Did you get Finance or a Car Loan for your MK6 Golf? and with who? Need advice!

[Pauly]

Hey guys,

as some of the guys on here know, im looking at getting myself a MK6 GTI or R soon.

I was wondering if you guys took finance for a car loan for new MK6, and if so, with who?

Im trying to find the best people to go with, I have heard that BMW Finance provide a very good service because they are a car company and not a bank.

But im open to your opinions.

I am looking at saving up about 20K by the time it arrives, and doing a trade in on my existing car, which I have been told to expect about 20 - 24K with private sell. But I might need to get some extra cash.

Or I might even take a larger loan and keep more money in savings, as from what ive been told, you earn more intrest in banks then what they can sometimes charge you on a loan, so you can be ahead?

Cheers.

[xblode]

I'm self employed and my GTI is my company car.

I shopped around years ago when I got my MK4 GTI and ended up going with Melbourne Finance who deal with BMW Finance, which gave me a very competitive quote

Did the same for the MK6 (Chattel Mortgage) in December last year and the whole process was so easy!

I'm pretty sure BMW Finance is the only company NOT to charge fees when exiting your lease early too which is a bonus if you want to move to another car earlier than planned.

[xblode]

Let me know if you want the details of my contact at Melbourne Finance.

[pologti18t]

look here

http://www.canstar.com.au/

[STV4SYT]

Sounds like u wil have $40k - $45k

Dont finance if u dont have to.

40k in the bank wil earn you maybe 4%

Whereas most car loans now are around the 7-8% mark.

THe difference is you pay that 8% every year of the loan.

If u have it in savings for a year you will earn $1600 BUT pay $3200 interest charges !!!!

So it will cost you $1600 to have money in savings while giving the finance company money.


Doesn't make sense does it?

Cash is King. Espescially if u have enough to buy the car.

Even if u are a few $$ off, like i was last time i bought a car it was cheaper for me to stick a few thousand on the credit car to get to where i needed then take 2 or 3 months to flatten it again (Providing you have the discipline to manage the cards) than to take out a loan for the difference. think 18% PA over 3 months versus 8% PA over 12.

[Christopher]

with the credit card idea; if you are short, then try and find a credit card company (call it Company A for my example to come) that has a low balance transfer rate. That way, you can balance transfer the money from company A and put all that cash into your mortgage offset account, use your current existing credit card company (company B) to pay for the few $k. That way, you have the money earning interest in your offset account negating somewhat the Credit Card interest... however, like Steve mentioned above, it does require restraint...

now, if you don't have an offset account, then just put that in the bank like mentioned above... only thing is the interest earned will be less than that from an offset account.

have i just confused the crap out of everyone?

[midlifecrisis]

SNIP%

Whereas most car loans now are around the 7-8% mark.

THe difference is you pay that 8% every year of the loan.

7-8%? I am getting 10.5% no fees from ESANDA (ANZ). Who is good?

[Achtung Tiggy]

Credit cards are a rip off unless you get a fantastic rate from a balance transfer. I always pay off my cards in full each month to avoid the high interest charges.

Housing loans usually charge the lowest rates. If you are a home-owner, get a line of credit that is secured to the house... and you won't have to pay so much in interest charges.

Just don't default on the payments or you'll be sleeping in your car!

[Pauly]

im only early 20's, I dont have a place of my own at the moment.

If say I want to take a loan for 15 - 20k. what would be the best option to go for?

[Mk6 GTI]

I have the cash to pay for the car in full.. should i keep that cash or take a loan? Im thinking there could be some tax benefits??

[Axis]

im only early 20's, I dont have a place of my own at the moment.

If say I want to take a loan for 15 - 20k. what would be the best option to go for?

Probably a Car Loan from the bank. IE - a Bill of Sale where the car itself is used as security on the loan (the bank owns an interest in the car)...

[mikinoz]

Have you considered speaking with your accountant/lending broker?

[Achtung Tiggy]

im only early 20's, I dont have a place of my own at the moment.

If say I want to take a loan for 15 - 20k. what would be the best option to go for?

I'd say go for a car loan. But do your research on the banks and finance companies and find out who has the best rate.

[Christopher]

I have the cash to pay for the car in full.. should i keep that cash or take a loan? Im thinking there could be some tax benefits??

I think the only way you could get a tax break would be if you own your own business and say that it's a company car?

but yeh, as mentioned above, your accountant will be able to tell you definatively.

[STV4SYT]

I think the only way you could get a tax break would be if you own your own business and say that it's a company car?

but yeh, as mentioned above, your accountant will be able to tell you definatively.

Even if you have a business and pay for the car in full you can still access benefits for using the car for business purposes.

The only difference is you can claim the interest (or part of) as a tax deduction.

YOU STILL HAVE TO PAY INTEREST ON A DEPRECIATING OBJECT

Which goes against my Rule #1