Posted by: CAR | 2005/07/13


I am woman 20 and just started working this year Febr. I am working away from home so I stay alone. I want to buy a new car and will need a loan say from the bank. I have the list of cars that I am interested on but how do you find out about how much can the bank loan me. What are the steps to follow in buying a car.

I know it is not a right site for this question but I need Help

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Posted by: CAR | 2005/07/13

Thank you all very much. I will contact my bank tomorrow.

Thanx again for the info.

Reply to CAR
Posted by: Joanne E | 2005/07/13

oh yeah, I forgot, we just bought a car - but my dh is a mechanic and he knew the car, it was one of his previous customers that had come in for tyres and things.

Not sure if you are a girl or a guy but if the former, take a guy with you - the sharks tend to see ladies as a soft target

Reply to Joanne E
Posted by: Purple | 2005/07/13

I have just bought a new car.

Go to your bank and take your payslip with you. They will tell you how much they will loan you and at what interest rate.
If you aren't trading in a car, you will need to give at least a 10% deposit.

Then go to the various dealerships and test drive the cars you are interested in. Ask them all the questions you have about the car. Decide which is the best value for money.

Then go back to the bank. Avoid going through the dealerships finance as you will get a higher interest rate unless you are really a good negotiator. The bank consultant will guide you through the rest of the process from there.

Avoid a residual totally if you can. It leaves you with a huge payment at the end unless you change cars very often. Also, what happens in the case of an accident during the term that you have the car. Ask the bank consultant all about it and they will advise you on whats best for your situation.

The amount they lend you and the interst rate you get will depend on your salary, your credit history and how stable the company you work for is, as well as how long you have been there.

The whole process takes between 4 days and two weeks, sometimes longer if there is a waiting list for the car you want.

Reply to Purple
Posted by: Liza | 2005/07/13

It all depends on what you can afford. Can you afford a good second-hand car that is less than 5 years old? If you can, a reputable car dealership like Mccarthy is a great place to look. They do everything you need. All you do is choose the car you want, and they will do the rest. If you can only afford a car that is older, you won't get a bank loan for it. You might be able to get a personal loan at the bank and use that to pay for the car, but you won't get financing for the car itself.

Another thing. Since its your first car - and you've only been working for a short time, they will require you to put down a big deposit - usually around 20% for first time buyers. Your insurance is also going to cost a fortune because you're not 25 yet.

Good luck.

Reply to Liza
Posted by: Elsie | 2005/07/13

Best you contact your bank and they will advise you honestly as car dealers tend to take advantage of customers and want deals that can only benefit them. Good Luck.

Reply to Elsie
Posted by: Joanne | 2005/07/13

bank can also assist you find a car

Reply to Joanne
Posted by: Paul | 2005/07/13

The dealer will assist you with this, be carefull of high residuals!

Reply to Paul

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