bank loan, how hard is it to get approved ?

[cowie165]

When I was 19 I paid $19,000 for a 180SX (thank you Mr. Bank Manager) and my income was around $45,000. I ended up hating the car because it was always a struggle to pay the expenses for the b@stard. After loan repayments, there was the insurance bill, rego and maintenance. The car was great to get around in, but it'll quickly become a burden and pita if you're struggling just to meet the loan payments.

IMHO I agree with the other guys that have suggested a cheaper car. I've been in your shoes, and you don't want to hear it, but an NA S13/R32 would be a better option. Better yet, buy something that isn't imported. TwinCam corollas are still good cars for the money - you'll have just as much fun without the large insurance bill (being 19 is going to smash you, and you're already tight for cash so you MUST insure the car).

The banks usually use a Debt-to-Serviceability ratio (DSR), which a few guys have already alluded to (CC i think it was). They calc your income vs. expenses and see what you'd have left over.

The other one they use is just like a property purchase and is called a Loan-to-Valuation ratio (LVR). Basically this is the measure the bank will use to make sure they can get their money back if you default on the loan. The bigger the deposit you offer, the easier it will be for the bank to get their cash back, => you are now a lower risk and they are more inclined to loan you money. The bank will want the car as security over the loan. This means that if you stop paying, they'll take the car back, sell it at auction, and then sue you for the difference between what the car sold for and the outstanding loan amount. If parents or whoever act as guarantor for the loan, the bank is more likely to loan YOU money, but if payments stop they will pursue you and your parents.

I sure hope it works out for you, but I cannot emphasise enough how pissed off you'll be with a nice car in the driveway that you can't afford to take anywhere. EVERYTHING is more expensive with a sports car - better tyres, more fuel, and so on.

Good luck dude.

Mark

[knore]

What if per say my dad is my current 'employer' so to speak, and hes paying me to do alot of computer work at home mainly reports, auditing and staff emails etc

say its 250/wk, if i could get say a 5K loan it would be very beneficial to the car and not so hard on the wallet per week over 5 years.

Only other prob per say is if i got cash mostly so its not on the books etc,

and i put forth my earnings to the bank, i could get hit with all the tax/back tax i should have payed or payed (assuming the above is real ofcourse)

yes/no?

[cowie165]

What if per say my dad is my current 'employer' so to speak, and hes paying me to do alot of computer work at home mainly reports, auditing and staff emails etc

Banks don't mind who the employer is in most cases, provided they issue you with a group certificate (now called Payment Summary). That proves that tax has been paid on the income and that your employer is a registered business. If it has been cash payment, then you will have a lot of trouble demonstrating to the bank that you have a regular income stream.

If you're really stuck, you could try a Statutory Declaration that describes your employment situation, but you'd have to talk to the bank to see if that would influence their decision.

Only other prob per say is if i got cash mostly so its not on the books etc, and i put forth my earnings to the bank, i could get hit with all the tax/back tax i should have payed or payed (assuming the above is real ofcourse)  

yes/no?

I'm not sure what you mean about 'assuming the above is real' but I'm guessing you mean that you actually received cash payments for the work you've done. If you bank the earnings, as far as they are concerned, it is just a cash deposit. I deposited cash last week when I sold my motorbike, noone asks if it was cash earnings.

You may have a problem demonstrating a savings history. Once again, it sucks, but if you deposited the money then put more in every week for 3 or 6 months, you'd be able to show the bank manager that you are worth lending money to because you can easily pay it back, based on your savings history.

I hope this all makes sense. I'm not a financial adviser and it may be worth a quick visit to the bank. Remember they WANT to lend you money, that's where their profit is earned, and they should be very helpful. Be honest, explain your situation and see what evidence you may need.

Mark

[i wear moccos]

to put it bluntly. you dont earn enough to pay a car loan and run it 120dollars a week? youll spend that on petrol!!

[Raikkonen]

I applied for one with westpac over the net, got an email today saying not upto the requirements.

Surprises me cause i thought i'd be a shoe in.

I did find the online form confusing tho, and it wouldnt let me put in my details as i'd like, (i've got 2 casual jobs) and it would only let me put in a fixed earnings per year, which is impossible for me as it varies

Gonna have to try other banks i guess.

[silver gts-t]

just for the record i was told it also goes down on your credit history if you get knocked back alot, so talk to the bank and ask them for their honest opinion

p.s

http://www.skylinesaustralia.com/forums/sh...ead.php?t=62325

[Raikkonen]

Went into commonwealth friday 2 weeks ago. Filled out all the forms, gave them an outdated bank statement (hehe)

they said they'd call me on mon or tues.. Whole week went by i thought it was a no.

Got a call last monday saying my loans been approved for $12,000

I'm one happy chappy

[r33GTS-t-200kw]

just ask ur parents to re-finance. I got 24k over 6 years with 7% interest rate variable.. .

[C110GTR]

I find it quicker to apply online instead of appyling in person.

I had to personal loans and all went smooth with CBA

next day from applying online they called and advise that they are processing it. 3 days after its approved and ready to sign.

[Wink]

I earn $375 per fornight after tax and I got approved for a loan for $16000 from CBA. However, I already had $5000 saved up and I had little to no debt on my credit card account.

[The_Paladin]

remember banks make money off these things by people defalting payment

i'd put it off..........get a silvia or something. you could get fired tommorow, it's legally possible........i'm 20 and i'm seeing it happen to my mates in casual work, they're getting replaced by the 15 yearolds. a skyline requires a high income, there's no way around that. if you dont have a high income you wont get to far. you're 19 that also means speeding tickets (not that i'm commenting on your driving personally but it seems to happen to the bulk of 19 yearolds with skylines) and defects.......which cost $ to pay off and to fix your car up.

take the money and move out of home.

[L3XUS]

dude im 20 got my loan when i was 18 it was 16g

i earn 2g a month

then i refinanced added another 5g

then refinanced again and added nother 3g

its at like 22g now 100 a week repayments, im earning way more now but wasnt when i refinanced, this is with commonwealth

just bullshit about what u own, computers, furniture etc

[L3XUS]

oh and i had a c/c witha 5g limit from comm

and another with2g from anz

and computer on a finance card for 2500

if the banks think you will pay it back the its all good

[The_Paladin]

it's only all good if you CAN pay it back.............regardless of what the bank thinks. they put limits there for a reason..........if you try and trick them it could bite you right on the arse

good luck anyway

[L3XUS]

dont get me wrong, i agree, but sometimes u know you will pay it back but the banks just dont agree

[The_Paladin]

yeah that's true.

there's alot of factors to consider, like if interest rates rose or if the financial situation changed dramatically. banks arn't much of being risk takers.........just money takers

[L3XUS]

hah damn straight paladin

and they are good at it too

[The_Paladin]

there's a reason the Irish currency use to be called the 'Punt'......it rhymed with 'Bank Manager'

[slow13dude]

yeah that's true.  

there's alot of factors to consider, like if interest rates rose or if the financial situation changed dramatically.  banks arn't much of being risk takers.........just money takers

Personal loans are fixed rate over the life of the term

[Revhead]

Mine's not...