Car Finance Help

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sep11guy

660 posts

Ultimate Geek
Inactive user

#166089 2-Mar-2015 14:43

Hi,

I am helping out a friend get a car for his family.

The vehicle model is sorted but the thing he is after is finance - which option is the best way to go , without being having to feed the loan sharks.

I saw some banks offer credit card, 1 yr at 0% interest, but they say its for "transferred balance"

Does anyone know of any channels one can get a good deal ( 0% or similar with some minor fees etc ) ?

If it helps the the car he is looking at is in the 20k $ range.

Thanks

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5809 posts

Uber Geek

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#1249510 2-Mar-2015 14:47

Generally car loans are expensive. You could get a loan off a bank, but I suspect you'd be looking at 12% plus.

Has your friend got a mortgage? Can he put it on the house (if he lives in Auckland, the value of his house will have increased a bucket load in the last couple of years).

Is it a new car? Toyota and Nissan are offering cheap interest at the moment on new cars.

Not liking your chances of finding 0% anywhere.

johnr

19282 posts

Uber Geek
Inactive user

#1249511 2-Mar-2015 14:47

Apply for credt card with one bank make purchase then move the balance to a 0% offer from another bank

:)

Horseychick

150 posts

Master Geek

#1249512 2-Mar-2015 14:49

I've always had really good deals from these guys - http://www.alphera.co.nz/

Generally they will come back with a rate and you can then negotiate. Always helps if you have good credit history though. I've purchased about 8 cars over the years through them.

xpd

Geek @ Coastguard NZ
13765 posts

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#1249514 2-Mar-2015 14:50

Unless he has a good savings/credit history, I doubt a bank will hand him a credit card for $20k+ and it those deals you mention are for card holders with other banks who want to transfer - get a personal loan from the bank instead.

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

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sep11guy

660 posts

Ultimate Geek
Inactive user

#1249520 2-Mar-2015 14:52

johnr: Apply for credt card with one bank make purchase then move the balance to a 0% offer from another bank

:)

yeah, i thought i would tell him to do so, but just wanted to know if someone has tried it out personally - any stories / experiences , did it work all right in the end, etc etc.

Bee

732 posts

Ultimate Geek

#1249547 2-Mar-2015 15:20

If a bank will give you a credit card limit of $20k then you probably don't need to borrow to buy a car!

We got a loan thru the caryard with Avanti finance interest is 17.95% so similar to what a bank will do...

Doing your best is much more important than being the best.

johnr

19282 posts

Uber Geek
Inactive user

#1249548 2-Mar-2015 15:23

17.95% no way, MTF I am sure is much cheaper

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sep11guy

660 posts

Ultimate Geek
Inactive user

#1249550 2-Mar-2015 15:27

yeah 17.95% is way way to high.

The friend already has a CC with more than 20k allowed, but he has to pay back in about 50-55 days.

He wants something like 0 - very low interest to be spread over a year or so , so looking for options in the market.

Transferred balance to other company bank is best option so far, but ofcourse its at the wish of the new company - if they will give it that is.

Wade

2225 posts

Uber Geek

#1249551 2-Mar-2015 15:27

MTF seem quite good, no penalties for early repayment either

johnr

19282 posts

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Inactive user

#1249557 2-Mar-2015 15:35

sep11guy: yeah 17.95% is way way to high.

The friend already has a CC with more than 20k allowed, but he has to pay back in about 50-55 days.

He wants something like 0 - very low interest to be spread over a year or so , so looking for options in the market.

Transferred balance to other company bank is best option so far, but ofcourse its at the wish of the new company - if they will give it that is.

If they already have a credit card with that limit then it's a no brainer how to get 0% interest

:)

itxtme

2102 posts

Uber Geek

#1249596 2-Mar-2015 15:57

johnr:
sep11guy: yeah 17.95% is way way to high.

The friend already has a CC with more than 20k allowed, but he has to pay back in about 50-55 days.

He wants something like 0 - very low interest to be spread over a year or so , so looking for options in the market.

Transferred balance to other company bank is best option so far, but ofcourse its at the wish of the new company - if they will give it that is.

If they already have a credit card with that limit then it's a no brainer how to get 0% interest

:)

Buy car on current credit card -> Apply for new credit card (0%) with 20K to transfer -> New bank says no thanks -> Pay back within 60 days or be stung

sep11guy

660 posts

Ultimate Geek
Inactive user

#1249604 2-Mar-2015 16:02

New bank says no thanks

Ahaa ! u got it perfect. Now thats the reason, I was not 100% of recommending that route.

Cuz its easy to say go buy 20k worth of car, but then the new bank can turn around n say sorry, looking at ur situatuon we can only give 10-12-or 15k worth credit, than it may not exactly work out.

wasabi2k

2096 posts

Uber Geek

#1249612 2-Mar-2015 16:06

0% interest loans don't exist - unless you have family/friends in a position to offer one and the type of relationship to handle it.

I have used MARAC in the past with good results.

lxsw20

3552 posts

Uber Geek

Subscriber

#1249656 2-Mar-2015 16:52

Yeah I don't know how/why you think you will get a free loan. Cheapest route is to chuck it on a mortgage if possible. I put a car on my folks mortgage before I purchased my own house/sold my fun car.

johnr

19282 posts

Uber Geek
Inactive user

#1249657 2-Mar-2015 16:56

itxtme:
johnr:
sep11guy: yeah 17.95% is way way to high.

The friend already has a CC with more than 20k allowed, but he has to pay back in about 50-55 days.

He wants something like 0 - very low interest to be spread over a year or so , so looking for options in the market.

Transferred balance to other company bank is best option so far, but ofcourse its at the wish of the new company - if they will give it that is.

If they already have a credit card with that limit then it's a no brainer how to get 0% interest

:)

Buy car on current credit card -> Apply for new credit card (0%) with 20K to transfer -> New bank says no thanks -> Pay back within 60 days or be stung

You would get it approved first before you make purchase, before moving a balance they ask you how much is owing on card they don't actually check

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