I am looking to buy a car around $25K. The dealership (they have a demo model which I am interested in) is using St George which when I looked up their interest rates seemed pretty high.
If I was to bring my own finance (which I could probably get a lower interest rate), would it mean less room to negotiate price etc?
I haven’t bought a car in 10 years so unsure of best way to go about it.
What’s the norm or standard to look out for??
Thanks in advance!
Help with Car Finance
tetress on 17/04/2020 - 09:13
Comments
Is novated leasing an option? That could be a good option.
For the novated lease company.
When comparing car loans, ALWAYS ALWAYS ALWAYS ask for the total amount paid over the whole loan.
%age rates, balloon payments, other fees and charges can be hidden and spruiked in many different ways, but the total figure is the total figure.
True. I once bought my missus $14k car and wanted to go with finance and final figure over 5 years would've been $23k.
Should've seen the look on man's face when told him I'll pay cash instead. He lost $1k in his fees and tried to convince to go with finance for another 10min.
You can't "look up" interest rates, they're individual. It doesn't take much to find out your individual rate (they just need your driver's license). Hell, Toyota offer you this ability online now.
Get 2 finance quotes, but don't give any notice to advertised rates. It depends on your individual situation.
You can't "look up" interest rates, they're individual
Car dealers and finance brokers love to make people believe this. The reality is that the vast majority of people get the same rate. It's only people with bad credit that get different rates and even then, the rate for bad credit is generally the same for all bad credit people.
Lol I've seen what the calculator spits out… The dealerships got caught up in the banking royal commission, so the basis for interest rates has changed dramatically. Before that it was "home owner, double income, no kids, ok they'll get this rate". Not any more.
I've overheard our car loan sales team's phone calls and our rates are based on age of vehicle and credit score. New car and high credit score = low rate - starting at 3.97% fixed at present.
We were looking around recently and got as far as figuring a loan from RACQ was going to be the best way to go. We can't claim any car expenses on tax so that was a factor too. :)
Not really OzBargain if you are buying new/near new and getting nondeductible finance.
Seriously you should be looking at 2-3 year old models, but yes, dealers get a kickback from finance companies.
Whether they'll discount further is a different thing entirely though.