These finance companies are thieves

[Supercharged]

The Nitro Turbo ute is being replaced with a FPV GS ute and there are 2 payments to go on the turbo of $971.00 ea.
They intended to apply a penalty of an additional $800.00 for early termination of the contract plus the outstanding amount.
I hit the roof and finance broker is going back to them to re-negotiate the penalty and I am waiting the outcome.
If they still demand the penalty I intend to simply advance pay the last two payments in advance which would complete the contract and no penalty would be payable in my view anyway.
What a rip off, 2 months short on a 3 year contract and they want to apply a penalty.

[mcnews]

The penalty is probably to cover the money they paid your broker at the beginning of the contract. Stinks for sure.

[Scott]

Does stink. Is the new finance going through the same crowd?

[Smoke Pursuit]

Which bank??

Seems very unreasonable to me.

[GT]

Originally Posted by Supercharged

The Nitro Turbo ute is being replaced with a FPV GS ute and there are 2 payments to go on the turbo of $971.00 ea.
They intended to apply a penalty of an additional $800.00 for early termination of the contract plus the outstanding amount.
I hit the roof and finance broker is going back to them to re-negotiate the penalty and I am waiting the outcome.
If they still demand the penalty I intend to simply advance pay the last two payments in advance which would complete the contract and no penalty would be payable in my view anyway.
What a rip off, 2 months short on a 3 year contract and they want to apply a penalty.

You would have agreed to this in your contract so this is why you must always read it thoroughly.
I am assuming that you have a new Finance Company not the same one? If the same company, surely they will wipe this fee.
I am also assuming you need to trade the old vehicle and if that is so, you must have a clear title for the Ute to be sold on, ie needs to be paid out when the new contract is 'settled'. No way around this unless you are keeping it.

You have no leverage unless the Finance Company is the same - if it is, just threaten to get a loan somewhere else.

GT

[GT]

Originally Posted by mcnews

The penalty is probably to cover the money they paid your broker at the beginning of the contract. Stinks for sure.

A broker has the fee added to the contract and they get commission on the Interest paid. The claw back would be nothing with only 2 months to go.

GT

[TZENU]

Sounds like ANZ!!!

I recently remortgaged with them and had a personal loan with 3 months left.. I asked about paying out the contract without incurring a penalty and they wouldn't have a bar of it, even though I was refinancing through them!!!! I suppose that's what you get when dealing with one of the big 4... (Not surprising seeing as the majority shareholder of all 4 are the same)

[Supercharged]

Originally Posted by mcnews

The penalty is probably to cover the money they paid your broker at the beginning of the contract. Stinks for sure.

It is with Capital Finance, broker fee on all finance but it the whole payments part, what is owed is 2 x $971.00 = $1942.00 and that is it. Am going with the same crowd but not if they don't wipe that extra fee.

[GT]

Originally Posted by TZENU

Sounds like ANZ!!!

I recently remortgaged with them and had a personal loan with 3 months left.. I asked about paying out the contract without incurring a penalty and they wouldn't have a bar of it, even though I was refinancing through them!!!! I suppose that's what you get when dealing with one of the big 4... (Not surprising seeing as the majority shareholder of all 4 are the same)

Unfortunately, you need to vote with your feet and swap Banks to gain any leverage. Most of us find it too daunting but there are some real upsides. If you had mentioned this idea earlier and shopped around they probably would have come to the party. They are all the same (ruthless) so you need to play them off against each other.

GT

[GT]

Originally Posted by Supercharged

It is with Capital Finance, broker fee on all finance but it the whole payments part, what is owed is 2 x $971.00 = $1942.00 and that is it. Am going with the same crowd but not if they don't wipe that extra fee.

Tell them clearly that if they don't wipe the fee, you will go elsewhere. I am stunned they haven't suggested it anyway - I always wiped fees and was able to do so if they were refinancing.

I've had dealings with Capital in my old job and they are pretty hungry to retain a good client base so just be very firm and be prepared to vote with your feet. I've always found Esanda (yes I know it is ANZ but they seem to have their act together!) one of the best to deal with.

GT

[Supercharged]

Originally Posted by GT

Tell them clearly that if they don't wipe the fee, you will go elsewhere. I am stunned they haven't suggested it anyway - I always wiped fees and was able to do so if they were refinancing.

I've had dealings with Capital in my old job and they are pretty hungry to retain a good client base so just be very firm and be prepared to vote with your feet. I've always found Esanda (yes I know it is ANZ but they seem to have their act together!) one of the best to deal with.

GT

They have just called and have wiped the fee but leaves me wondering what would have happened it I didn't object. The fee was very noticable with such a small amount still to pay.

[Rodge]

I heard recently well over 80% of vehicles are sold on some form of credit.

What has happenned to the lost art of saving up for things ?

[Smoke Pursuit]

Originally Posted by Rodge

I heard recently well over 80% of vehicles are sold on some form of credit.

What has happenned to the lost art of saving up for things ?

The other 20% are people who probably use equity in their homes lol...

[Professor Farnsworth]

Originally Posted by DASH GT

The other 20% are people who probably use equity in their homes lol...

i'm guessing that might fall into their terminology of credit, since it's credit against your house..

yeah i used to get new cars on loans but can't be bothered with that any more. I just save up and buy 10 year old clunkers for 5 grand, use them up, then do it again. Works out heaps cheaper.

[Rodge]

^^ Not as much fun though.

[Supercharged]

Originally Posted by Rodge

I heard recently well over 80% of vehicles are sold on some form of credit.

What has happenned to the lost art of saving up for things ?

It is called the tax office as these are my business vehicles. If you purchase the vehicle outright you pay tax on the vehicle value as it is considered as stock, if you finance it isn't.

[Professor Farnsworth]

Originally Posted by Rodge

^^ Not as much fun though.

maybe so, but i have more fun in other aspects by not having any loan repayments, makes it a lot easier to go on trips, buy whatever we need etc

[GT0132]

Originally Posted by GT

I've had dealings with Capital in my old job and they are pretty hungry to retain a good client base so just be very firm and be prepared to vote with your feet. I've always found Esanda (yes I know it is ANZ but they seem to have their act together!) one of the best to deal with.

GT

I'm sorry I have to differ there....The laws of libel and slander don't allow me to elaborate on how I'd describe the business practices of Capital Finance.

We were a client if theirs in a multi million dollar property refurbishment transaction as well as the lessee in several plant and equipment transactions . We no longer use them after a prolonged dispute that cost us hundreds of thousands.

Agree about Esanda though - very professional

[GT0132]

Originally Posted by Supercharged

It is called the tax office as these are my business vehicles. If you purchase the vehicle outright you pay tax on the vehicle value as it is considered as stock, if you finance it isn't.

It depends what your business is...If you trade in motor vehicles I can see why they would do that, but in general the ATO don't give a rats on whether you finance your capital expenditure or buy it outright. The depreciation claims are no different provided, of course, the vehicle is used for business purposes.

[Professor Farnsworth]

Originally Posted by GT0132

I'm sorry I have to differ there....The laws of libel and slander don't allow me to elaborate on how I'd describe the business practices of Capital Finance.

We were a client if theirs in a multi million dollar property refurbishment transaction as well as the lessee in several plant and equipment transactions . We no longer use them after a prolonged dispute that cost us hundreds of thousands.

Agree about Esanda though - very professional

it's only libel/slander if it's not true

[GT0132]

Originally Posted by Professor Farnsworth

it's only libel/slander if it's not true

my friend 99% of defamation cases are fought because the agrieved party thought that what was said was not true.

[Professor Farnsworth]

Originally Posted by GT0132

my friend 99% of defamation cases are fought because the agrieved party thought that what was said was not true.

so it's up to the defendant to prove it is! i take your point though

[FTe342]

Macquarie is very competive for both consumer & business use vehicle finance. Most brokers would access to them

[Supercharged]

Originally Posted by GT0132

It depends what your business is...If you trade in motor vehicles I can see why they would do that, but in general the ATO don't give a rats on whether you finance your capital expenditure or buy it outright. The depreciation claims are no different provided, of course, the vehicle is used for business purposes.

Goes like this, if you write a cheque out for the outright purchase of a vehicle the tax office considers those funds to be profit and tax is payable, how you choose to spend it is up to you, you can depreciation and as it depreciates some of your tax paid is returned.
Finance the vehicle and you don’t own it but can claim depreciation with only some of the re-payments are spent profit.

[GT0132]

Originally Posted by Supercharged

Goes like this, if you write a cheque out for the outright purchase of a vehicle the tax office considers those funds to be profit and tax is payable, how you choose to spend it is up to you, you can depreciation and as it depreciates some of your tax paid is returned.
Finance the vehicle and you don’t own it but can claim depreciation with only some of the re-payments are spent profit.

Sorry still don't get it (maybe a question for dash GT)

You pay tax on your taxable income calculated as your business assessable income less deductible expenses (including depreciation on plant and equipment including motor vehicles). This does not change whether you use the businesses cash, or you obtain bank finance to buy the work vehicle.

While the amount of tax you pay does not change, the cash you have available for other purposes does change given that you have used your own funds and not borrowed.

[Supercharged]

Originally Posted by GT0132

Sorry still don't get it (maybe a question for dash GT)

You pay tax on your taxable income calculated as your business assessable income less deductible expenses (including depreciation on plant and equipment including motor vehicles). This does not change whether you use the businesses cash, or you obtain bank finance to buy the work vehicle.

While the amount of tax you pay does not change, the cash you have available for other purposes does change given that you have used your own funds and not borrowed.

My accountant tells me different. Made that mistake with the BA as I purchased it outright and traded it in after 4 months for cash payout on accountants advise.

[GazzF6]

I have found ST. George to be very good!

[vztrt]

Have used RACV and they were good ($350 fee to pay out early or more money in a payment) also gave me a discount on car insurance (which was also very competitive).

BMW was average (went through the dealer) they had no exit fee but their interest rate wasn't that great if I had have shopped around I could have save a percent or two.

Missus is using savings and loans, very good company, low rate and no exit fee.

[302 XC]

Something i dont get
You have 2 payments outstanding
Now wether you would pay them now and cop the fee
Or forward advance the payments
It would still be classed as paid out before the loan term
So either way the fee would still be payable

Most lending institues have a fee IF paid out within a certain term
Read your home loan cotract
Some banks charge like a 20K fee if paid out within the first 12 months
This fee reduces a bit each year

[hawke]

Supercharged,

You may need a new accountant, or there was some miscommunication.

Purchasing a business vehicle for cash allows you to take depreciation of the asset as a cost. If financed, interest or lease payment are a cost. Both are limited by value of vehicle and or private use and your GST ITC entitlement.