Any Recommended Car Dealer with Finance Option?

Lsticky8anana on 23/01/2020 - 16:03

Hi all, first of all, I'm very poor. I've got a car that is slowly breaking down as I can feel it every time I drive. Last time I took it for servicing, I ended up paying 1/3 of the original cost I paid for it (so ~ $1,000 in repairs, etc.)

Now I really want to get a newer and more reliable car (ie Toyota Corolla) but at the same time, I'm thinking of trading my current one and get a car loan. I can see I have these options:

a. Stick to my current car and save up to purchase another car (second-hand), meanwhile living in fear of having your car broken down while on the M5, or

b. Sell/trade in my current car + apply for a car loan (~5-year) from a car dealer, or

c. Stop being poor.

Sorry, option C is not really useful for me now, so I guess that leaves A and B. I'd prefer to get a loan and pay it off rather than buy it outright.

and I'm also quite new to the country, therefore I'm not sure if those "car loan/finance options" offered by car dealers are actually worth it, or it's a common thing to get finance on your car?

Please help me thank you in advance!

Poll Options

  • 14
    Stick to my current car and save up to purchase another car (second-hand)
  • 3
    Sell/trade in my current car + apply for a car loan (~5-year) from a car dealer
Automotive

Comments

  • GG57 on 23/01/2020 - 16:12
    +1

    It is important to get your finance approved before you commit to buying a car.
    As new to the country, I'm unsure how you will be treated by financiers unless you have a credit history of some sort.
    Good luck; just be careful.

  • spackbace on 23/01/2020 - 17:00
    +1

    Do you work full time? How long for? Are you on a Visa?

    I'm gonna guess that if you're "poor", that finance will be difficult to obtain

  • brendanm on 23/01/2020 - 17:26
    +1

    What is your current car?

  • whytd on 23/01/2020 - 18:03
    +1

    If you're new to the country and "poor", I doubt you'll find any suitable car financing that doesn't cost an arm and a leg. If you can, keep your current car as long as you can and save.

  • Euphemistic on 23/01/2020 - 18:18
    +1

    Dealer finance might not be the most cost effective option. Traditionally they were more expensive than bank loans etc. They may have a lower interest rate but high fees and charges to make up for it.

    Do some research into the fees and interest rates for any loan you want to take out and see what is best for you.

    • spackbace on 23/01/2020 - 18:34
      +1

      Had a customer yesterday, and we dropped the rate so low that we were cheaper than their broker was able to obtain (which resulted in overall cheaper monthly repayments)

      Dealers can't increase as much as they used to, and people seem afraid to ask if the dealer can better what they got elsewhere

      • Euphemistic on 23/01/2020 - 21:48
        +1

        Good to know. I guess dealer competition has cut back the lazy/convenience tax that used to be a profitable margin for you.

        The lesson is that you need to do your own research to work out what finance is right for you. It might just be the ‘easy’ dealer option.

      • Hackney on 25/01/2020 - 08:46

        @ the end of the day,if you have a lot of “redraw” on your mortgage,far better way of doing it.Dealers make money out of finance deals.,therefore the % is usually higher than doing out of a persons redraw account.

  • Euphemistic on 23/01/2020 - 18:22
    +1

    What is ‘slowly breaking down’ with your car? What do you feel? It might be worth spending a few more coins to fix it up to a serviceable level.

    Are you sure your last $1k was necessary to spend? It might just have been the recommended service ie timing belt and nothing was actually wrong. With an old car you might also get away with less servicing to save you some money - but at the risk of reducing its lifespan. Reducing the lifespan might not be a problem if you only plan on keeping it for a couple more years and don’t drive long distances. Many old cars just keep going regardless of how badly they are treated.

  • orangetrain on 23/01/2020 - 18:23
    +1

    If you get finance, you're likely going to stay poor. What happens if you lose your job, etc? You still have to pay off loan. Try public transport or change jobs or move closer to pub transport?

  • pegaxs on 23/01/2020 - 19:32
    +1

    Never take dealer finance. Ideally, don’t take a loan out on a depreciating asset. It’s losing value and you’re also paying interest.

    If you need to take out a loan, try and pay as much up front for the car as you can, oh, and in case I didn’t mention it, never take dealer offered finance.

    Last of all… if I don’t say anything else, never take dealer finance.

    You will get a much better deal and a much more competitive rate on your loan by not listening to the dealers bullshit.

    • spackbace on 23/01/2020 - 19:49
      +2

      You will get a much better deal and a much more competitive rate on your loan by not listening to the dealers bullshit.

      Refer to my previous comment

      • pegaxs on 23/01/2020 - 20:01
        +2

        You're a great guy, Spack, but even you know this is a rare occurrence and is the exception to the rule. (And dont get me started on that 0~1% finance bullshit)

        Of all the cars I have ever bought though a dealer, I have never had a dealer get a better price on finance than what I could get outside doing my own homework. Hell, when I was selling cars, I was gobsmacked at what customers were being charged through in-house finance. Market rates were around 9% and in-house was 15~18%, double what people could get finance for if they just rang their local bank. I have even given a better discount on a vehicle knowing that the customer was looking at in-house finance, because I know we were going to stitch him up for the discount through the finance.

        So, while I appreciate that that particular customer got a good deal, it's not really indicative of what the typical dealer shtick is…

        • spackbace on 23/01/2020 - 20:06
          +1

          Ever since the royal commission, dealers can't over-charge like they used to. There's no money in finance as a result. So Business Managers would rather drop their pants to get the business, and increase penetration. This customer was sub-5% for a personal rate.

          Don't come at me with stories from yesteryear, when BM's were paying for their Range Rovers from charging high rates to the gullible. Those days are gone.

          • pegaxs on 23/01/2020 - 21:12
            +1

            @spackbace: The Toyota Corolla Hybrid I bought recently, I checked out the dealer finance for it and it was around 9%. A little searching online showed me I could get around mid 5% elsewhere. When asked if they could beat/match it, they said not even close, so I just paid cash for it.

            I went in to help a friend buy a new Mustang about 6 months ago (much to my disgust) and Ford finance got down to just under 9%. He ended up getting a loan from his own bank for just under 6%

            While I accept that deals can be done, and if it’s to get a tough, on the fence customer over the line or to pad out a slim monthly target, but offering competitive finance is not the status quo for dealer finance.

            • Hackney on 25/01/2020 - 08:43
              -2

              @pegaxs: “Much to my disgust”! Give me a break! And you purchased a “white goods” on wheels?Now I have heard it all.

              Hackney on 25/01/2020 - 08:43 (Collapsed - Offtopic. Show)
              • pegaxs on 25/01/2020 - 09:02

                @Hackney: You still butt hurt that you feel the need to follow me around and make stupid comments?

                Sorry, I was just disappointed that my mate didn’t get a Holden Arcadia or a Nissan Qashqai on the back of your excellent advice.

                And the white goods on wheels was for my wife, she picked it for herself. It just happens to be one of the best selling mid sized hatchbacks in Australia. She certainly didn’t pick a shitbox Qashqai. Can’t think of the last time I saw one of those on the road. Maybe you bought the only one Nissan ever sold?

                And my car is a Fiat 500. That shows how bad the Qashqai is, that I would rather own a known shitbox with known issues and questionable build quality and reliability than to be seen dead in a Qashqai.

                And if you looked through my history, you would notice that I have actually recommended the Mustang a number of times as a car that people should buy.

                • Hackney on 25/01/2020 - 09:18
                  -1

                  @pegaxs: My daughter owns a Fiat 500,I have no issues with them.Bit to small(very) Qashqai? I have had one(wife’s actually) no probs @ all,your so called “build quality”( nearly fell over when I read that stupid(& incorrect comment) You want to go head to head over the Qashqai,go for it. Unless you have owned one( & I very much doubt you have) you know absolutely nothing.Give me a list why you you think they are so bad then? You seem to be a bit of a “know it all”?Corolla,best selling hatches,yes they are,have driven many of them,just find them terrible.My old 2005 Mazda2 Genki is far better to drive.’Acadia”(not “Arcadia”) there is nothing inherently wrong with them either(I am not a “Holden” person either.)Then I guess haters will hate regardless,won’t they?Again you have never owned one,so I expect you are an expert,are you not?I will come to you for my next purchase!You really are a Wally with some of your unfounded comments.)

                  • pegaxs on 25/01/2020 - 10:04

                    @Hackney: As of 2019 figures, Corolla was the 3rd most popular vehicle bought that year. Toyota also had 5 cars in the top 20, Nissan had 1, and it wasn’t the Qashqai.

                    Toyota sold 30.5k Corollas, Nissan sold 50.5k cars total. Considering SUVs, there is currently an almost year long wait to get some models of the RAV4, Nissan dealers are begging people to buy the Qashqai.

                    For every two Nissan Pathfinders (Nissan’s best seller) sold last year, Toyota sold three Corollas (Not even Toyota’s best seller). I can’t even find out how many Qashqai Nissan sold last year becuse the figures were so low. It seems that being the “white goods of cars” works extremely well for Toyota.

                    And you are right, I have never owned a Qashqai, I thought it was obvious from previous statements that I would never own one. But, in saying that, I have considered them and test driven them.

                    When looking at the Corolla, we also considered an SUV (because “all the rage”) and looked at cars like Hyundai Kona/Tucson, Mitsubishi ASX/Outlander, Mazda CX3, Toyota RAV4 and the Nissan Qashqai. When compared to all these in this range, the Qashqai was terrible. On our very short test drive, we were both that uninspired and disappointed that we knew almost immediately that we were never going to buy this vehicle. This is echoed in the sales figures for the Qashqai (a lot of people think this way). It’s an “ok” vehicle, but when compared to every other vehicle on the market in the same category, it was just very unimpressive and disappointing. The “cardboard box” of SUVs.

                    As for the Acadia, if you can’t see what the problem is with buying a US made vehicle from a company that may or may not be around in a year or twos time, that has a track record of treating their customers like shit and selling vehicles that have the resale value of a dog turd, then you really need to reassess how you value vehicles.

                    And I’m the wally? What about all the other people that didn’t buy the Qashqai and bought something else? Are they all wallys as well? Sales speak volumes. If the Qashqai was an outstanding value for money vehicle and a pleasure to own, they wouldn’t be able to keep up supply or at least this would be reflected in yearly sales results, but it isn’t. So it seems a majority of people buying vehicles just don’t consider it to be a viable option, and after test driving one, I can understand why.

                    Oh, and Nissan is owned by Renault, and we all know how good French cars are.

                    • Hackney on 25/01/2020 - 10:40

                      @pegaxs: Qashqai is consistently around the #5 in the UK,massive seller in Europe.In this country it has been in the top ten a few times.As I said the Qashqai that we have had has been faultless,has done some very big trips(Broken Hiil,Hervey Bay.Great tourer,very comfortable & absolutely no issues with it.Just a fact for you.Renualt does not OWN Nissan,it only has 43% stake in the company.Nissan owns 15% of RenaultJust because Renault owns a stake in Nissan,please explain how that makes the quality is so “s#$t”(to use your lovely terminology),please explain?Renault do not make OR assemble them.Do you even know where they are manufactured?Again,Acadia is fine.But,each to his own.Toyota has had the OZ buying public “brainwashed for decades.Go & read up on a bit of history on the company in Australia,when messers,Johnson,Conomos & Miller where @ the helm.All about good marketing & massive advertising budget.Nothing special about Toyota,they are certainly not the “bees knees”.Sure they are #1,but a long way from being the best vehicles on the market.At the end of the day,you buy what suits your needs,but don’t go around calling other people’s choices “s#$t.Corolla is just an average small car,it does well for a small car.

                      • pegaxs on 25/01/2020 - 12:05

                        @Hackney: A: this isn't the UK.

                        B: top 10 in its category maybe, where are just 9 other contenders

                        C: If it's so faultless why does your daughter own a Fiat and you own a mustang?

                        D: Renault is the biggest single shareholder in Nissan, making Renault the biggest governing influence at Nissan. Renault build shit quality cars. Ergo, Renault makes shit decisions on cars, thus in turn, at Nissan. Also "Carlos Ghosn". (InB4: Nissan fanbois claim he is a god. No, he is a filthy embezzler put there by Renault.)

                        E: Toyota brainwash people by making quality cars that are known for their exemplary build quality, reliability, standard features and affordability? That's the long way around brainwashing people. I'm guessing that Hyundai and Kia are the same? They all build shit box cars that people hate, but only buy them because of marketing?

                        F: The sales would beg to differ that Toyota is not the best vehicle manufacturer on the market. Consistently outselling every other maker in the market with multiple top 10 contenders every year. Nissan… Not so much.

                        G: Your choices are shit. The Qashqai is an unremarkable vehicle that I reluctantly call transport. It is the automotive equivalent of a wet cardboard box. The Mustang, while a cool "looking" car is an absolute safety shitbox and has forums full of owners complaints about issues that a 100+ year old car company just should not be making, not to mention the resale value of these Mustangs is woeful. And the Acadia, "Holden", that's all that needs to be said. It may be an "ok" vehicle, but is is reprehensibly let down by an arsehole company that has no respect for consumers and may not even exist in the near future because it has become so obsolete.

                        • spackbace on 25/01/2020 - 12:29
                          +2

                          @pegaxs: Most up to date VFACTS data I have is WA's results for November.

                          YTD Qashqai had sold 783 units, accounting for 8.0% of the market in that segment (this is small SUV segment, so doesn't go up against RAV4). It was the equal 5th highest, matching the HRV and only just tipping the Suzuki Vitara. Segment leader was the ASX with 20.3% market share, which goes to show quality doesn't equal sales lol

                          Even the Hyundai Kona outsold the Qashqai by about 500 units YTD ;)

                          Sure they are #1,but a long way from being the best vehicles on the market.

                          We'll just ignore the multiple Car of the Year accolades then? The huge market share?

                          • pegaxs on 25/01/2020 - 13:29

                            @spackbace:

                            goes to show quality doesn't equal sales

                            Apparently it’s not quality that sells cars, it’s “brainwashing”…

                            And Qashqai was outsold by the Kona. That says something, considering how bland and unrefined the Kona was when I test drove it.

                            • Hackney on 25/01/2020 - 13:56

                              @pegaxs: As I alluded to go & educate yourself on how Toyota became #1 in this country,then you might understand why.Clearly you don’t.All about,marketing,marketing,media spin……….

                        • Hackney on 25/01/2020 - 13:52

                          @pegaxs: Her Fiat has had no issues(not for me though)The Mustang was a retirement present(again I have had no issues) build quality is fine,not up to Japanese standards,that is a given.I could say your choice is S#$t,but I don’t.That is your choice.I personally do not like Corollas I find them uncomfortable,not very nice to drive.Just plain boring things.Again that is a personal thing.I do NOT condemn you for what you buy.So do not tell me how to buy a vehicle.If you buy for resale,you are a fool.Cars are depreciating things.I never have or never will consider that when purchasing.Want an appreciating asset? Go & buy real estate,because you are in the wrong business fella.I am not about to sell the Mustang any time soon.I did make a little money on one vehicle a few years ago.XC Cobra.Worth a bit more than your “Oh what a feeling”As I alluded to the only reason Toyota(Australia) are on top because of three men in the nineties.Go & educate yourself on them.Think I know a bit more about the OZ car industry than you.But I am sure you will say “look what you bought”,You have a Fiat & a Corolla,hardly inspiring are they?Your choice not mine.You have no right to tell anybody about their choices,just because it does not suit you.And why would my daughter want to own a Qashqai OR a Mustang?She bought the Fiat because NOTHING on the market interested her,

                          • pegaxs on 25/01/2020 - 14:36

                            @Hackney: This is the problem. You don’t like the Corolla, just as I don’t like the Qashqai. The problem is, a lot of people share my sentiment about the Qashqai, hence it’s abysmal sales performance. Your sentiments on the Corolla are not shared by many, this is also shown in the sales figures.

                            I do NOT condemn you for what you buy.

                            So, I should ignore your previous comments about my (wife’s) choice of the Corolla? And your other comments about the CHR or Picanto GT suggestions? It’s like you write comments and then promptly forget what you have said.

                            do not tell me how to buy a vehicle.

                            And I’m not telling you how to buy a vehicle. You can buy it however you like. Hell, I don’t even tell people what to buy, I only list suggestions based on their criteria. And if someone was to ask for a bland, uninspiring, cardboard box plain cheap small SUV with poor resale value, I would certainly recommend the Qashqai.

                            If you buy for resale,you are a fool… I never have or never will consider that when purchasing.

                            Well, “ok boomer”, that’s nice for you, but not everyone can just throw away cash like that. If you are not considering resale value on your vehicle, then I am glad you are not my investment advisor. Anyone who would buy a car and happily lose thousands on resale value, obviously don’t have much respect for money and/or have plenty of it. Not everyone is a boomer.

                            If I was looking at two vehicles in the same category that had basically similar features and roughly the same price, let’s say $30,000, but one was averaging resale of $18,000 after 5 years and the other was worth $10,000, I’m not risking losing $8,000. Not many people would.

                            You compared an XC Cobra specialist enthusiasts limited edition vehicle to a new Corolla?? Apple, meet orange. Didn’t think to compare it to something like a Supra? Or a GT2000? I even know of some old 70’s Corollas that are now fetching a pretty penny…

                            3 MeN iN ThE NiNeTiEz…

                            Yeah, 20+ years ago. I am sure Toyota’s success since then is related to these 3 guys brainwashing people and nothing to do with the quality, reliability, affordability and value for money their cars offer.

                            You have a Fiat & a Corolla

                            The difference here is that I laugh at my Fiat. I am the butt of my own jokes. Everyone else on here laughs at my Fiat. I would NEVER suggest people buy one unless they love burning money and have deep pockets. Unfortunately, more people agree the Corolla is awesome, so your value of it is irrelevant. :)

                            • Hackney on 25/01/2020 - 15:00

                              @pegaxs: Most people(nearly all I might add) only buy Corolla for an A to B vehicle,nothing else.Why would you buy one otherwise@?And it’s perception of “reliability”.(nothing further from the truth) its is no difference to any mainstream brand.Corolla is far from”awesome”(just plain fact) it is just transport.Picanto GT? Awesome little things(better than a Corolla) even though it is a micro car.CHR? Just no,ugly,just like Nissan’s Juke..(Where did I write about Picanto?) CHR maybe.As far as resale goes,if you are keeping a vehicle for any length of time,resale should not even come into it.I am not “condemning” your choice of vehicle,it is your choice not my vehicle of choice.I personally hate the things.As a lot of people call them”white goods” on wheels.Older Corollas? They are not appreciating that much.Brainwashing:Toyota has been very smart @ marketing spin doctoring in sales of their vehicle.eg: Hilux “unbreakable”,nothing more further from the truth.In fact I would say Ranger is the far superior vehicle.Again it comes down to brand perception,built up by Toyota’s media “spin” & furthermore massive advertising budget.No other company that I can think of has ever achieved what they have done in advertising.Believe what you want to believe.As far as Renault go,I cannot comment on them.I have driven a few overseas,found them fine,but would not buy one.While I have you,I remember you going on about that your Fiat had to use 95 Ron? It is not a performance car you said,no it isn’t.But if you researched properly,the reason is ALL Euro vehicles have to run on minimum of 95 octane((legislation)simple isn’t when you know?

                              • pegaxs on 25/01/2020 - 16:02

                                @Hackney: See, now you’re just ignorant, off topic and boring. So much butt hurt over a throwaway comment from weeks ago that you are now grasping at straws to engage me.

                                I’ve said what I need to say and it’s getting way off topic of what this thread was originally about, so you can count me out. If you want to engage me, feel free to send me a private message so I can laugh at you in private without clogging up threads with your erroneous diatribes.

                                • Hackney on 25/01/2020 - 16:27

                                  @pegaxs: Would love to know where you got the Picanto comment from & the CHR,can find nothing in previous posts.I suspect you are just lying,to cover your own backside.No “butt hurt” as you put it.It just washes off fella.As far as a “throwaway” comment,you brought it up.Nobody else did.You have an axe to grind? Seems so.Anyhow I will leave in your own little world.Happy motoring rolling along.

                                  • pegaxs on 25/01/2020 - 16:31

                                    @Hackney: What part of;

                                    you can count me out… If you want to engage me, feel free to send me a private message

                                    did you not understand?

                                    • Hackney on 25/01/2020 - 17:07

                                      @pegaxs: I am done with you any way,very derogatory in the way speak to people about their vehicles.Please do not answer!

          • [Deactivated] on 23/01/2020 - 22:38
            +2

            @spackbace:

            So Business Managers would rather drop their pants to get the business, and increase penetration

            I take it that the pun is unintentional?

  • Cheap Charlie1 on 23/01/2020 - 21:49
    +1

    Hold out until the big sales and you might be able to pick up something like a Kia Picanto for $14k brand new.

    You can buy something like a 2016 Yaris for $12k.

    If you're poor I'd just buy the cheapest car that will last the longest time. No need to spend extra on a Corolla.

    Run your current car into the ground. It's not worth spending anymore money on it. Don't give your money to greedy mechanics.

    • [Deactivated] on 23/01/2020 - 22:40

      I believe he was planning to buy a second-hand Corolla, which would be cheaper than the other 2 options you have suggested. I could be wrong though.

      • Cheap Charlie1 on 23/01/2020 - 23:05

        It would have to be an old Corolla.

  • sticky8anana on 23/01/2020 - 23:11

    Thanks guys for your input.

    at the time of buying the car was in shitty conditions, so had to spend ~ $1k in the first 6 months. Took it to a recommeded mechanic and was told the car would need to be fixed up more very soon, and he advised that I'd be better off selling the car.

    No need to spend extra on a Corolla

    I thought Corollas are like the most reliable and affordable cars. any other model you recommend that are in the same category?

    Do you work full time? How long for? Are you on a Visa?

    no, currently only part-time, not on a visa, salary is only enough to cover living expenses and some savings for emergency situations so spending is very tight

    What is your current car?

    my current car is ford focus 2007 hatch which I bought off a guy for $3k

    What is ‘slowly breaking down’ with your car? What do you feel?

    • I can hear the car makes a loud squeaky sound every time i do a sharp turn.
    • Was told the AC is not functioning very well, would consume much more fuel than normal when AC is on
    • Rusts are starting to eat off my exterior
    • Suspensions aren't ok either, car shakes like nuts when doing >70 km/h

    Are you sure your last $1k was necessary to spend?

    The total cost of my last two services was $1k, I was told it needed to be done in order to pass the pink slip. things that got fixed were: all lights, 2 tires, battery, some rust covering up, fixing the electrical system, etc.

    First I was thinking it might be better to have a loan and own a much more reliable and durable car (some costs upfront, short-medium term loan but less money on servicing etc.) than to keep the current one. I guess i'd have to do more research on those interest rates before really deciding.

    • spackbace on 23/01/2020 - 23:33

      no, currently only part-time, not on a visa, salary is only enough to cover living expenses and some savings for emergency situations so spending is very tight

      Don't even bother researching loans. Your income/expenses don't support finance payments on your own admission. No one is going to lend you money

      Sorry but you're gonna have to do what you can to get by

      And whatever you do, don't consider any payday lenders

    • [Deactivated] on 24/01/2020 - 00:14

      Do you really need a car? The one you have sounds like a money pit. Could you make do with public transport or even a bike until you have saved enough to get the corolla of your dreams?

      The other option is to earn more somehow.

    • Euphemistic on 25/01/2020 - 06:51
      +1

      The total cost of my last two services was $1k, I was told it needed to be done in order to pass the pink slip. things that got fixed were: all lights, 2 tires, battery, some rust covering up, fixing the electrical system, etc.

      Aside from the rust or the electrical system (whatever that means) those things are either easy to fix or normal wear and tear. The battery and tyres are likely to last a few years.

      Learn how to replace light globes, that will be important for any car you drive and save you at the mechanics.

      Get the suspension looked at to determine what is wrong. Might just be needing a wheel balance or maybe something is loose. Fix that and you could have a few more years of motoring.

      If you can’t adford to repair he AC try not to use it. Sure, that sucks in summer, but another month and you can probably live without it. Costing a little more in fuel will be cheaper than repair.

      Generally, if the engine and gearbox are sound it is probably cheaper to repair than replace your car.

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