Finance rate ?

[theitchy]

Hi,

Today finance guy at VW call my wife asking whether we are going to use their finance or not? Im not really good at these. Is there any suggestion at all because as i ve come to know, rates always change with car finance. Thank you

[tigger73]

The only way to compare finance is to look at the monthly/fortnightly repayments over the same period.

It doesn't hurt to get a quote. I've found the dealer finance is often pretty competitive.

[shanelord]

Finance rate ?

VW finance also have the guaranteed buy back.

At agreed amount of years you can hand the keys back and if market value is lower than residual they cover it. If market value is higher you get it in your pocket.

https://www.volkswagen.com.au/en/ways-to-buy/volkswagen-choice.html

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[dinot81]

I got mine through Toyota Finance and bought a VW lol. Dealer has VW, Toyota, Skoda under one roof and was financed through Toyota as they had a special rate and lower than my homeloan rate. Should switch that one to Toyota. They also look at your personal situation to assess the rate. Anything is possible, shop around.

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[IsDon]

Be carful!

https://youtu.be/W5cukcs_4r8

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[Dutch77]

Generally if the vehicle can be signed off with predominant business use then the business finance rates will be competitive with home loan rates as they won't be covered by the consumer credit code.

[Tuan]

When comparing, don't look at the rate being offered as different financiers use different methods of calculating this so it makes cross shopping very hard to compare. Make sure you compare like to like between financiers i.e. same term/residual and take into consideration the set up fee and monthly repayments (including monthly fees if any).

They won't tell you these things, if you don't ask.

[Gladbach]

These days I tend to use cash from my home loan offset account (that way I'm effectively getting home loan rates), but the last time I got a car loan I reviewed a whole bunch of loans using a site like this:

http://www.infochoice.com.au/personal-loans/car-loan/interest-rate-comparison/

It's a good site, it's not a brokering service, simply displays data for comparison. It shows loans from pretty much every financial institution available with their interest rate. Also, on the features tab it shows the application fee, monthly fee and early exit fee if applicable. It's an easy way to quickly find the best loan deal without having to phone around.

Untick "Show sponsored listings first" at the bottom of the page to make sure you make decision based on facts only

When I got my loan back in 2006 it was far, far better than what the dealer's finance could offer.

[Tuan]

Yes using the home loan is a great option, if you have a home loan and you are able to draw some equity out of it.

A novated lease is an even better option if you're able to get it though work.

[Dutch77]

Home loan options work if the buyer is diligent and ups their repayments to knock it off in the required time - if not can be a good idea to take out a supplementary loan; still same rate but at least they can treat it is a car loan. Given your mortgage these days should be in the 3s it's a good option particularly if you can't access the business products.

The problem with any comparison site is they won't feature every product, and just like home loans all you usually need to do is ask and the fees and rates can be cut by material amounts.

Novated lease can work for some but it's always good to crunch the numbers first to make sure you're actually ahead on it.

[Gladbach]

Yes using the home loan is a great option, if you have a home loan and you are able to draw some equity out of it.

A novated lease is an even better option if you're able to get it though work.

I've looked at a novated lease before (am entitled) but I don't do enough business related km's to make it worthwhile, just end up getting hit with FBT.

[Gladbach]

Home loan options work if the buyer is diligent and ups their repayments to knock it off in the required time - if not can be a good idea to take out a supplementary loan; still same rate but at least they can treat it is a car loan. Given your mortgage these days should be in the 3s it's a good option particularly if you can't access the business products.
.

I'm my case, I'm literally withdrawing funds from my offset account, not redrawing from the homeloan.

[Dutch77]

I'm my case, I'm literally withdrawing funds from my offset account, not redrawing from the homeloan.

Always a good way to go - sorry my comment I guess was also aimed more generally. Although offset funds are ultimately equity, so the same rules could be applied.

[Tuan]

I've looked at a novated lease before (am entitled) but I don't do enough business related km's to make it worthwhile, just end up getting hit with FBT.

The rules are now that FBT is a flat 20% using the statutory method (not operating cost method) i.e. the stat method does not take into account business use.

[Dutch77]

The rules are now that FBT is a flat 20% using the statutory method (not operating cost method) i.e. the stat method does not take into account business use.

Correct - the idea is (in simple terms) you use a pay deduction to reimburse/offset the FBT that would be payable on the balance and for cheaper cars you can usually finish ahead. The higher up you go the worse it gets, especially once you crack the luxury car threshold. But always best to analyse it and speak to someone who knows if you don't.