Car Loan Not Being Approved - Temporary Resident

LCmaz on 23/08/2017 - 11:49
Last edited 01/09/2017 - 08:03 by 1 other user

Hi
I am a guy in my mid 20's. My wife and I are trying to get a loan from our existing car which is a Lancer 2014. I guess it's a secured car loan. We just want $10k to sort something out immediately.

I am a temporary resident and my visa expires in one and half year. I want the loan period to be just one year. We both got a full time paying job but her jobs says casual on entitlement. I have applied couple of places and found really difficult to get it approved. I don't know if i should keep applying or just forget about it. It's been almost two months. Also I am worried if this might cause any issues with my credit history. Can OzBargainers please help me out.
Thanks

###update#####I would like to thank everyone for the suggestions they put up to. My loan is rejected but i had my couple of friends help me out with money so as my partner so the issue is sorted out. Once again Thank You ozbargainers……… 🙂🙂🙂
Financial

Comments

  • TheMoDz on 23/08/2017 - 11:58

    Same thing with me, I was going for a loan from NAB for refinance, person I talked to said he will ring me back or email me on a certain day, a week went past I heard nothing and nothing and I just received a email saying its denied.

    its most likely denied.

    • Cmaz on 23/08/2017 - 12:26

      Yes same thing happened to me while i was applying at anz. I dont know they simply dont care

  • JIMB0 on 23/08/2017 - 12:08

    Is the car even worth 10k if they had to repo it?

    • Cmaz on 23/08/2017 - 12:27

      Yes last time i check with anz they said they could lend up to 11500 for my car but never heard from them later.

  • TheBilly on 23/08/2017 - 12:24

    Its hard enough getting a loan against property nowadays with an LVR of 90% - I would forget getting a loan against a car.

    • Cmaz on 23/08/2017 - 12:27

      Yes seems very difficult but might be my visa too.

    • dcep on 23/08/2017 - 13:28

      my colleague just signed a home loan with Westpac last week,
      on 95% LVR with capitalised LMI (even LMI can be borrowed in loan)

      • Cmaz on 23/08/2017 - 13:43

        Yeah but home loans seems considerably high than what i want to achieve.

  • JetLi on 23/08/2017 - 12:52
    +1

    They probably consider you a flight risk

    • Cmaz on 23/08/2017 - 13:42

      Just goggled flight risk. Seems legit for them to do show but i point is its against the car so i cannot sell the car until i pay them off and i cannot take the car with me. The period is 1 year whereas my visa is still 1.6 yrs. So i dont get the point

      • JetLi on 23/08/2017 - 13:51
        +6

        You could always sell the car to an unsuspecting person or have an accident and have the car written off with no insurance coverage. You are a risky person to loan to, banks are not interested in the small interest they will earn from you given your risk profile.

        • Cmaz on 23/08/2017 - 14:58

          Thats a perfect explanation. Thanks

        • Euphemistic on 24/08/2017 - 06:49

          @darbin: and don't forget you are trying to borrow near the full value of the car. The longer it carries on the less the car is worth, so they might not get their money back and certainly won't earn any interest on it if you default.

        • Cmaz on 24/08/2017 - 09:12

          @Euphemistic:
          True. Thanks

  • apple2016 on 23/08/2017 - 15:13

    I think the issue could be that if you car is worth 11k today and it might drop a couple of thousand if you have a accident.
    Its high risk for the bank. Do you have a comprehensive insurance for a higher agreed value of your car?

    • Cmaz on 23/08/2017 - 18:50

      Yes i bought the car for 16k around 2 months ago and have it conprehensively insured for 18k

  • Euphemistic on 23/08/2017 - 15:23
    +2

    Want $10k to sort out something? Looks like you are out of luck, start saving.

    Need $10k? Time to sell the car and get an old one worth $1500.

    • Cmaz on 23/08/2017 - 18:50

      Good suggestion. But once you are into cars you just want to keep upgrading. Haha

      • [Deactivated] on 23/08/2017 - 18:55
        +1

        You are not in that position. And no one who is into cars buys a 2014 Lancer. What is it an upgrade from, a skateboard?

        • Cmaz on 23/08/2017 - 21:24

          I come from a nissan pulsar 2005. Hehe

      • Euphemistic on 23/08/2017 - 20:54

        Well, you have a choice to make. Sell the car, get money. Keep the car, save for ages. Upgrading is a luxury, not a necessity.

        • Cmaz on 23/08/2017 - 21:25

          Thats true….. But whats done is done. Cant cry over the split milk. I guess i will just wait for few more days and sell my car.. Thanks

  • chickenchipsgravy on 23/08/2017 - 16:05

    You need a second tier lender eg latitude

    Youre a high risk profile, no landed assets, limited au employment, limited or no local credit history and trying to collaterialise against old used vehicle (3 yrs is old given your profile) then throw in a very limited visa entitlement - alarm bells. What are you actually going to do with the proceeds?

    • Cmaz on 23/08/2017 - 18:51

      I have to sort something back home urgently. And i dont have any saving at the very mean time

      • chickenchipsgravy on 23/08/2017 - 18:54

        i suspect a non bank lender such as latitude - formerly GE - will help you, they'll use the car no troubles and don't care what you do with the proceeds. you'll have the money within 24 hours but just keep in mind you will pay a premium if you really need the money.

        • Cmaz on 23/08/2017 - 21:23

          Yeah premium are obvious. Thanks

  • sparkles on 23/08/2017 - 16:18

    Given that it sounds like no one will loan given your risk profile, an option is to sell the car, use $10k and buy another car with what's left. If you are only here for another 18 months it shouldn't matter as much, you will eventually be selling the car anyway.

    • Cmaz on 23/08/2017 - 18:52

      Yes will consider this as the last resource.

      • loremoon on 24/08/2017 - 14:18

        If you really need to, sell the car. Buy a car with financing. You should have an equivalent car plus cash.

        • Cmaz on 24/08/2017 - 19:41

          Yes but selling a car will incur much loss when i am trying to get the same car again. And also how can i be sure that they will approve my loan this time.

  • chumlee on 23/08/2017 - 16:34

    Maybe try ratesetter or other peer to peer lender

    • Cmaz on 23/08/2017 - 18:54

      Yes i tried 360 finance, car loans even they are taking too long. My problem is i am getting prompt response they just keep on asking me more and more documents thats it. It feela like ever going process.
      360 finance: been one month no result yet
      Carloans.com. au: been one month no result yet
      Anz bank: been 1.5 months no result yet

      • [Deactivated] on 23/08/2017 - 22:18

        You are not eligible for a loan. You don't even have to read between the lines.

        • Cmaz on 24/08/2017 - 00:10

          Yes i think i am not eligible but why dont they deny it straight forward. What is the point of hanging around?

        • OneIdiot on 24/08/2017 - 10:27

          @darbin: You mentioned you have been waiting from three lenders for a response, Does that mean, you have signed an approval for credit history check from all three?
          IF you did, than most probably you would be rejected a loan except the first credit provider you signed up with. There is a good chance to pursue the very first lender you went to. I am afraid, If they reject, there is nothing you would be able to do.

        • Cmaz on 24/08/2017 - 19:40

          @Sean999:
          Anz just rejected today hoping something positive from carloans

  • furys12 on 24/08/2017 - 09:04

    We both got a full time paying job but her jobs says casual on entitlement

    i would hazard a guess that being a temporary resident is the reason for the denial but this wouldn't be helping either, doesn't matter how much money is coming in at the end of the day casual is not stable employment as far as banks are concerned

    • Cmaz on 24/08/2017 - 09:12

      Yeah that i know now…

    • bobwokeup on 24/08/2017 - 10:11

      True and how do they know you'll pay it back before you leave the country, never to return?

      • Cmaz on 24/08/2017 - 19:39

        Yep that seems to be the reason

  • bobwokeup on 24/08/2017 - 10:10

    I bought a motorbike many years ago and needed $10k more than what I had saved so I ordered a low interest rate credit card and paid it off quickly. The interest rate was very competitive. If you are both earning full time wages it'll be easy as it was just me paying the loan plus usual expenses.

    • Cmaz on 24/08/2017 - 19:39

      I got a credit card coles with 16k limit but i want cash to send back overseas to sort out something.

      • bobwokeup on 25/08/2017 - 18:40

        Ah I see. Can you get a credit card that has a low interest rate on cash advance, then withdraw cash and deposit in your bank account for transfer?

        I haven't used cash advance on a cc for many years so I have no idea what the rates are nowadays.

  • HeWhoKnows on 24/08/2017 - 13:06

    Nothing we can do here. Its not an easy call. Lenders always looking to minimize the risks. And in your case its a BIG risk.

    • Cmaz on 24/08/2017 - 19:38

      Yes that should be the reason.

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