Car Loan with Defaults on Credit File [Solved and Closed]

dlakers3peat on 27/11/2017 - 22:36
Last edited 29/11/2017 - 17:22 by 2 other users

I need to get a car loan for about 35k. Problem is i have some defaults that won't come off my credit file for another 8 months. Ran into some financial trouble about 4 years ago which led to the defaults. Both my wife and I work full time and we have well over a million dollars equity in our home. We have a combined income of over 250k. I do have 3 children all under 12. Using my savings is not option. My car just crapped itself so unfortunately I cannot wait and save for it. Any sound financial advice is appreciated.

Been in new job for only 1 month. Car repairs will cost over $5k for car only worth that amount.

Don't really need 35k. But do need something reliable as I use my car for work ie visiting clients, attending work related functions etc

Financial

closed Comments

      • HighAndDry on 28/11/2017 - 20:28

        Off the top of my head:

        1. OP has already clarified much earlier and further up in the thread that they were financial defaults; and

        2. Giving someone who's had financial defaults in the past advice that they should seek asset-backed financing is not responsible advice.

    • FAIL on 29/11/2017 - 01:57

      It's funny my comment got down voted when I have given factual advice on how to help OP out of his scenario. I do this for a living and see the ramifications of Eddie the expert telling people in this scenario what to do. I work with a lot of dealership groups to help clients that they can't get approved internally and I have to educate them not to just apply for everything and anything when they won't get approved at XYZ lender because it's outside of their policy anyway. In all honesty I agree he should get something cheap and get back on his feet and clear his debts but that's not what he came on here and asked as he clearly works in a position where appearance matters, for example I know I wouldn't feel too confident if my real estate agent rocked up in a 1987 Magna. Just my 2 cents.

  • TimSubaru on 28/11/2017 - 11:17

    dlakers3peat 1 hour 50 min ago new
    The defaults are credit cards and they are fairly large 10k each. 1 personal loan as well 10k. Paying these off but not paid in full. I did settle a couple of the larger ones but as you know creditors can still see them.

    I got to say sounds so fishy would you not use your 1mill equity to pay C card off a long time ago , remortgaged etc…Why would a person seems able to have above average income in the past before not see… Duh, I enjoy paying 20% interest on C cards but like to think to see they have Million in a home?or maybe you were just not in the right mind space?

    I hope you have a garage to park your used $2500 car in your million dollar home, I bet you will be talk of the neighborhood , but agin driving a old 12yr old Audi
    would have had tongues wagging anyways.

    • HighAndDry on 28/11/2017 - 11:19
      +3

      You'd be amazed at the number of high-income, even high-networth individuals who have very little financial sense because, for one reason or another, they've never been in a position to need to exercise financial discipline, or just because of the stresses of life, decide to push some problems down the road where they become much larger problems. People aren't saints, earning capacity or capability does not necessarily also imply financial acumen.

      • TimSubaru on 28/11/2017 - 11:21
        +1

        Agree just seems this guy has a answer for every Objection now, Maybe he learned or he like all the people who check on how much you earn on timeshare profile $250K and above hahahha

        • HighAndDry on 28/11/2017 - 11:23

          Fair enough. As the adage goes, no one knows if you're a dog on the internet. But this thread is relatively harmless, contains good and fairly generalized advice even for people not OP, and there doesn't seem to be any clear motive on OP's part to troll (no drama, no sympathy, no requesting freebies or cheating the system, etc).

        • TimSubaru on 28/11/2017 - 11:26

          @0blivion:

          All i know is if he in need of a job, I have one for him never seen a person be able to handle objections. True harmless and gives us things options to think about things. Good Advice and comments.

        • dlakers3peat on 28/11/2017 - 23:01

          @TimSubaru:i do not understand this comment. Do you want me to agree with advice from people which is infeasible.

        • Baysew on 29/11/2017 - 15:54

          @dlakers3peat: I think he is paying you a compliment, by offering you a job, based on your ability to bat away questions.

        • dlakers3peat on 29/11/2017 - 16:13

          @Baysew: well its part of my job so its second nature to me.

    • Ken1977 on 28/11/2017 - 13:24
      +2

      I've seen million dollar homes you wouldn't even live in. A 3br weatherboard home in my street just sold for over $1 million, most of the homes in my average street are worth $1mil. Pretty sure the pensioner that owned it would find it hard to walk into a bank and get a $35k loan too, as he had no income, just his pension.

      • HighAndDry on 28/11/2017 - 13:40

        That's actually what reverse-mortgages are for. Effectively your bank pays you money installments for a set period, allowing you to withdraw equity from the property. At the end of the period (usually this is for older owners so when they die or move into a nursing home), the bank has paid out all the equity and buys the property.

  • Quantumcat on 28/11/2017 - 11:24
    +2

    Buy a bomb car for 1 or 2K, run it till it dies, and save up in the meantime. No one "needs" a 35K car anyway (unless maybe you're into four-wheel drive adventuring or have ten kids and need a bus)

    • HighAndDry on 28/11/2017 - 11:26
      +3

      Yeah seconded. (Also seconding everyone else who's said the same thing which seems to be every second person). I think OP was more just thinking to replace his dead Audi A4, and also he said he has 3 kids so a decent sized car probably is a need. (Not $35k, but probably also not something like a used Toyota Yaris or Echo).

  • ELH05 on 28/11/2017 - 11:52
    -2

    Have you not thought about selling your house if you have over a $1,000,000 in equity ? I know it wont help straightaway with the car issue (surely you can just get a cheap old car $2k - $5k to get you through) but selling would put you in a better position - pay off your debt and get an affordable house with the remaining cash ?? Am I not understanding this correctly ?

    • dlakers3peat on 28/11/2017 - 12:27

      I live in Sydney and I am not prepared for such a drastic measure for the sake of a car.

      • myusername on 28/11/2017 - 12:46
        +6

        perhaps cut back on the smashed avo on toast?

        • itstuan on 28/11/2017 - 13:21
          +2

          Just get off OB for a month and you would save enough for a car

      • HighAndDry on 28/11/2017 - 13:42
        +3

        Yeah selling a $1mil+ property just get money for a car is crazy talk.

        It's bad enough to finance a car (depreciating asset) but can make sense sometimes, but to get rid of an appreciating asset (real property), to get money to spend on a depreciating asset… guy needs to hand in his OzB badge.

        • ELH05 on 28/11/2017 - 15:12
          +2

          I wasn't talking about selling the property to purchase a car. I was talking about in general, the Original Poster sounds like they have a lot of financial issues (debt etc). Selling the property they are in, cashing in the equity and getting rid of all their debts, establishing themselves again basically. Its not too far fetched really.

        • HighAndDry on 28/11/2017 - 15:18

          @ELH05: Not really. Think of the property equity as savings (it effectively is, just very very illiquid savings). First rule of learning financial discipline is to have positive cashflow, which inherently means not dipping into savings. OP's financial D-Day is already behind him - dipping into savings then to avoid the default would've been a good idea if it had been an option, but since that's already come and gone, going forwards OP shouldn't dip into savings unless absolutely necessary (life-saving surgery level necessary), or to grow more wealth (selling to buy another appreciating asset).

          Effectively, OP has already started afresh with his defaults. Doing so again now would set a bad example because OP would still not know how to budget and live within his (income) means - and savings run out (and cars won't stop breaking down) so it's not a sustainable solution.

          PS: Just specifically re the debts: OP has already entered into a payment arrangement, and he can comfortably service those repayment commitments (new car purchase notwithstanding). There's no urgency that would warrant selling off the most valuable asset in OP's portfolio, not to mention the asset with most long-term upside, to deal with those debts faster at this stage.

        • jorf on 28/11/2017 - 16:43

          @ELH05:

          Are we really talking equity though? Or just what it's worth. A million dollar house with a million dollar mortgage has zero equity, as I suspect is the case here.

          So, maybe OP can clarify what this actually is.. Do you have a multi-million dollar house or a tiny mortgage that you could actually redraw a million bucks on, or do you just have a massive mortgage on a million dollar house and have no withdrawable equity at all?

        • HighAndDry on 28/11/2017 - 20:31

          @hcca: I'm pretty sure OP knows the difference between value and equity.

          Also, the fact that he's had the mortgage for at least 4 years (during which ppty values skyrocketed so that his original mortgage could not possibly be too close to the value of the ppty now), and that it's on a fixed rate (and presumably fixed repayment incl. principal) mortgage with no redraw, means that I very much doubt OP could have a $1mil+ house with anywhere near the same amount in mortgage outstanding.

        • dlakers3peat on 28/11/2017 - 22:36
          +1

          @hcca: no the house is worth 1.4 million with a 350k mortgage, hence 1 million plus asset. I do not have redraw facility with a fixed home loan. Expires in a 18 months. Also even it wasn't fixed there is no way the bank would allow me to borrow more money considerin my past history of repayments with them. I am all good now and up to date but 4 years ago it was a very different story.

    • itstuan on 28/11/2017 - 13:20
      +1

      I'm sure you would love to go through the pain of selling house, buy another house, when you just started a new job, so that you have some extra cash to buy a car.

  • skywards on 28/11/2017 - 12:48
    +1

    Salary sacrifice?

    • llamaesque on 28/11/2017 - 13:56

      That just changes the source of the repayments. He'll still have to put in a finance application which will involve a credit check like any other finance application.

  • itstuan on 28/11/2017 - 12:55
    +1

    Just buy an old reliable car to use in the mean time, until your default is clear and you can get a fancy loan for a fancy car. I dont think anyone here would be able to help with your default problem, unless you want to go to those high interest shark loan that advertised on radio now and then.

  • Traveller107 on 28/11/2017 - 13:04

    Pull equity as a new separate loan or a top-up. Many lenders do not do a new credit check for a basic top-up for existing customers(Depending on your existing LVR and loan amount).

    Even in cases of credit default lenders have the discretion to approve loan upon providing written evidence or statutory declaration regarding the default(if it has been sorted). Cheers!

  • Danger on 28/11/2017 - 13:32
    +1

    Sell your home and buy a ferrari/porche/lambo

  • HighAndDry on 28/11/2017 - 14:10

    Oh damn - people talking about your company made me think: Can you get an advance on your next paycheck? It's technically still spending what you don't have, but so long as you budget right, you'll get upfront cash earlier.

    • dlakers3peat on 28/11/2017 - 14:28
      +2

      I work for a big US based corporation so I doubt that thing is done. Also it would not look good asking for money I have not earned since I have only been there a month.

      • HighAndDry on 28/11/2017 - 14:29

        The "just hired for a month and already asking for advances doesn't look good" part is true. It being a US company shouldn't be an issue - if anything, paycheck advances are more common there than here. But yeah - just another option, certainly not necessarily the best one.

  • zqipz on 28/11/2017 - 14:58

    Buy what you can afford, as most have mentioned. Stating your equity seems to be utterly irrelevant or humble-bragging in this case.

    • HighAndDry on 28/11/2017 - 15:20
      +1

      Assets (i.e. the equity) is one of the main factors next to income and credit history in determining credit-worthiness, which is basically the core of what OP is asking about. That he absolutely should not touch that equity is a separate albeit important aspect, that's been covered in the answers.

  • wanga1983 on 28/11/2017 - 15:41
    -1

    Borrow privately from family
    Finance the vehicle under an ABN
    Is taking Uber / PT an option?

    • HighAndDry on 28/11/2017 - 15:52
      +1

      1. Don't mix friends or family with money.

      2. Businesses can't borrow without either a long (2yrs generally) trading history or a guarantor (with good credit history).

    • HumbleCat on 29/11/2017 - 05:06
      +1

      Maybe one of their parents can get the car on a loan and the OP can pay them back. Not siblings tho, only parents. Extended relatives are out of the question.

  • xgenosis on 28/11/2017 - 15:51

    4 words to help you in for the future now you have a higher income. get the YNAB app (you need a Budget) its well worth its money. Do it!, im now debt free from my ex and divorce :)
    secondly, applying for a loan for a car might go through depending on how many credit check you have had over the last 1-2 years. I recently applied for a home loan and the bank come bank and said to me that you've had to many credit checks in the past 12 months. So i got a copy of my credit file and turns out i hadn't and the bank had stuffed up.

    Point is get a copy of your credit report. If you really want to get a car loan that's the only way you'll know for sure.
    Reading a lot of the comments here I always see people saying if you cant pay for it in cash you cant afford it etc etc. While this i believe 100% in regards to most expenses. i don't agree with in the case. You may have money in saving but might need it for a raining day or if something goes wrong. Purchasing a car though finance is perfectly acceptable so long that if something goes wrong you have funds to be able to get yourself out of trouble.

    End of the day its your life and you can do with it as you damn please.

    I know I will get a lot of hate for this

  • Baysew on 28/11/2017 - 16:09

    It's not the number of credit checks that OP is concerned about, it's the fact he has been listed as a default. Which he knows about.

    • xgenosis on 28/11/2017 - 16:11

      I know that but when applying for credit there are a few factors they take into consideration apart from default notices

      • HighAndDry on 28/11/2017 - 16:38
        +1

        Yes, but a credit default will be an automatic rejection of basically any consumer car loan or personal loan.

  • Lukeae93 on 28/11/2017 - 16:26
    +7

    $2000 AU falcon problem solved

  • TheBilly on 28/11/2017 - 17:08
    +3

    Why don't you cycle to work. Buy yourself a nice used road bike for $500. To put things into perspective I used to do a 25km commute each way for 6 months and it was dam enjoyable. I went from a pack a day smoker for 8 years to being able to cycle that within a year after I quit.

    • Brouw3r on 28/11/2017 - 20:25
      +3

      I do have 3 children all under 12

      Hop on the handlebars kiddos, daddy's cycling to school.

      • TheBilly on 28/11/2017 - 20:30

        Walk?

      • HumbleCat on 29/11/2017 - 05:08
        +1

        School bus for kids he cycles to work and wife takes public transport. Live within your means.

  • dufflover on 28/11/2017 - 17:45
    -2

    So knowing you have defaults against your file you still pay big money into a home (or you don't actually have that much in it since you use that BS word equity) with a fixed rate and insufficient spare savings to fix or buy an emergency transport.
    Sorry that is just poor financial planning, but I'll concede there's probably plenty of people on the same bucket, probably mortgaged to the hilt too.

    At least you're prepared to suck it up; others would blame someone else heh

    • yomama on 28/11/2017 - 18:07

      What makes you think OP defaulted and then pay big money into a home and not the other way around?

      • xgenosis on 28/11/2017 - 18:33

        we don't know but they could of gotten a pay out or lump from from previous employment and dumped it all into the house. which is still the smarter thing to do IMO, especially if made redundant

      • dufflover on 28/11/2017 - 19:22

        It really does not make a difference to what just looks like bad financial management. How did they end up defaulting then if they had lots of money in a home, or whatever other assets they may have.

        I have all my "savings" in my home loan, with a redraw facility. If I did not have such facility, I damn well wouldn't have put all of it in there, nor would I be buying other things requiring a loan to default on.

        As others have already asked themselves, the situation really doesn't add up, or basically yes were bad financial decisions in the past - and if that's the case the OP has not learnt much if they asking how to take a $35k loan for a car … I wouldn't be, and neither have many other commenters here so far

        • dlakers3peat on 28/11/2017 - 19:26

          Big difference i can more than afford it now when i was late with my home loan repayments i never missed a car payment in 5 years.

    • HighAndDry on 28/11/2017 - 20:34

      I'm not sure you understand what a fixed rate mortgage contract means. Even though it's kind of all there in the name…

      • dufflover on 28/11/2017 - 20:40

        I had one myself thanks (split loan). Sure the T&Cs may have been slightly different either way I didn't touch it past the fixed direct payments. I mean there are so many factors not covered there are plenty of ways it all could've gone down back then, but seems to not really be learning any lessons of saving to go for a loan now or finding ways around short-term problems as this seems to be.

        Aside from the cheap clunker car idea I'd also say consider some of the (typically considered) poor options like car share or heck even taxi's/uber. If you are making as much as money as you say then the cost of a clunker may not be much different to just forking out short term for those sorts of arrangements.

        • HighAndDry on 28/11/2017 - 20:43

          Sorry, not OP. But yeah my somewhat oblique point was, OP likely didn't have a point as to whether or not to repay the loan if he was in a fixed rate arrangement.

  • freakatronic on 28/11/2017 - 18:06
    +1

    I feel for you and I admit that I came here for entertainment. My two cents is for you to buy a $500 banger that will make it through the next few months as you save up for one that will last a few years. Extreme times, ect.

  • holdenmg on 28/11/2017 - 18:41
    +1

    $7,800 is the amount I'd limit spending to.

    Here's why:
    https://www.afsa.gov.au/insolvency/how-we-can-help/indexed-a…

    Whatever happens you probably get to keep the Car.

    • Other on 28/11/2017 - 19:32

      he did not go bk, rather he has defaults.

      • holdenmg on 29/11/2017 - 12:44
        +1

        I know that.

        But in the event of doing so, it means you have a car.

  • OzzyOzbourne on 28/11/2017 - 19:14
    +1

    It it a trick question?

    Hate to state the obvious, but buy what you can afford for the next 8 months, then borrow the money. Presume you have some savings with that income and aren't down to your last 1000bucks.

    Btw, how do you earn such a high income without having the ability to resolve such a minor issue?

    • dlakers3peat on 28/11/2017 - 19:21

      The high income is just a recent thing. I have just been in the job for a month. Also my income is made up of a base and commission so the monthly income will fluctuate. Eg i will only start earning commission in a few months when i get up to speed and there maybe months where there is no commission.

      • dufflover on 28/11/2017 - 20:49
        +1

        Maybe it's another comment since (I'll admit the thread structure on OzB isn't chronologically the easiest to follow), but I haven't seen if you've mentioned the situation causing the troubles in the past. But just looking at the now, 1 month in a new job usually isn't secure (e.g. probation), and your income is dependent on commission to varying levels you say. Sounds like a recipe to end up in a risky defaulting situation again to me. I mean I'm not a financial manager but that's my honest well-intentioned thoughts from the description. It sounds like you've come back in a fair way which is commendable; don't mess it up again with money you don't have!

        That's even less reason to take out a loan of any sort if you have options for a cheaper vehicle fulfil the duties in the mean time.
        … unless you work for Westpac and think your commission depends on the car badge :P

        • dlakers3peat on 28/11/2017 - 21:08

          Yes i have thought of that. Being on probation and getting loan is probably not a good idea. The big issue I have is time. If my car was able to last another 3 months or so, then I would be able to get the cash and buy a car outright. The cost of repairs far outweighs what the car is worth. So spend 5k+ on repairs with no guarantee other problems won't surface or just buy something to tide me over.

        • tryagain on 29/11/2017 - 11:37
          +1

          @dlakers3peat:

          or just buy something to tide me over.

          I am pretty sure you know this is the realistic option, you just need to suck it up and not care what others think about you driving around in an old car.

          Going for another loan when you have outstanding debts + are on probation + are basing your income on future commission potential + don't have any savings is still showing the kind of decision making that probably landed you hear in the first place.

  • Typical16-bitEnjoyer on 28/11/2017 - 19:39

    I know guys in Sydney that'll lend you 30k cash for 90 days. If you don't pay back they might break your kneecaps tho.

  • field1985 on 28/11/2017 - 20:27
    +2

    Take it as a life lesson - to live within your means.

  • Plug on 28/11/2017 - 21:07

    Why do you need a $35k car?

    • dlakers3peat on 28/11/2017 - 21:08
      +1

      I don't 10k will do.

  • zeomega on 28/11/2017 - 21:47

    Don't you have a probation period? Trying to spend $35k you don't have… with the potential of losing your job in a blink of an eye is just crazy imho. Buy an old banger and stop wanting a nice looking car for the next year.

    A typical ford falcon/commonwhore which is cheap to own and cheap to service for 12 mths will be most ideal if you need the space.

  • Gdsamp on 28/11/2017 - 22:12

    Out of interest, what was your previous car?
    How much cash do you have right now that you are able to spend on a car? Take 60% of that and buy something cheap used, and the rest towards 3rd party insurance and 6 months rego. Hopefully after that you can get a new car.

    • dlakers3peat on 28/11/2017 - 22:21

      2005 Audi A4 3.2 B7. I have enough cash to fix it but the car is bottomless money pit. The repairs far out weigh the cost of the car. Transmission crapped itself. Already repaired same problem 18 months ago. There are major oil leaks,needs new radiator and hoses, shocks are worn, steer rack needs replacing…..the list goes on and on. We are looking at 5k+.

      How do I know if I buy some cheap car i am not just buying more problems.

      • FW190 on 29/11/2017 - 00:21

        unless your car is going to be customers/clients facing (you did say your work is commissions based, so I guess it is some kind of sales job?), then just spend that repair money on an old Corolla or Civic to tie you over for the next 6/12 months, $5k should get you something half decent. Old school made in Japan cars are usually bullet proof if it was well looked after.

        How do I know if I buy some cheap car i am not just buying more problems.

        first rule is, avoid Euros which are out of warranty :)

        And if you think a crappy car will turn off potential customers, just catch a taxi/Uber when you need to meet them. (and to be a true Ozbargainer, you will catch public transport to the nearest train station/bus stop, then taxi the last mile :))

      • Samsungnote10 on 29/11/2017 - 09:11

        So you have, $5k+ in cash for repairs.
        Plus a bad condition Audi a4 worth maybe $3kto $5k

        But you need a loan for a 10k car???
        And earn $250k per year?

        • dlakers3peat on 29/11/2017 - 09:17

          Job is is only new, 1 month old. 250k is combined income. Also the 250k is maximum earning potential. My remuneration is made up of base and commission. So take home pay for me will fluctuate every month.

        • Samsungnote10 on 29/11/2017 - 09:19

          @dlakers3peat:

          One month into the job and already claiming to make $250k is pretty dangerous

        • dlakers3peat on 29/11/2017 - 09:23

          @hellohello123: 200k is guaranteed only for both me and my wife. 50k is not guaranteed and is based on performance. Again this is combined income not just mine.

  • whatthecrappin on 28/11/2017 - 22:42

    Exact same problem here. My Car is worth prob 5k and I just spent 4K on a transmission rebuild and new discs and brakes (got my car back this afternoon actually) Is it worth it? Hard to tell, but I can afford 4K to repair but not 30k on a new car. I certainly don’t want to buy a car with issues. If this car lasts another 5 years I’m still in front. Fingers crossed

    Annoying thing is 4 years ago my other car was also dying. I spent a couple of k nursing it but had to call it quits and sell when I got stranded numerous times (over heating and even resorted to carrying extra bottles of water). I didn’t even make it to the dealership for the trade In lol. Would I have been better off o sell and cut my losses early.? Probably, but depreciation is going to cost you as well. Finding that balance is the hard part. Maybe do essential repairs to last another year?

    • dlakers3peat on 28/11/2017 - 22:49

      The ones i listed are essential as per the mechanics advice. Cars rego is due at the end of december so i need to make a decision soon.

  • centrelink on 28/11/2017 - 23:24

    Find a Chinese lender that isn't dodgy to give you a loan. Sounds like you won't get a loan thru the proper way

    • dlakers3peat on 28/11/2017 - 23:28

      No you are right about i won't get a loan through the proper way. Not sure what you mean find a Chinese lender that isn't dodgy to give you a loan.

      • centrelink on 28/11/2017 - 23:29

        Like those cliche mafia bosses who beats the crap out of you if you don't pay on time. Don't think they would go that far though l

  • sunnyc on 28/11/2017 - 23:30
    +1

    Just use rideshare for the time being. You can get great discounts for some cars. I know the cars will be rubbish like Toyotas but it comes with fuel which is really expensive right now

  • djmm on 29/11/2017 - 00:16

    Sell the house
    Use the surplus fund to buy the car.

  • shandawgg on 29/11/2017 - 00:32

    Asset protection as well by gift and loan back.

  • AG_ACT on 29/11/2017 - 00:39
    +1

    In your situation, a rental car seems to be the best option: you need the car for 12ish weeks, ie close to 6k but that’s all tax deductible given you are only using the car for work, on your income, that makes it 3ish k and then you can get a car you actually want!

    Taxi/Uber/public transportation might work too but that depends on job profile.

  • solidussnake on 29/11/2017 - 06:55

    Being a ex Business Manager the default will come up straight away. If you apply for a new loan maybe through a bank and show total earning plus asset backed they might approve the loan for you ?

  • dojomojo on 29/11/2017 - 07:20
    +3

    Is your new job with Westpac? If so, it will be very smart to buy a more expensive car as a high yield investment. This advice coming from a person with 12 lambos in the garage.

    • dlakers3peat on 29/11/2017 - 08:19

      If i worked for westpac i would not need financial assistance.

  • Mg on 29/11/2017 - 09:26

    Car share e.g. GoGet

  • chrisd262 on 29/11/2017 - 09:45

    A work colleague just bought an Audi A3 - paid around $50k?
    Put $5k deposit and will repay at $500 per month for 4 years

    Is that good - so will have a residual around $20k

    • dlakers3peat on 29/11/2017 - 09:58

      I am not sure what you are trying to convey with this comment.

  • moflare on 29/11/2017 - 11:35

    A few potential options (some already conveyed). Selling the existing car appears a priority so would get that listed to help cash flow. Note, not a financial advisor. Options to consider:

    1) Rental of a car but at costs below market using peer to peer services (e.g. carnextdoor or drivemycar). Cars rental is an upfront cash payment but a basic vehicle (e.g. Hyundai accent) will be from $33 per day (c. $3k for 3 months). Cars are insured ($2,000 excess), however they do take an additional deposit. Tax deduction will also help at June 30.

    2) I would consider starting a dialogue with the bank regarding the need to defer payments during the Christmas period until February to help with cash flow and the ability to fund a car for income generation purposes. I note your concern regarding needing payslips and seeing higher income. I would try without supplying further information. If they request further information, I would consider providing the details of the higher income as this may help your situation and is worth the risk of increased repayments.

    3) I note your concern regarding purchasing a second hand lemon. When savings are appropriate (i.e. your current car is sold), a reliable vehicle such as a toyota corolla could be purchased from a dealer with statutory 3 month warranty. Certain dealers will also provide additional warranty at a cost which could mitigate your concerns. Whilst more costly, it will give you peace of mind.

  • tryagain on 29/11/2017 - 11:45
    +1

    If you have the 5K to repair the Audi, then buy a different car for 5K, lose the vanity of wanting a euro and go something Japanese, or even South Korean, you will find running/repair costs far cheaper, no guarantees about not having issues but far less likely than an old European.

    • dlakers3peat on 29/11/2017 - 11:50

      I can assure you no such vanity exists wanting to own or keep this car.

  • tauk on 29/11/2017 - 11:53

    I think your problem is with your first sentence here. "I need a 35k car loan", not "I want a 35k car loan". Do you really need a 35k car? Buy an average car for 5-10K, sell it for the same price in a year and take out your loan when you can.

    • dlakers3peat on 29/11/2017 - 12:03
      +1

      Yes thats what i will be doing.

  • simonjb on 29/11/2017 - 12:05
    +2

    250k income 1000k equity not even 35k in spendable savings and defaults out the wazzoo welcome to straya.

    • dlakers3peat on 29/11/2017 - 15:33

      I never mentioned I don't have 35k in spendable savings.

  • enzioFirenze on 29/11/2017 - 12:34
    +1

    mate your problem has basically pivoted now and from what I can tell, you want to assure the car you buy for 5k (which you have now) is a reliable one. Given that you live in Sydney, you can get a 03-06 Corolla or 04-07 Mazda 3 with less than 150k mileage under 5k if you look hard enough and those will be reliable and not crap themselves like the euros after warranty.

  • abb on 29/11/2017 - 13:41

    You live in Sydney, right?

    Have you considered catching the train/bus, with Uber/taxi and car share (GoGet etc) to fill the gaps?

    Depends how much gear you need to carry for your job of course.

    Do that for a couple of months and you should be able to buy a car for cash.

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