New Car Financing Option - Is The Future Value Any Good?

LAbhijit on 23/02/2020 - 23:08

Fellow OZBs,

I will need some advice on my car financing.
Exciting as me and my partner are upgrading to a brand new SUV ( a Nissan Xtrail) fairly quickly as we have locked the deal with the dealership. As I was going through various financing options, I am getting missed messages on the ways the car could be financed.

  1. I have been told of Nissan Future value which provides some GFV at the end of 4 years period - with a reduced ( compared to usual rate) interest rate. I am not sure if this comes with any catch - although I will have a low monthly repayment and guaranteed value of the car. And also this comes with 3 years free servicing.
  2. Second option is to go through non-ballon options by going through other providers. This will come with a higher interest rate.

I have also been told that the interest rate usually goes up if I chose to max my deposit ( hence borrow less) for the loan.

Any advice on which way should I go ? and that has proved beneficial in the long run ? And what will be good options if I want to finance the car externally ?

Cheers,
Abhi

Automotive

Comments

  • Simoneee on 23/02/2020 - 23:35
    +3

    Member Since 38 min ago

    Simoneee on 23/02/2020 - 23:35 (Collapsed - Offtopic. Show)
  • pegaxs on 23/02/2020 - 23:36
    +3

    Check the fine print. There are usually strict caveats about how many km you are restricted to, where you can get it services. How often it has to be serviced and the condition it must be returned to the dealership.

  • tsunamisurfer on 24/02/2020 - 00:42
    +10

    Since we are on Ozbargain, the advice I would give is save up and pay for the car by cash.

    • Hybroid on 24/02/2020 - 00:53
      +14

      Also much much better car options. I've never met anyone 'excited' by a Nissan Xtrail… Outdated interior, weak engines and the renowned awful CVT.

  • PinzVidz on 24/02/2020 - 01:07
    +8

    Don't buy a Nissan shitbox.

    • k-rokfm on 24/02/2020 - 10:33
      -1

      Every car thread:

      Dont buy a [insert car OP is looking at] shitbox.

      • pegaxs on 24/02/2020 - 14:04

        That's because most of those threads, OP's are looking at or asking about Euro trashwagons or Americrap cars (or re-badged Euro brands now made in India/China/North Korea).

  • ziaxk87 on 24/02/2020 - 01:14

    Go to cba and ask for finance assest loan for business. If you can show you are using it for your work for more than 50% of time logan is usually at 4% better than car loans.

    PS there are loud of issues with Nissan trial… see if you want other option

  • spackbace on 24/02/2020 - 02:31
    +3

    Toyota offer the same. It works if you plan to flip it in 4yrs. If you plan to keep it then do regular finance.

    They should offer a standard loan as well ie pay it off over 1-7yrs

    Always compare at least 2 financiers and see who's best

    I always thought people only bought Nissans on 1% finance…

  • Hithere on 24/02/2020 - 07:45

    Keep a few thousand dollars spare in your bank for when Nissan's crappy CVT starts playing up, usually just outside of warranty.

  • Skramit on 24/02/2020 - 08:40

    I am not sure if this comes with any catch

    Read the contract fine print line by line. Without question there will be various clauses and restrictions you need to meet.

  • Typical16-bitEnjoyer on 24/02/2020 - 09:00
    +1

    The first I've heard of anybody being excited by a Xtrail….

    Buying new cars is a chump move. Look for something 1-2 years old.

  • wiipantz on 24/02/2020 - 10:25

    Why are you buying a SUV? Why are you locking this in quickly? Is this brand new off the lot? Why are you getting finance for a depreciating liability?(all off these could be valid just curious as it might impact on decision making) What are the terms of the the lease? As some unsecured personal loans can be quite competitive without the guff.

    • Typical16-bitEnjoyer on 24/02/2020 - 12:31
      +1

      Why are you buying a SUV?

      Bumpy bitumen on the school run

      • wiipantz on 24/02/2020 - 13:42
        +1

        lol, I get leaves on my driveway I need 4x4. I ask as there is no mention of crotch trophies, the ever lasting 'mah SUV for mah kudz' argument.

  • sweefu on 24/02/2020 - 10:31

    I know this is off topic, but if I think it's crazy to buy an xtrail when the rav4 hybrid exists.

    Also, I write consumer car loans at circa 5.50% so you should be getting a similar rate from an external financier.

    • Oz8argain on 24/02/2020 - 15:02

      Rav4 hybrid would be so good. I wonder if the wait is still 6 months lol

      • spackbace on 24/02/2020 - 16:18

        Yep!

        Well, 4-5 months for GX/GXL, 6 or so for Cruiser

  • Porker on 24/02/2020 - 10:42

    Too late to say now, but avoid the dealership financing. Often a case of fine print and costs etc that potentially end up being more than what you think.

    The catch with your first option, on face value and if I interpret correctly, is that you're stuck for 4 years. Even if you came into money and could pay off the car, you're potentially stuck paying the car for the 4 years or will have to pay out their full interest for the 4 year life.

    Your second option could be like a lease car arrangement, but instead you're paying off the full cost of the car instead of end-balloon payment.

    I've made a lot of assumptions with the above - you'll need to read the fine print and/or contract you've signed.

    Maybe your first OZB post here should've been 'what's the best way to get a new or slightly-used SUV'…. It now sounds like you're asking us to help you pick which poison to take.

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