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ADteacher Sep 27th 2013 2:11 pm

Advice on car loan
 
Hello,

I'm looking to buy a car- probably brand new. I've spoken to the bank who have said I can have a loan for 75% pf the cost of the car but that I would need to put a downpayment of 25% in myself. I don't have this cash, but the guy in the bank said I could take this off my credit card and then pay that back in installments. Does that sound normal? Is it standard practise to do that? OR has anyone managed to do it differently.

Thanks.

Blue Cat Sep 27th 2013 2:15 pm

Re: Advice on car loan
 
Don't! sounds to me like you can't afford to buy a new car !

scot47 Sep 27th 2013 2:29 pm

Re: Advice on car loan
 
Big mistake to arrive and immediately take on a huge loan. WAIIT.

Millhouse Sep 27th 2013 3:11 pm

Re: Advice on car loan
 
Don't listen to the naysayers. Get the 4x4 you always dreamed of.

You can take a personal loan out for the full amount and then buy the car with cash. It has the benefit of meaning the car is unencumbered and mortgage free so you can sell it when ever you like.

I should tell you that it also means that if you default on the loan the bank has no recourse to an asset so your arse goes straight to jail.

The credit card option seems an expensive and impractical way to do it. You'd have to pay off 25% of the loan very quickly if you are doing it that way.

sicklyman Sep 27th 2013 3:46 pm

Re: Advice on car loan
 
you don't mention what county your are in (possibly UAE from your username) but if you want to drive it among GCC states, this is complicated if you get a car lease from the showroom as they technically still own it until you pay it off. If you get a bank loan, the car is yours from day 1.

In Saudi, at least, bank loans are cheaper than car lease options and there is also the advantage of no downpayment or balloon payment at the end if you do not want these.

Tockalosh Sep 27th 2013 4:10 pm

Re: Advice on car loan
 

Originally Posted by Millhouse (Post 10920563)
Don't listen to the naysayers. Get the 4x4 you always dreamed of.

You can take a personal loan out for the full amount and then buy the car with cash. It has the benefit of meaning the car is unencumbered and mortgage free so you can sell it when ever you like.

I should tell you that it also means that if you default on the loan the bank has no recourse to an asset so your arse goes straight to jail.

The credit card option seems an expensive and impractical way to do it. You'd have to pay off 25% of the loan very quickly if you are doing it that way.

Get a quote for a personal loan as MH above. This is the way we did it though not to avoid a deposit. My reason was purely clear title. For what we pay extra in interest, we gain in security as the deposit was half the car value so if we do have to sell and move on then there is no danger of the car being worth less than the loan unless we go back to 2009 days

busybee2 Sep 27th 2013 6:04 pm

Re: Advice on car loan
 

Originally Posted by sicklyman (Post 10920627)
you don't mention what county your are in (possibly UAE from your username) but if you want to drive it among GCC states, this is complicated if you get a car lease from the showroom as they technically still own it until you pay it off. If you get a bank loan, the car is yours from day 1.

In Saudi, at least, bank loans are cheaper than car lease options and there is also the advantage of no downpayment or balloon payment at the end if you do not want these.

there is a personal loan or a car loan, a personal loan is not held against anything but costs a little more in interest, a car loan (a mortgage) is written on the gold card here in ad, so you must pay off that loan before it becomes yours and you need to do that to sell it on. they are still both bank loans. either way you are allowed to drive it "across" the border if you so wish.

ADteacher Sep 27th 2013 6:38 pm

Re: Advice on car loan
 
If I went back to the bank and said I wanted a personal loan instead of a car loan, would they not get suspicious, or mind, that I was going to spend it on a car?

Millhouse Sep 27th 2013 7:07 pm

Re: Advice on car loan
 

Originally Posted by ADteacher (Post 10920872)
If I went back to the bank and said I wanted a personal loan instead of a car loan, would they not get suspicious, or mind, that I was going to spend it on a car?

No.

busybee2 Sep 27th 2013 9:27 pm

Re: Advice on car loan
 

Originally Posted by ADteacher (Post 10920872)
If I went back to the bank and said I wanted a personal loan instead of a car loan, would they not get suspicious, or mind, that I was going to spend it on a car?

nope they wont ask you you just pay a little more!

Tockalosh Sep 28th 2013 6:20 am

Re: Advice on car loan
 

Originally Posted by ADteacher (Post 10920872)
If I went back to the bank and said I wanted a personal loan instead of a car loan, would they not get suspicious, or mind, that I was going to spend it on a car?

As said by others, No. Generally the car loan department is totally separate from the personal loan department and no one at the banks speak to each other. Before you ask, they also wont get suspicious when you write a cheque to Dubai Porsche either.

Now have fun and go car shopping

Scamp Sep 29th 2013 7:29 am

Re: Advice on car loan
 

Originally Posted by ADteacher (Post 10920453)
Hello,

I'm looking to buy a car- probably brand new. I've spoken to the bank who have said I can have a loan for 75% pf the cost of the car but that I would need to put a downpayment of 25% in myself. I don't have this cash, but the guy in the bank said I could take this off my credit card and then pay that back in installments. Does that sound normal? Is it standard practise to do that? OR has anyone managed to do it differently.

Thanks.

I've got a car loan instead of a personal loan.

It makes very little difference to me, because I don't default and the car is still worth more than I owe.

Yes, if I want to sell it tomorrow then I'd have to clear it but that's perfect for me....it stops me wanting to be a dick and go buying a Range Rover.

Tockalosh Sep 29th 2013 5:23 pm

Re: Advice on car loan
 

Originally Posted by Scamp (Post 10922355)
I've got a car loan instead of a personal loan.

It makes very little difference to me, because I don't default and the car is still worth more than I owe.

Yes, if I want to sell it tomorrow then I'd have to clear it but that's perfect for me....it stops me wanting to be a dick and go buying a Range Rover.

Ah hum mr scamp. Show some respect

Now be a happy dick and go RR shopping. You know you want to.

My mate in AD has just bought a second hand RR super charged and it's awesome, for now

Scamp Sep 29th 2013 5:34 pm

Re: Advice on car loan
 

Originally Posted by Tockalosh (Post 10922865)
Ah hum mr scamp. Show some respect

Now be a happy dick and go RR shopping. You know you want to.

My mate in AD has just bought a second hand RR super charged and it's awesome, for now

I want one. It's my perfect car. I just can't justify it at the moment pal, not allowed a range rover until I own a house. Then I'm only allowed one if it's at least 50% paid for in cash money.

OleJanx Sep 29th 2013 6:14 pm

Re: Advice on car loan
 

Originally Posted by Scamp (Post 10922876)
I want one. It's my perfect car. I just can't justify it at the moment pal, not allowed a range rover until I own a house. Then I'm only allowed one if it's at least 50% paid for in cash money.

I owned seven Range Rovers before I bought a house. At the moment have fun before you're 30. You can always be a boring fart when you're older. Meanwhile....:D


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