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Thread: Car Loans. Car older than 7 years?

  1. #1
    Registered User Shitbreak's Avatar
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    Car Loans. Car older than 7 years?

    Guys, Is there anyway of getting decent interest rates on a loan for a car thats build in 1998/1999?

    I've enquired with 2 banks, both of whom say I'd be looking at a personal loan where the interest rate is around 13% (as apposed to 11%).

    Cheers

    Just assume loan approval wont be an issue.

    Actually, it works out to be around 1k more in repayments over 3 years on a 20k loan so I guess it doesnt really matter.
    But since i've made this thread, any suggestions?
    Last edited by Shitbreak; 10-01-07 at 03:47 PM.

  2. #2
    ...... marcus_h's Avatar
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    Most car finance companies will allow the loan term to be upto 13 from the vehicle build date. I.e your car is 98, as long as your loan term finishes before 2011 (60mths/5yrs) then they will do it. However this is done at a higher rate, probably around 11%.

    Note the above is based on my prior job at manufacturer backed finance company. However it should be pretty much the same across the board.

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    Eurotrash arcane's Avatar
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    DAL32: Not an old Skyline tamiyaDrifter's Avatar
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    Phew, sounds like I got a good deal being able to finance my 6 year old Alfas. (I'm ignoring depreciation )
    There is no law on how fast you accelerate!

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    needs boost... morerevsm3's Avatar
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    Quote Originally Posted by arcane
    +1, got mine through them for, at the time, 10 year old M3
    E36 M3 12.92 @ 108.64mph, N/A 3.0L

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    Registered User Shitbreak's Avatar
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    Unfortunately its a subaru so BMWF is a no go.
    I've heard RACV are better for olderish cars.

    Surely not everyone on here owns a new econobox????

  7. #7
    Eurotrash arcane's Avatar
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    Unfortunately its a subaru so BMWF is a no go.
    Why? There were going to give me finance on an Audi. They're not BMW-only. Not sure if they're Euro-only, though.

  8. #8
    ...... marcus_h's Avatar
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    They have no restrictions on what they finance model wise

    Mate check out esanda/ge etc they do the same thing

    Is this being bought from a yard?

  9. #9
    turbo that is not so phat
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    "banks" per se wont be interested in scrap metal that old however your finance companies will lap that shit up at a higher rate

  10. #10
    ...... marcus_h's Avatar
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    Phat how would you know

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    turbo that is not so phat
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  12. #12
    Registered User Shitbreak's Avatar
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    Sale will be private. I'll have to give this BMWF a call then, I thought it was BMW only as it states:

    Purchasing your BMW is both exciting and rewarding.....

  13. #13
    turbo that is not so phat
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    btw... finances companies _hate_ private sales .... especially on ten year old beasts

  14. #14
    ...... marcus_h's Avatar
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    ^ yep true that, if it was a dealer no wuckin furries. Try the usual suspects but you might be stuck going for a PL

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    i am in the fianance industry, I do the Ford Credit, RACV, St George, HSBC, Motor one etc.

    The reason why most finance companies dont like older cars, is purely a form of insurance policy. Imagine if you default on your loan, they will repo your car. Imagine trying to sell a unique 10 year old car at auction?? Either you will get hardly anything at all, or no buyers.

    Even 11% is pretty high. If you do default and your file goes to a collections agency, you will be slugged with a high residule as the car would have been sold for peanuts at auction. No only does your car sell for nothing, but all the interest calculated at the beggining of your loan for the life of loan, it placed on top of your residule amount. So bascially your stuck with a massive debt, which needs to be paid. Your residule is also charged at 11%! So imagine trying not to pay for a couple of years??? You will be stuck with an ever growing debt, which people usually are brought into bankruptcy, or by the creditor if they know you have equity in your property etc.

    Also I've never heard of it being harder to get a loan for private veihcles. After all private or not private they are going to be sold at auntion at the same price.

    Personal opinion is go throught Ford Credit or a Sub division Primus Automative, they have great rates.

    RACV are good as well, usually the interest is a bit higher, and less forgiving if you do default.

    I see finance at 5-6% all the time. So shop around!!!

    Esanda, massive company but less likely to offer you a loan. RACV would offer you a loan straight away.

    You will be shocked with the default rate. Ford Credit have something like 50 Million bucks worth of unpaid loans in Australia, a lot of them unrecoverable.
    Last edited by snavy; 11-01-07 at 09:14 PM.

  16. #16
    ...... marcus_h's Avatar
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    Snavy is spot on with how it works. The reason I said it would be easier if it was from a dealership is due to the relationship between the dealer and their financier. I know from back in my time we didnt like doing 10 yr old cars but we would to keep everything smooth.

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