Financing a new ford falcon xr8

[MAGPIE]

Originally Posted by Hemihunter

Did you consider Falcon XR8 is the last, has 4 doors and is "Supercharged"... i did and went with the XR8.

Those extra two doors are overrated, they just add weight.

[Brazen]

Negotiate the finance as a completely new deal after you negotiated the price.

A mate got 4.89% from BMW finance and my sister mid 5s from VW.

So after you have dealt with the salesman, really screw down the rate from the finance manager. I actually think you could be better of financing through Ford if you can get a good rate.

At the moment I wouldn't be too against financing, the loan rates are only a couple percent above inflation. Not much better off saving up instead in today's lending market in my opinion.

[GasoLane]

Originally Posted by 73XBGT

Thanks for the replies, now I have a better idea of this. I think I'm dreaming haha..

My situation is probably pretty basic, I don't have a mortgage (live with family) and my overheads are at a minimum. So just work permanent part time contract at about $1160 per fortnight after tax, no outstanding loans or any payment plans other than a mobile phone and gym membership, the biggest worry being a bankruptcy over 9 years ago (for which I was discharged 2013)

Sounds like Im not within a chance unless had half around 20k cash saved up. And I would have sold the current '96 xr8 to help fund this. Banks probably wouldn't trust with a loan hence ford finance being a more lenient option?

After seeing what someone posted here about being around $1100 a month to pay off over 5 years is definitely out of my range :(

Ren

The Bankrupt thing would still show up on a credit report, as others have said it's 5-7 years before information gets wiped.

One other thing to think about is that all credit applications (either granted or knocked back) also show up on a report.

[ebxr8240]

Originally Posted by b2tf

Can I offer some advice to those offering the advice?

Shut up and let the bloke do it if he wants.

He didn't ask "hey do you think this is a good idea" or not, and there will ALWAYS be hundreds of other things that on paper are a much better investment than cars, but hell, we all do it. An XT will do the same job as a GT but for half the price - and I know some (if not most) of the people in this thread saying dont do it all have GT's. So you argument is already flawed.

There is more to life than what is smart or a good investment - hell sometimes you just want it, and if you can afford it there's nothing wrong with that.

Yes I have, but I didn't put the cart before the horse.
Besides in my case I am a little older and wiser..

[TheSneakiness]

Originally Posted by GasOLane

The Bankrupt thing would still show up on a credit report, as others have said it's 5-7 years before information gets wiped.

One other thing to think about is that all credit applications (either granted or knocked back) also show up on a report.

Correct however they are also wiped after that same 5 year period. Again as part of the rigmarole I mentioned earlier this is something else I found out from VEDA.

[Trump]

Originally Posted by Hemihunter

Did you consider Falcon XR8 is the last, has 4 doors and is "Supercharged"... i did and went with the XR8.

I used to have an FG XR6T manual, so the desire wasn't really there; twas a case of "been there, done that". Besides, the BMW is providing sedan duties (quite admirably I must say). The 'stang is a weekend toy

Originally Posted by b2tf

Good for you, I'm 29 and would have absolutely no hope of ever having that much money to buy a vehicle without a loan for most of it. All well and good to tell people to not borrow it, but if you don't have the money you don't really have a choice.

The questions to ask yourself in this instance (one which a great many people are faced with) is firstly whether the purchase is actually necessary. If it is, then the discussion about credit to pay for it makes sense. If it is merely a want, usurious financing is a terrible means to an end.

[EB#]

Originally Posted by b2tf

Can I offer some advice to those offering the advice?
Shut up and let the bloke do it if he wants.....

Frankly, if somebody who has already been bankrupted is looking to borrow
the entire tall stack for a brand spanking new XR8 and poses a few questions, then a
few suggestions about reality (or maybe just a quick slap in face) is not such a
bad thing.

[nadojay]

if you have been bankrupt and newly out of it i would definitely go the broker route, they will find all the people willing to work with you, without having to get a heap of credit checks that show on your file. Just make sure you are honest about your past. As to whether you should get finance thats up to you we only live once.

[FTe342]

Given the OP's income situation and ability to afford the payments aside, the bankruptcy issue depends to a fair extent on what caused the bankruptcy. Some people find themselves in this situation due to circumstances or other peoples actions totally outside their control and lenders will be more lenient if you can show this was the case. I got a mortgage for a client no problem when this was the case - self employed and got smashed up when a police pursuit saw the offenders car plough into him causing his business to fail due to injuries preventing him from working for a number of years.

On the other hand if it was your own doing that caused the bankruptcy you may have some big hurdles to jump over

[Lukeyson]

People are wary to finance a new car now, as most of the posts I have read in this thread. Who could blame them, when 8-13% interest are the going rates. No thanks.

Best of luck to OP, have a look at car loans on ratecity.com.au, it will show you the monthly repayment from many lenders

[fps_grandma]

Originally Posted by FormulaFG

I subscribe to the theory but not the practice. If it wasn't for borrowed monies our auto sector would have shut years ago.

The Falcon has less than 2 years to run. Anyone wanting a brand new one does not have the luxury of time to save 60k.

To the OP, I bought my new car 9 months ago through the dealership (they use St George finance) and was given instant approval. I don't have any defaults though and I did have a trade in. I wasn't making huge money at the time.

Everyone told me not to use the dealer finance and to shop around, which I did. Thought I had found a reasonable interest rate that I was going to go with but the dealership interest rate was even better. Get loan insurances if your worried about losing employment during the loan term.

I did that for my FGX XR6T and it was worth the wait.
Change left over for services, accessories and other random things.
Purchasing a new vehicle with cash is definitely a loss but finance on any new car will result in greater losses.

[lilmattie]

EDIT: decided against it.

[Cosmo Kramer]

I was negotiating a car loan two weeks ago, and some of those interest rates mentioned, seem really high.

Be careful not to go on interest rate alone. The dealership was offering 4.85%, but the ongoing maintenance fees made it more expensive that the 4.95% a bank was offering.

Cheers

[Spammy]

Don't forget you will need to pay insurance, rego, petrol and servicing. Are you sure you would have enough to live on after you made the loan payments and then the other sundry payments?

Hint: most lenders underwrite to the " henderson poverty index" which is a cost of living study that comes up with the minimum a person/couple/ family need to cover bare essentials (really bare).

Income in excess of the index can then be used to service debt. If a lender advances a loan than leaves the borrower with less than the Henderson index, then that is considered irresponsible lending.

[FormulaFG]

Originally Posted by fps_grandma

I did that for my FGX XR6T and it was worth the wait.
Change left over for services, accessories and other random things.
Purchasing a new vehicle with cash is definitely a loss but finance on any new car will result in greater losses.

How far in advance were you saving for? I could buy a brand new FGX, but would have to started when the AU was in production.

[fps_grandma]

Even if Ford dealers were to reduce their interest rates from 2.9% to 0% I still wouldn't consider finance.

Originally Posted by FormulaFG

How far in advance were you saving for? I could buy a brand new FGX, but would have to started when the AU was in production.

On a decent salary, right after the FGMkIIs were around.

Originally Posted by Spammy

Don't forget you will need to pay insurance, rego, petrol and servicing. Are you sure you would have enough to live on after you made the loan payments and then the other sundry payments?

Hint: most lenders underwrite to the " henderson poverty index" which is a cost of living study that comes up with the minimum a person/couple/ family need to cover bare essentials (really bare).

Income in excess of the index can then be used to service debt. If a lender advances a loan than leaves the borrower with less than the Henderson index, then that is considered irresponsible lending.

This.
A year's comprehensive insurance on a FGX XR6T for a 20-something year old in Sydney is about $1200
CTP for a year is roughly mid $500
First capped price service at 12mth/15,000km = $380
Fuel costs are roughly $200 per month or about $2400 per year (mix of highway and city driving)

[Sprintey]

To the OP - you never know, your EL XR8 might even start to go up in value some time soon - equity, mate... ;)

[The Snout]

As already answered, the credit history may only matter depending on the details of why your history is bad.

As for how much a 50K loan costs, plenty of online calculators to work that one out.

What I"m going to say now is probably going to make no difference but if you really want a brand new XR8, have you considered going half way. Checking out BF XR8s a quick look on Carsales, they seem to be available for 10K-17K.

An upgrade from a '96 to a '06 for that money seems like a better result to me, given your circumstances.

But, this purchase doesn't sound like a numbers only consideration.

[DK30RB]

To all the anti financing guys, depending on your position it may be worthwhile considering finance.

I have my own company and finance my vehicles via the company.

By the time i claim back the GST, claim the running costs, claim the depreciation and pay for it pre tax, i can't see the value in paying cash.... I don't ever buy a car to own long term.

I'm up to car no 21 in 20 years. (i have 2 at a time). Never bought one outright....

Saved my cash and paid off the house and put the rest toward property investments.

Everyone's situation is different. So different advise applies to all. I would say contact your accountant or a financial planner to consider options that work for you.

[EB#]

Originally Posted by FTe342

....the bankruptcy issue depends to a fair extent
on what caused the bankruptcy. Some people find themselves in this situation
due to circumstances or other peoples actions totally outside their control....

Fair comment.

[mik]

Originally Posted by Loud_Noises

As much as any of us on here would like to support Falcon until the end, it makes ZERO sense to borrow approx. $60k for a new XR8 that will depreciate exceptionally rapidly and end up making 80odd thousand in repayments.

My pending Mustang purchase will not be financed at all. Yes, it is somewhat retarded to plough so much cash into a depreciating vehicle, but I am fully aware of this and I will owe no one anything to enjoy vapourising former dinosaurs

As an aside, a ripper price on the V8 'stang was the main reason I picked it over a manual XR8.

you could really say that about any new car of that price range when there are so many good cheap second hand units on the market.

On the other hand...... here for a good time.....not a long time !

[xisled]

First thing to do is check your credit score https://www.getcreditscore.com.au/. This will give you an idea on how your credit actually looks.

Second is get a copy of your credit report http://www.veda.com.au/ and http://dnb.com.au/. Get both as something will be on one and not on the other.

There is 2 types of credit reports ones a basic report and this will mainly been done by finance companies and is free. This will have basic information will be cleared off every 5 to 7 years depends on black marks etc.

The second report will show your bankruptcy black marks etc, but cost money to get so most finance companies will not get this report.

Once had a look at the rest. Work out if you can afford it, deposit, and insurance, rego etc and then go to dealer and discuss.

[Blem]

Credit ratings aren't all they may be put up to be.
We are currently refinancing our home loan.
Wife rated 996
I rated 935
Both late 40's
She a teacher on gov payroll secure as
Me- self employed...same trade 3 decades +
Wife has never ever had any cashflow risk as permananent gov employee.
.................................................. .................................................. ...................
Just my 2cents worth but I'd say to OP just don't.
Way more heavy things /costs yet to come in life

[Focused]

Originally Posted by 73XBGT

So just work permanent part time contract at about $1160 per fortnight after tax, no outstanding loans or any payment plans other than a mobile phone and gym membership, the biggest worry being a bankruptcy over 9 years ago (for which I was discharged 2013)

Not a wise move spending double your annual income on a car I'm afraid. And then you'll have to add on the rego and insurance (the latter will be heaps if you're young)...etc. I feel your pain as I love the look of the FGX and testdrove both an XR6T and SS-V last weekend, but you'll drown under that much dept.

Originally Posted by b2tf

Can I offer some advice to those offering the advice?

Shut up and let the bloke do it if he wants.

He didn't ask "hey do you think this is a good idea" or not, and there will ALWAYS be hundreds of other things that on paper are a much better investment than cars, but hell, we all do it. An XT will do the same job as a GT but for half the price - and I know some (if not most) of the people in this thread saying dont do it all have GT's. So you argument is already flawed.

There is more to life than what is smart or a good investment - hell sometimes you just want it, and if you can afford it there's nothing wrong with that.

Disagree. There's a difference between an unwise decision and an incredibly unwise decision that will bury you in debt. As a car enthusiast, I can understand spending too much on cars but not double your annual income. I'll admit that I'm currently looking at a $40-45Kish loan, but I'm in a very different financial position than the OP.

[BDA074]

Has anyone tried Stratton Finance? I heard their rates are pretty good.

[73XBGT]

Thanks for all the replies and info on the matter, yeah it's pretty clear by my absence I've totally given up on the idea! After reading all the above I'm pretty much switched off the idea, as one person mentioned hanging on to the EL Xr8 and being an option 20 copper is of some value, and IMO I do love that car (not as much as my XB though) and if I can see myself accepting that as my daily driver for a long time to come then i might as well put in the saved up $$ (not loan) into overhaul of the 5L v8, respray, and some suspension work and she's good as new. I still rate it about 80% good to mint condition at current