Need advise.

[hasto2770]

Yo ozhonda.

Looking to buy a new car but stuck in a dilema on choosing where to get a loan from or whether car finance is a better option. Thoughts?
Looking to take out around the 10-13k mark.

Cheers.

[trism]

Doesn't matter. Just pick the one with the lowest interest rate.

[marquee]

Car loan is good if you intend on keeping the car the whole time as it is encumbered which means it is taken as a security on the poan which equals lesser interest rate then a personal loan... personal loans are pretty shit for massive loans higher then 10k unless you plan to pay it back in 2 yrs max due to the high interest

[NightKids]

Credit union has some personal loans for 8%, shop around

[getm_up]

if the car is over 10k it wont class as a personal loan, will be classed as a car loan.
if the car for example is $15,000 and is only worth $9,000 on redbook that will take bill of sale over the car as Marquee said.
head to redbook.com.au and do some research first because nearly 100% thats the first things bank/loan etc turn too, except car yards i think.
p.s never get finance from a caryard unless u have a microscope to read the dodgey small writing down the bottom :D THEY WILL SHAFT YOU!

try this http://www.ratecity.com.au/car-loans/low-interest i just typed in car loan comparison in google

goodluck

[dougie_504]

Terrible idea to take a loan for a liability like this (a car is NOT an asset, nor is the house you live in...). You'll be paying interest (increasing value) for something that will certainly depreciate (decreasing value).

Loans for assets, cash for liabilities.


Unwanted advice aside (sorry!) just ask around and go for the lowest interest rate for the period of time you think it will take you to pay it back. Don't get sucked in for a loan that has a low interest rate for one year but then goes much higher if you know you can't pay it off in one year etc.

[Indie]

It's completely right, though. It's never the correct thing to do to take out a loan on a liability. Save up a few grand for an EG, then save some more for your next car, rather than just throwing money away.

It's never wise to spend beyond your means.