Financing another car?

[buddy92]

Hi.

I have a 2009 FG XR6 and I have been thinking of trading it in and getting something along the lines of a FG2 or G6E.

I have had my car for about 1 year, I still owe $22,000 which is what I paid for the car. They will give me $18,000 trade in.

From my understanding I will still have $4,000 debt, but that will be put ontop of the new car I choose to finance?

Not sure if it will make it hard for me, but I defaulted on a few payments and owed $1000 at one stage due to a funeral having to be paid for, but paid the full $1000 back in 1 lump sum.

Is that possible? or am I thinking all wrong? Capital finance is who I am through.

[eyes87]

Along as you are approved for the new amount and can afford the repayments I don't see why not

[eyes87]

Not judging you here I just don't understand something.
You've had the car for 1 year. You paid 22 for it but still owe 22? Even after a years worth of repayments?

[buddy92]

Originally Posted by eyes87

Not judging you here I just don't understand something.
You've had the car for 1 year. You paid 22 for it but still owe 22? Even after a years worth of repayments?

I had to pay back $32,000

[Windsor342ci]

Originally Posted by eyes87

Not judging you here I just don't understand something.
You've had the car for 1 year. You paid 22 for it but still owe 22? Even after a years worth of repayments?

My guess is minimum repayments/max term loan and he has only paid off the interest at this point...

[IceValk85]

they will add the difference on top of your new finance.

ive done this about 4 times in 5 years now, and have no intention of doing it again for 6 years, the costs are now scary.

so long as your approved for your new car, there shouldn't be a problem, but you have missed payments in the last 12 months, so unfortunately mate, i think you will be declined.

Ice

[Shonky.]

OP, not going to touch on whether you should or should not buy a new car, but in regards to the default on your payments, whether this will affect any future financing or not depends on what you mean by default. A lot of people say default when they mean the just made payments late. Whether these "indiscretions" appear on your credit file depend on how long you were in arrears for and how well you communicated/made arrangements with the credit provider.

If in doubt you should request a copy of your credit history. Dun & Bradstreet do it for free. Fill out an online application and as long as you don't need it in a hurry its free:

https://dnbcreditreport.com.au/my_cr...FUIkpQodjE5KoA

If it's not on the report, you don't need to worry about it (and should not disclose it)

Your existing financier will obviously know about it, so you probably shouldn't go through them.

A bit off topic, but I probably wouldn't go with them anyway. Try a Credit Union. Peoples Choice Credit Union are doing car loans at around 8%, no ongoing fees and a very low app fee.

Oh and on Credit Files, one thing people often don't realise is that it only has history of when you have applied for Credit, not whether it was approved or declined. So if you've been knocked back, doesn't matter. What does matter however is if you have multiple applications in short succession. Even if you were approved for each and every one of them and elected not to proceed it looks bad on your credit file.

[Danny]

Negative equity is not a good thing to add to a loan OP, especially when a Falcon would depreciate faster or as quick as you could pay it off.. I'd have a long think about this and understand the implications.

[Polyal]

Originally Posted by Danny

Negative equity is not a good thing to add to a loan OP, especially when a Falcon would depreciate faster or as quick as you could pay it off.. I'd have a long think about this and understand the implications.

Any NEW car perhaps...

[mike_nofx]

Originally Posted by Polyal

Any NEW car perhaps...

Except Toyota 86.

Used prices are more than the new prices.

[Dr Smith]

Originally Posted by buddy92

Hi.

I have a 2009 FG XR6 and I have been thinking of trading it in and getting something along the lines of a FG2 or G6E.

I have had my car for about 1 year, I still owe $22,000 which is what I paid for the car. They will give me $18,000 trade in.

From my understanding I will still have $4,000 debt, but that will be put ontop of the new car I choose to finance?

Not sure if it will make it hard for me, but I defaulted on a few payments and owed $1000 at one stage due to a funeral having to be paid for, but paid the full $1000 back in 1 lump sum.

Is that possible? or am I thinking all wrong? Capital finance is who I am through.

If you don't mind can you give us your terms, ie repayment period and wether it's a personal loan or other form of financing? It seems you're really better off waiting a bit and getting more paid off. And to be frank as good as an FGII would be I don't think it's worth increasing your current loan just to trade up when you already have a very nice car.

[Shonky.]

Didn't want to go there, but I tend to agree with the Doctor. Seems like a very small change in vehicle for a big change in finances

[Spudz27]

I would NEVER finance another car. I am about to payout my Camry, still have 4yrs left on the loan and Esanda expect me to pay their loss on my early payment, so I am still being heaped with 4yrs of interest. I was going to sell the camry and pay most of the fairmont off, but now I am just going to sell the Camry, buy an EL or AU wagon for $3-4k cash and put the remainder in savings and just continue paying the Falcon. I am not using my inheritnce to pay the bloody interest on the Fairmont, may aswell save my inheritence and just pay the Fairmont off. I am paying the Camry regardless as I want to reduce all debt to 0 , except the fairmont of course now I know what they expect.

[flappist]

Originally Posted by Spudz27

I would NEVER finance another car. I am about to payout my Camry, still have 4yrs left on the loan and Esanda expect me to pay their loss on my early payment, so I am still being heaped with 4yrs of interest. I was going to sell the camry and pay most of the fairmont off, but now I am just going to sell the Camry, buy an EL or AU wagon for $3-4k cash and put the remainder in savings and just continue paying the Falcon. I am not using my inheritnce to pay the bloody interest on the Fairmont, may aswell save my inheritence and just pay the Fairmont off. I am paying the Camry regardless as I want to reduce all debt to 0 , except the fairmont of course now I know what they expect.

Absolutely.

Save your money. Don't enjoy life. Fill your bank account up so eventually you are the richest guy in the retirement home.

He who dies with the most money is still DEAD..........

As far as the OP's dilemma, you are on a hiding to nothing. You will lose a lot by doing this as finance companies do not want their money back, they want the interest.
I was in the same situation some time ago. I chose to just stick with the car I had and paid it off making sure that any future cars I bought were what I WANTED not a compromise.

[jpd80]

Originally Posted by flappist

Absolutely.

Save your money. Don't enjoy life. Fill your bank account up so eventually you are the richest guy in the retirement home.

He who dies with the most money is still DEAD..........

As far as the OP's dilemma, you are on a hiding to nothing. You will lose a lot by doing this as finance companies do not want their money back, they want the interest.
I was in the same situation some time ago. I chose to just stick with the car I had and paid it off making sure that any future cars I bought were what I WANTED not a compromise.

I paid cash for my wife's last two cars, it's a bit of a push to get ther but the rewards on the other side are worth it.
I'm now saving for the next car in just under three years time, great watching the cash mount up in mortgage offset account.

I got stitched up as a young fella by a yard that did 11% simple interest on a $3,200 six year old XB, a third of the cost of a vehicle.

[AU Mont]

Originally Posted by Spudz27

I would NEVER finance another car. I am about to payout my Camry, still have 4yrs left on the loan and Esanda expect me to pay their loss on my early payment

but that was the agreement you chose to enter into? Unless esandra was the only company willing to give you a loan, or you let the dealer arrange finance instead of doing it yourself i cant understand why anyone would go with them?

we were looking at esandra for my wifes car until i seen their fixed rate terms.

then went with a regular bank for a variable with less interest and much, much more flexible terms.

[Spudz27]

Originally Posted by AU Mont

but that was the agreement you chose to enter into? Unless esandra was the only company willing to give you a loan, or you let the dealer arrange finance instead of doing it yourself i cant understand why anyone would go with them?

we were looking at esandra for my wifes car until i seen their fixed rate terms.

then went with a regular bank for a variable with less interest and much, much more flexible terms.

The dealer organized finance.

[Nic85]

Originally Posted by AU Mont

but that was the agreement you chose to enter into? Unless esandra was the only company willing to give you a loan, or you let the dealer arrange finance instead of doing it yourself i cant understand why anyone would go with them?

we were looking at esandra for my wifes car until i seen their fixed rate terms.

then went with a regular bank for a variable with less interest and much, much more flexible terms.

Maybe you could PM me, but I'm interested in which bank you ended up going with? My wife and I are looking at doing something similar soon to reduce some debt by buying a new car (sounds silly, but it's not) using the dealer who use Esanda. I've briefly looked at their terms, but we've still got plenty of time before we buy. We've also got the option of the CBA who do secured car loans at 10.99% fixed, with the option of paying off an extra $5,000 per annum. The thought is to take the new car loan out over 3 years, then have it paid off within 2 hopefully.

I'd be interested to hear your thoughts?

[Hulsty]

Originally Posted by Nic85

Maybe you could PM me, but I'm interested in which bank you ended up going with? My wife and I are looking at doing something similar soon to reduce some debt by buying a new car (sounds silly, but it's not) using the dealer who use Esanda. I've briefly looked at their terms, but we've still got plenty of time before we buy. We've also got the option of the CBA who do secured car loans at 10.99% fixed, with the option of paying off an extra $5,000 per annum. The thought is to take the new car loan out over 3 years, then have it paid off within 2 hopefully.

I'd be interested to hear your thoughts?

I went with these guys, discounted personal loan, they have been fine for the year I have been with them.

http://www.peopleschoicecu.com.au/30...nal-loans.aspx

[patrickst]

Originally Posted by Spudz27

I would NEVER finance another car. I am about to payout my Camry, still have 4yrs left on the loan and Esanda expect me to pay their loss on my early payment, so I am still being heaped with 4yrs of interest. I was going to sell the camry and pay most of the fairmont off, but now I am just going to sell the Camry, buy an EL or AU wagon for $3-4k cash and put the remainder in savings and just continue paying the Falcon. I am not using my inheritnce to pay the bloody interest on the Fairmont, may aswell save my inheritence and just pay the Fairmont off. I am paying the Camry regardless as I want to reduce all debt to 0 , except the fairmont of course now I know what they expect.

Spudz27, what did Esanda want when terminating early? Do they just want you to pay the total amount you agreed to pay for 5 years loan i.e. the same amount of interest, whether you pay it now or in the next 4 years?

[fat4D]

I did what your suggesting about 4 years ago stepped out of my na6 and into a turbo with a few grand ontop and have kicked myself for the way I did it, which is the same as what your thinking. the problem is because the new loan is worth more than the new car you can't secure the loan and pay heaps more interest if you were doing it I would get a personal loan of the 4000 then a separate one for the car, paying the minimum on the car and pay the 4000 off as soon as possible and then work on the car loan after you'll save in interest big time

[Nic85]

In the fair dinkum department, cars are a stupid thing to have a loan for. I've done it, and am still doing it, but if you have a good, reliable car, take some advice and wait until you can afford to buy a car outright, or only have a small loan for it. What you're thinking of doing is financial suicide for the next 5-7 years just to own a slightly newer car.

[DJM83]

I did it aswell (Wasnt as much 2k~) when i purchased the my XR5T (New). Hasnt bothered me and i had no issues with doing, but i dont think id do it again as if you keep doing it you will end up owing a lot more then the car is worth (Even doing it once it happens) but i was happy to do it once, as i got the car i wanted.

[LyleXR8]

I'm still wondering why you want to trade an FG for an FGII and hand over a wad of cash you don't have for the same car???

[EB#]

Originally Posted by LyleXR8

I'm still wondering why you want to trade an FG for an FGII and hand over a wad of cash you don't have for the same car???

Ditto....
Just burning money.

[Smoke Pursuit]

Its Esanda... Not Esandra..

To the OP keep the car you have and pay it off before you go buying something else. You've already probably paid back most of the interest component, why start over again with negative equity... as soon as you drive the new one out your going to lose 5 - 6 kay atleast, plus your 4 kay negative equity, leaving you 10 kay in the red plus the interest...... Just silly.

[Nic85]

Originally Posted by DASH GT

Its Esanda... Not Esandra..

Thanks. I knew it was Esanda, but typed Esandra because of... Oh hell, it doesn't matter does it, lol.

[ebxr8240]

Make your money work for YOU..
Paying off loans on cars that depreciate
is not wise !!
Your working for the money and going around
in circles..
Dept and car maintenance doesn't mix too well either..

[GT 160]

As Shonky mentioned re: a copy of your credit file it helps to get both one from Dunn & Bradstreet the other from Veda. Some lenders etc use either some use both. So if you have any defaults it can be listed on one and not the other. GE for instance check both, some major banks only check Veda.

[The Yeti]

mate its none of my business here, but do you really want to go upside down on another car? 2009 isnt an old car, personal preference I would try and smash the loan on the current car before looking at a new car