March 1999 Volume 80 Number 3 "serving the protectors"
Finance

POLICE CREDIT UNION

Car Buying

For many people, buying a car has the same appeal as a visit to the dentist. It can be a confusing, difficult and time-consuming exercise.

Prior to looking for your new vehicle, there are certain parameters you need to set to make the task easier:

• How much you want to spend? Does this figure place you in the new or used car market?
• Consider the costs of insuring your new vehicle, on-road costs and general running expenses.
• Consider the size of your family. How many seats do you need?
• What will the vehicle be used for? For example, a small vehicle offers relatively cheap motoring for inner city driving, but would not be practical for a large family contemplating a motoring holiday towing a caravan.

If you need to obtain finance to assist with the purchase of the car, it is often best to do so prior to looking. Pre-approved finance gives you more flexibility to shop around, either privately or through car yards, and cash is a great bargaining tool.

Personal loans for vehicle finance are available in either fixed or variable rates. In today's financial climate, many borrowers are opting for the security of fixed-rate loans. By choosing a fixed-rate for your loan, your repayment is guaranteed not to increase during the life of the loan. It is always best to look around to see which financial institution offers the best loan package. For example, the interest rate may be affected by the age of the vehicle. In general, five years is the maximum term for a car loan, as a car depreciates, or devalues, by 18% per annum.

Finally, there are a few handy hints to make the final purchase hassle-free. If you are purchasing through a car yard, make sure you fully understand the terms and conditions of the warranty. Do not be pressured into signing a sales contract until you are fully satisfied. Do not be trapped into paying extra for accessories you do not require. And don't forget that the first car you see may not be the best one for you. Shop around and compare prices and features.

If you are purchasing privately, remember there is no warranty to back up your purchase. It may be best to consider having the vehicle fully inspected by a reputable mechanic. Also, it is imperative that you do a check through the Vehicles Securities Register to determine whether or not the vehicle is encumbered, that is to say under finance.

Purchasing a vehicle is never easy, but by setting clear guidelines prior to looking, and by obtaining the right type of finance, the difficulties should be minimised.

We at the Police Credit Union are currently offering a personal loan rate of 9.25% p.a. fixed for up to five years (minimum loan amount - $5000, suitable motor vehicle required as security).

If you would like to enquire about a personal loan call the Police Credit Union on 131844 or 8208 5750 (direct to loans).

Rate of 9.25% p.a. applicable as at 15 December 1998. New Loans only. Fees & Charges Apply. Full details of the relevant Terms & Conditions are available upon application. Loan is subject to normal lending criteria.

POLICE SUPER UPDATE
By Michael Hogg

Police Superannuation Office

The Police Superannuation Board’s role is to administer the Police Pension, Lump Sum and Occupational superannuation schemes and to ensure that members are provided with quality superannuation services. The Police Superannuation Office is responsible to the Board for the management and administration of the day-to-day operations of the above schemes.

Serving and retired members seeking information regarding their membership, entitlements, etc are invited to contact our office. Information is available by telephone, personal interview by appointment or in writing. Group information sessions can also be arranged upon request.

Office Staff:
Michael Hogg Superannuation Administrator/Board Secretary
Chris Farmer Superannuation Clerk
Peta CzechTemporary Assistant Superannuation Clerk

The Police Superannuation Office is located on the ground floor, 30 Flinders Street, Adelaide. Telephone (08) 8204 2964, (08) 8204 2965. Fax (08) 8204 2303.

Indexation of Pensions

Under the Police Superannuation Act police pensions are adjusted in October each year to reflect the percentage variation in the Consumer Price Index (CPI) for Adelaide measured at the end of each June quarter.

In October 1997 the percentage variation in CPI from 1 July 1996 to 30 June 1997 was negative 0.08 per cent. As the negative movement in CPI would reduce pensions the Government decided that pension payments would not be reduced. The Police Superannuation Act was amended in line with the Government’s decision, and pensions were maintained at their existing level from October 1997.

Under the amended legislation pensions were adjusted - in October 1998 - to reflect the percentage variation in the CPI for the two-year period 1 July 1996 to 30 June 1998, which was positive 0.33 per cent (positive 0.44 per cent under CPI plus 1/3).

As a result of the amendments undertaken by the Government, the Police Superannuation Act now provides a mechanism for pensions to be maintained in the event of a negative movement in the CPI in the future.