Best Car Loan company available today (And experiences)

the steve on 24/01/2022 - 10:01

So I know a large portion of this community is completely against car loans, but for the purpose of this discussion I'm going to skip over that :)

What I would like to know is: What is the best current company to get a car loan from?

I have personally heard a few horror stories, but I think that car loans are something you only ever hear the bad stories about. I currently have a car loan I used to purchase a hilux 1.5 years ago through the used car dealers finance which beat any rate my bank would give (Which has definitely increased in value) and about $8k left to pay off. I'm sure there are a large population who got a car loan, paid it off, and had no issues as long as they paid on time.

There are so many sites that compare interest rates/comparison rates, but I would like to hear if anyone has had a pleasant/unpleasant experience with a particular company?

Curiosity post.

Thx

Financial

Comments

  • onetwothreefour on 24/01/2022 - 10:08
    +4

    Don't do it.

    • orangetrain on 24/01/2022 - 10:30
      +4

      Buy now. Regret later.

  • Jimothy Wongingtons on 24/01/2022 - 10:22
    +15

    Look up southeast auto sales on Facebook and ask specifically for the finance team.

    Sure the balloon payments are insane, and they’ll hit you for all the ads-ons but for that 15 seconds after you sign the paper work and take the photo for Facebook you’ll feel like a champ. Haha

    • the steve on 24/01/2022 - 10:37

      This page has made my day haha

    • bobbified on 24/01/2022 - 11:00

      What's the deal with these guys? I had a look on their facebook page!
      Is posting a picture with the car a requirement for their finance or something? lol

      • the steve on 24/01/2022 - 11:03

        I love the comments, the finance team is definitely what you should look for

        • bobbified on 24/01/2022 - 11:27

          haha - you mean, the stripper ones? Is it me or does everyone in those pictures look a bit boganish? 😂

          • the steve on 24/01/2022 - 11:51
            +1

            @bobbified: Oh its for sure boganish, Classic Aussie culture if you ask me

            • Jimothy Wongingtons on 24/01/2022 - 12:53
              +1

              @the steve: so have you got your 29% interest rate contract with southeast signed yet on a thrashed to hell 2012 Ford Raptor with lift kit and roof racks?

          • Jimothy Wongingtons on 24/01/2022 - 12:47
            +1

            @bobbified: check little_pocket_rocket_ on instagram

            NSFW/NSFL (if you are married)

      • Jimothy Wongingtons on 24/01/2022 - 11:54
        +1

        Going on finance: hot chick photo trophy

        Going on finance with all extras including paint protection and extended warranty: hot chick with red dress photo trophy and jealousy of your coworkers

        • bobbified on 24/01/2022 - 12:11

          hot chick photo trophy

          My parents used to tell me that if I don't have anything nice to say, then don't say it. So here I am, I've got nothing to say.

    • o53djz7qTPY4der on 24/01/2022 - 11:22

      This is pure gold. There goes my productivity at work today.

      • MS Paint on 24/01/2022 - 13:39

        The 20 November post with Chris and his MB Coupe is gold.

        The comment by Prabh Singh had me in stitches.

        • Jimothy Wongingtons on 24/01/2022 - 13:58

          Davo got the better deal on 20th it looked like - plus left with a footlong in hand for tea. A day to remember.

  • JimB on 24/01/2022 - 10:57

    End of the day, look at the interest rates and any establishment/ongoing fees.

    I took out my first car loan a couple of years ago as the interest rate was lower than my home loan. The loan could be subsidised by the manufacturer.

    Things could be different today as cars are in scarce supply so do not need to discount/subsidise to get the sale.

  • Big Lenny on 24/01/2022 - 11:24

    this is OZB, we dont do finance loans when purchasing cars

  • p1 ama on 24/01/2022 - 11:33
    +1

    So I know a large portion of this community is completely against car loans, but for the purpose of this discussion I'm going to skip over that :)

    It's based on an ignorant view passed down from their parents' generation where interest rates on car loans were ~15%+. With interest rates on car loans now closer to ~3%, the story is very different.

    FWIW, anybody can do the calculations to figure out how much the loan actually costs. Anybody who is "morally" against car loans should remember that if you're purchasing a $25,000 car and you take out a 5 year loan at 3% p.a. with no balloon payment (monthly repayment of $449.22), your total cost is $26,953. In other words, you are paying ~$2,000 over 5 years, or an average of $400 per year.

    This amount might even be less than what you may spend on maintenance and repairs for an older car, will give you the additional safety of a newer car, not to mention that even if you could afford to pay cash, you might want to keep your cash for something more useful (e.g. a deposit on a house or some other investments).

    What I would like to know is: What is the best current company to get a car loan from?

    Hard to have a pleasant or unpleasant experience with anyone - advice is to generally avoid dealer finance unless you know how to negotiate with them. They'll always give you a deal that sounds better on paper, but have hidden charges. Separate out the purchasing and financing in order to get a better deal on both.

    Be weary of various types of charges, e.g. early termination charges. Sometimes, for whatever reason, you may want to pay out your loan early. Having no fees will increase your flexibility.

    • Drakesy on 24/01/2022 - 12:49
      -1

      But lets not forget that that $25,000 car is now worth $15,000 or $13,000 after you take out the interest repayments, oh and very few places would give you 3% interest right now given no one's in a hurry to sell a car.

      It's more that new cars are not necessarily a sensible financial decision, the Ozbargainer would let someone else take the initial depreciation hit and buy a 3 year old car for 40% off.

      • randomusername2017 on 24/01/2022 - 15:17

        3 year old car for 40% off.

        Harder to find in the current market.

        Given the loan is secured against the car, wonder what impact the COVID tax would have on used car finance… similar concept to arranging a mortgage on property with an inflated valuation.

      • p1 ama on 24/01/2022 - 15:27
        +1

        Ozbargainer would let someone else take the initial depreciation hit and buy a 3 year old car for 40% off

        Where can I buy a 3 year old Corolla for 0.6 * 25,000 = $15,000, even before the recent inflation in car prices?

        It's more that new cars are not necessarily a sensible financial decision

        I agree, but it would be foolish to not acknowledge the benefits of driving a new car. Not everyone is always out to get the best deal possible. Time is money and people value their time differently. Some people just want a new car and the benefits that come with it, e.g. a manufacturer warranty, or features only available in modern cars.

        FWIW, I'm just presenting the numbers as they are. Each can make their own decision about what's financially sound for them. I stand to benefit nothing whether someone decides to take out a car loan, purchase a new car, purchase an old car, or catch public transport. My view is that people ought to know what the numbers are and how much interest they are paying so that they make the most informed decision, not making a decision based on getting berated by other people.

        For the record, I actually broadly agree with you on the sentiment - I drive a 6 year old Toyota, which I bought when it was 2 years old, and paid for in cash. Got more like a 20% discount off new prices though, wish it was 40% like you say…

    • JDMcarfan on 24/01/2022 - 15:24

      Whilst you fail to factor in depreciation and current interest rates (as Drakesy mentioned), your example of of $2k over 5 years is just plain wrong.
      Its $27k over 5 years and not $2k as you imply (its $2k more for the privilege of not forking it all upfront). Let's also not forget that you're paying the entire car off over the course of 5 years which will make a significant dent on your free cash flow (FCF) per week/month, which say if you were trying to save up the $25k for a house, would severely limit/ make you ineligible for a home loan anyways as banks (I work at one for reference) are extremely and increasingly conservative with loans and also view such finance arrangements quite negatively.

      For the example of a HL, you'd be better buying a car within your means and if that's $25k for your situation, paying without finance and listing it as an asset when you go to get a loan or otherwise get a tax-beneficial novated lease (but if you were you wouldn't be spending $25k on a car anyways) would be a better bet even if it does set you back initially

    • threepaws on 25/01/2022 - 09:50

      you might want to keep your cash for something more useful (e.g. a deposit on a house or some other investments).

      If you're talking about $25,000 then the impact of your home loan by having a car loan is going to outweigh the cash by a huge amount. Having a 25k loan will reduce your borrowing power on a mortgage by roughly 2-3 times as much, so in this regard it's actually not worth it.

  • holdenmg on 24/01/2022 - 14:54
    +1

    https://www.plenti.com.au/car-loans/ is @
    4.89%pa or 5.44%pa Comparision T.A.P.

    I'd be paying cash, borrowing for a Vehicle against a Property or even looking at
    Dealer Finance if it is really low.

  • bobbified on 24/01/2022 - 16:47

    If you currently have a mortgage and have enough equity to draw from there, that would be the cheapest way to do it, as long as you paid the monthly amount as if you had an actual car loan and do it consistently for five years (If you're not disciplined and just leave it as part of the mortgage the total cost will be a whole lot more than the car loan).

  • rektrading on 25/01/2022 - 10:17

    Credit is at its lowest in history.

    Borrowing at a low rate to buy assets while keeping capital liquid to invest in growth is financially justified.

  • koplik8 on 25/01/2022 - 15:09

    I've had two car loans through Police Credit Union. I wasn't a member when I got the loan.
    3.99 % P.A.Variable rate
    4.25 % P.A.Comparison rate

    https://www.policecu.com.au/loans/car-loans/

    They were excellent. really easy process to get the loan in the branch. You can apply online

    • Utsav23 on 21/02/2022 - 15:02

      That's good. How about the application/monthly/early termination fees?.

    • XedeX on 23/02/2022 - 10:45

      Hi,
      So with the variable rate.. isn't there a risk of rate going up for the term of the loan ?

  • PixelPaul on 17/04/2022 - 08:22

    who did you end up going with?
    It is of benefit for me getting a new car loan for my business car due to the instant asset deduction.

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