Vehicle loans - what's your experience?

[Shale]

Mum's thinking of trading her Honda Odyssey in for a Legacy WR-Ltd; it's just over 20k, she will get shy of 10k for her Odyssey. Naturally she'll need to take out a loan for the Legacy, but has never done so before.

My only experience is personal loans via banks; it was relatively pain-free through the ASB, but the interest is very high.

What's everyone else's experience like in this department? It's a 10-13k loan to service, so it's significant...she really wants to have this car signwritten for her business etc, but the cost throws off the groove a tad.

[Guest]

i got both my loans from ASB, both at 9% one was on a student account (subaru) was 9.5k. second was on my business account (holdon) was 18k

didnt have any problems.

-smurff

[ODB]

id suggest she gets something more cutesy for her mobile business signboard.

At least she can claim costs back through tax etc. She has a good accountant right?

At work we have new Beetles and those godawful Priuses. Fecking shite to drive which is why i always take the Mondeos!

How about a new shape mini, a mazda 2 or a swift? They are much more common company vehicle/signboard!

[Shale]

This is the wrong place to be discussing such things.

From the lady herself: I'm not the sort of person to be buying a car like those!

[ODB]

 Shale said:

This is the wrong place to be discussing such things.

From the lady herself: I'm not the sort of person to be buying a car like those!

As for your loan advice, does she have a home?

If so id suggest tacking on a 10k home loan to it, as you get it for as little as 6% or whatever it currently is. Just ensure payments are high and you take it over 2-3 years. not much point paying off the car over 25 years!!

but dollar for dollar that way WILL be the cheapest!

[sickmatesick]

don't go through a finance company that most caryards use like marac etc. Interest rates are huge

[dubbedup]

 ODB']

[quote name='Shale said:

This is the wrong place to be discussing such things.

From the lady herself: I'm not the sort of person to be buying a car like those!

/quote]

As for your loan advice, does she have a home?

If so id suggest tacking on a 10k home loan to it, as you get it for as little as 6% or whatever it currently is. Just ensure payments are high and you take it over 2-3 years. not much point paying off the car over 25 years!!

but dollar for dollar that way WILL be the cheapest!

+1 on this.. tack it on top of the morgage

[wrx_lou]

yeah i would also suggest going through a bank in some way. they usually have alot lower interest rates. The more commonly used finance companys charge around the 17.5% per anum mark. That would take that 20g alot closer to 30 at the end of the transaction. Plus getting the cash prior to buying puts you in a great position for bartering.

[Jimbob]

+1 on bank. if the bank says no you really shouldnt be getting it

[GorGasmSpecB]

 ODB']

[quote name='Shale said:

This is the wrong place to be discussing such things.

From the lady herself: I'm not the sort of person to be buying a car like those!

/quote]

As for your loan advice, does she have a home?

If so id suggest tacking on a 10k home loan to it, as you get it for as little as 6% or whatever it currently is. Just ensure payments are high and you take it over 2-3 years. not much point paying off the car over 25 years!!

but dollar for dollar that way WILL be the cheapest!

Can you part off parts of the mortgage seperately? Paying it off on top of the mortgage over the full term is vvery expensive.

I do all my car finance on low interest mastercard at ASB. 12.5% interest and I can pay when and whatever I want. Very handy.

[wrx_lou]

Low intrest mastercard would be good but how easy is it to get one with a 20k limit? I was offered up to 50k at 10%p/a unsecured from westpac recently. Something like that would be ideal. Might just pay to look around. If you can find somewhere with a better deal than the one your bank will give you, take the qoute in and ask them if they'll match or better it.

[jazza]

the bank would only loan me 6k for a car and i had no debts at all and have a 45k salary, they gave me a loan when i was 18 for 5500 and the loan form said "unemployed" so in my experience bank loans seem up the piss sometimes...recently went with first credit union in hamilton and got a loan with 14% interest rate, my brother went there also and being older got 12.5% interest rate. so IMO they would be a good pplace to have a chat to first.

[ODB]

 GorGasmSpecB']

[quote name='Shale said:

This is the wrong place to be discussing such things.

From the lady herself: I'm not the sort of person to be buying a car like those!

/quote]

As for your loan advice, does she have a home?

If so id suggest tacking on a 10k home loan to it, as you get it for as little as 6% or whatever it currently is. Just ensure payments are high and you take it over 2-3 years. not much point paying off the car over 25 years!!

but dollar for dollar that way WILL be the cheapest!

Can you part off parts of the mortgage seperately? Paying it off on top of the mortgage over the full term is vvery expensive.

I do all my car finance on low interest mastercard at ASB. 12.5% interest and I can pay when and whatever I want. Very handy.

yes you would have your normal home loan structure how you like then this as a seperate loan account, but still linked to your house as security.

You then specify how long/short you want this particular part of the home loan.

[Guest]

 ODB']

[quote name='Shale said:

This is the wrong place to be discussing such things.

From the lady herself: I'm not the sort of person to be buying a car like those!

/quote]

As for your loan advice, does she have a home?

If so id suggest tacking on a 10k home loan to it, as you get it for as little as 6% or whatever it currently is. Just ensure payments are high and you take it over 2-3 years. not much point paying off the car over 25 years!!

but dollar for dollar that way WILL be the cheapest!

Can you part off parts of the mortgage seperately? Paying it off on top of the mortgage over the full term is vvery expensive.

I do all my car finance on low interest mastercard at ASB. 12.5% interest and I can pay when and whatever I want. Very handy.

yes you would have your normal home loan structure how you like then this as a seperate loan account, but still linked to your house as security.

You then specify how long/short you want this particular part of the home loan.

huh, interesting, didn't know you could do that. sounds like a good idea though!

[Guest boostcut]

why dont her fricken business buy it??? seems weird that shes buying a vehicle that has signwriting for her buiseness but will then use it privately??? fringe benifit tax anyone???

[Guest]

 boostcut said:

why dont her fricken business buy it??? seems weird that shes buying a vehicle that has signwriting for her buiseness but will then use it privately??? fringe benifit tax anyone???

what i did was buy mine under my business, and you can still use it private, but you need to have a log book to track K's and stuff like that.

-smurff

[wrx_lou]

 smurff said:

what i did was buy mine under my business, and you can still use it private, but you need to have a log book to track K's and stuff like that.

-smurff

track k's? Havent seen my boss do that to either of his 'work vehicles', which everyone (including myself) uses for personal transport/haulage all the time , in the 10 years I've worked there.

Ive always been under the impression that all you have to do to claim it back in tax is have a sign at i minimum size somewhere on the vehicle.

[Guest]

you just say it was all work reasons claim it all

-smurff

[ODB]

yeah the smart ones buy a brand new car in business name. hence my earliest advice.

claim all kms AND depreciation costs +maintenance costs too.

[Old Skool Subbie]

 wrx_lou said:

Low intrest mastercard would be good but how easy is it to get one with a 20k limit? I was offered up to 50k at 10%p/a unsecured from westpac recently. Something like that would be ideal. Might just pay to look around. If you can find somewhere with a better deal than the one your bank will give you, take the qoute in and ask them if they'll match or better it.

Ive heard from some some one that owned his own business and he charged some payment of about 20K or so on his credit card.

As soon as he did it the credit card company kept hounding him to paying it off. Only a few days or so after he got it.

And they wanted it paid in full then :

He was only using the credit card to pay some lawer fees or something like that.

Luckly he had the cash to pay it off right away since he used the credit card for convenance instead of any thing else.

He never had any problems paying it off before.

So is it worth it putting it on a credit card ???

[Stoffa]

I got my Wrx loan through Toyota Finance, they're great to deal with and compared to car yard loan companies not too bad for interest. I think mine was about 12%

You dont need to buy a toyota to use them

[Shale]

The gym business isn't GST-registered et al yet; she's just trading as Momentum Fitness at the moment because up until recently there hasn't been sufficient cashflow to justify it. It's just been a hobby. But as she's becoming a Pilates instructor this year too, she's considering getting it all set up. And yes she's been paying appropriate tax on her income, but not as a business as it isn't yet.

Should be though. That's the other thing she's been contemplating, buying the car via her business (once set up) but it still begs the original question - finance. Banks seem a wee bit pricy at times, however stability = win, and finance companies in general are FTL.

[ODB]

/facepalm

man she needs to see a good business accountant.

Guaranteed he will save her shitloads!

[Shale]

Good business accountants cost what little profit she has left over for the year Appreciate that not all small businesses = big bucks.

[ODB]

yeah i know what you are saying.

But he will show you how to claim on most things. A little fiddling of ownership of a few items and receipts kept.

If you are creative you can make a hell of a lot back over the course of a year.

Trust me its well worth it. Some of them do free consultations/early discussions