To get a $10,000 loan I need $2000 deposit. So does that mean I can get a $12,000 car. Because if finance offers me 10, & I put in 2 surely that equals 12.
scoobeey,
Mar 30, 9:50am
yes but in 3 yrs time once you have paid off your 17k your car will be worth 5k losing 12 k just a thought:)
sharchew,
Mar 30, 7:44pm
Go to your bank get a personal loan much cheaper than those bloody finance companies
scarey65,
Mar 30, 8:01pm
save up ! or buy a cheaper car
save 10 and buy a 2ooo car !
kazbanz,
Mar 30, 8:53pm
Sub 666. The explaination is a tiny bit complicated. First option is that when your income and outgoings are calculated the finance company have decided you are in fact only able to repay an 8k loanSo in that case you in theory would be able to buy an 8k car with no deposit. The dealer has said to own "that" car you need 2k deposit. -a 12k car would need a 4k deposit. Second option is that you are viewed as a higher risk lender due to a bit of adverse history,marginal income,short term in job etc. So the finance company have asked for 20% deposit If that is the senario then in theory a 12k car would mean you need about $2400 deposit. The other possibility is that the f and M guy at the dealership has made a decision for you and written in 20% deposit. Or of course it could be a combination of all three options You really need to talk to the dealership concerned and find out the reasoning of the finance company. without knowing its actually pure guesswork.
bellky,
Mar 30, 9:01pm
How does vehicle financing work!
You get shafted basically.
Save up and pay cash for what you can afford.
n1smo_gtir,
Mar 30, 9:12pm
learnt that one 7yrs ago. save up cos if you crashed it or got it written off by yourself and you can't afford to pay your insurance cos your money goes to paying for the car and living cost etc, they repo your heap of mtal auction it off, write off what they get back and chase you for the rest.
n1smo_gtir,
Mar 30, 9:14pm
you can find a 3-5 grand car in pretty good nick with sub 200ks. and it wouldn't depreciate much more. if it's been well looked after it should last ages.
bellky,
Mar 30, 9:23pm
Good call. Buy privately (carefully) and save transferring wealth to dealers, insurance cos, warranty providors, finance cos etc.
xs1100,
Mar 31, 12:48am
you still need insurance on any car,minimum 3rd party,fire and theft
elect70,
Mar 31, 3:02am
Dealers loveto sell financeget acommissionwhich is built in to the cost ,. better as above, get personalpre appoved loan & pay cash . Buywarranty seperatley too
kazbanz,
Mar 31, 3:47am
UTTER RUBBISH--Thats like saying ONLY buy a car privately because its cheaper. An inteligent person would look at every finance optionand see which is the most economical for them. Go to the bank and get a QUOTE. Go to a finance company or two direct and get a quote. Get the dealer to give you a quote. Reality is that for the customer deciding on finance is pretty simple. How many Monthly/weeklypayments are there and how much are the paymentsMultiply the two together and you get the total amount you'll pay.If you want to get clever you can then subtract the origonal borrowed amount to get the cost of credit. To limit yourself because "the dealer makes money" is just really smallminded. The same applies to a warranty except you also need to be sure what they do and don't cover. what the claim limit is and what the excess is. Pointless getting a cheap waranty if it isn't worth the paper its written on
Of course as said above a REALLY clever person doesn't borrow to buy a car. Tney save up for it instead
kazbanz,
Mar 31, 5:31am
wooa --you can tell I anit getting a whole lotta sleep
les6,
Mar 31, 8:35am
no but you`re right. whatthey seem to forget all too quickly is they get to have and use the car straight away!thats got to be worth something to impatient people!
cfs,
Mar 31, 8:54am
When I was younger, I bought cars on finance. Worst thing I ever did. Much as the temptation is there, i would concur that the BEST option is to save up, then pay cash. Better baragining power, if nothing else!
horsepower7,
Mar 31, 9:20am
i got my car on finance, but i work at a car yard so get deals haha, didnt buy the car from our yard tho, i brought the car for 15k and think it works out to be a 19k car, but lucky for me, my car holds its price in that price range. i personaly justfound it easier for me to do it that way ;-)
thecudadude,
Apr 1, 4:22am
Basically any form of finance requires you to bend over and get shafted . 1st you pay more for the car than whats its worth then if your stupid enuff to pay it off over say 5 yrs you can add on another 50% then you end up selling it for jack shit at the end of the process and start all over again . Only real exception to this is a mortgage on a house where you hopefully pick up capital gain over time to offset the interest costs . unless you buy at the height of the market that is ! Nows a great time to buy tho so forget the car and buy a house instead . Pay less than 6% interest and have a more comfortable place to shag ya Mrs . Its a win /win , LMAO !
bubbles244,
Apr 1, 10:27am
just sold a wof'd RUc'd and Reg'd ford courier for 1500 yesterday. lol yeah ya dont need a car loan in the current market
johnf_456,
Apr 1, 10:47am
Very true, if anything get a bank loan.
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