holly hell that is a high finance rate , who is that thru! GE money you can get it for $27/week ( still a lot for a 1994 car )
gooddealz2,
Aug 4, 8:58am
NZ Vehicle Sales if I read the ad correctly. I've never heard of them before but it seems to be the way to make money.
phillip.weston,
Aug 4, 11:23am
One of the guys used to work at NZ New Cars (the brokerage which went bust), but he was one of the good guys. I would say they would be using BMW finance. You should be able to get them to tweak the rate and duration, but yes I agree even the $4500 is a tad too high for a 1994 320 with 230,000kms on the clock. You would be nuts to finance it.
philltauranga,
Aug 4, 10:26pm
You forgot to mention that includes 36 month mechanical warranty and roadside assist worth $1500. So without that its $5800 ish borrowed less the 20% deposit. "This finance package includes a 36 months mechanical warranty with 24/7 roadside assistance - what a great piece of mind" "12, 24 & 36 months mechanical warranties with 24/7 road side assistance available on request from $495"
budgel,
Aug 4, 10:49pm
So they offer brain surgery too!
philltauranga,
Aug 4, 11:06pm
Bahaha I didnt notice that I just copyed and pasted from the advert.
budgel,
Aug 4, 11:47pm
Yeah, I know.
kazbanz,
Aug 5, 12:28am
I havent read the advert but I was going to bet that in the finance they built a big ol MBI So the breakdown will likely beCar $4500 -$900 deposit + $1500 MBI bluss $400 documentation fees $5500 My far from accurate rule of thumb for customers is $10 a week for every thousand borrowed over 36 months
gooddealz2,
Aug 5, 1:55am
I thought that 36 month warranty must have been an extra cost. Surely they couldn't make you take it on. I've only ever taken a warranty on much more expensive vehicles (twice) and wouldn't contemplate one at that price. Imagine 36 months of making sure you never missed an oil change etc in case you invalidated the agreement.
kazbanz,
Aug 5, 2:45am
Its a BMW 320 for $4500--you would be an idiot to sell it without a warranty. ==Itll cost you more in claims than its worth
bellky,
Aug 5, 2:58am
".My far from accurate rule of thumb for customers is $10 a week for every thousand borrowed over 36 months"
Wow, so $1000.00 / 36 months = $27.78 / 4 weeks = 6.95 a week in principle, and so the 'fees' are $10.00 per week; that's nearly double the principle payment.
Like others have said: you'd have to be nuts to finance that.
bellky,
Aug 5, 3:18am
Damn it 'principal' supposed to be.
kazbanz,
Aug 5, 4:12am
Read the fine print-The GE money advert borders on fraud. Sorry not dissing you but the GEmoney advert utterly pees me off. I worked it out and its based on from memory a $25% deposit and a 5 year term.I sat down one day and actually worked it out. Financing a car has certain built in costs. First is the documentation fee. So borrow say $1.00 At the bank as a personal loan you will pay about $175 doc fee,$3.00 ppsr feeplus interest so you are paying interest on $179 On a credit card when the dealer has credit card facilities you pay say 20% interest.(Im not certain the current PURCHASE interest rate)so $1.00 will cost you $1.20 Borrow $1.00 from a finance company and you pay $350 (ish) documentation fees. and $3.00 PPSR feeSo your $1.00 will have you repaying $354.00 plus interest.
So buying a car for under 3-4k its cheaper to load up a credit card than it is to get a loan to buy it unless you lean on your morgage so you get morgage rates from your bank.
Which is why it pays to get finance quotes when buying a car. Not go into the situation blindly assuming one way of getting money is cheaper than another. Ive found often that on bigger loans-8-20k that the finance company rate can be better than a bank. Ignoring the smoke n mirrors finance is pretty simple (ignoring the non payment hooks) Its really simple maths--How many payments multiplied by the amount of the payments --ie 36 monthly payments of $200 =$7200 So get a quote from the bank and the dealer and see which is cheaper--at the very least it may force the bank to adjust its rate a bit to get your buisiness
bellky,
Aug 5, 4:15am
Yes kazbanz, load the credit card, put it on the mortgage, get a line of credit at the bank, or a personal loan from the bank; all cheaper.
sharchew,
Aug 5, 4:20am
Get a persional loan from your bank much cheaper
kazbanz,
Aug 5, 4:22am
Assumption is the mother of all @#@#ups
superdave0_13,
Aug 5, 4:27am
Not as bad as adding it to your mortgage!
bellky,
Aug 5, 4:32am
If you have a mortgage that you can pay lump sums off the principal (like a line of credit) then you're not going to be paying it off over a very long time and so not that bad!
kazbanz,
Aug 5, 4:33am
Couldn't agree more-but a loan based on your existing buisiness with them is often at a pretty sharp rate
superdave0_13,
Aug 5, 4:47am
No it's pretty bad no matter how much positive spin you try to put on it.
tuttyclan,
Aug 5, 5:12am
A Bmw like that will cost lots in repairs let alone the double the sale price by the time its paid off.Probably end up broken down as the cost of repairs and the repayments may be too much. Probabably be better to invest the $900 cash (deposit)into a ordinary car (late 1980s or early 1990s Corolla,Sentra or similar in which one will own straight away and even if there some repairs needed its not likely to cost $7000 plus more like the BMW (unless the car was rusty or mechanically stuffed in the first place).Then put what the repayments would have been into savings and in three years one could buy a $8000 car for cash. Or save for a little longer and get a $1500- $2000 plus car keep it for longer before buying another car.
neville48,
Aug 5, 6:20am
Just lower your sights a little bit and buy what you can afford not what some finance company or Stacey Jones tells you that you can afford.
murray55,
Aug 5, 6:38am
$4500 is far too much, even if you were paying cash with no additional costs to incur. Same old story, sellers asking way too much, and buyers thinking they must be worth that because that is what it is advertised for ! For heaven's sake the car market in NZ is awash with vehicles .
franc123,
Aug 5, 6:48am
The other advantage with putting it on the plastic is that you can vary the payments a bit if you have to, if you need cash for something else that week you can pay less or miss a payment completely, and increase it the following week, it works well if you are disciplined enough. You can also get interest rates a hell of a lot better than 20% too if you shop around. Its far preferable to do that with cheaper cars.
kazbanz,
Aug 5, 8:24am
You are bang on right there franc no arguement with you for a milisecond. Every thing you have said I agree with. I guess my point though got lost in the other stuff. That EVEN at 20% a CCD is a great option for sub 4k loans for all the reasons you outline
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