floweroscotland

Can anyone tell me who has bought a car by finance if they had any problems, when we came we bought a car outright but its a bit old and we now want to upgrade so we have gone for a car and arranged through the garage to get finance, but have been told that we can get the car no problem but we will need to pay 18% finance instead of the normal 11% because we have no credit rating, we have been here a year and a half and have an Australian credit card, but the say that doesn't count, Is this right or are we getting ripped off somewhere, I am a PR, so I don't see the problem, has anyone else had a problem with this. Thanks

Lisa

ABCDiamond

I would shop around. Have you tried a normal bank, or is that just a car loan specialist /shark whatever they are called ?

AndyT

I got car finance 8 days after arrival from RACV at a reasonable interest rate, all I had was the house rental agreement and an employment contract (was lucky there)

It took longer and was more trouble to get a mobile phone plan

floweroscotland

Thanks for your replys, I haven't tried the bank yet but I will shop around, it's the finance company through the garage we are getting the car from GE Finance, I just thought it would be easier to let them do all the work, but i will try other places.

Thanks again
Lisa

AndyT

The other thing you have to remember about car finance :-

Garages and the finance companies like to finance everything, this includes insurance, gap insurance, warranty (generally not worth the paper they or on), roadside cover and just about anything else they can think of. The bigger the principal the more they earn. They also like to try and make you take it out over a period longer than you want / need.

As the loan would be secured on the car you would need fully comp insurance and gap insurance to cover the duration of the finance.
These fees added to the finance over the life of the loan really pile on the interest, better to pay the insurance and fees separate from the loan if possible.

Probably check moneymanager.com.au (or similar) for current loan rates as some banks / credit unions do loans secured on vehicles if you really need to secure it on the car.