i spose a few of you might have some recommendations. im looking for a finance company that will hopefully meet my needs
im looking at spending around $10K on a early 00's bmw have about $2K deposit due to a couple of minor bad spots and no major good ones my credit history is average
also im looking for somewhere that will let me pay it off early without major penalties
so any suggestions of a good company to go through! thanks in advance
tonyrockyhorror,
Apr 9, 5:32am
Don't do it. Never finance depreciating assets unless they generate an income of their own.
sw20,
Apr 9, 5:35am
Yeah just don't. Save the cash, feels so much more rewarding, and doesn't have the opportunity cost of finance.
flat_white_ltd,
Apr 9, 5:44am
^^^
jason_247,
Apr 9, 5:51am
financing 8k on a car thats worth 14 is worth it IMO, i may end up selling it quickly hence wanting to be able to pay off early with no penaltys
also its a good way to get my credit record looking up
mone,
Apr 9, 5:51am
$10,000 loan over 4 years.You find that when you sign the contract, it's ballooned to $19,000 with interest.Plus the usual car maintenance, insurance, petrol. $30,0000. By the end of the 4 years, the car is worth nearly nothing = Financial future completely screwed.
flat_white_ltd,
Apr 9, 6:56am
sorry, dude. but that's just not true. Your credit "rating" is simply more adveresly affected evry time you apply for credit. that's how they work now. more enquiries = lower "score" .You can't improve your credit rating by paying off a loan. & car finance is a glaring bad risk as far as credit reporting agencies are concerned., whether you pay it off or not.
tonyrockyhorror,
Apr 9, 7:07am
F@rk'n spot on, Bevan.
tonyrockyhorror,
Apr 9, 7:15am
What makes you think it's worth $14k if you're planning on getting it for $10k! And please don't say "That's what they are on TM for" because that they're only listed for that hoping for a sucker to come along. You'd need to know what they are actually SELLING for.
I've been casually looking at a newer bike and the ones I'm looking at just aren't moving at the prices they want. Coming into winter they'll either have to get realistic or wait until summer and they'll probably sit there all next summer too.
jason_247,
Apr 9, 3:00pm
ok so we have conclusively concluded that yes i would like to spend $300,000 on a car that will be worth $45 tomorrow and cost me $100's of dollars a day to run
so ill rephrase the question, has anybody had good experiences with a finance company they would recommend for running my life into the ground
flat_white_ltd,
Apr 9, 3:58pm
Honestly, Jason. there is no such animal. The true finance rate is (should be) criminal. Far better off, if you're determined to borrow, to get a personal loan & pay cash for car with that money. At least the interest won't kill you. & & you won't be shaking hands with Repo-Guy as soon as (if) you're a couple of payments late.
intrade,
Apr 9, 4:08pm
if you only got 2 grand then you should not buy a bmw as you wont be able affort to run that car. european cars need to be serviced on time all and every time or they turn in to wracks real fast. You should also always just buy what you can afford . or you will be a looser all your live . as in looser i mean somone who pays others to get rich and you will stay poor till you die.
smac,
Apr 9, 4:26pm
C'mon you know that is simply not gonna happen in reality.
If you have a mortgage, and you put money aside and buy a car for 'cash', you HAVE borrowed to buy the car. The car is not the security of that loan, but you have borrowed to pay for it.
Don't get me wrong, buying a 10K BMW in the OP's situation doesn't seem.prudent.
i aggre smac if you have a mortgage and you save 10k to buy a car when that 10k could have come off the mortgage you are effectively putting the car on the house and you will still be paying that car of in 20 years time 3 year finance on 10k will cost about 4k at finance rates 10k off the mortgage will save about 12k at 6% so paying cash for a depreciating asset is a stupid idea, prob better to not buy in the first place
tmenz,
Apr 9, 6:14pm
That site is SO slooow.
tonyrockyhorror,
Apr 9, 6:23pm
I think we're on the same page.
smac,
Apr 9, 6:28pm
It doesn't. I think we agree about not putting your life in hock for 'wants', however I would also say people need to look past the 'never borrow for a car'.
Sometimes it's the completely correct thing to do. How you go about it needs thought, but it may well be the best thing in the circumstances (which we don't know).
tonyrockyhorror,
Apr 9, 7:00pm
I was merely taking YOUR example to the extreme in order to demonstrate MY point which was you have to draw the line at some point as far goes.
You still need a buffer between what you put on your mortgage and what you earn. You can afford to minimise that buffer in order to save for a car because you still have the money you've saved in case the pooh hits the proverbial before you buy. But if you've put the money on the mortgage if you're not on a revolving credit mortgage then it's gone and if the fan gets involved you've got no breathing room.
smac,
Apr 9, 7:06pm
Agreed, I guess I'm just trying to caution against a black and white approach. 'Never borrow for a car' will not always be good advice, but neither will "just stick it on the house".
spead,
Apr 9, 8:53pm
buy a $2000 car. They are fine then have no interest to pay. A car is at the end of the day just something to get you from A to B in the rain.
bellky,
Apr 9, 8:58pm
Agree with all the above, quit dreaming and buy what you can with the cash in your pocket.
mugenb20b,
Apr 9, 9:13pm
Looking at your profile, I can already tell you'll ignore all the sensible advice given here, so good luck to you. It's a classic mistake that you'll make, but very common unfortunately.
kazbanz,
Apr 9, 9:31pm
Jason allowing you are set to go down this path then this is my advice. the deal is that you are just gonna have to accept that your history has hurt your ability to get first teir finance. Sorry dude but thats the reality of the situation. So you are gonna have to take it on the chin with early repayment penalties and higher interest rates untill you can prove yourself again. Despite advice given above You can and DO improve your credit worthyness by1) Having repayed the old debts even if it was by an arrangement- 2) by making your payments on time on this loan. The calulation is about to be or has just become different than before andregular payments on loand definitely incrreases your points score I'd recommend talking to Stu at global credit to sort this out though
elect70,
Apr 9, 9:39pm
Try your bank first, they are flush with cheapmoney& really want to lend it outPersonal loan & interest will be lowerthan finance co& all their "add ons "
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