Who Financed Your Import And How

[GH05T]

Good morning all

I am about to enter the process of importing an R32 GTR into SA from japland.

I'm looking to finance roughly $20k which i intend to cover the vehicle and all importing/ compliance costs, rego and on-road costs separately.

I actually work in vehicle financing so i understand the ins and outs but i'm looking for options and feedback.

which banks have you used, what rates you have experienced and how or if you were able to overcome some basic problems such as the catch 22 of securing a vehicle with is not here yet.

Ok, so first off the easy method is cash i know...

The second option is line of credit from my mortgage but my equity is for another property so i wont be touching it.

Now, to the options i need your feed back on.

- Unsecured personal loan.

Easy to get for the amount i need.

The rates i'm looking at through peoples choice credit union are about %12

Easy to use but not wanting to pay interest i don't need to if i don't have to.

If you used a personal unsecured loan what rate did you get and by which financial institution?

if its reasonable i will consider it but the second option i'm hoping is a possibility which is....

- secured personal loan.

Obviously Better rates, I expect from peoples choice around %8 fixed for 5 years

I have had loans for grey imports (already regoed in Australia) before with a+ conduct so they have pre-approved the $20k for another.

My issue is that they need the vehicle to be registered in aust with most importantly a full 17digit AUST vin to release the funds.

They will pay the full invoice for vehicle and importing costs and will need to pay the importer directly which is good.

This means i need funds to pay the man for the car but cant be done until imported to aust so catch 22.

If i had to I can cover this with my own cash currently on my mortgage and reimburse myself later but I would be relying on the honesty of the importer to refund the double payment (one payment from myself to actually import and one from the bank who must pay the invoicing importer).... i'm a trusting person but it could become an issue and its a choppy process at best.

OK so, If you used a personal secured loan what rate did you get and by which financial institution?

How did you go about paying your importer, were they willing to front the costs for a full payment at the end (after deposit)?

any advice on how to go about this method?

[XKLABA]

My personal opinion is you never finance toys, if you can not pay cash you can not afford it

Given that, I would equity loan it and pay it off fast other wise you lose more in interest and that loan will directly effect you borrowing capacity anyway

[GH05T]

no offence, my borrowing capacity is not the issue by a long shot. i spend my cash in houses and in my partners new business in an organised method, thanks for the input but im really looking for peoples input on the questions asked.

[r32-25t]

I'm yet to find someone who will give you a secured personal loan on a car that is 25 years old (12 is the most I've ever seen)

You also cannot use a car that is not in the country as security

[XKLABA]

That's fine but if your borrowing capacity isn't an issue then why not equity it and pay less interest ?

Either you get a personal loan and pay more interest or get an equity loan pay less interest and borrow more against your/next house

[GH05T]

ok so i feel the need to answer your question even though its beside the point.

i have several negatively geared investment properties which are mortgage to a specific amount which negates certain mortgage insurances but retains a balance of mortgage repayment/ rental income amount which when combined with other costs such as rates and upkeep, creates a positive tax back situation from a (in basic terms) no to little money out of my pocket annually situation. borrowing against these properties has a much higher financial effect than just interest component.

my principal home where the bulk of my funds go, has a hard earned equity amount which every 3 years or less becomes a "deposit" on a new investment property which then follows the pattern stated above. The removal of the equity (lest say um... 20k) means the need for mortgage insurance on the next property (lets say $10,000) cost which otherwise would not be needed. otherwise it would stop me getting a new property by about 12-24 months which simply im not going to let happen. this is a 15 year plan at which point my direction changes but that's my business.

buying a toy must be separate to this, paying an interest amount over a short term (which will in truth become maby a 2 year loan at most, financed over generally a starting term of 5 years to get a specific rate) is cheaper than having to shell out for a guideline required mortgage insurance or not having a planned investment property. so im not going to fork out 10k just to save 4% on interest for 2 years...... ok?

SO, i require a short term finance arrangement.

Im currently moving away from my ute which has other financial benefits for selling within a 12 year period which i'm not going to explain now but must happen. This means i need another car so im using this situation to buy a daily GTR. Im well aware that some may shake there head at such an inappropriate daily but that's how i do things... the fun way.

so in selling my current ssv ute i'm using this opportunity to import something instead of buying another car which i not only don't want but will depreciate faster than a gtr if i did feel like selling in the near future.

so... i need either a secured or unsecured loan. my financial asset position and previous lending history means i AM able to secure a 1990 or later grey imported gtr though peoples choice and probably a few others using a secured loan. i wandering if anyone has ever over come the catch 22 arising with ther importer. i can pay for this with cash for a short term as stated but not if there is an easier safer way.

as stated i know i can just get a personal loan unsecured but being money conscious if i can get a better rate for this purpose then i will.

so if anyone has done so through a lender i would like to get some feed back and to know who you used and under that terms....

IF you can help with this please let me know.

[XKLABA]

I have run my own business for the past 20years and understand nearly every financial avenue and will say negative gearing is a fools errand brought about by banks/financial agents greed for interest and commission and frankly I don't feel like getting into it, but anyone that tries to save tax by paying interest is nuts

You have no choice here except an unsecured personal loan unless you can get a contract cover page with the vechicles details and a 17 digit chassis number

[GH05T]

no dramas, we have a different on opinions but without going into more details its pointless to continue that conversation. SO back to the original question if we can...

If you used a personal unsecured loan what rate did you get and by which financial institution?

If you used a personal secured loan what rate did you get and by which financial institution?

[r32-25t]

Credit unions have the best interest rates usually at 12% or so

Secured isn't an option on a 32 Gtr but I've seen them for 8%

[GH05T]

i can get secured on a gtr for 8, but i cant import unless the importer fronts the costs. which i dont see them doing

[GTRPSI]

We have a saying in GTR circles.

Anyone can afford to buy a GTR, however very few can afford to keep it.

As mentioned earlier, if you need to borrow for a toy walk away.

The ongoing running and fixing issues is whats goin to cost.

Spin a bearing and find out the hard way.....hopefully you will have paid of the car when this happens so you can afford to borrow more for a second time.

No cash, no toy.

[Sklyn]

Why don't you nimble it! Jokes..

But seriously,,

Is it possible to use the ute or other vehicle as security until the GTR gets here and then transfer security over to it once complied.

[icredit]

Hi Ghost,

As an Import Vehicle Financier, I can say you've answered your question in the your post.

If the vehicle is currently overseas, then a personal loan or credit card is the best option for you. Most banks / credit unions will have a minimum of 12 months for the loan period (although you need to show capacity to service). It pays to shop around for interest ratesss, although if your looking for a short term loan, don't look so much at the interest rate, but any early payout fees etc.

With most consumer financing, you are in control of how much interest you repay to the banks.

Unsecured funding in generally a higher risk for banks as there is nothing to recover should the client default, so they can attract a slightly higher rate than car loans.

Credit Cards are most likely going to attract a much higher interest rate if you're transferring funds to an importer in Australia or overseas as these may be seen as a cash withdraw and not a purchase.

Secured funding is a little different in the fact that, yes the vehicle does have to be landed in Australia, have a VIN number and a compliance certificate in order to gain secured funding.

You will find though that most banks and credit unions WILL NOT be able to provide secured funding for imports.

Some reasons are that import vehicles are generally over 5 years of age when purchased, so they fall outside most bank car loan criteria, they're sold new outside of Australia and they carry the 'grey import' classification, so before applying for an import car loan, ask the bank or credit union if they can finance the vehicle as a secured loan otherwise you'll be having unnecessary enquiries placed on your credit file.

[Truckeroz]

Good morning all

I am about to enter the process of importing an R32 GTR into SA from japland.

I'm looking to finance roughly $20k which i intend to cover the vehicle and all importing/ compliance costs, rego and on-road costs separately.

I actually work in vehicle financing so i understand the ins and outs but i'm looking for options and feedback.

which banks have you used, what rates you have experienced and how or if you were able to overcome some basic problems such as the catch 22 of securing a vehicle with is not here yet.

Ok, so first off the easy method is cash i know...

The second option is line of credit from my mortgage but my equity is for another property so i wont be touching it.

Now, to the options i need your feed back on.

- Unsecured personal loan.

Easy to get for the amount i need.

The rates i'm looking at through peoples choice credit union are about %12

Easy to use but not wanting to pay interest i don't need to if i don't have to.

If you used a personal unsecured loan what rate did you get and by which financial institution?

if its reasonable i will consider it but the second option i'm hoping is a possibility which is....

- secured personal loan.

Obviously Better rates, I expect from peoples choice around %8 fixed for 5 years

I have had loans for grey imports (already regoed in Australia) before with a+ conduct so they have pre-approved the $20k for another.

My issue is that they need the vehicle to be registered in aust with most importantly a full 17digit AUST vin to release the funds.

They will pay the full invoice for vehicle and importing costs and will need to pay the importer directly which is good.

This means i need funds to pay the man for the car but cant be done until imported to aust so catch 22.

If i had to I can cover this with my own cash currently on my mortgage and reimburse myself later but I would be relying on the honesty of the importer to refund the double payment (one payment from myself to actually import and one from the bank who must pay the invoicing importer).... i'm a trusting person but it could become an issue and its a choppy process at best.

OK so, If you used a personal secured loan what rate did you get and by which financial institution?

How did you go about paying your importer, were they willing to front the costs for a full payment at the end (after deposit)?

any advice on how to go about this method?

Honestly, your car is abit old and I am not sure if the financiers would consider your application. Please find below some info I found:

So what are the options for the Japanese Imported Car Finance Applicant?

1. You can get a personal loan, main stream banks currently charge around 14.5% for these. The problem is the banks have no security, therefore approval is often difficult.

2. Find a specialist broker who has access to multiple lenders for imported vehicles.

3. Be prepared to pay a deposit, this reduces lender risk, which means approval is easier and interest rates may be better.

4. Want a cheap interest rate, don’t buy a Japanese Imported car.

If you are looking at a European Imported Vehicle or American Imported Vehicle approval for Imported Vehicle Finance would be considered easier and cheaper.

To ensure you receive good interest rates you will need;

1. Proof that the purchase is readily affordable.

2. Have a sound credit history.

3. Preferably be an owner of property (mortgaged home or investment property included)

4. Be a vehicle that the funder can readily identify and value.

So if you want a low interest rate, don’t buy a Japanese Import. If you genuinely want a Japanese Import, you need to accept you are going to pay a little bit more interest.

Have you talked to any imported car finance broker yet? I googled and found these guyshttp://harleyfinance.com.au/imported-car-finance/

They featured several videos about importing cars from Japan, USA and Europe and there is a link to their quite in-depth article about Understanding Imported Car Finance Interest Rates for Japanese car import http://harleyfinance.com.au/understanding-imported-car-finance-interest-rates/

[GH05T]

just fyi, i used a secured loan using the 25 year old asset after negotiating using my property backed position.
60 months at %7.9