Best Low Interest Secured Loan Offer?

'ello peeps, hope you're all keeping well :)

Am on the verge of pulling the trigger to splurge on a car that I've always wanted ($40K). Whilst I have the money I'd rather take out a loan as I can invest and get a better return in 3yrs of the loan term.

Having a look at loans (have property to secure) and car loans are borderline robbery, is personal loan the way to go? How do I go about justifying what I need it for so they don't rip me off or do I even need to justify if I can pay it off as agreed? Is there anyone in particular that I ought to go with in my current situation? Looking for one that's 3yrs to pay off, and, would be nice if I can pay it off sooner if opportunity presents itself without penalty.

I've only recently remortgaged so getting appraisal for funds down that route is unfortunately not an option.

Thanks heaps in advance

Comments

  • -3

    u say u can get a better return, so whatever is ur better return will give u the answer

  • I got about 7% from my dealership, who use Power Alliance.

  • +1

    We got 4.25% last year on $40k from Plenti using a broker. He was excellent!

    it was called Jump Payments back then and Scott seemed to work on his own at the time. Seems they have rebranded to Driva. https://www.driva.com.au/
    Scott would respond within minutes and late at night.

    You can enter your details and they provide an estimated rate straight away.

    But just be prepared to send a lot of paperwork. Lenders are being very difficult with car loans.

  • If you are sure of your investment strategy Pay cash for your car and get a Margin Loan for your investments for under 6% p.a at any lender.

  • Friends dont let friends get a car loan.
    How does one get a guaranteed 11%?

    Even then, after depreciation, inflation and tax i think the gains aren't going to be quite as big as you think

  • 100k is a lot to spend on a car

  • Whilst I have the money I'd rather take out a loan as I can invest and get a better return in 3yrs of the loan term.

    I've only recently remortgaged so getting appraisal for funds down that route is unfortunately not an option.

    Cheapest option would be to redraw from home loan. So your 40k cash is not sitting in your mortgage reducing interests? Home loan rate is definitely lower than a car loan (incl fees), which is cheaper than dealership finance option.

    On top of what serpserpserp said, investment loan is tax deductible… So depending on your income you might be better off paying the car with that 40k and wisely borrow for your investment.

    Not financial advice.

  • I think the rates used to be a bit lower but if you're looking for the security and certainty of a proper, regulated Bank, you should take a look at rates offered at Bank First. You can get between 5.29-5.79%, depending on the vehicle, with comparison rates not far off that. I believe they have won awards fairly recently for these products but go check it out if you're interested. Some of the finance companies operating in this space have been found to be dodgy, however I think their existing customers got lucky because they had to make big financial concessions. I wouldn't bet on them being held to account all of the time though.