Loan Repayment For Imported Cars

[mzkrkmn]

Hi guys,

Just got a 350gt imported over from japan -- and looking at getting a SECURED loan to pay off the car -- St George declined my application because the car is imported -- are there any banks that will accept a SECURED loan for the car?

ta!

S.

[EJD001]

it will more than likley be due to the age of it!

[xntrq]

Most places wouldn't use a car that's over 10 years for security. Personal loans unsecured is probably the only way to go about it

[xntrq]

Most places wouldn't use a car that's over 10 years for security. Personal loans unsecured is probably the only way to go about it

[Iron Chef]

Hi guys,

Just got a 350gt imported over from japan -- and looking at getting a SECURED loan to pay off the car -- St George declined my application because the car is imported -- are there any banks that will accept a SECURED loan for the car?

ta!

S.

Welcome, Steph! A secured loan means the bank uses your vehicle as security on the loan - in other words, if you stop paying your loan, they take your car back. If the car isn't in Australia, it makes it pretty much impossible for a bank to repossess your car if you default on your loan. Unsecured loans are your only option if you want to get something from Japan.

A lot of my guys get an unsecured loan with low break fees/higher interest rate while the car is on its way over, then switch to a secured loan once it's registered.

[t5iv]

Hi Steph, welcome to the group! (You should check out the V Section - it's where the cool kids hang )

In regards to your loan, as Chef said, a secured loan essentially means that you are offering the bank some form of security regarding the payment. 9/10 times this is the vehicle that you're purchasing. For a vehicle to meet their criteria, it must be registered in Australia and in a road worthy condition. You provide the bank with all the details, ie VIN, Chassis No, Engine No, Plates, etc. and they go and ensure it's a legit purchase. They also make sure that it's a reasonable price. They don't want to give you $30k for something that maybe only worth $20k.

Best bet is an unsecured loan which does have more stringent borrowing criteria and higher interest rates. Alternative is, buy one that has already been registered here.

Hope that helps.

[Seano350GT]

All the above information is very good, i am no Business Manager but correct me if i'm wrong i beleive that an unsecured loan will have a higher interest rate opposed to a secured loan.

I kind of wish my loan was unsecured but nevertheless i am happy with the car.

Try a few different places, sounds weird they didn't approve you.. the hardest problem i had with my loan was explaining to the consultant what type of car it was LOL

[ras1983]

One key thing, that has been mentioned in passing, is that most major lenders will NOT enter into a secured loan for cars that are older than 5-7 years (depending on the lender). So, after you bring the car to Australia via unsecured loan, you might either need to engage the services of a broker or try and negotiate something with your bank.

[GTR-N1]

Welcome Steph.

Do your folks have a mortgage + you have an income + you're trustworthy?

If so, you can obtain a loan at low interest on your car if your folks take ownership of the car whilst you pay it off, and they consolidate the car with the home loan.

When I was about 8,...

I said to Dad, "Mum says that you might loan me some money for my Matchbox car collection - please?"

Dad:- "I might if you give me security on the loan."

Me:- "What's security Dad?"

Dad:- "It's when I've got you by the short 'n curleys."

Me:- "What's short 'n curleys?"

Dad:- "You'll know in 5 years."

[Cowboy1600]

How old is the car?

You'll struggle to get anything older than five years old secured, and 10 years + is simply not an option.

Being an import adds a whole new layer of difficulty.

TBH you'll be best going unsecured and copping an extra couple of percent interest. The chance of getting it secured it 5/5ths of FA.

Give Haylee Reid at Mildura Finance a call on 03 5051 0400 - she'll be able to give you a definite answer on where to get the best deal. Don't worry about the Mildura part, they have brokers all over the state who they can put you in touch with or even write the loan from there.

[xntrq]

I went unsecured loan when I got my car only small ammount though over a 3 year duration. Yes the interest rate is a bitch higher but don't go crazy on the loan and it should be manageable.

[bigkevracer]

I must be the only bloke in the world with a secured loan on a car that was 11 years old when I bought it.

I went through a credit union, they were great. Much cheaper and more flexible than a bank.

My car was already in Australia though, but don't discount secured loans based on the above feedback.

[Cowboy1600]

How long ago was that, Ryan? Lending practices changed, dramatically, post 2008. Once upon a time you could borrow 105% of the value of a home. These days it's 90% unless your an existing customer where you might get 95%. Some banks are even limiting all lending to 80% these days.

And what was the actual rate you paid vs. unsecured with other lenders? Also, which credit union? If you paid 13% "secured" but could have got 11% unsecured with another lender, then the whole secure thing is a bit pointless.

[BeastVS]

Just get an unsecured personal loan, they don't even ask you what its for.

Edited October 30, 2012 by BeastVS

[bigkevracer]

How long ago was that, Ryan? Lending practices changed, dramatically, post 2008. Once upon a time you could borrow 105% of the value of a home. These days it's 90% unless your an existing customer where you might get 95%. Some banks are even limiting all lending to 80% these days.

And what was the actual rate you paid vs. unsecured with other lenders? Also, which credit union? If you paid 13% "secured" but could have got 11% unsecured with another lender, then the whole secure thing is a bit pointless.

That was last year Aaron. Practices have loosened up a bit more now. I got about 10-11% secured. It was Police Credit Union in Adelaide - great people to deal with, and their car loan was rated one of the best in the Canstar ratings. The guy even sent me a text message when I was driving the car back from Sydney to make sure all was OK!

All I'm saying is what you blokes are saying above is based on your experiences. It is not fact, even if some people make out that everything they post is, and the OP may have better luck shopping around than you all have. I certainly have had a better experience than those listed above.

[Cowboy1600]

That was last year Aaron. Practices have loosened up a bit more now. I got about 10-11% secured. It was Police Credit Union in Adelaide - great people to deal with, and their car loan was rated one of the best in the Canstar ratings. The guy even sent me a text message when I was driving the car back from Sydney to make sure all was OK!

All I'm saying is what you blokes are saying above is based on your experiences. It is not fact, even if some people make out that everything they post is, and the OP may have better luck shopping around than you all have. I certainly have had a better experience than those listed above.

Actually what I'm saying is based on me working in the finance industry. I don't have a loan of any variety.

What you got is a long, long, LONG way from the norm.

And you've somewhat reinforced what I said. You can get 11-12% non-secured through ANZ at the moment. Going off the PCU site, they offer 11% comp. rate for cars no older than 5 years. It would seem you got lucky to get them to secure against an 11 year old car. What car is it, out of interest?

And are you a copper by any chance?

Oh, and lending practices are actually still tightening. Lenders have become fundamentally more risk averse and are changing their practices accordingly.

[bigkevracer]

Actually what I'm saying is based on me working in the finance industry. I don't have a loan of any variety.

What you got is a long, long, LONG way from the norm.

And you've somewhat reinforced what I said. You can get 11-12% non-secured through ANZ at the moment. Going off the PCU site, they offer 11% comp. rate for cars no older than 5 years. It would seem you got lucky to get them to secure against an 11 year old car. What car is it, out of interest?

And are you a copper by any chance?

Oh, and lending practices are actually still tightening. Lenders have become fundamentally more risk averse and are changing their practices accordingly.

I thought you worked in IT?

Not a copper, not an existing PCU customer, and they were able to offer me what my bank of a million years couldn't: a secured loan on a 2001 Stagea, which was about 10 years old at the time. I'd need to double check the interest rate, but off the top of my head it was 11% and at the time I fixed it, which hasn't worked out to be my best ever decision but I had the option either way.

I have no reason to expect this was a long way from the norm, since I didn't do any particularly special negotiating or anything else.

[Cowboy1600]

I work in IT within the finance industry.

The deal you got is an exception to the rule, rather than the rule itself.

[t5iv]

There are ways to break the rules and circumvent the situation. However, that is bloody hard work and usually entails someone misentering data. Larger banks will have more checks, smaller ones not so much.

[bigkevracer]

I work in IT within the finance industry.

The deal you got is an exception to the rule, rather than the rule itself.

Does that mean if I'm the secretary for a dentist I can start performing root canals?

My point was that if you look around its possible. I had no idea my case was an exception to the rule, but I'd be willing to bet if it was as easy as it was for me it wasn't a one off, so look around until you find someone at a decent rate who's prepared to offer what you need.