Car Loans Jan 2017 for Subaru Outback

hongas on 12/01/2017 - 12:15

Hi OZB.

Straight to point

I need decent rate for new car loan MY16 Subaru OUTBACK 2.5i Premium. in PERTH, WA. for family of 4.

Our family camry is 12yrs old and found outback is good fit for our family.

MY17 Subaru outback cost $47999 in Perth. (higher than over eastern states)

I have $15000 ($9000 in saving + possible $6000 on shares convert to cash)

I am thinking I can get $35,000 NEW CAR loan from banks plus my savings to buy the car. (drive hard bargain at the dealer)

Can anyone recommend bank or loan place. and things I have to aware of loans. eg. I know about the admins fee, monthly fee, etc..etc.

ps. I have good credit history and $80k+ full time job. NO HOME LOAN. renter.

any constructive commends will be appreciated.

thank you
Joey from west.

Financial

Comments

  • Marcsie on 12/01/2017 - 13:27
    +2

    People should borrow money to buy a house,not a car,very bad financial decision :)

    • chumlee on 12/01/2017 - 13:28
      +2

      So buy a motorhome instead you reckon?

    • shazam7 on 12/01/2017 - 13:44

      This blanket statement may be true but it doesn't answer OP's question.

      • Marcsie on 12/01/2017 - 13:48

        Just a friendly advice :)

    • BensonP on 12/01/2017 - 13:47
      +1

      Obviously your opinion, but borrowing money for a car can make sense.

      I have done the same thing. I locked in a finance rate for my vehicle for less than 3%, when my home loan rate was 4.5%.

      I made my money work FOR me, by leaving in my offset account and borrowing the purchase price. I also use my car for 95% work use, so 95% of the interest on the vehicle is tax deductible.

      Everybody's financial situation is different, and making blanket statements saying something is a bad decision is not a good habit to get into, with knowing all the circumstances.

    • hongas on 12/01/2017 - 15:41

      I know… if I can pay cash I would.

      • mskeggs on 12/01/2017 - 17:08
        +2

        Why not get a 5 years old Outback?
        Our Toyota is old enough to vote, but is still going well. Maybe the Camry just needs some loce.

  • onetwothreefour on 12/01/2017 - 13:28
    +6

    I reckon westpac like to lend money for cars, especially if they cost $80k

    • Marcsie on 12/01/2017 - 13:30

      Nice one,haha :)

    • usmanyousaf on 13/01/2017 - 06:17

      OP is buying car for family….not to impress colleagues.

      • JIMB0 on 13/01/2017 - 11:02

        There's no reason it can't serve both purposes. Just need to option it up to add another $32,001 to the price.

  • shazam7 on 12/01/2017 - 13:40

    The easiest place to get finance is from the dealer(eg they do the paperwork and try their best to get you approved) but u r lugged with high establishment and service fees.
    Instead of opting for getting the loans directly from banks, try a car loan broker, who can help u purchase the car at a more competitive rate and organise finance. Of course look at the type of fees they charge, especially establishment, monthly fees and interest rates.
    Since u earn 80K, u may consider a novated lease as well if yr work offers this as a benefit; all car expenses come out of yr pre tax salary. It doesn't suit everyone so check with yr accountant.

    • spackbace on 12/01/2017 - 13:54

      try a car loan broker

      Sure, if you want a $500-$1000 finders fee included in the 'best price' that they found.

      Customer doesn't see the finders fee, only dealership does (obviously)

      • Marcsie on 12/01/2017 - 14:39

        Very true :)

      • shazam7 on 12/01/2017 - 16:04

        Suppose it depends how much the discount is. If they offer you a 2K discount but take a 500 finders fee?

        • spackbace on 12/01/2017 - 16:18

          Why couldn't you negotiate the $2k?

  • cuteseal on 12/01/2017 - 14:17
    +1

    I bought a car before Christmas and one provider I was considering was Beyond Bank. Was quoted a 5.89% comparison rate, establishment fees of around $200, no other ongoing fees. What I liked was you could pay additional amounts and pay off the loan early without additional charges (most lenders charge you for early termination), and you can redraw any extra amounts you put in at no charge. There's also a linked offset account which helps reduce interest, but only up to $2500.

    http://www.beyondbank.com.au/personal-banking/car-loans-pers…

    That being said, I ended up paying for the car entirely in cash - no sense in paying additional fees and interest if I didn't need to.

    Loans.com.au had the lowest rate (by about half a percent) if I recall correctly, but there was a $400 establishment fee and $700 early payout fee.

    The car dealer also offered a pretty good deal (Toyota Finance, which goes through Macquarie Leasing) - 5.95% comparison rate, no application fee but a early discharge fee based on number of months early. And as another poster said above, probably the easiest as it's all arranged by the dealer and you don't have to run around and get the bank to pay the dealer etc.

    I also investigated just getting a mortgage through my bank (ANZ) secured against my house. Was the lowest rate (3.99%) but variable so open to interest rate hikes in future. I also didn't like it being secured against my property - for whatever reason if I wasn't able to make repayments they could technically come after my house.

    • hongas on 12/01/2017 - 15:40

      thank you cuteseal for your insightful information.

      yes, that's exactly what I have found best deal so far with Beyond bank with 5.69% online offer. with $175 establishment fee.

      I don't mind doing research bit longer if promise me best deal overall.

  • spackbace on 12/01/2017 - 14:52
    +2

    The other thing to note is how little the interest rate changes make. Unlike your mortgage.

    Here's some calculations just based on this calculator, $35,000 borrow over 5yrs:

    Interest Rate Monthly Repayment
    5% $661
    5.5% $669
    6% $677
    6.5% $685

    So basically $8/month for every 0.5% (or $1.85/week)

    Something to think about when you compare interest rates, and compare convenience of the dealer vs some online financier you've never used (banks are gonna be easier than the latter, obviously)

    • cuteseal on 12/01/2017 - 15:07

      That's good to put it into perspective… also worth noting that over 60 months, that $8 becomes $480.

    • hongas on 12/01/2017 - 15:41

      thank you for your time researching this :)

  • Steptoe on 12/01/2017 - 16:19

    Does your employer offer Novated Leasing, or similar Salary Packaging?

    • hongas on 12/01/2017 - 17:23

      yes, I work at one of University in WA.

      When I inquired the prices of extra cost having Novated lease was high. convenience I guess.

      eg.
      admin cost etc..
      fuel card +$250 yr
      insurance (I know you can get your own)$1000+

      I guess I have to check it again.

      Would I be any advantage having novated lease with salary $83k a year? most of time car will be driven private and by my wife then me. (70% wife & 30% myself)

      thank you

      • Steptoe on 12/01/2017 - 17:28

        It's pre-tax which makes it sound more than you'd expect. You need to compare for your situation. Usually insurance is cheaper, maintenance costs aren't fluffed up, etc.

        If it's money you don't have I think Leasing will be better for you. You can contribute to the purchase to reduce FBT liability.

      • shazam7 on 13/01/2017 - 09:34

        The thing is most of it is budgeted for - rego, insurance, tyres, servicing fuel etc. The only cream the leasing company will add on top is the admin fees and if u finance from them, higher interest rates/monthly fees/est fees.

        For some ppl there is no headache in saving up for all of the above and easier to let it deducted frm your salary immediately.

        For some it opens up the possibility of having more road trips, due to the discounted running costs.

  • papachris on 13/01/2017 - 05:06

    IMB Bank current secured car loan:

    5.99% (comparison rate 6.34%)
    1 - 7 years
    Borrow up to $75,000
    2016 Best Secured Personal Lender

    App fee $199
    Monthly fee $ 0
    Early payout $ 0

    Haven't used myself yet but soon should be…

  • backpaqer on 13/01/2017 - 07:31

    Lease it.

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