We are thinking to buy Toyota Kluger 2015 new model – getting it around $43k (no extra stuff added).
But their Finance guy gave us interest rate of like 8.9% which sounds really high to us.
Can you guys please guide us on how we decide which Car Finance we should take and if there are better rates from specific lender?
ANZ has a lower rate going at the moment. 7.2% for online applications
Latest: Car Finance ?
anonymoususer on 07/10/2015 - 00:10
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Crazy high! I'm in WA and 3 years got 5.2% i got offered 4.5% two months ago when i was looking at trading in again. Pass on that!
Who did you get it with?
I went through the car company and i believe their finance was through suncorp?
Oh ok, I have already been pre-approved by PCCU for 5.99%. Yours looked better so might see if they can or anyone else can match it
lol
Never buy a car with finance, I only buy investment houses with finance :)
Go to a car broker ? :)
Depends on personal circumstances, debts owing, etc etc. Also make sure you compare comparison rates, not just interest rates. Comparison rates take fees into account as well.
Also, don't be afraid to negotiate with the dealer if it's only for convenience. Saves you dealing with an application elsewhere.
Oh, and interest rates on car loans aren't a huge deal, not like a mortgage. See below for repayments comparing the 2 rates you've given:
8.9% - $410.36/fortnight
7.2% - $394.33/fortnightAnd just checked ANZ's website, and that 7.2% isn't the comparison rate, their comparison rate is 8.05%. So again, make sure you compare apples vs apples!
If you have a home loan then take out an additional loan for repairs to the house at the same rate as your home loan. Do not add to your exiting loan.
how would you do this. if you ask for another 50K from your bank where you already have home loan .. wouldn't they add 50K into your existing loan? will they open another mortgage account for 50k on same interest rate ?
I spoke to my Broker ( I am with CBA and she works for CBA) and she suggested I apply for a 40K loan to 'do renovations' and I will only be paying interest on whatever I use. Need 18K to cover the car loan I had with ANZ and am paying it off as soon as I can - not over the full term.
advantage is you get cheaper insurance on your car as well for it is "not financed" - IMO
Mine will be paid off by early next year.
isn't good idea to take the money out from offset account for car and then deposit monthly installments (same amount of money) into offset account every month which suppose to go towards car loan ?
@ozyboy: But the home loan rates would be cheaper than any car loan rate so the repayments will be much less than what you would need if you had to get a loan for the car.
I was planning on getting a car on this same method as well but not taking out as much.much less
You'd be surprised. Do the maths, not that much of a different between current car finance rates and mortgage rates over a 5yr period
@Spackbace: Your right. I thought I went back and deleted the word "much".
My point is that the percentage will be lower.
Try Peoples Choice - they are very good
https://www.peopleschoicecu.com.au/rates/personal-loans/pers…
I work at a car dealership, trust me - do NOT get finance through a dealership. They are sharks working purely on commission. Have seen and heard about customers thinking they are getting a decent deal, but once they all sign up and actually read the fine print realise they are getting royally screwed. Dealership finance staff are only worried about their commission.
My advice - go through a finance broker. They can get deals from many lenders, and by law they have to show you exactly what is in the agreement and all of the terms and figures, including their commission.
Shop around…
try these guys - http://www.strattonfinance.com.au
keep in mind you can get finance from a diff car maker as well.
Good car, good luck with it. :)