Going for a Car Loan

4x4driver on 16/09/2020 - 10:15
Last edited 16/09/2020 - 10:45

Hi everyone,

So I have been talking to my financial advisor regarding personal loans etc for a car now they want the usual 3 months of statements etc which is fine but over july we have had more come out of the bank than ever before and I feel this will impact me as they might think we are reckless with money which we arent I mean I'm on ozbargin so I'm a certified tight ass.

should I wait a month or so to clear this out or do you think I'm looking into it too much to give you an idea we are always positive every month.

Financial

Comments

  • Drakesy on 16/09/2020 - 10:21
    +11

    Friends don't let friends take out car loans.

  • nephilim on 16/09/2020 - 10:27
    -1

    Car sales have tanked, its prob the best time to negotiate directly with the dealers.
    If Nissan and Fiat can offer 1% when sales are good, why cant they now?

    Dont let the mid 20 year old with a bad haircut push you over, go get them,

    • spackbace on 16/09/2020 - 10:47

      why cant they now?

      Subvention

      Money out of the car, to give you a lower interest rate.

  • Seraphin7 on 16/09/2020 - 10:27

    How is waiting a month going to "clear out" three months worth of statements?

    • 4x4driver on 16/09/2020 - 10:45

      Well its not 3 months bit of a typo it was one month July which was the big spend month for us I was thinking of waiting till the start of Dec so that would be Nov Oct Sep

  • watwatwat on 16/09/2020 - 10:36

    How much do you currently have in cash and how much is the car loan you want?

    • 4x4driver on 16/09/2020 - 10:45

      Got 25k in the bank 25k from the deposit of my old car and the car is 70k

      • watwatwat on 16/09/2020 - 10:53
        +4

        'certified tight ass's don't buy $70k cars, let alone on a car loan.

        • 4x4driver on 16/09/2020 - 11:08

          So I'm, not a tight ass because I'm buying a new car first time in my life?

          The loan will be only for $40000, not the whole amount plus the main reason for buying the car is because I can depreciate the value as I use it for 95% business use I can't do that with my current car.

          the other reason I'm buying this car, in particular, is it will double as my touring car for when I go camping.

          • klonky on 16/09/2020 - 11:14

            @4x4driver: For that amount of coin and the use case I assume you are looking at the Landcruiser.
            I would strongly suggest looking at the more moderately priced competitors such as the Isuzu Dmax/Mux or Ford Ranger. There is a engine refresh coming up in the Landcruiser so it would not be the right time to buy one.

            • 4x4driver on 16/09/2020 - 11:15

              @klonky: Looking at the Y62 patrol but you're on the money I already have a Dual cab and don't want another one just a personal preference.

          • Malarkey on 16/09/2020 - 11:14
            +2

            @4x4driver: A small personal loan of only $40,000….

        • kipps on 16/09/2020 - 11:37

          But what about high yield investment cars for bankers?

  • phr0 on 16/09/2020 - 10:36
    +2

    I don't think they will be looking at you expenditure as closely as you think. It's more to verify your income is coming in and you don't have any red-flags like a gambling habit or other debts you're paying down that are not disclosed.

    • 4x4driver on 16/09/2020 - 10:46

      Thanks mate

  • Skramit on 16/09/2020 - 10:36
    +1

    In my experience with banks/lenders, they are not so concerned with expenditure when they want to see bank statements, they are more looking to see the regular income.

    I think theres requirements to ask about your "average monthly spending" when you will need to detail anyway.

    • spackbace on 16/09/2020 - 10:47
      -2

      I think theres requirements to ask about your "average monthly spending" when you will need to detail anyway.

      Yep, you'll need to do this anyway

  • bobbified on 16/09/2020 - 11:04
    +1

    The banks are not as particular about your spending habits on the shorter term loans like car loans. As long as you have the income to support the repayment.

    Mortgages that span 25-30 years are a little different. They have to at least appear to be "responsible" by looking at and questioning your spending habits to ensure that there's a decent chance you can pay.

  • u4127181 on 16/09/2020 - 11:05
    +1

    A friendly reminder: Just making sure you are Not planning to buy a house or doing refinance in the next few years (before your car loan is paid off)..

    • 4x4driver on 16/09/2020 - 11:06
      +1

      Hey, mate already have the house I got that first :)

      • bobbified on 16/09/2020 - 11:19
        +3

        If you can, look at refinancing your mortgage to get the car, but for 5-7 years, add an additional $X amount on top of your existing mortgage payments - where X equals the monthly payment amount you would have been paying if you got the car loan as a separate loan.

        (Don't refinance and keep paying the minimum mortgage amount over 25-30 years because the total cost of the car, even at the much lower interest rate, will cost you more than taking out a car loan at a higher interest rate for 5-7 years).

  • Marcsie on 16/09/2020 - 11:53
    +1

    I would expect you to see Financial Advisor for home loan or investment issues, but for car loan ? lol, never borrow money to buy a car, a very silly decision and a costly and lesion to learn.

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