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Rocket
23rd March 2004, 08:32
27% intrest rate on $3 grand total figure i have to pay back after 2 years is 4600 approx. lol thats over 50% i have to pay back on top. Might just get my visa taken up and use that to purchase since the interest rate is only 18.5% and pay it back in a few months rather then piss around with dodgy finance conmen. Are their any realistic finance companies out there, that are not out to ruin your life? 27% seems pretty dam nasty in my opinion.

p.s. please dont turn this thread into a flame war. I am after sensible advise.

aff-man
23rd March 2004, 08:42
are you a student ??? If so open a tertiary account with an interest free $1000 overdraft which would cut down any loan.

Rocket
23rd March 2004, 08:54
are you a student ??? If so open a tertiary account with an interest free $1000 overdraft which would cut down any loan.


Nope full time laptop tech :>

Oscar
23rd March 2004, 08:59
Bloody hell, that's rough...

Your problem is you're not borrowing enough to make any Finance Co, interested, so your visa card solution is probably the best.

However, if you don't like that - grab the yellow pages and start calling.
Try the smaller, less well known outfits - the biggies just ain't going to be interested in 3k - off the top of my head: www.wbf.co.nz or www.quickloan.co.nz

jrandom
23rd March 2004, 09:21
Remember to ask your bank manager about a personal loan (either secured over the bike or unsecured) most banks will do them at around 15% and they're not *too* harsh in their criteria.

FAI and the like are for desperate fools who've overextended themselves to the point where they can't even manage to finance things on a credit card at 18%. Avoid them like the plague if at all possible. Also note that FAI and their ilk do NOT allow early repayments, ie, if you have a wad of cash come in then you CAN'T put it on the loan to reduce interest costs, once you sign the facility docs you're immediately liable for all of the term interest even if you pay all the capital back the next day. Bank loans and credit cards don't have that restriction.

jrandom
23rd March 2004, 09:22
Ah, before I forget - another finance company I'm aware of is Finance Now. They're a subsidiary of the Southland Building Society and they will give you better rates than FAI on an unsecured loan. Worth giving them a call.

Oscar
23rd March 2004, 09:39
Try the local ones - down here it'd be the likes of Western Bay Finance or Waikato Finance.

Rocket
23rd March 2004, 09:43
Yes i think my best option is just to get my credit taken up on my visa and just get a cash advance i could clear the debt in a few months. Finance is a joke lol

piperj
23rd March 2004, 09:47
Whatever you do, don't go with that intreast rate. It is not worth it and it is a complete rip.
A personal loan from a bank would be the better option, if no other finance companies are interested in your custom.
It does depend on which bank you bank with and what your credit is like. It may be you are one of the desperate people mentioned in an earlier reply, if that is the case then you probably should think seriously whether you should get into this debt.
Talk to your bank, it is free, they are usually friendly, and can give great advise. They won't let you get into a situation that you can't handle, it is not in their intrest. But FAI don't give a toss about what this might do to your finances, they will get thier money back one way or another.

Slim
23rd March 2004, 09:50
TALK TO YOUR BANK FIRST!


The BNZ do unsecured loans up to $15,000 for about 12.75% interest (obviously being a current and/or long term customer gives you an advantage) so talk to your bank manager first!

And good luck. :)

Motu
23rd March 2004, 10:21
Kiwi Bank are doing a low interset card - 12.5% I think,as good as a loan.

Angry Puppy
23rd March 2004, 11:05
Yes i think my best option is just to get my credit taken up on my visa and just get a cash advance i could clear the debt in a few months. Finance is a joke lol

Rocket, I don't know what your transport situation is like at the mo, but if you can afford to pay the loan off in a few months, why not live without the new bike for a few months and save the money first? I know that sounds all very easy and sensible but at the end of the day, no interest is better than low interest.....

Rocket
23rd March 2004, 11:26
simply because i dont have the self control :)

Rocket
2nd April 2004, 11:54
just had a call from quick finance. they seem to be alot better with potential customers. 15% on 3 grand, better then fai which was 27%

Cajun
2nd April 2004, 12:12
I will be talking to the bank manager for fiance about my bike i mean he gave me money about 18 months ago for the 1100, and then was at tech not working, so now i'm in the real world as a system admin he will give me money for my 600

Devil
2nd April 2004, 12:30
I do enjoy having a mate who owns a finance company ;) mmmm 11% no deposit on anything.
:banana:

Cajun
2nd April 2004, 12:33
bank loads i get are no deposit as well and rate is only like 14% i think not a great deal.

but mate at fiance comany sounds really handy

Devil
2nd April 2004, 15:00
I just get "No problem, I know where you live." :devil2:

Cajun
2nd April 2004, 15:08
also knows i know you got a motorbike i can take as payment hahahha

wkid_one
2nd April 2004, 15:40
Just checking whether you are quoting the 'interest rate' or the 'finance rate'??

There is an important difference. With the finance rate, if you are borrowing a small amount of money - the application fee you pay can make the FR look well higher than the interest rate. The bigger the sum or longer the term borrower - the less impact any upfront fee has on finance rates.

Say $3000 with a $300 fee @ 15% interest means and effective finance rate of 21% over 36 months - however if you repay on exactly the same terms over 24 months - the finance rate blows out to 24%.

If you are being charged 27% as an interest rate....tell them to get fucked - you are being shafted plain and simple. Go elsewhere for your finance.

As Oscar mentioned tho, by only borrowing $3k - most larger finance companies like UDC/Marac/Speirs won't touch you as the minimum loan amount is normally $10k or thereabouts, and these are the more cost effective finance companies as they are backed by Bank funding. This means given you are typically going to self funded or debenture funded finance companies - their interest rates are higher. As these companies can only lend money they attract from investors and have no option to buy money from the wholesale market like larger financiers - they have to charge higher interest rates to recoup the money they are offering to the depositors - for which they need to offer higher rates of return in order to entice them to invest.

Try going to a bank like ASB and getting their 'low interest mastercard' - which is only about 13% (however - the fees are high also).

JR is also right - however MOST larger finance companies run their loans like mortgages - whereby you only pay the interest if it acrues and allows you to make lump sum. It is only typically the smaller financiers who charge you the interest up front. THe days of charging the interest rates upfront are number - with more and more finance companies operating their loans no different to your typical housing loan.

Just my thoughts (which will be disparged anyway)......

Devil
2nd April 2004, 16:03
Wkid One just prompted me for another finance tip. Always enquire if you can make capital repayments without incurring a charge. Most places wont, but some of the shady ones can and do.

Devil
2nd April 2004, 16:04
also knows i know you got a motorbike i can take as payment hahahha
Absolutely. This is what normally happens when you get finance on a vehicle anyway. The security of the loan usually *IS* the vehicle you are buying.

Cajun
2nd April 2004, 16:11
Absolutely. This is what normally happens when you get finance on a vehicle anyway. The security of the loan usually *IS* the vehicle you are buying.

Yeah i know, but thats all good


Wkid One just prompted me for another finance tip. Always enquire if you can make capital repayments without incurring a charge. Most places wont, but some of the shady ones can and do.

Well the last thing i brought on fiance was about 4 years ago and that was a farmers frezzer which i took over 1 year and paid off in 2 months, other wise i deal with the bank, its good knowning the bank manager, i just tell him i want money, buy what i want then worry about signing the papers.