Do you have a car loan or own outright?

[Mumtastic]

I've never had a car loan, and this is just because (and I know I'm in the minority) I can't justify a loan on something that is losing value and really, a cheap car always does the same job.

I LOVE my car. I have never loved a car before, but I now have a Toyota Regius (8 seater) - it's like a Hiace but has seating etc. Just so good, so reliable, every mechanic who has looked in it says it will last forever (was imported from Japan). Room for 8 people (incl 3 carseats) PLUS my gigantor pram for 3 kids and a full load f shopping. And uses less petrol than my previous car (a commodore, admittedly).

[Enchanted]

We have currently have a Ford wagon and DH has an ugly 1990 Landcruiser ute which we paid cash for both.

We have had quite a few cars between us and all have been paid outright for except a brand spanking new 2005 Holden Astra which I bought with a 22k loan over 5 years. We sold it about 1 year later as we were getting married and fell pg.

[OceanPrincess]

I'm curious... this is to those who say they would never get a loan and the thought of owing money scares you, is a mortgage excluded from that statement?

DH owns his car outright, paid cash. We got our current family car through a loan. DH is about to upgrade his car and will run a chattel (sp?) mortgage, which means that the business pays for it. Much better deal financially, according to our accountant.

[Mumtastic]

I think a house mortgage is very different. It's an asset that is (usually) increasing in value, and will put you in a *better* position financially.

If you can't afford a $40K car outright, a $7 K car will do the same job for you. It's just not the same deal at all with houses.

If your debt on your car has a tax advantage for you (or your business) then that's different.

[Ginger]

we own both our cars. bought mine with cash- it is a 2002 commodore. this was the most we could afford at the time.

OP- in answer to your question about mortgages. i can't speak for everyone else who has mentioned it in this thread but i can give my personal opinion- i don't think that a mortgage is the same as a personal loan as a mortgage is paying off an asset. the house is also appreciating in value and paying a mortgage saves us from having to pay rent, as we have to live somewhere. we would prefer to have no mortgage at all, of course, but i would much rather be paying a mortgage off on an asset than paying out money on a personal loan on a liability(car) itms?

[BeautifulMadness]

isnt a car anasset in some sense aswell?

Not all cars decrease in value..

[Mumtastic]

I think you're almost always better off putting the money elsewhere (IMO).

[Ginger]

which cars don't decrease in value?

[Floweryfields]

isnt a car anasset in some sense aswell?

Not all cars decrease in value..

No, not really, a car costs you money and I don't know of anything (other than maybe collectors type cars) that appreciate in value. A car won't get you much value as an asset - I know a couple who wanted to loan (wait for it) $60000 to buy some top of the line commodore or something, even though they were earning pretty good money, bank said no. Had that been a loan for a home, no worries.

[briggsy's girl]

i'd love to be in a position where a car wasn't a necessity - but out here, PT isn't an option for most things - if you don't have a car, you have to rely on taxis. and they are a damn site more expensive long term! for some people, buying a car outright isn't an option. the car we're about to sell was bought outright only because my brother owed us money and i called him to help. we were in the middle of selling our house to move, had zero spare cash, DH had just lost his job, and the car we had was totally unsafe for anyone to use. so yes, we got that one outright, but if the only way to get a car that is safe is to take out a loan, i don't see a problem with it. i'd rather get a $5000 car on a loan than a $500 one that is roadworthy only because someone knows someone that will overlook those things that will make it unroadworthy if it's driven again...

[Jellyfish]

I'm curious... this is to those who say they would never get a loan and the thought of owing money scares you, is a mortgage excluded from that statement?

I wasn't one who said I would never take out a loan (except for that I doubt I would for a car as for me, personally, I don't see it as something that is required or neccesary) but did say I never had done so and the thought of owing money scares me and yes, a mortgage is included in that sentiment; possibly even more so due to the large scale. Loans are a big responsibility and I don't think a little aprehension is unwarrented or odd. A mortgage is different though in that it is something I would do and plan to eventually but I would be wanting a substantial deposit first and be beyond comfortable with the repayments. I think it will be a few more years of savings before that is something we even start to think more seriously about and it definitely will be for a modest amount although last time I was at the bank they tried to 'sell me the dream' and I was pretty shocked how much they thought was appropriate to borrow. The main difference is you do need somewhere to live and the alternative has its own financial drawbacks. A car, to me, is more of a luxury (others see that differently, half the reason we rent is because it means we can afford to live somewhere where walking to the shops, park, doctor etc is a reasonable option and we want that to continue when we do look into buying a home) and the fact they depreciate so quickly are the reasons I would not go into debt for one and can see myself always opting for pre-loved versions.

[Phteven]

I'm curious... this is to those who say they would never get a loan and the thought of owing money scares you, is a mortgage excluded from that statement?

No. We bought both our houses outright. We used to have a mortgage but we sold and rented instead. Being free from the mortgage gave us the psychological freedom to start our own business (we didn't have a home to lose so it didn't matter if it failed). If we still had the mortgage we wouldn't have the financial freedom that we enjoy.
Eta - I love to drive so I buy the best car I can afford but I'm another that buys secondhand privately. The thought of losing 20% driving off the lot is enough to make me cry. Tip for the people who buy privately. Do a keyword search for quick sale.