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  1. #1
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    Default Car loans and finance?

    I did a stupid thing in 2012 and bought a cheap used car from a crappy looking dealer. 6 months later I find that the car shouldn't have passed roadworthy and needs $1600 plus work done... if I could afford to have that work done I would have bought a better car! So ive been running it into the ground... and its gotten to the point where itd be easier to buy another car than fix it. I paid 3000 for it and itd prob cost that to fix it. Has anyone who has lived solely off centrelink gotten approved for a car loan or finance? Did you find it easy to make payments? Ive learnt my lesson and will be going to a proper dealership this time. .. and paying extra for something better.

    mother to a beautiful baby boy

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    This is a tough one! I was in a similar mind frame two years ago as I was a single mum and needed a reliable car that was good on fuel to get my son and I around. I financed a car which has been a great car I won't lie, haven't had a the slightest problem yet.
    I was on a low income (about 40k salary at the time) and was maybe getting 200 p/w worth of FTB and rent assistance etc at the time. I was approved for the finance.
    However I was extremely stupid and was so eager to have the car (had been busing and walking to and from work and daycare for about 6 months) that I didn't really think about the interest I would be paying. Now I'm basically stuck in a finance deal paying back more than double what the car is worth. Check your interest rates and make sure you are clear what you are signing on for. I should have shopped around first. Some car places at the moment have 1% interest deals. Don't take the first car that pops up! Be weary of being taken advantage of.

    Best of luck!!!

  3. #3
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    Don't go with wizard car loans or the like, you'll end up with a worse car that costs you twice what it's worth.

  4. #4
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    I think the anz is good at giving low income/centrelink customers loans. I'd definitely try a bank first.

  5. #5
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    Interest is going to hurt no matter what but might be worth looking into secured finance through a bank. When I was 19 I had a job that gave too much money and stupidly got finance for an expensive car. If nothing else, I'm glad I had the brains to really look around and get the best finance deal I could possibly get instead of just going with a dealer. The 1 percent options are good but make sure there are no catches ie. I've noticed many of them are 1 percent for 'x' years then a higher rate after, and they won't allow you to pay it off sooner.

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    I’m a mobile lender who specialises in car loans for one of the big banks.
    With car loans our criteria is Government payments can’t exceed 40% of total income unfortunately.
    As for these 1% deals around with car yards ie Nissan, Toyota, Ford etc. Read the fine print. Most of the time they are for certain scenarios only. Ie someone asset backed, purchase price has to be over a certain amount, only for a short term etc.
    When I’m dealing with customers who are shopping around I let them know to ask what the dealer and or broker fee is, is the monthly account keeping fee incorporated into the repayments, is there an application fee up front or is it another charge & to also ask what the total fees and charges ie total interested paid is at the end of the loan.
    It’s not so much the interest rate you want to be looking at as most are simple so you’re paying the same amount of interest each month. Whereas our interest is compound so each month you pay a little less as you are only paying interest on what is left of the loan.
    In theory if you get a loan with 2.5% on $30,000 over 5 years your repayments should only be around $532/m. Any more than this & there’s other fees and charges they aren’t telling you about.
    I can only suggest reading the fine print very very carefully.

  7. #7
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    I can update and say no one was willing to give us a chance. Our credit ratings are PERFECT so there was no issue there. My partner receives austudy, and a bank that claims to give 'student loans' to Austudy students even turned us down. Reason was insufficient employment or some crap... Hello! STUDENT loan!

    mother to a beautiful baby boy

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    If the bank says no what at cash convertors car boodle ? ( not sure if they do it for centrelink customers but could possibly ) & I think the coast covers all your rego & insurance ?


 

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