The new laws regarding finance came into effect on Saturday. So no more lies in car yards advertising. No more finance guys telling lies to customers. No more unaffordable. finance agreements. No more finance guys telling lies to the finance company. No more customers not understanding what they are sighning. About time
jason_247,
Jun 10, 2:09pm
so what exactly are they changing? or is it all in the fine print
They have CHANGED is the point. Exactly one of the points is there can no longer be any "fine print" or unexplained potential or real costs. Every finance customer has to have genuine affordability (the ability to repay the loan) and has to understand what they are getting themselves into. Guarantors for loans also have to have affordability should the primary borrower fail to pay. The agreement has to be completely understood by the borrower. And the false advertising some people were using has to stop. Bankrupt ok,learner licence ok,bad credit etc has to stop. Its all good stuff. It should kill off the unethical people
gunhand,
Jun 10, 2:53pm
Gunna be some looooong hours in them there finance company offices (and other lending places) trying to get it all through to some then a.
tgray,
Jun 10, 3:03pm
Yeah right!
jason_247,
Jun 10, 3:22pm
Sounds good for the most part. What do they see as affordable repayments? income isnt really a gauge unless you know outgoing.
two years ago i earn $750 a week pre tax and i could have easily put $170 into a loan or similar had i wanted to.
fast forward and now i live with my partner and between us earn about $1800 a week pre tax. but we also now own a house, have other loan repayments and i have a race car and she a horse to pay for.
We recently bought a car and after doing the numbers found our limit of comfortable repayments was closer to $100-$120 which is totally at odds with my earlier capability despite the income change.
The example of the news story is exactly the problem.
No job, bad credit, buys a $14K car. these people dont need these cars and the sooner credit companies stop trying to sucker them in the better.
kazbanz,
Jun 10, 4:04pm
Mate for a starter -income and outgoings has always been part of the criteria for a loan. So you earn XXX. Your stated expenses are YYYYY. You have x number of kids to support for example. The shonky guys advertising the whole no job,bad credit etc are the specific target for this law change. Reality of the situation is that the responsible finance companies and dealerships won't be affected at all. The law change really just reinforces what has been happening at this end of the finance market anyways. Actually that's not quite true. Now we have to dig deeper when it comes to those marginal deals to be certain there is affordability. Incidently in your case you will now be able to get a variation on your loan repayments. So hey you had been ticking up a car for two years at $150 a week and the change in circumstances means you can only afford $100 a week the variation has to happen. another BIG change is that ESSENTIAL goods can't be repo'd So the fridge,microwave,beds etc can't be taken from struggling families.
ralphdog1,
Jun 10, 4:11pm
Shoot the horse
gabbysnana,
Jul 5, 11:11am
sell the car for scrap
Since the public registrations are closed, you must have an invite from a current member to be able to register and post in this thread.
Have an account? Login here.