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.

Re: Advice on car loan
 

Don't! sounds to me like you can't afford to buy a new car !

Re: Advice on car loan
 

Big mistake to arrive and immediately take on a huge loan. WAIIT.

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.

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.

Re: Advice on car loan
 

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

Re: Advice on car loan
 

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.

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?

Re: Advice on car loan
 

No.

Re: Advice on car loan
 

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

Re: Advice on car loan
 

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

Re: Advice on car loan
 

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.

Re: Advice on car loan
 

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

Re: Advice on car loan
 

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.

Re: Advice on car loan
 

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

Re: Advice on car loan
 

Stop it.

Re: Advice on car loan
 

Be careful. An addiction to ageing Range Rovers will cost you more than a cocaine habit...Been there, never learned the lesson, looking for another...Eeek!:eek:

Re: Advice on car loan
 

Indeed. Once the Land / Range Rover bug bites you might as well just sign your salary straight over to the garage.

Re: Advice on car loan
 

I can't do it. Not yet.

Dad's had several, the only problem he ever had was putting petrol in his diesel one. Got taken back to the garage (he'd had it all of about 3 weeks), asked the salesman to ring him on Monday and he'd buy a petrol one.

Never got the call.

Silly salesman.

Re: Advice on car loan
 

so the question is adteacher did you get apersonal or car loan, or a car at all?

Re: Advice on car loan
 

dont you need to have the house first to make sure the rr will fit in the garage?

Re: Advice on car loan
 

Not yet- think I'm set on a personal laon, although haven't had chance to talk to the bank!

Also decided I'm not going brand new- think I'm going to go via Al Futtaim Automall.

Which leads me to my next question- does anyone know where the showroom has moved to in Abu Dhabi?

Re: Advice on car loan
 

Why? It will lose 20%+ as soon as you leave the forecourt? Ask about ex-demonstrators or used cars. You'll get something either better for your money or cheaper.

Re: Advice on car loan
 

Excessive spanking of the monkey is taking it's toll on you. I bet you have some impressive callouses on your palms too.

Re: Advice on car loan
 

Right.....helpful comment there.

Re: Advice on car loan
 

I am going for a used car- that's what the automall is isn't it?

Re: Advice on car loan
 

hahaha it worked you came back. the al futtain automall which was located in al mina, had to move to motorworld along with all the others... up in al fahal.

they are good tho as we bought a new dodge from the dealership which is a part of the al futtain, along with many others, they took our other cars part exchange gave us better price than the dealer would have done.

Re: Advice on car loan
 

yep

Re: Advice on car loan
 

What worked?

Thanks for the location- I couldn't find it online!

Re: Advice on car loan
 

You can normally get a much better deal second hand if you look on Dubizzle, or small ads in places such as Spinneys or Abela, rather than going to a dealer/automall. If you are not in a rush, wait until someone advertises one massively under-priced, often when they need to sell it quickly before leaving the country. All 3 of my cars came that way, and 2 I sold about a year later for the same that I paid, or even a small profit. Just make sure you know how to check them over closely, or take a friend who does.

As you will have seen people say over and again in other posts, minimise your borrowings while in the UAE. Taking out a huge loan for a new car just after you have arrived would be lunacy.

Re: Advice on car loan
 

I agree. Get a boat now that you have something to tow it.

Re: Advice on car loan
 

I'm sorry. I misread, tight you said you WERE going brand new!

Re: Advice on car loan
 

i asked that we didnt know which one you decided to go for etc..... and hadnt heard anything back from you since you asked the question:ohmy:

Re: Advice on car loan
 

The Green Eyed Monster that is usually quiet and peaceful likes this...
http://www.ebay.co.uk/itm/1993-Range...item3cd5aa96cc

But wouldn't pay that much, even if I sold a kidney and lung....!