Hi,
I am planning to buy a 3-4 year old car for personal use ranging around $15,000 - $20,000. Was looking for dealers rather than private sellers as they may have some guarantee on the car.
I am looking for options to finance. I am not familiar with the options available in Australia and what will be the best option would be. Appreciate if someone can guide me.
I've googled about the topic and some say dealer finance is the best option to go as the interest rates for banks are pretty high.
Simples
The number of people that think they'll actually get the best rate their bank is offering is crazy high. Many people don't fit into that perfect finance category so the only way to accurately compare is to do what I said above.
But you have to put applications in to have a true idea of what you will get.
When I bought my first car I shopped around for a good rate and went in the the dealership with one pretty much locked in.
When I agreed to buy the car they offered to have me meet with their finance guy.
I thought 'yeah, right, here comes the rip-off'. But agreed to discuss it just to see what they could do.
The rate the dealership offered me was MUCH better than the rate I had planned - so I took it.
My advice is basically the same as Spackbace - do your research, then see what the dealer offers.
You never know, they might surprise you.
recently my sister-in-law bought a Kluger through finance with the toyota dealer. the rate was very good.
certainly shop around.
personally I prefer to pay cash.
Be careful with Dealers offerring lower interest rates as they tend to be offset by high fees.
Look for:
Establishement Fee
Dealer Commission
Monthly Maintenance Fee (or whatever they call it)
Early Payout Fee, should you choose to pay the balance before the term ends.
Also think wisely if you want finance as you will end up paying a lot more. Take the weekly or monthly repayments and multiply by the term (eg 5 years, paying $500 a month = $500 * 12 months * 5 years = $30,000 in total). Subtract the cost of the car, say $22,000, and that's the extra you are actually paying to the finance company, or, $8000. That's a lot of money to think about on top of the actual car cost
Don't compare finance based solely on percentage interest rate.
You need to compare based on the "comparison rate" which factors in interest rate plus other costs. And yes, you need to consider things like break fees if you pay out early.
Of course, it would be great to avoid finance for all sorts of things in life. Unfortunately it is not always possible.
I went to a dealership. They offered me 20% rate and wasn't interested on discussing about it at all.. I was asking for 10,000. Not sure whether it is the amount of money but overall the finance girl wasn't like not interested at all.
Yeah sorry but I doubt they were offering 20% unless you're in a bad spot financially.
I'm not sure i was in a bad spot financially. this is my first loan.. but i have only being here for 8 months and in my job now for 3 months
http://www.ratecity.com.au/car-loans