should I buy a car on ford finance?

KUZMIN · 30-10-2005, 09:40 PM

Hi all,
Im THINKING about maybe buying a second hand BA XR6 turbo or XR8 (not buying another auto so MANUAL).
From what ive heard, Ford Finance is the best for car loans..the interest is very low!...do they give you loans if your buying a second hand car?
Ive never borrowed any type of money...so im new to the whole thing!
Should I do it?...should I borrow money and pay it off weekly (or monthly)?
My mate jim bought a EL XR8 from ford when it was brand new...i think he pays around $95 a week...and he still has another 10grand to pay off.

Anyway,
what are your thoughts about this?....or maybe I should get a BA XR from an auction thats had slight damage and fix it?
Once saw a BA XR6t (black) on ebay for just $12,500!!!...with only 1 damaged door!

Thanks guys/gals!

RED_EL_XR8 · 30-10-2005, 10:03 PM

I can be competitive, but you shouldn't buy on any finance without checking alternatives, do your sums and be prepared to walk if the dealer tries to close your options from other financiers.
Ford Credit CAN be competitive but it wont be if you don't bargain the best rate.

AUSGTI · 30-10-2005, 10:04 PM

When i bought my BA XR8 (8mths old) The Ford Dealer here uses Esanda. Not to sure about the other dealers around Aus. But yea good Interest rate i am on 9% fixed, which is better then the banks!!

**GasoLane** · 30-10-2005, 10:10 PM

I bought mine from a Ford dealer in Melb through Esanda 3 months ago @ 9.65%.

Never having borrowed any money could be a drawback, most finance companies like to see some sort of credit history. yeah I know, how do you get a credit history if you've never had credit!

gozza · 01-11-2005, 10:17 AM

Quote:

Originally Posted by Waggajag

I bought mine from a Ford dealer in Melb through Esanda 3 months ago @ 9.65%.

Never having borrowed any money could be a drawback, most finance companies like to see some sort of credit history. yeah I know, how do you get a credit history if you've never had credit!

going off on your point i got a credit card and my mates started giving me grief....ya know the type...."ohh stuff credit cards...u'll be poor and owing the bank money blah blah blah....when the fact is if you have a credit card and use it sensibly its gonna be good for you in the long run....when the times comes for me to approach my bank for a home loan or car loan they'll be more likely to lend me money cos they can see that ive been using credit/borrowing money and have managed it accordingly

The G6ET Spot · 01-11-2005, 06:08 PM

Bought a Mk2 XR8 six weeks ago financed through ford credit interest rate of 6.85%. No penalties for early payout. Your interest rate will be a little higher than this being a second hand car, but if you go in with a couple of other interest rate quotes and haggle hard they will 9 times out of 10 better those rates. Good luck. And remember BARGAIN HARD.

VilkasBAMIIXR6T · 01-11-2005, 07:30 PM

Quote:

Originally Posted by RAPID XR8

Bought a Mk2 XR8 six weeks ago financed through ford credit interest rate of 6.85%. No penalties for early payout. Your interest rate will be a little higher than this being a second hand car, but if you go in with a couple of other interest rate quotes and haggle hard they will 9 times out of 10 better those rates. Good luck. And remember BARGAIN HARD.

That is a rather good rate. When I got my last car through Ford Credit my rate was around the high 8%. I thought was great as employee rate, obviously you can do much better.

**Charliewool** · 30-10-2005, 10:39 PM

Quote:

Originally Posted by In2Xr8

When i bought my BA XR8 (8mths old) The Ford Dealer here uses Esanda. Not to sure about the other dealers around Aus. But yea good Interest rate i am on 9% fixed, which is better then the banks!!

Esanda IS the bank (ANZ)

**Captain Stubing** · 30-10-2005, 10:16 PM

If you're able to fix a damage car, go for it. You will save yourself a bucketload.

I think that the newer that you buy the car (from a caryard), the more you will lose (eventually)

I was talking to a friend, who just bought a '97 Bitsabishi Verada wagon yesterday for 10G, after 8 years, the car has lost $35300 from the original purchase price. About $4412 depreciation each year.

CarBroker · 30-10-2005, 10:21 PM

Why not use a finance broker? Recently, I know BMW finance (called ABC Finance) was very competitive, but I also know Diamler-Chrysler Finance (whatever their name is) is pretty good right now. I'm not personally any expert, but if I went to finance a car (new or used) I'd be using a finance broker.

Just one exception: If you can put it on your house mortgage, it'll be the cheapest option.

If you can salary package it under a novated lease, you will save the entire GST component. In this scenario, you can also finance the running costs and maintenenace. Put it on a fleet plan in other words.

A good finance broker can help you with all of that (except if you put it on your mortgage).

**Captain Stubing** · 30-10-2005, 10:34 PM

Quote:

Originally Posted by CarBroker

Just one exception: If you can put it on your house mortgage, it'll be the cheapest option.

Why pay it off over 20-30 years?

CarBroker · 31-10-2005, 12:17 AM

Quote:

Originally Posted by swanny

Why pay it off over 20-30 years?

If you put it on your mortgage, you get the lowest possible rate. Doesn't mean you have to pay it off over that period. You have the choice to pay it off over a shorter period if you like - it's up to you. I am simply pointing out that it is the cheapest source of money.

Finance at the dealership is rarely the cheapest. And if you get a really low rate, you probably paid too much for the car. It's all rubbery figures.

I still reckon a broker is hard to beat (but I must admit I am probably a bit biased) unless you fancy your chances of beating the finance manager at some dealership who sells car finance all day long and knows every trick in the book.

Smoke Pursuit · 31-10-2005, 12:26 AM

Quote:

Originally Posted by CarBroker

If you put it on your mortgage, you get the lowest possible rate. Doesn't mean you have to pay it off over that period. You have the choice to pay it off over a shorter period if you like - it's up to you. I am simply pointing out that it is the cheapest source of money.

Finance at the dealership is rarely the cheapest. And if you get a really low rate, you probably paid too much for the car. It's all rubbery figures.

I still reckon a broker is hard to beat (but I must admit I am probably a bit biased) unless you fancy your chances of beating the finance manager at some dealership who sells car finance all day long and knows every trick in the book.

Plenty of people buy cars on their homeloan, depending on the cirumstance it is usually good for most families so they can keep the cost of paying a new vehicle off low!

Car brokers are good but at the end of the day they have to make something out of it to, people dont do things for the fun of it so don't believe they are all straight either! Shop around, if you use the car for business purposes and can lease it then go that way!

Rodp · 31-10-2005, 09:19 AM

Quote:

Originally Posted by CarBroker

Just one exception: If you can put it on your house mortgage, it'll be the cheapest option.

Not if you pay it off over the standard term of the loan, otherwise it's significantly more expensive. It only appears cheaper as the repayment schedule is spread across a longer term. Ultimately, the interest you pay is several times more than if you were to take out a loan for 3-5 years.

SpoolMan · 30-10-2005, 10:22 PM

Yes Go Hard on the person doing the finance trust me they have plenty of room to move on there interest rates at Ford Credit....

Penelope Pitstop · 30-10-2005, 10:32 PM

Also the car salesmen get a commission for signing up finance via Ford Credit so therefore you should be able to get them to negotiate a little further then you originally thought on your purchase price. Cash does not get you a better deal in the car market.

**GasoLane** · 30-10-2005, 10:36 PM

And dont forget that if you dont have a trade-in ask them for the 'no trade' price, you'll be surprised at the difference

XRQTOR · 30-10-2005, 10:40 PM

I borrowed money for my MKII xr8 from the power credit union. Intrest rate is 6.85% fixed for the life of the loan. Took it over 7 years as suggested by them and will pay what i owe off in under 4 with no penlty fees.

SSBUB · 30-10-2005, 10:41 PM

when i bought my holden from a ford dealership, they were trying to hike me a rate of 10.5 or something....which was steep....i shopped around and essanda were quite good, something like 8.5%. Then, because it had to get insured and everything i co-incidentally stumbled across RAC finance. If you sign up your car with them through insurance you get a couple of % off in taking out a loan with them. The catch? You also have to sign up for a years worth of roadside assistance.
So i got my loan with a rate of 8.1%, full comp insurance for a vx ss for $640 a year and all i had to do was pay $140 straight up for roadside assistance - which isnt a bad thing to have anyway......5 year loan, no penalty rates for paying it off earlier...all this an im only 25 so im pretty chuffed...insurance seems to be cheaper here in WA than over east, however your cars, i swear, are cheaper to buy 2nd hand.

Yummy Mummy · 30-10-2005, 10:56 PM

Using a broker can be good and bad, depending on who you see. Just be careful they find you the best deal, and don't use the financier who pays them the highest commission (which is often the case).

Esanda, GE Auto, RACV finance etc can all usually negotiate a competitive rate. If you find out the rates from each first, and then go to the car yard, and they use a particular financier, you will have some ammunition to negotiate a better deal.

Putting it through your mortgage only saves you on monthly expenses "now", but consider you will be paying interest on the additional principal over a period of 25-30 years instead of 4 or 5, it ends up being more expensive over the longer term.

Most financiers don't have an issue with a second hand car, as long as it is not older than 7 years by the expiry of the loan contract. They also prefer dealer sales to private.

You also need to consider your insurance will be a little higher as the car is under finance. You may be able to get an unsecure bank loan at a competitive rate, although the lending criteria is usually quite strict.

Hope that helps.

Good luck
Chris.

KUZMIN · 30-10-2005, 10:54 PM

Thanks for the reply guys!
I can probably buy a decent XR6t or XR8 for 20k if i look hard enough (second hand)..
Would paying 3-4k at the start be a good idea...my mate Jim with the EL XR8 recons ford finance is the best finance around...he states that the interest is as low as on a house...

blutura · 31-10-2005, 03:29 AM

Quote:

Originally Posted by KUZMIN

Thanks for the reply guys!
I can probably buy a decent XR6t or XR8 for 20k if i look hard enough (second hand)..

mate, if you think you can get a decent BA XR6 Turbo or XR8 for anywhere NEAR 20k you are dreaming.

a quick scan of carsales.com.au in Victoria shows that the cheapest you'll get is in the mid to high 20s, and if you want real low k's expect to pay low to mid 30's.

WizBang · 30-10-2005, 11:09 PM

Try and talk to finance company before you go car shopping as a car yard will sell you a car 1st and then finance 2nd and most of the time you don't have bargain power plus it is easy to borrow more than you wanted as they will some times get you carried away and sell you a 25-30,000 car for $10-20 extra a week ,but if you've got the money 1st then you know what you have and if you know what you want you will have a better chance of finding it ,plus at a bank there is no cars to distract you
But best of luck in finding a nice ride

**Falcon Coupe** · 30-10-2005, 11:13 PM

Dealerships can put up a great interest rate if it helps them close a deal, i just signed up to a 7.5% deal with Toyota, that's like a mortgage rate

but as others said, give them a bottom line and be prepared to walk.

SSBUB · 30-10-2005, 11:34 PM

you definately have to be strong with them and dont let them push you around. As has been said before, be prepared to walk because you have more bargaining power than you think. You can always b/s anyway and say you have been offered 8% at somewhere and the response is most likely going to be ók we can match that' or they will baulk and then match it. Just remember YOU have the power here.

Smoke Pursuit · 31-10-2005, 12:20 AM

Pfft Ford credit arent that great unless your good with this stuff, if they see you coming you could be paying anywhere between 9 - 11 % +. All my stuff is thru westpac commerical in the high 6's.

Unless you know what your doing and have someone who can do the calculations for you be careful with Ford credit.

XR Martin · 31-10-2005, 12:42 AM

Wont be long before we're seeing car companies offer 0% finance like in the US.

RED_EL_XR8 · 31-10-2005, 02:59 AM

Quote:

Originally Posted by XR6 Martin

Wont be long before we're seeing car companies offer 0% finance like in the US.

0% Finance, there is no such thing! Now before you begin banging off walls I'm not questioning what you have seen/read, those deals did exist.

Finance however has a cost, no-one will leave money floating around in an account that does not make interest. Financiers are not going to give manufacturers cash to buy components without return on their dollars. Simple economics.

So any 0% offers are creaming off from somewhere and even if they are from manufacturers profits they are not sustainable. Shareholders still want a return. it can be a gimmick offered just like employee discounts to all but at the end of the day everyone has to make at least some money.

The problem with these 0% deals is the suppliers subcontractors etc end up becoming unwitting credit suppliers and sooner or later one or many of them fall over in a cash-flow crisis.

Be happy with the low %'s we have been able to negotiate over recent years its a long way from the 19 to 13% that was being paid on some CHP not so many years ago. Remember everyone has to make a buck dealers included, and most of the better dealers don't set out to work over anyone, but those who don't ask will pay the top %'s.

CarBroker · 31-10-2005, 08:38 AM

Quote:

Originally Posted by RED_EL_XR8

0% Finance, there is no such thing!

You mean you can't get someting for nothing? Thousands (if not millions) of people will be very disappointed to hear that!
Still amazes me every time I hear of someone who got "free" on road costs of "free" aircon and actually believe it was genuinely free. Heaps of people still fall for that little 4 letter word.

vztrt · 31-10-2005, 11:04 AM

Quote:

Originally Posted by XR6 Martin

Wont be long before we're seeing car companies offer 0% finance like in the US.

Banks in the middle east dont charge interest (but they might soon), but they have large fees instead. No such thing as a free lunch!

I went with RACV after I got 3% less than what I was going to get with ESANDA. There arn't to many fee's and only have to pay an extra $70 if I pay the car off early.

Just try to get accepted for finance first (if your considered a higher risk), I was told that once you get finance at one place than most other companies will accept you.