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Guest michelledenham

When can we apply for a loan or finance?

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Guest michelledenham

Hi,

 

We have PR visa and hubby has a job and contract. We need to buy/get a car as soon as we get there..... But we also need to start our credit rating. Which would be our best option?

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Toyota Finance wanted three months wage slips before they would approve finance and a minimum 10% deposit. They made it fairly easy and we got the car we really wanted. I think if you are putting more money down, then they may be more negotiable on the number of wage slips required.

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John Hughes in Victoria Park will be able to help you straight away - they have their own finance companies - but check the interest rates before you sign anything! I'm on a 457 and was able to get a car through them immediately. I needed one pay slip, bank statements and proof of ID. If you have have some kind of work contract then I don't think you'll have any problems.

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Although we had the money for a car we waited nearly 2 years and saved as much as we can and paid cash. It was a hassle not having a car for so long but for the first time in my adult life I do not owe any money to anyone and if something awful happened like losing my job, at least I can sleep comfortably not owing money.

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Although we had the money for a car we waited nearly 2 years and saved as much as we can and paid cash. It was a hassle not having a car for so long but for the first time in my adult life I do not owe any money to anyone and if something awful happened like losing my job, at least I can sleep comfortably not owing money.

 

I'm guessing the public transport is better in Melbourne than it is in Perth! I never had a car in Adelaide and walked everywhere but in Perth the transport links are definitely not the best and unless you want to spend a good amount of time commuting every day, a car really is a necessity. Getting to the beach without a car here is nigh on impossible!

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I'm with Boganbear, immediatlely seeking out new debt on arrival in Aus doesn't sound like much fun....

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I'm guessing the public transport is better in Melbourne than it is in Perth! I never had a car in Adelaide and walked everywhere but in Perth the transport links are definitely not the best and unless you want to spend a good amount of time commuting every day, a car really is a necessity. Getting to the beach without a car here is nigh on impossible!

 

Have to say I get around by bus and train (from Winthrop so fairly central in grand scheme of things) as do both my older daughters and can't fault it. Took a while to get our heads round it but we've done beach trips, city trips and LOTS of park trips as well as work commutes so it is more than possible should you choose to rely on public transport!

 

However having a car obviously opens up lots more of Perth and WA... we bought outright through checking out the backpackers notice boards and making cheeky offers to those who were leaving soon.... we got a great little camper and some equipment that way and are now looking to sell her on and make a profit! :wink:


 

Angie.... a work in progress!

 

 

 

 

 

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Guest RazorSharp
I'm with Boganbear, immediatlely seeking out new debt on arrival in Aus doesn't sound like much fun....

 

May not be fun but is the reality for lots of people who aren't selling their UK homes and have families and need bigger cars that are quite dear here. Consider yourself lucky if you didn't need finance.

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Consider yourself lucky if you didn't need finance.

 

Ummmmmm again we had no house to sell and only came here with the bare minimum and a large family!

I'm sorry but I feel its "The Need" for finance that is what got the UK into the pickle its in at the moment!!!!


 

Angie.... a work in progress!

 

 

 

 

 

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Perhaps we should go back to the OPs original question - its unfair to make comments on whether finance is necessary or not and purely down to one's own judgement. What's right for some isn't right for others.

If you've managed to get by without finance then that's great but for some, it is required.

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Perhaps we should go back to the OPs original question - its unfair to make comments on whether finance is necessary or not and purely down to one's own judgement. What's right for some isn't right for others.

If you've managed to get by without finance then that's great but for some, it is required.

 

Well said. I am glad we financed our car. It also helped us build a credit rating which will be beneficial down the line. I cannot imagine living where we are with young kids and having to rely on public transport.

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I am glad we financed our car. It also helped us build a credit rating which will be beneficial down the line.

 

But the Australian Credit system doesn't work that way (the way it does in the UK), so you aren't 'building a credit rating' at all - the Australian system is far more sensible (imho) than the UK and doesn't 'reward' people for getting into debt like here.


Moved on a 179 PR visa Feb 2012; Citizenship granted Jan 2016. Settled in Adelaide. Loving it and feel like everyday is paradise compared to life in the UK.

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Ummmmmm again we had no house to sell and only came here with the bare minimum and a large family!

I'm sorry but I feel its "The Need" for finance that is what got the UK into the pickle its in at the moment!!!!

 

 

I totally agree with this we have enough for a campervan which is going to be our home until we find somewhere we like and we've got each other, the UK's personal debt runs into trillions and I may even have a small wager it will go bankrupt this time next year- the quality of life we seek in Oz is not about having a show home owning and a planet damaging 4 x4, the show "Wanted Down Under" really makes me cringe when people obsess about their material gain and neglect to even thing about the cultural benefits of a life down under.

 

Forbes:biggrin:

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May not be fun but is the reality for lots of people who aren't selling their UK homes and have families and need bigger cars that are quite dear here. Consider yourself lucky if you didn't need finance.

 

I have two kids, didn't sell my UK home and spent all of $850 on a 20 year old Ford Falcon when we arrived in May.

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Well we seem to have a lot of people who feel the need to preach to others. I personally wouldn't feel safe in a car that old plus we have more kids than two. To each their own. And what we were told about the credit rating came straight from our bank and not the people who gave us finance. I will chose to believe them.

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And what we were told about the credit rating came straight from our bank and not the people who gave us finance. I will chose to believe them.

 

And long may your ignorance of facts continue....

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Maybe it is ignorance but why does it matter to you. Please educate me then how you do build a credit rating? Why do lenders want to know about your repayment history if it doesn't matter?

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To the OP, the best thing you can do is find out what kind of car you want and speak to the business manager about the finance options. I found them really good to work with. Regardless of what others think I am glad we took out finance to buy the car that really worked for our family and is covered by a warranty. We can easily afford the repayments and I like the peace of mind of knowing we have a new car. The business managers are pretty good at dealing with expats.

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Maybe it is ignorance but why does it matter to you. Please educate me then how you do build a credit rating? Why do lenders want to know about your repayment history if it doesn't matter?

 

In Australia, you don't build a credit rating. You start with a clean sheet - to which black marks are added when you miss or make late payments. Is simple really. :biggrin:

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In Australia, you don't build a credit rating. You start with a clean sheet - to which black marks are added when you miss or make late payments. Is simple really. :biggrin:

 

Yes but you still need some kind of presence and history, be it bank accounts, mobile phones, whatever, before further credit will be granted. Credit checks are recorded and these help prove your identity to potential lenders. This applies even for utilities and in some cases, rentals.

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Yes but you still need some kind of presence and history, be it bank accounts, mobile phones, whatever, before further credit will be granted. Credit checks are recorded and these help prove your identity to potential lenders. This applies even for utilities and in some cases, rentals.

 

Even so, still an odd reason to want to take out a loan...

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You've missed my point. I was merely clarifying how the credit system works in Australia. Even though you do indeed start with a clean slate, in order to obtain credit, you need some kind of financial footprint.

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to OP, whether or not you get a loan is your business. I believe it helps if you're 'on the system' as it were. So grab a credit card, spend some money on it each month and be sure to pay if off each month. The bank will soon be increasing your credit limit and hence more likely to be favorable with a loan. Also, grab a mobile phone, even pay as you go, you'll be on the system.


READ FIRST: please note that my posts are my own personal opinions based on my experiences. These are MY OPINIONS pure and simple, NOT a statement of fact.

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Even though you do indeed start with a clean slate, in order to obtain credit, you need some kind of financial footprint.

 

This was not my experience, I have a rental, Amex and a mobile phone contract - none required me to jump through additional hoops.

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If you acquired all these without a credit check, I'd be extremely surprised. Depending on the credit limits involved, they may only have been looking for negative events. Mobile phone contracts and credit cards almost always require a credit check. You wouldn't have been required to do anything, it would have happened as part of the application process. For each, a check would have been recorded on your file.

 

Going back to the original subject, rikyu makes a good point.

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