WBP Financial Services WBP Financial Services
Newcastle, NSW Australia
Home News Services Tip of the Month
Don't combine loans and let the Financial Institution take security on only your motor vehicle.
Reason - when you go to trade your vehicle you won't get as much as your pay out figure - you will have what they call a minus equity.
This is then added to your next loan. Eventually you may end up with a loan twice the value of the security offered!
At some point you may decide to sell the vehicle which is now worth say $10,000. Your pay out figure to the financial institution could still be $15-20,000. Your financier may not extend additional credit to you without further security.
The end result could well be that after paying off a succession of loans for years, you are left with a signifigant debt rather then an asset you own.
Finance your Motor Vehicle as one loan, not a consolidation of other debts. A finance salesperson can make a consolidation sound very attractive, they are seldom there to help you pick up the pieces
Home News Services Tip of the Month