I am suggesting that you can spend 30 minutes today and effectively cause a chain reaction to save enough money to buy a new car. About now you are thinking what mad scheme does the LifeStyler have for me this week. Well if you don’t want a new car or the equivalent go read one of Trev’s articles about a Rubik’s cube.
Where I live, we have a cluster of petrol stations, and that means competition. The net result the cheapest one always has a queue literally down the road. People will sit there waiting their turn to save a few dollars.
As a society, we are attracted by specials or deals. Every week retail stores put out catalogues with specials hoping we will visit their store to buy something we maybe would not have or to save a few dollars. Think about the battle between Coles and Woolworths, they try to get you to do your weekly shop at one versus the other.
Now consider the biggest purchase of your life a house. You initially shop around to find a good deal. Maybe you just settled for someone who will lend you this extraordinarily large amount of money for 30 years, and you go live your fabulous new life.
If I told you 30minutes of research and a phone call would save you $50,000 would that be of interest? Especially since you would be taking $50K away from the banks and putting it in your pocket.
So what is this Vudu? Very simply its asking your bank for a better rate or you will leave. In Australia, there are more than 60 lenders, and if you assume, they all have at least 5 loan types that’s 300 choices. What is the chance you have the best deal – improbable.
A quick look on the internet today shows one online bank offering 2.49% on an owner-occupied loan. The online bank is owned by a Big bank but under a different brand. The big banks’ interest rate is 3.04%. That is more than half a percent saving from the same company.
If you can save 0.5% on a $500,000 loan over 30 years, that means you will save fifty thousand dollars over that same time!
Next time Uncle Trev does a $50K car review start thinking I can get myself one of those. Maybe you will just upgrade your TV or tech every few years. Alternatively, you could just let the bank keep your $50K as they are doing it tough.
What are you waiting for? Get on the phone today you will be surprised how much your bank wants to keep your business. Cheers!