ahmedwaseem2000

Hey mates,

I have always got abundant replies most of the time so thought to try to get some more from you all nice fellas

I have to get a pre approved loan for a used car , an suv which would be maximum 5 years old. so, can you please share your experience and let me know which banks offer good options for the loans

I did search the forum, just wanted to get the latest experience of the people in here.

Cheers !!!

commonwealth

what brand of suv? sometimes honda/toyota offer 1-3% interest financing deals. not sure about the others. have a look at their websites.

KJCherokee

Not usually for secondhand sales, only for new cars.

Have you got a home loan? Can you increase it to cover the cost of the car? That is usually the cheapest option.

ahmedwaseem2000

Nope, I dont have the home loan. but I will be going for one early next year. how is home loan related to car loan?

KJCherokee

If you already had a home loan the chances are you could increase it, or use a drawdown facility, to get the cash to buy your car. This would mean that the house was security for the loan rather than the car, which would automatically mean that the interest rate would be lower (say ~7% compared to 12%-18%).

But since you don't have a home loan at present, the point is of academic interest only!

ahmedwaseem2000

I am ok with most of them, for now I am considering CRV or land cruiser

ahmedwaseem2000

Hey Cherokee - Just for my understanding, I can bundle the car loan and home loan when buying the home loan right? do you know who are good mortgage providers?

KJCherokee

Probably not. You will take out a home loan (mortgage) for, let's say, 90% of the cost of the house, putting up 10% in cash as the deposit. At settlement the bank will hand over a cheque for that 90% to the vendor's agent and you start paying back the loan to the bank. Then if you pay at a higher rate than the minimum you will have a balance which you can "draw down" to buy a car: alternatively if the value of your property goes up (and the bank agrees that it has!) they will let you increase the value of the loan and you can take that money for whatever you want. Neither of these will be possible until some years after the initial purchase (and possibly not even then).

A third (less likely) possibility is that the bank will value the house you want to buy at a higher price than you will be paying for it: in this case they will still lend you 90% (or whatever the deal is) of their valuation which will leave you with spare cash from your 10%.

Hope that helps.

ahmedwaseem2000

Yeah - it certainly does help. Thank you very much for the detailed information.

it sounds like I might not be able to use this option. anyway, do you know which are the top pick of car loan providers or how to get that information?

JOE2010

http://www.infochoice.com.au/persona...te-comparison/

PunkDebutante

Stratton Finance are very good to work with.

ahmedwaseem2000

thanks guys, just saw Honda providing finance at 1.5%.

Sounds too lucarative to be true. just wanted to know what is your view and past experience on this.

http://offers.honda.com.au/

derab

are you wanting a used car or a new one? the Honda deal is for new cars, most of the car companies are offering good finance deals right now for new cars.
I bought my car using my credit card and at 14.99% with no arrangement fees, its cheaper than any car finance I could find, AND I get to pay it off earlier, saving even more.

ahmedwaseem2000

I was looking for the used one's now I am getting tempted to go for this offer. Do you know which other companies are giving similar offers?

derab

OK, its the weekend and I have the weekend cars guide in front of me.. here goes:-

VW are offering 3.8% on Passenger cars
VW have 2.8% on their 4x4's for Self employed / tradies
Nissan have their 4x4's for 1%
Renault are offering 0% Finance
Honda are 1.5%
Audi have 3%
remember, if you get factory finance, you will probably be paying full ticket price.

I still think a 5 year old car bought with a credit card and payed off quickly is the cheapest way of doing the deal.