The Official Vehicle Financing Thread

[Soul Collector]

That loan insurance in interesting. More info will be nice, thanks.

[boxy]

How does that car cycle thing work I always thought that the bank holds the title to the vehicle till it is paid off for. Very Informative i didnt know alot on stuff on Page 1

[boxy]

what we could do as well is post the actual intrest from both credit unions and the nations banks here and the OP can edit the first post

[rumourstt]

I work for a financial institution and once the vehicle is not too old and the valuation is around the same amount as the asking price or if the vehicle is new it works out much cheaper in terms of financing rates APR as well as DSR restrictions and qualifying criteria to go through GFC especially if its a new or fairly new nissan

[DJ Q]

How does that car cycle thing work I always thought that the bank holds the title to the vehicle till it is paid off for. Very Informative i didnt know alot on stuff on Page 1

When you sell the car, the cheque will be made to the institution that holds the vehicle hostage.
They will then write you a cheque with anything that is over what is owed on the loan.

[zoelikescheese]

and then what, take another loan to buy a new car again?

[Damien]

Yes, using the remainder zs the down payment and continue with your installments

[Dizzy28]

Nothing much to say about the loan insurance. When they offering you the loan they ask if you want to take insurance on the loan in case of somehting happening to you that causes you to not be able to pay the loan off. I'm certain it covers death not sure about loss of job etc.

When I heard its only $21/month I decided that is a good price for piece of mind.

[DJ Q]

Did you guys know that when purchasing a used car through a dealer the transfer fee is $20 regardless of the age of the vehicle?

[rumourstt]

Intersting

[zer0xp]

Bumping this thread for an actual informative thread on trinituner

[Death-Row]

yup, this and the new vehicle threads is good

[crazychinee]

For those who don't know, Debt Service Ratio has to do with your ability to pay back the loan.
Most places will not accept a debt service ration over 40%... maybe 45% if you have long standing business with them.

To calculate your debt service ratio, multiply your income (before deductions) by 40%.
This would give you the maximum you will be allowed to pay back on a loan.

For instance, if you make $10,000:

$10,000 * 0.4 = $4,000

The most you will be granted is a monthly repayment of $4,000.
This does not include downpayment or insurance in most cases.

Most places may not even go up to 40%, and that debt can be split in terms of Credit cards/mortgages etc.


I've had the best vechile financing experience with Ansa Merchant bank above all else. Submitted docs on monday for approval, I was able to negotiate my downpayment with ansa given the cost of my vehicle, and given approval by 4pm the same day.
I took delivery of my vehicle 2 days later.

[DJ Q]

^Do you have details on their interest rates, downpayment figures, repayment time, etc?

Please post to educate all tuners

[zeeshan66]

always pay cash. Don't put yourself in debt

[DJ Q]

^From a business stand point, it doesn't make sense to "Always pay cash" for something that depreciates in value.

[jsm1985]

What's the best bank / Credit union to get New Vehicle Financing right now? Also Insurance?

[DJ Q]

In my opinion GFC has the best rates.
Colfire also seems to be very good with coverage for your money.

[eurotuner]

Good thread.
And as stated above, from a business perspective,
Its not the best idea to pay cash for a depreciating item.
Unless ur filthy in the pocket or daddy buying, i doubt you gonna take ur hard earns
to purchase a 250k car CASH.

[Morpheus]

Great thread. I also learnt quite a lot already.

[DJ Q]

Even if you're filthy in the pocket eurotuner, sometimes it just makes sense to make payments on certain things, especially when there is little to no interest.

I'm not saying not to buy that 7 series cash, but if they're giving you a year to pay it back with 4% interest... take the year. Better for your cash flow.

[zeeshan66]

good rule of thumb is if you cannot pay off the car within 2 years then you cannot afford it. Cars are a depreciating asset never bite off more than you can chew, never fool yourself.

[DJ Q]

good rule of thumb is if you cannot pay off the car within 2 years then you cannot afford it. Cars are a depreciating asset never bite off more than you can chew, never fool yourself.

I don't agree.
Paying off something in a longer period of time does not mean you can't afford it.

For example, I just moved from a Rover 200 (premium) to a Toyota Fielder (super).
The money I used to spend in gas ALONE is paying for my vehicle.

My opinion, however, is that low to middle class people should not purchase brand new vehicles, as there are very good second hand ones for around half the price.

[spirited721]

Low to middle class eeenside
I agree with that though. That's hanging your hat where you could reach but you have to stretch real plenty. Banks don't care about you. The only thing you should be paying for many years is a mortgage. Cars too expensive from showroom...
That being said. Vehicle financing is set up thing. As stated before. Vehicles are depreciating 'assets' so unless it working for you try not to be owing on it. Pay as much as you could up front.

[vijar]

what the maximum age the vehicle can be for a bank to finance?

[DJ Q]

Depends on the bank.
Some places will finance any car, but the rates & downpayment may be substantially high as the vehicle gets older.

[dark_lightning108]

Depends on the bank.
Some places will finance any car, but the rates & downpayment may be substantially high as the vehicle gets older.

from your experience, which places exactly and how substantial is the increase in rates?

[mitsu_chick941]

2 more mths and I'M FREEEEEE

[~Vēġó~]

^^^lol....free 16 months now......and TOTALLY debt free as of this month!!!! YEAH! *fist pump*

[DJ Q]

Working hard to get out of debt right now...