Best Finance/Car Loan (VIC)

pyro love bird on 06/08/2022 - 16:39

Hi all,

Looking to get a used car for about $40k through a dealership.

Their lender quoted me with a fixed rate of 9.95% for a 5 year loan with fortnightly repayments. There's a $450 application fee, no fees for early repayments, but to pay out early I need to pay 780/60 months for the number of months that remain ($13 for each month that i would normally pay) and a $150 admin fee for them to wrap up the payments.

There's also a $7.50 monthly service fee. No balloon repayments.

I have full time work and have been in my position for over a year. No home loan, minimal debt.

Any advice for a good lender in Vic at all?

Thanks all!

Automotive Car Loan

Comments

  • pegaxs on 06/08/2022 - 16:41
    +9

    I'm just gonna say it… Don't get loans on depreciating assets, especially when interest rates/cost of living/inflation are going up.

    • pyro love bird on 07/08/2022 - 11:48

      Current car has costed a heck of a lot in repairs so we're just trying to get something newer that just works.

      • Drakesy on 07/08/2022 - 15:47

        But those repairs will be less than the interest/depreciation cliff

        • pyro love bird on 12/08/2022 - 21:30

          It's been unreliable and had a lot of parts replaced, even when sourcing second hand parts it's unfortunately been very expensive. The last service I did costed $3k in total. Then had to get the car battery replaced again (within a year) and then the battery connectors replaced as well as a bunch of other things. I'm a bit tired of having a car that decides it doesn't want to start one day, so was looking for something nice and works.

  • MS Paint on 06/08/2022 - 16:45
    +4

    Is it a European out of warranty second hand vehicle?

    • holdenmg on 06/08/2022 - 18:00
      +1

      or a Holden Cruze? lol

    • pyro love bird on 07/08/2022 - 11:49

      Holden calais, still within warranty. Dealer is offering another 3 years if we service it through them

      • Euphemistic on 07/08/2022 - 14:06

        Within warranty but cost a lot in repairs? Does not compute.

        • pyro love bird on 09/08/2022 - 07:57

          Sorry, my current car is costing a lot in repairs, so I am looking to get a Holden Calais. Currently have a commodore

      • MS Paint on 08/08/2022 - 07:03

        $40k for a nearly 5 year old imported car that nobody wants seems like a lot of money. You should be able to negotiate heavy on this. No one in the country wants these ZB Commodores.

        Is the mileage exceptionally low? 4 or 6 cylinder variant? Have you asked the service dealership on parts availability?

        • pyro love bird on 09/08/2022 - 07:57

          About 60k in milage. 6 cylinder. They're saying that it's good that it's not made in Australia anymore as it'll hold its value

          • Euphemistic on 09/08/2022 - 09:47

            @pyro love bird: Unless it’s a made in Aus commodore it’s not going to hold value. Nobody wanted the euro made version.

  • idonteven on 06/08/2022 - 16:47
    +7

    9.95% is extremely high.

    • pyro love bird on 07/08/2022 - 11:52

      I thought so too, lots of fees for paying it off early too

  • Baysew on 06/08/2022 - 16:53
    +2

    Just viewed this post - Plenti of Questions

  • Typical16-bitEnjoyer on 06/08/2022 - 16:53
    +1

    Any advice

    Don't.

  • Euphemistic on 06/08/2022 - 16:57
    +3

    Simple rule of thumb is: dealer finance is the most expensive.

    • pyro love bird on 07/08/2022 - 11:49

      They were saying that they used to be 10-15years ago. But it's much better than bank interest rates now.

      • pegaxs on 09/08/2022 - 07:35

        Yeah, because they build the profit into the price of the car. Trust me, finance through a car dealer is never cheaper than a banks. The money is still there, it’s just wrapped up somewhere else and presented with a pretty bow to hide it.

  • Drakesy on 06/08/2022 - 17:02
    +1

    Lol
    Only idiots finance cars.
    Oh and business owners.

    Buy within your means.

    • gryphn on 06/08/2022 - 17:41

      Well ummm . 2018 we walked into a VW dealership to buy a Polo for my other half. We were gonna pay cash, but the dealer insisted we hear out the finance deal. 1.8% 48 months, at the time we were getting 2.5% on savings. We left the cash in the bank.

      • Drakesy on 06/08/2022 - 17:47
        +1

        9.99%>> 1.8% which is almost palatable compared to now (allot changes in 4 years) - and that was back when they couldn't get anyone to buy their cars
        Whilst your savings could be making in the vicinity of 3-5%

        Paying outright with cash is key now.

      • boomramada on 06/08/2022 - 18:11
        +2

        In 2018, you can haggle better with cash lol
        Now you can't hence there is no such a deals.

    • pyro love bird on 07/08/2022 - 12:03

      Unfortunately the current one is becoming too costly to run. Need a car to get to the station etc and be able to pick things up as I try to get bulky items delivered but they often don't bother. So having a vehicle that has the capacity to fit larger items is good.

      I've asked for some advice as I am unsure of what to do.

      • Broke-Ken on 07/08/2022 - 13:26
        +1

        Wait, you're telling us you're willing to pay 46K for a car that will sit at the train station most of the time?

        What kind of car do you currently have that you can't pick up these "bulky" items? as I'd imagine the calais being a sedan wouldn't be able to fit much bulky items either.

        How much of a car can you afford without getting a loan?

  • boomramada on 06/08/2022 - 17:19

    Lol at all the comments.

  • holdenmg on 06/08/2022 - 17:54

    Buy a Myki.

    /thread

  • vince088 on 07/08/2022 - 10:50

    assuming your not getting a green car..

    5.39% is the lowest for you
    https://www.ratecity.com.au/car-loans/comparison?utm_source=…

    • pyro love bird on 07/08/2022 - 12:04

      Not a green car, thank you for the link. Will take a look.

    • boomramada on 07/08/2022 - 13:52
      +1

      There is no EV around 40k, closest would be BYD.
      If you in ACT, you can get 10k interest free loan.

      Check with your bank as well and ask if they can give you a better deal.

      Also try
      https://www.finder.com.au/car-loans

  • lachhelix on 07/08/2022 - 16:54
    +1

    Nah - way too high! Keep looking for new lenders… I had good luck with a place called "Leap Finance"

    • pyro love bird on 12/08/2022 - 21:33
      +1

      Thanks for that, have popped an application with IMB as they seem to have the most reasonable interest rate at 4.88%, no fees aside from the application fees as well. I plan to pay it off as early as possible though.

      • lachhelix on 13/08/2022 - 02:37

        Ah that's fantastic - hope it all works out well.
        As much as people say don't get a car loan, a good majority do - live your best life I say :)

  • Brick Tamland on 08/08/2022 - 13:03

    Interest rate is a bit high but fairly standard from a car dealer sourced loan. If you have to do it then I'd suggest paying it off as quick as you can to reduce the interest paid over the full 5 year term.

    If its a ZB Commodore I think $40k is too high as these were not popular cars. They should be cheaper than a VF commodore. Looking locally I can find a low KM one for $29,990 which is probably the most you should pay for one.

    • pyro love bird on 12/08/2022 - 21:34

      Thanks for the advice, currently own a zb commodore which is falling apart. So looking to get a Calais at around 40k. Second hand cars have held good value recently apparently.

      • geekcohen on 24/01/2023 - 06:29

        Second hand cars have held good value recently apparently.

        Yes, recently. As of last night, Channel 7 report its now down 12% from its peak in 2022 I believe.

  • hentabara on 08/08/2022 - 22:12
    +1

    Imb bank is around 5%

    • pyro love bird on 12/08/2022 - 21:34
      +2

      Thanks for this I popped through an application with them. Fingers crossed!

      • lasiafjmc on 28/11/2022 - 17:03

        Did you get any update from IMB?

        • geekcohen on 24/01/2023 - 06:29

          Would also like to know.

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