How the hell do you get a car loan when you are a single mother on the pension?
I have just started a small commission job, but dont have enough clients to say i am working yet, im trying to get there, and make some money. My car has just broken down again. I am sick to death of buying shit boxes because they cost more money than they are worth, and i can never save any god dam money because im always fixing the car. So how do people get the loan for a new car, without having a job? Does centerlink offer out big loans? I just want a car that is reliable, for me, my boy, and my job.
Edit: I am greatfull for advice i have been given, but i dont need advice on saving up to buy another second hand car, i know how to do that. I need advice on how other women in my situation got a loan for a new car that is more reliable. Thankyou.
8 Replies
Google NILs loans they are no interest loans for low income people. Might be able to help you
Work up in shit boxes. I went from a $500 Nissan (not working young mum) to a way over-priced $5000 Holden lemon (f/t shift worker mum) to a $20,000 Holden (f/t professional mum).
I don't know where you live but I've found around here there are some good buys on adequate cars (usually Commys but they do the job if you buy the right year) for around the $1500 - 2000 mark that are near if not already at RWC condition. Considering my loan repayments alone are over $5000, knowing what I know now I'll never borrow that kind of money for a car again. If a $1500 shit box only lasts me a year I've still saved 3 and a half grand.
Dont get a loan. Buy a 2000 car. Save up big you can have $5000 by xmas plus your car to sell. Then buy what you can afford.
I'm on single parenting payment and and when I applied through money 3 they approved me for $5000 at 150 repayments a fn over 2 years which gets direct debited so they were sure they'd get my payments
I too was in your position but this company has been great!!!! No troubles no balloon payments and got to choose whatever car I wanted to that value
I would definitely recommend them.
I got my first car loan while I was renting and on a single parent pension (not working at that stage). I had a $2,000 deposit and from memory borrowed c. $8,000. It was a Kia, only about 3 or 4 years old and low kms. Shop around for a car and discuss it with the salesperson. They helped me with the loan process (finance through Esanda). For me it was worth getting a loan, because I didn't want to get a cheap heap of shit that would cost more in repairs than I paid for it. I got a small, newish car with the plan that by the time I paid it off, I should get another 5-10 years out of it.
I've just gotten my second loan from the bank on the single Parents pension. First loan was for $5000 and I paid it bank it 2.5 years. This time it was for $6000 and I will have it paid back in about 2.5 years as well. I opted for a 3 year term both times and applied online and was approved within days no hassles at all. I guess it depends on how much you want to borrow and spend on a car
I agree with you on the basis of buying an old run down car costing more money than what you would end up paying for something new and feels like you are throwing money down the toilet, BUT You don't need to purchase a brand new car to stop those worries!
Remember cars are a depreciating asset - when you buy brand new as soon as you drive it, it loses a huge amount of value - you need to think of this aspect when getting finance (secured) as you won't be able to sell the car and pay the debt off if you ever need to in the future leaving you seriously stuck if something was to come up where you needed to get rid of it! (Been there before)
My suggestion would be to Save as much as you can so you have a decent deposit towards one and look at a small economical car that has low kms and good service history and you would be as good as gold - you MIGHT get some finance if you have a deposit and the finance would be secured over the car you have purchased!
Don't get into those loans for people with bad credit or specially for people with low income or Centrelink only income they are rip off merchants - they sell lemons that are way over priced at really high interest rates!
Good luck!
http://www.zoomcarloans.com.au/
Myself and two of my girlfriends used these guys and had no troubles at all :)