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
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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
We have a $10k car loan which is 12% on our 08 Toyota Rav. I personally wouldn't pay more interest than that.
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.
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.
^ And that's why they're rich hahaha, they don't blow their money on cr@p like the rest of us do :D
So true: My DH deals with High Net Worth clients and the richer they are the less likely they are to upgrade their car/s on a regular basis or buy brand new ones. Seems to be a common theme for them to buy a good quality second hand car like an old Merc and basically just look after it.... what a novel idea hey? In our throw-away low boredom threshold society that trend will probably only remain with the wealthy :rolleyes:
We are lucky we have two cars and own both of them outright.
One is a 2004 Ford XR6 Turbo the other is a 1999 Ford Tickford Enhanced car....both great cars and very happy that we dont have the worry of a loan.
We just bought a brand new toyota landcruiser 200 series $70000 and repay $295 per fortnight over 6 years with toyota finance. This is our first brand new car.
Hi Catherine! Did you decide to go with the car loan?
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 :D
this is just my personal experience but getting a car loan was the worst thing ive ever done financially.
ive always had 2 or 3 grand bombs (they still ran fine just looked like crappo) and i was making decent money so i thought bugga it ill get a new ish car
so in 2007 i got a 2005 ford xr6, cost me 24k. repayments were about 120 a week which was cool but stupid me didnt take into account the transfer fee (almost 2 grand), a high rego cost cause its considered performance car, and had to pay for comprehensive insurance (part of the deal with getting a car on finance, over here in WA anyway, is that u have to get comprehensive not just third party) and cause i was only 20 and had been done for drink driving the previous yr, and the type of car, it was almost 100 a week...
needless to say including fuel i was spending close to 300 a week just to have a nice looking car, 5 months after i bought it i was screwed, sold it back to the car yard i got it from for 17k (so it lost 7k in 5 months, even though im sure they woulda sold it again for around what i paid initially for it) and cause the interest was so high id only paid off 1k on the loan and lucky my dad had money and paid out the other 6k for me, which im still paying him back to this day.
after that i went and got another 3k car, almost 2 yrs later ive only had to service it which my mates can do for free and a new starter motor ($300) and its just as fun to drive!!!
so long story short, unless you have weighed up all the costs (obviously i ws stupid and didnt think about all those little things) and can definately afford it then id say dont get a car loan!!!