Do you have a car loan?

[Bathsheba]

I agree, and even (some) rich people realise that buying a brand new car off the floor is a complete waste of money and don't do it. New cars are for companies or the self-employed to buy.... who can claim the depreciation as a tax refund. Why the average salaried Joe Blo would buy a brand new car is beyond me... you could afford a year at uni with what you lose the moment you drive off the showroom floor!

[Astrid]

I agree, and even (some) rich people realise that buying a brand new car off the floor is a complete waste of money and don't do it. New cars are for companies or the self-employed to buy.... who can claim the depreciation as a tax refund. Why the average salaried Joe Blo would buy a brand new car is beyond me... you could afford a year at uni with what you lose the moment you drive off the showroom floor!

That really depends on the car. We had bought a new car once before (discounted as it has been ordered for someone else who never picked it up) and said that would be the one and only time. Well we were wrong. All we wanted was a small, fuel efficient car for DH (not an easy thing due to his width) and we were shocked at how expensive 2nd hand ones were. A near new car with 70,000k on the clock was only $500 cheaper than a brand new car. Not worth the saving at all, especially when the new car comes with a 5 + 5 warranty, so 10 years worth of warranty. So many people were changing over to small cars so the prices were being driven up by the new demand.

I think there is no hard and fast rule anymore with cars. Basically it is look at what your situation is financially and car wise, then see what the market is like for the car you need.

[Ahurani]

Well mine isnt a *new car* but I just got a 2001 Subaru WRX for $17 000. My interest rate is 12.5% or something. I pay $195 a fortnight and its a 5 year loan. I'm with RACV finance. You get a discount if you have policies with them etc

[Visitor7]

We have a $10k car loan which is 12% on our 08 Toyota Rav. I personally wouldn't pay more interest than that.

[Hosanna]

i go through phases of wanting a brand new car etc, but i come down to earth when I realise that it is money for nothing other than the enjoyment of driving a new car.

This was proven to me this week. We bought a car on ebay for $1000. It is only a 1998 ford falcon sedan, but it is in near perfect condition with low km's and heaps of extra features. (and it is a pretty metallic red with alloys and a cd player!! woot! i have never had a cd player in my cars!) All we have to do to get it roadworthy is get one new tyre!! Anyway, about 7 years ago we nearly took out a $20,000 loan to buy the exact same car, with very similar milage!!!!!! thank you god that we saw some sense and didn't!!

We have a fairly average mortgage i think, and we are still landscaping our yard etc because we built, so I am much happier just paying cash for a car that is just as reliable as a brand new one (as long as you keep it serviced etc), and then we are able to save our money and use it for holidays and improving our yard etc. To me a car is just a car really, as long as it is safe and gets you from a to b.

And I was more than happy to take the risk of buying a car before we had even seen it, because at the end of the day a $1000 wasn't a whole lot of money to risk, and it was a lot less riskier than taking out a large loan for a second hand car. you just have to know the right questions to ask etc. Plus, on ebay you have to really research what other cars are going for etc to know you are getting a good deal, and the bid smartly. (bid in the last 30 seconds, and bid the absolute maximum that you are willing to pay, so that it doesn't give other bidders who are bidding small increments at a time a chance to place another bid, and if you miss out, it doesn't matter because it has sold for more than what you think it is worth etc).

I work part time for myself, and I don't want my pay just going down the drain so I can drive a nice looking car i guess. But, if you are a die-hard car lover, then a loan is worth it I guess.

Did anyone watch second chance the other night with paul clitheroe? Paul worked out that the guy on it was paying over a $1000 a month to run his new vw beetle.

[Phteven]

I don't know how true it is but a few weeks ago I read on a bottle lid that 80% of millionares drive second hand cars.

[Glamourcide]

^ And that's why they're rich hahaha, they don't blow their money on cr@p like the rest of us do

[~Trish~]

Hi Catherine! Did you decide to go with the car loan?

I don't know how true it is but a few weeks ago I read on a bottle lid that 80% of millionares drive second hand cars.

LOL, my DH would agree! We (who are definitely not even close to being millionaires!) have always driven older cars that we could pay cash for. When we were house hunting I'd tell DH that no agent or fellow bidder would take us seriously when they saw us rocking up in one of our cars. He said, "No, they probably think we're REALLY loaded because we haven't spent our money on an expensive car" LOL!

Luckily we both get to drive brand new cars now because of DH's current job (they're company cars), it's such a novelty after driving old bombs