Car Loan from Dealership

LPlatinumtelecom on 21/08/2017 - 18:52

I am purchasing a car from a dealership. When I enquired about Finance, the answers where vague. Dealer could not tell me the rates until he actually put the application through.

Today I received an alert from veda with a credit enquiry on my file. And it reads like this:

Role GUARANTOR
Date Of Enquiry 20 AUG 2017
Account Type HIRE PURCHASE
Amount 27513

Now I find it odd. First the role of guarantor. It seems the dealer is the one who made the credit enquiry as a guarantor?! Then why is it under Hire Purchase?!

If any of you know a little bit more about credit files and loans I would love to hear your thoughts. Also, I don't think this is normal that a credit enquiry is made on my file prior to any rates being presented to me.
, feel free t this

Automotive

Comments

  • spackbace on 21/08/2017 - 19:41
    +2

    Have you called and spoken to the dealership? I'm guessing no…

    You would've signed a privacy form, and given forms of ID, allowing them to put the application through. This is what you're seeing.

    And they're 100% correct, until they found out your financial background, they can't give you an accurate interest rate. They could say what they start from, but that's all. Your background could be absolute mud, and you'd be given a higher interest rate than someone who has a better credit file.

    • chumlee on 21/08/2017 - 20:39
      -1

      A lender should be able to provide all loan information up front

      You can get interest rates disclosed for secured and unsecured loans upfront from a lot of reputable lenders so why can't a car dealer do it?

      I would be raising it with ASIC.

      • spackbace on 21/08/2017 - 20:42

        Yes you can find out a comparison rate and they always say 'from', with a disclaimer that it's subject to normal lending criteria, this situation may not be relevant to you, etc etc.

        Any lender states that. An advertised comparison rate is not applicable to everyone.

      • p1 ama on 21/08/2017 - 23:53

        I would be raising it with ASIC.

        lol

        • chumlee on 22/08/2017 - 06:59

          ASIC is the regulating body for the NCCP Act

  • steviee on 21/08/2017 - 19:58

    Loan comparison site here you come
    Now !

    • Platinumtelecom on 21/08/2017 - 23:06

      Yes, but dealership loans are different. But the real question now is, is it better to find a loan myself and go via the dealer

  • [Deactivated] on 21/08/2017 - 20:42
    +1

    Why are you getting a loan on a car? The cheapest way to buy a car is always to pay cash.

    • spackbace on 21/08/2017 - 20:43
      +1

      Unless it's 0% finance ;)

      • [Deactivated] on 21/08/2017 - 20:44
        +1

        Obviously that's a scam and they would make you pay a higher purchase price. 20-30% off onroad price is what you want to pay, depending on the car. No way you could do that with 0% interest.

        • spackbace on 21/08/2017 - 20:47

          Nope, bonus structure on Camry/Aurion is the same whether you take up the 0% or not.
          And it's a genuine 0% comparison, only an early exit fee to worry about.

          Only applies because Toyota runs the finance too, not Macquarie/St George etc.

          30% off on-road cost? Hope that's off RRP and not Campaign pricing 😂

        • [Deactivated] on 21/08/2017 - 21:18
          -3

          @Spackbace: Who the (profanity) would want to drive a Camry?

        • spackbace on 21/08/2017 - 21:25
          +1

          @Burnertoasty:

          Many people.

          But nice discussion there :) very intelligent and adult.

          You can go back to the ball pit now

    • Platinumtelecom on 21/08/2017 - 23:07
      +1

      Yep you are right and I am strongly considering this option now. I guess it always hurts to drop $20k upfront but in the long run it is a smarter move.

  • bargainswarrior03 on 22/08/2017 - 12:04

    Are you listed a guarantor under this proposed loan application?

    To me, this credit search reads as "as this person used a guarantor in the past for previous loans and what did that guarantor promise?"

    This is purely a note that you are applying for a loan and they are checking your credit history. As there is no actual loan in place, it shouldm't impact your credit history.

    Any applications based on your financial circumstances will come up on your credit history whether or not you go through with the loan.

    When I was applying for my car loan, I got asked by a few companies what happened to this credit card I applied for X years ago. To which I answered, I did not go through with the application.

    "hire puchase" is the legal name for a car loan.

  • Architectonic on 22/08/2017 - 12:39

    Dealer interest rate + fees + purchase price is almost always higher than if you negotiate for a better price and get the most competitive finance elsewhere.

    Of course car finance is a money pit and you are better off buying a car you can afford without finance.

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