Car finance

[grantwhit]

We are looking at selling our car and upgrading. I'm after some advice on financing. Here are the details:

$20k cash in bank

$20k purchase price
$10k current value of car

I want to buy the new car then sell the old car. I'm looking to finance the new car for $10k then pay it out with the proceeds of the old car. The fees alone for doing this look between $1-2k (application fee, early payment fee etc) which I think is absurd.

Any tips on how you would typically arrange this bridging finance?

I was thinking of paying the $10k cash then the remaining $10k put on the credit card until I sell the old car. If the interest free period starts to loom close I then balance transfer to another card to buy a bit more time.
Is that logical and will it work? I don't know enough about cc's to be completely informed.

Cheers

 

[Brady]

Few quick options I can think of with CBA.

Unsecured personal loan rate is ~15% establishment fee $150 monthly fee $10. Rate could be cheaper if you're on a wealth package (Home Loan) and monthly fee is waived. Could be paid out no costs as variable.

Other option is CBA have 0% credit card on purchases for 10months, annual fees vary can be $0 on wealth package or existing customers.

Could you not just use the $20k in the bank to buy the $20k car, then put the $10k in bank after you sell existing car?


Best of luck

 

[grantwhit]

Thanks I am with CBA wealth package so I'll have a look further into it.

Yea I could but then I'm left with zero cash in the bank for a period of time which I am not comfortable with.

Cheers!

 

[Brady]

Then personal loan $0 set fee interest rate would be 13-16% have that for few months pay it out no cost.

Or new credit card 0% on purchases for 10 months, would ensure that where you are getting the car from accepts credit cards.

 

[BayView]

I wouldn't be bothered selling a car worth $10k privately.

By the time you put up with 2,000 tyre-kickers and broke bogans (unless it is a European car - bogans won't come near you if that's the case) trying to low-ball you into oblivion, all the roadworthy mucking around and no doubt list of repairs you will need to make to satisfy that - a total pain in the arze, IMO.

Or sell it cheap without a roadworthy - the whole exercise is not worth your time and money - you'll only end up getting approx the trade-in value anyway..

If it is for business, you may want to consider trade it in, finance the whole amount and they will give you cash back for the trade-in.

 

[MickStephens]

I sell cars for a living and finance is a huge part of our business.

Just out of curiosity, who has informed you your car is "Valued" at $10,000?

If you are relying on Redbook or Advertised pricing online your vehicle will be worth a lot less than expected.

Send me a PM with your vehicles details and I will give a true "Trade in" appraisal if you like

 

[grantwhit]

2011 Mitsubishi Lancer
75,000km
Full service history
11 months rego
Always garaged, never given us any grief

Don't know if you need more details than that?

Basing my appraisal on carsales.com.au valuation service + similar listings (most prv are between 11-13k

What are your thoughts Mick?

 

[Miggy]

I have always sold my cars in under a week with no tyre kickers.

What I do is have a very detailed and honest add listing any defects, even the slightest ones with many photos. But most importantly have a honest firm price, in bold capital letters "NO OFFERS OR TRADES".

I would think $10 500 would sell the lancer easily.

 

[TMNT]

any reason why you are getting a loan for a $20k car when you have $20k in the bank,

a car is a depreciating asset/liability,

unless circumstances apply, its not wise to get finance on a depreciating asset/liability

 

[Spades]

I wouldn't even bother upgrading TMNT.

Anyhow if grantwhit was to snell,i'm with miggy,i've had no problem selling privately.

Crazy if you trade it in imo.

Cheers Spades.

 

[grantwhit]

The loan is really on bridging finance. I'm not comfortable parting with $20k and having no cash while waiting for the car to sell. I'd much prefer to pay half in cash, finance the rest, sell the car, pay the finance out.
I think cc is probably the easiest way to go.

 

[Spades]

grantwhit,why do you need to upgrade?

 

[TMNT]

The loan is really on bridging finance. I'm not comfortable parting with $20k and having no cash while waiting for the car to sell. I'd much prefer to pay half in cash, finance the rest, sell the car, pay the finance out.
I think cc is probably the easiest way to go.

dont take offense, but getting a loan, paying fees, credit mark, credit enquiry, just to tick over the period of having no cash while you sell your car is insane!!!

 

[grantwhit]

Spades - expanding family and lancer is too small. Wife will not settle for a lower quality car...happy wife happy life

Yea good point TMNT. Re-evaluating I think I'll drop $15k cash in, cc the other $5k then sort the rest out after the car is sold. I don't think that will be too much stuffing around.

 

[MickStephens]

2011 Mitsubishi Lancer
75,000km
Full service history
11 months rego
Always garaged, never given us any grief

Don't know if you need more details than that?

Basing my appraisal on carsales.com.au valuation service + similar listings (most prv are between 11-13k

What are your thoughts Mick?

Based on an ES MY11 Auto, id say $7,000-$8,000 as a trade in. $1,500 - $2,000 less if manual...

 

[grantwhit]

Based on an ES MY11 Auto, id say $7,000-$8,000 as a trade in. $1,500 - $2,000 less if manual...

Exactly what we were told (ours is next model up - SX I think)

I am confident we can get another couple of grand selling privately. Thanks for your response