Hey guys so I'm starting a new job and need to buy a car before I start to commute.
In your experience which is better, getting finance through the dealer or the bank.
Loan term 12 months
Load amount $12,000
Finance from car dealer or bank?
michaelc33 on 27/10/2015 - 19:06
Comments
I assume you haven't left the old job?
not yet
Just a tip. Whichever you choose (I'd suggest bank) check the early termination / payout fees.
I was with Esanda and wanted to payout the loan 3 years early and they wanted to charge nearly 2k in fees.
If I were trading in id have had to pay it.
Fortunately I wasn't trading in so I paid all bar the last $100 and just left it alone. Several months later Esanda called asking me to pay the final $100 (and of course the early payout fees). I told them no. I explained that it would be cheaper for me to leave it as is and pay the fortnightly account fee $2.30 than pay out. In the end they negotiated a much smaller payout and I saved $$$ and finalised the loan.Lesson I learnt was to check carefully all the conditions. Especially the payout early fees if you do decide to trade in or sell the car.
With my bank (CreditUnionSA) I borrowed $60k and repaid 3 months later without any penalty.
Good luck.
Assuming bank and Dealer offer the same terms, you may be able to negotiate a little harder with the dealer if you choose their Finance provider. They're probably getting a kickback from their finance provider, so they're not losing out if you pay a few hundred less.
Whoever offers you the lower rate I suppose. If the rates are similar I would opt for a bank.
http://www.canstar.com.au/car-loans/