying extra car pmt.

StorminaTcup · 04-10-2006, 12:14 AM

We have used Esanda Finance for the last 20 years for any car loans. Not sure of current interest rates. Found them easy to deal with. If you work it so payments are made weekly instead of monthly, this will also reduce the amount of interest you pay.

brenx · 04-10-2006, 01:00 AM

My mazda is financed by Esanda Finance @ 11%. Every other place inc the bank wanted more. For example ANZ have me down for a personal loan @ 11.95% at the start but it is variable. It's now 12.92% which is BS I reckon. Should have funded it via Esanda again. 11% and no variable BS.

GREGXR8 · 04-10-2006, 01:35 PM

Quote:

Originally Posted by XR8GRL

I've seen quite a few current affair stories about GE money, some people owing as much as $200,000 for a $5,000 amount loan. If you go with them, I guess you might aswell slash your wrists, the right way.

i had my hilux through ge money, borrowed 32k 2years later when i traded it in i owed 31k 27.95% got 11 for car. im now with ge auto i borrowed 61k (20k negative equity on hilux) and i'm on 10.95%. it's a bit more realistic