Car Loan

[LordMidol]

Got a friend who is looking to get a small car loan shortly.

She's after 7k and she'll have a 2k deposit so a total of 9k. Problem is she is a casual and hasn't been working for that long.

I was approve by St George when I was casual at dominos and had only been working for 3 months but the site says a minimum of 1 year now.

Does anyone know of which bank or w/e is most likely approve her?

[soulfire]

Got a friend who is looking to get a small car loan shortly.

She's after 7k and she'll have a 2k deposit so a total of 9k. Problem is she is a casual and hasn't been working for that long.

I was approve by St George when I was casual at dominos and had only been working for 3 months but the site says a minimum of 1 year now.

Does anyone know of which bank or w/e is most likely approve her?

Hmm, jsut tell them she's been working for a year?

Either that or just apply with whatever bank her pays go into. if they see she is saving some money and money going in regularly they'll approve her.

[LordMidol]

Hmm, jsut tell them she's been working for a year?

Either that or just apply with whatever bank her pays go into. if they see she is saving some money and money going in regularly they'll approve her.

Isn't it standard practice to ask for pay slips which displays your yearly earnings to date?

[BANGN]

exactly.. telling them she has been working for over a year will most likely backfire when it comes to prove pay slips

I have been using westpac for years and are very easy to deal with.

however commonwealth usually will hand out more money then what westpac would.

I have two personal loans with commonwealth for this reason

[LordMidol]

Personally, I think the best solution would be to go into the individual banks and ask what their requirements are. Find the one with the lowest requirements, meet said requirements, apply for loan.

But someone out there might have some extra info but for some reason I doubt there is an industry secret.

Edited November 10, 2009 by LordMidol

[GTR-N1]

Personal loans anywhere are high interest loans; although some places may be cheaper than others - perhaps even a Credit Union (if there's an account there). Shopping around as you say (even online), may be the best thing.

But if she has a relative who still has a home mortgage, and they trust each other implicitly, the mortgage interest rate will be much lower than that one above. The car loan could be built into that and repayments can be worked out mathematically.

[.:: GimpS-R34 ::.]

i'd just ring the bank.. go through the motions.. if she goes for a secured loan then they'd prob be more inclined to give her money.. 7k isnt a big loan as you said.. plus secured loan has cheaper interest

ps.. don't know about doing it with car loans, but can you have someone go guarantor?

[Yo-Yo]

the general criteria for lending to casuals is a minimum 12 months, but you never know...

I had a personal loan for my V36 via the commonwealth & I had only been in a new job for 1 month at the time, granted I had paid out a previous loan before with them no dramas & all my accounts were with them at the time and this was just before the financial crisis crap.

most secured loans the vehicle can't be more than 5-7 years old, and sometimes the loan can't be more than a total % of the vehicles' market value, will need cover note for insurance etc. bear that in mind if you haven't already

easiset will be to research on the net who has the lowest rates, narrow down to 2-3 lenders you want to consider & go visit a local branch, they can do pre-approvals or borrowing power calculations without actually going ahead & applying

[TwoCents]

Got mine afew months ago with commonwealth, had tryed BOQ (who im with) they failed me, Aussie loans (not good) and Heritage (also failed me). Commonwealth bank approved me 1 day after i did the app. Needed 3 most recent payslips, 3 months bank account summary, and you had to have worked for X amount of months. But yea... i had 5g's in the bank already and borrowed 6 over 2 years. EDIT: i work casual 1 job

[LordMidol]

Terry, I don't think her mum will say yes (well, I know she won't since she already told me ).

Gimps, I'm unsure, but if someone can go guarantor then that's an option - I'd be willing to do it for her and I've got enough to easily cover the loan so the bank should approve it if I did that but like you said, not sure if you can do that for loans. Not sure if she'd want me to though.

YoYo, she is looking at 2003ish so it just comes in under the 7 year mark.

---

I'll link her to this thread when she is online next and let her make up her own mind.

[Mr Eps]

hi

i'm by no means qualified to comment nor am i smart or any of the likes - however, as you said - she's SAVED 2 grand already - the must be an accomplishment of sorts??? so if she's saved that much after 3 months working, (let's say it was from this) then she's clearly more than capable of saving up more...

loaning 7 grand from a bank for a car, to put it into perspective - let's say they charge you 15% interest, this is a very high interest rate... but we'll use it as an example anyway... 1% of 7 grand = $70.

70 x 15 = 1050

that's $1,050 a year over let's say five years = $5,250. that's over 5 grand for a loan you only borrowed 7 grand for.

that's borrowing money for a depreciating asset that won't be worth half that in 5 years time.

okay so maybe 15 was a little bit steep - bear in mind i was getting around that much interest quote looking at unsecured loans...

okay here's a real quote - from "aussie"

13.79% "low itnerest rate" over lets say a 3 year loan this time... = $2895.90 costs in interest - plus the 7 grand

so that's now over 10 thousand dollars. to pay off a seven grand loan... on a depreciating asset

please flame me and shoot me down if my calculations are false.. however this is what iv'e come up with - this isn't inclusive of other fees such as flagfall loan fees, early payment fees, possible missed payment fees, etc etc

banks are insane at the moment. my advice is - if possible.. don't get a loan.

if she can save that much then she should be capable of saving more... you look at housing graphs and the way that prices have gone since howard introduce the first home owner's grant, which was backed by the reserve bank - it has inflated the price of australia's housing, to the cars, to everything, which has meant people have had to lend more.. and interest rates subsequently go up.

my ex gf got a suzuki swift on pure finance... poor thing

"minimum repayment of only $110 a week"

yeah, right, 110 x 52 weeks, over 4 years.

she's got a $22.880 loan to pay for a car that was only 16 grand + ORC from the yard. it's bullshit.

mark my words. the banks are out to rob us (by saying "us" i mean generation Y) blind of our every penny. they're the true evil. and we trust them whole heartedly and "accept" that this is normal.

we're led to beleive the banks are there to help us... america - in case you haven't heard - is in a housing CRISIS!!! those are big words - houses can't be bought by the average income earners in america

food for thought

average price for a house in america - $175, 000 US

average income for an ameican couple - $120,000 US

comparitively speaking

Average income for an australian earning couple - $129,000AUD

Average income for an australian home with FHOG - $470,000 ++++

we're told things by the banks "property's booming" "now's the time to buy" "get approved for a loan now"

the banks are the sole reason that our real estate and our cars cost the prices that they do. nobody else is to blame.

why the fuck would you want to borrow money off a bank!?

EDIT: just a quick one, if she HAS to get a loan - fair enough... but if she's gonna get a loan - then please for god's sake learn everything you can about them before you jump two feet in to a debt that will have you by the balls for the next few years of your life.

Edited November 12, 2009 by Mr Eps

[sIIgtst]

^^ well said..

If she has indeed saved that money from the current job of a few months it would be in her best financial interest to save more and buy a car outright.

if she sets up a dedicated savings account with a bank or credit union offering the highest interest rate she can earn a little more and actually use some of the banks money to purchase the car rather than them purchasing her by way of interest and locked in contract for x amount of years.

If she hasn't saved it from the current job and she is in a situation where a loan is her only way then shopping around and learning as much as possible, as has been said would be the best way. atleast make a good informed decision.

just something to think about.

Corey,

[.:: GimpS-R34 ::.]

not looking to flame rowan as you put up good reasons not to get a loan.. but the debt will reduce over time.. so interest will reduce over the period.. hence why mortgages start off high payment with very little principle being paid off..

i suggest you use rowans advice but look into the total cost, the bank should inform you of fees and total interest paid over the term of the loan (this is by making the repayments calculated by them.. also if you pay it off quicker then less interest will be charged.. you can then use the money saved off that interest to offset the loan (obviously the less money you give to the bank you can pay the loan off)..

now why do i feel like my parents after saying all that

[Mr Eps]

not looking to flame rowan as you put up good reasons not to get a loan.. but the debt will reduce over time.. so interest will reduce over the period.. hence why mortgages start off high payment with very little principle being paid off..

.....ohyeah. haha that's right

also if you pay it off quicker then less interest will be charged..

they do however charge you early cancellation fees, which generally pay them back the interest you may have owed

take my advice, or don't, it's *her* call nobody else's... but, i don't see the point in egtting a loan for such a small amount of money if she's capable of saving the way she already has been doing so.

[Yo-Yo]

depends on the bank and loan, I payed out my commonwealth loan in full recently & had it for about 12-13 months no penalty, just had to pay out the remaining principle all up according to my final statement I only paid around 1200 interest for the year I had the loan

[ARTZ]

If your credit rating is clean, you have a deposit and the loan is secured anyone will lend you money, never take no for an answer, Or pay a loan consultant a coupla hundred and they will push it through for sure.. my credit rating was f**ked and a loan consultant got me 8000 from commonwealth bank.. they said no but he made them say yes somehow..i consider myself greatful and have never missed a payment and they have lent me more since

try get it yourself may be a bit harder..

an eg..

i loaned 8000 a few years back total repayments were about 11k

another loan we had was 11500, pay back about 17k

but if your commited its easy to pay them off quicker, and i have never been asked for any more than my last few payslips..to prove that i am working..

Sometime you just have to tell them what they want to hear..once you have 1 loan if your good to it, its referance and anyone will lend u cash

As for the housing market it is complete rubbish with everything way overinflated atm..15 years ago minimum wage was 4-500$ a week but you could buy a house for 80-120k

minimum wage has only gone up about 150$, but basic housing has almost tripled in price due to banks lending anyone money, nobody thinks about whether they can afford the house anymore all there worried about is whether or not they can afford the monthly repayments...without any real though of the next 30yrs

So everyone jacks up houses to ridiculous prices knowing someone will pay it as long as they get lent the cash..The people that do have cash to buy houses dont care how much they pay for what they want because they have the money

Meanwhile everybody is blaming each other..The Poor blame the rich for ripping them off, the rich blame the poor for not paying back the money, but who wants to pay back somebody that ripped them off....Classic 2 wrongs dont make it right..

Ill be f**ked if im giving a bank a million dollars for a 1/4 million dollar house...ill just keep buying lotto tickets if i win, i win, if not, ill rent f**k it...when my house breaks ill blame the landlord and not stress till i die over a mortgage ..

Edited November 13, 2009 by doozooby

[ARTZ]

hi

she's got a $22.880 loan to pay for a car that was only 16 grand + ORC from the yard. it's bullshit.

mark my words. the banks are out to rob us (by saying "us" i mean generation Y) blind of our every penny. they're the true evil. and we trust them whole heartedly and "accept" that this is normal.

we're led to beleive the banks are there to help us... america - in case you haven't heard - is in a housing CRISIS!!! those are big words - houses can't be bought by the average income earners in america

food for thought

average price for a house in america - $175, 000 US

average income for an ameican couple - $120,000 US

comparitively speaking

Average income for an australian earning couple - $129,000AUD

Average income for an australian home with FHOG - $470,000 ++++

we're told things by the banks "property's booming" "now's the time to buy" "get approved for a loan now"

the banks are the sole reason that our real estate and our cars cost the prices that they do. nobody else is to blame.

why the fuck would you want to borrow money off a bank!?

EDIT: just a quick one, if she HAS to get a loan - fair enough... but if she's gonna get a loan - then please for god's sake learn everything you can about them before you jump two feet in to a debt that will have you by the balls for the next few years of your life.

While i totally agree with you on the housing market...

although she has to pay a bit xtra for the car she now has the peace of mind of a car that will last her the next 5 years without problems, which means getting to work everyday which is a necessity..sometimes 5k is a small price to pay for peace of mind eps..

banks are of course out to take our cash, but in reality most people are..banks are just really good at it

Edited November 13, 2009 by doozooby

[bozodos]

yeah I don't see the point in 'owning' a house just for owning it's sake (unless I had a shedload of disposable income).

banks are funny old things - they were only too happy to hand over to me 20k plus to buy my R32 (didn't get the maximum obviously, and also told them that I was going to buy an R32 Skyline with the money) when all I had was my VN still on finance and was an apprentice living at mum n dads house, and gave my mate 25k when all he had was a VL Calais to his name lol also living at home, my GF goes to get 3.5k after the Global Financial Crisis (working permanent part time for over a year + owns her own VW Beetle n living with the parents), and gets knocked back even by the financial advisor types who try and get you the best deal from a whole portfolio of lenders!

[ARTZ]

Yeah something about small loans they dont like...

friend of mine got a 20k loan for a VR back in the day (20 yr old with absolutely nothing to his name & a full time job for 3 or 4 months), trashed it within 6 months went bankrupt because of it...but institutions still lend him money and he keeps screwing them over, he hasnt paid tax in 7 years or more and owes centrelink well over 10k ...kinda funny actually, but i couldnt live with the stress myself..

To make things better/worse, they just put him on a pension cause he ends up in the ward when he cant handle the stress

Chalk one up for the little guy.....

Edited November 13, 2009 by doozooby

[mad082]

centrelink (or any government sector) is the worst to owe money to. they might not get you straight away, but they will get you in the long run. and it won't usually be a "make a small payment over 10 years) type of arrangement. it will usually be a "this is your new room mate. his name is bubba and his interest are walks around the yard and making you his bitch once the lights go out"