Used car purchase with little deposit?
 

Hey

My son , a recent arrival, starting work in three weeks has priced a used car at $20000, the dealer who will arrange finance says they need $5000 deposit as he is newly arrived in Oz and no employment history in this country. He will be working as a police officer with WAPOL. any views on the finances would be welcome.

Peter

Re: Used car purchase with little deposit?
 

Stay away from those sharks. Why not try a PolicCredit Union or other financial institution? Better yet, buy a cheaper car that gets him from A to B, save his money and then pay a far bigger deposit or cash. It's not like he'll be driving his car all the time. Who cares what it looks like, as long as it's legal and serves the purpose.


Police and Nurses Credit Society WA.
www.pncs.com.au

Re: Used car purchase with little deposit?
 

^ what they said!

There's no need to spend that much on a car, mine is perfectly decent and not falling to bits, cost under $5000. I don't think it's worth getting in to debt & servicing a loan in order to have a nicer car. Just get one he can afford now!

Re: Used car purchase with little deposit?
 

Thanks guys for your comments - will look at pncs site

Re: Used car purchase with little deposit?
 

What did you manage to get for 5K? Thats likley to be my price range.

Re: Used car purchase with little deposit?
 

We bought a 1988 Toyota Cressida for $5000.00 and it is fantastic, only had 100,000km (62,000miles) on the clock and is in superb condition. I have just got myself a 2004 Honda Accord V6 with 28,000k on the clock for $20,000.00

Being a fairly young (30) bloke myself I'm afraid with a car image is everything - even though the Cressida is by no means cool I ensure that it remains in spotless condition and is always shiny, you look as if you choose to drive that car and not forced to drive it. I agree stay away from used car dealers finance.

Re: Used car purchase with little deposit?
 

www.carsguide.com.au

Click on search and it will bring up a section table of different price ranges.

Re: Used car purchase with little deposit?
 

Man that Cressida is uuuuuugglyyyy. And you cant polish a turd :lol: However - with a wife and two young kids on a single salary - practicality wins out over image - so I will keep this one in mind. Thanks again.

Love the Hondas though too dear.

Re: Used car purchase with little deposit?
 

I was at the car wash the other day and this drongo in a Commodore said that, and I said "You should know mate!"

It is ugly and I didn't like it at first, but it was the most advanced car at the time this side of BMW etc. and it has grown on me.

Re: Used car purchase with little deposit?
 

Just read a few user reviews of this car and have to say - quite impressed!

Looks like a decent well equipped and well built motor, albeit with the head gasket fault - defo on the radar now !

As for the commodore driver - well people in glass houses.

Re: Used car purchase with little deposit?
 

The Head Gasket fault only blights the later 3.0 litre vesion which came out late 1988, mine is the early 1988 model with the 2.8 litre engine.

Re: Used car purchase with little deposit?
 

I got a little hyundia excel, there are quite a few on the roads so I figured it would be easy to have serviced etc. Also I drove a punto in the UK so didn't want a tank over here! Found the cars much bigger, on average, than the UK. Also my little excel is pretty fuel efficient. It was just under 10 years old when I bought it, and had less km on than many that I looked at. (kms much higher here than UK too, prepare to adjust your expectations!)

I know a few friends who have come over and picked up perfectly decent cars for well under $10,000, there's a lot out there.

Re: Used car purchase with little deposit?
 

There's nothing wrong with getting finance from the dealer, as long as the interest rate is competitive and there are no extra fees. The contract should state the monthly repayment and total amount of interest in full. Make sure they're using a reputable finance company though, such as Esanda (ANZ bank).

You can often negotiate a better deal at the dealers if you're using finance through them, as they get a commission from the finance company. You can also negotiate the interest rate.

If you go directly through a finance company like Esanda yourself you won't be in the position to negotiate the price of the car down further and you may actually pay more in interest.

Or

There are finance brokers who will secure you the best rate. Look online. With no credit history you'll be looking at a 10-20% deposit.

Re: Used car purchase with little deposit?
 

To add to my previous post, if you do go through the dealer and secure a good deal - make sure you tell them to list this as a condition: "contract validity subject to finance approval suitable to the borrower".

You then have an "out".