Car Loan

sublime19 · Post by **sublime19** » Fri Sep 15, 2006 5:20 pm

hmmm. then that's probably what it was then

FTO338 · Post by **FTO338** » Fri Sep 15, 2006 5:26 pm

Fees, don't talk about banks fees, to me, they're all the same, bloody crooks

They get you one way or another, no exception.

Anyway last time i had a look, BMW have lowest fees then any other financial institutions i've seen for car loan. They don't just do 1 product either. Here's a list below

*Personal Loan
*Motocycle Personal Loan
*Personal Lease
*Prestige Purchase
*Chattel Mortgage
*Prestige Lease
*Novated Lease
*Auto Plan
*Auto Plan Plus

JOeJOe · Post by **JOeJOe** » Fri Sep 15, 2006 5:28 pm

Basically if you can prove you earn a regular decent income you can get a loan.

I think the guy is bs'ing.

It's harder to get a loan if you are self-employed, but in saying that, if you are running a profitable business (good profit) it shouldnt be a problem.

Maybe the guy has bad credit history.

Aspenmai · Post by **Aspenmai** » Fri Sep 15, 2006 9:08 pm

Its not only about proving a steady income - but that you are in a finanical position to pay off any other debts. Assets/Liabilities
They will look at any assets - which include computers, appliances etc...
and debt - any credit card debt
eg. if you have a steady income - but you have $4000 in credit card debt - your ability to pay off both if you get into financial difficulty will be at risk

When i wanted an fto - i took out a loan - the person who bought that fto after me was older and so was able to pay straight away for it.

Its just a factor for younger people - who may not be able to prove their financial status.

it may also be that this guy is wanting a lower interest rate - which you usually don't get unless its secured. - hence usually for new cars or cars less than 5 years old depending on which financial institution/credit union

my first loan was like 11.50% which is pretty high - i didn't have time to search around - and i did struggle

either that.. or ask them if they have rich parents - theres a fair few kids out there that can ask mummy and daddy or rich boyfriends for their cars...

thats my 2cents...

Camo · Post by **Camo** » Fri Sep 15, 2006 9:38 pm

I got my loan with commonwealth bank 11.59% (from memory)

Just paid it off yesterday, 4 year term, paid off in a year and a half!

Best way to go, long loan term then pay it off as quick as you can, that way you get a very good credit rating and you pay much less interest!

YAY!!!

no more debt

FTO338 · Post by **FTO338** » Fri Sep 15, 2006 10:01 pm

Camo wrote:Best way to go, long loan term then pay it off as quick as you can, that way you get a very good credit rating and you pay much less interest!

What you said about reduce the interest is true if itâ€™s a line of credit, credit card or a mortgage. Not a personal loan. You pay the same amount of interest no matter how fast you pay it off. Worst, you can might even have to pay a penalty. Itâ€™s in you contract and thatâ€™s how financial institution makes there money on personal loans.

And you actually don't improve your credit rating by paying a personal loan quicker either. Last time I check, it has the reverse effect. It leaves a "mark" on your credit file.

fto617 · Post by **fto617** » Sat Sep 16, 2006 2:24 pm

hey kev
i thought paying off the loan sooner could mean pay less interest?
like for a 7 year loan and u pay it off in 3 years, then you must be only paying the interst for holding the loan for 3 years and not 7 years ?
and a lot of banks have taken out early repayment fee now.

FTO338 · Post by **FTO338** » Sat Sep 16, 2006 5:40 pm

Like i said you only reduce the interest if its a line of credit, credit card or a mortgage. Not a personal loan.

And yes early repayment fee is just a fancy term of penalty, which usually includes the reminding interest of the original terms of the loan and any other "admin" fees.

If you not careful, it can work out to be more then paying it off in the original terms.

khunjeng · Post by **khunjeng** » Sat Sep 16, 2006 6:42 pm

FTO338 wrote:Like i said you only reduce the interest if its a line of credit, credit card or a mortgage. Not a personal loan.

And yes early repayment fee is just a fancy term of penalty, which usually includes the reminding interest of the original terms of the loan and any other "admin" fees.

If you not careful, it can work out to be more then paying it off in the original terms.

yep thats correct as far as I know. Paying off loans fast is not in the best intrested of the banks and hence they don't like it...they hate me cos I never take out loans...unless its for a house!

my advice is f**k the loan...save money and buy it...buy the time u save the money you will save a few grand on the puchase price also - now thats win win.

mxysxy · Post by **mxysxy** » Sat Sep 16, 2006 8:52 pm

Aspenmai wrote:They will look at any assets - which include computers, appliances etc...

I suggest this is very incorrect

DeFunkeD · Post by **DeFunkeD** » Mon Sep 18, 2006 10:17 am

mxysxy wrote:
Aspenmai wrote:They will look at any assets - which include computers, appliances etc...
I suggest this is very incorrect

i'd have to agree, if the loan is unsecured, assests don't mean jack. a financial institution will only look at assets for a secured loan. the financial institution will take debts (liabilities), expenses, and income into account because these things effect your ability to repay.

FTO338 wrote: Like i said you only reduce the interest if its a line of credit, credit card or a mortgage. Not a personal loan.

assuming you havn't agreed to a minimum interest repayment or an early repayment fee, you would actually pay less interest (not rate, just dollar amount). the interest on a personal loan is compounding interest, calculated from the balance of the loan, usually daily. so therefore, if you have a lower balance on the loan a lower proportion of your repayment will be interest, resulting in a higher proportion of the repayment being principal.

FTO338 · Post by **FTO338** » Mon Sep 18, 2006 10:50 am

DeFunkeD wrote:assuming you havn't agreed to a minimum interest repayment or an early repayment fee, you would actually pay less interest (not rate, just dollar amount). the interest on a personal loan is compounding interest, calculated from the balance of the loan, usually daily. so therefore, if you have a lower balance on the loan a lower proportion of your repayment will be interest, resulting in a higher proportion of the repayment being principal.

This is true, but like you said, only if assumed people haven't agreed to a minimum interest.

Normally the financial institution will present it to you quickly, tell you the amount of interest over the yrs and then ask you to sign at the bottom by handing you a pen. Thatâ€™s one of the trick financial institution uses, as itâ€™s natural for people to sign what ever they need to quickly, when they got a pen in their hand.

And I dare to say 90% of borrower will just sign it without reading all the T&C. As they just want the money as soon as possible to get what ever they were after. Where I use to work, its 99.9%.

DeFunkeD · Post by **DeFunkeD** » Mon Sep 18, 2006 11:24 am

FTO338 wrote:This is true, but like you said, only if assumed people haven't agreed to a minimum interest.

Normally the financial institution will present it to you quickly, tell you the amount of interest over the yrs and then ask you to sign at the bottom by handing you a pen. Thatâ€™s one of the trick financial institution uses, as itâ€™s natural for people to sign what ever they need to quickly, when they got a pen in their hand.

And I dare to say 90% of borrower will just sign it without reading all the T&C. As they just want the money as soon as possible to get what ever they were after. Where I use to work, its 99.9%.

yeah, a lot of people get caught out with that, and then try to blame the financial institution. the financial institution is mostly just interested in making the sale.

NOTE TO ALL: it is your responsibility to read and understand the contract, if you dont, ask someone who would. your signature legally says that you have read and understand the terms and conditions of the contract, so if you get caught out by it, it's on your own back, dont even bother trying to blame someone else if you've signed off on the darn thing. just take the few mins it take to READ THE FREAKING CONTRACT, it will save you a lot of hassle later.

Aspenmai · Post by **Aspenmai** » Mon Sep 18, 2006 11:43 pm

HAHAH man all you guys are *~delightful!~*

"Don't meant jack?"

go to bank
ask them for an application form
they ask you list your 'assets' and 'liabilities' (debt)
to say they don't take it into consideration at all is stupid
If the loan is unsecured they look at your assets in the sense "do you have any assets that you may need to sell if you default" not in the sense to secure against the amount you are borrowing
they look at it because they assess your ability to pay off the loan if something happens to your regular income flow - because if you lose that you'll have to get the money somewhere
And if you have a regular income but no assets - its a red flag - because perhaps your current expenses are too high and may hence effect your ability to make regular repayments

I'm obviously explaining this in simpleton terms

I have had two loans - Unsecured - both from well known banks - both have asked the value of all assets

FTO338 · Post by **FTO338** » Tue Sep 19, 2006 12:05 am

Come down bro.

Some of us had work for financial institution before, so they did make a fair point.

You can put what ever you want on the application, but that doesn't mean they consider it as an asset.

Computer for one, which depreciate faster then any other house hold item. So they most likely don't consider that as asset.

I remember when i first started a business 10yrs ago, I put down my first car as asset but the bank said vehicle are not consider as asset. So it can be really confusing if they follow the books.

Anyway why are we arguing on a guy can't even get a loan for a small amount.