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Ive been thinking a bit since reading some other threads on cars - about the kind of cars most people seem to have etc... and it seems pretty common to be driving a pretty expensive car! Im wondering how people afford it - especially if youre a SAHM!
So my question is (if you dont mind me asking!) - do you own the car/s you drive or are you paying them off? Just curious! :D
We own my car outright (it's a 2010 Mazda 3) and DH's is a lease car to make the most of tax. However, that won't last as the rules have been changed, but for now we lease his car.
We own our cars. We only buy what we can buy outright.
Paying interest on a depreciating asset makes no sense.
got a kia grande carnival, got a car loan over 5 years, started in 2007.
We did have another car as well, which we owned. But found out it had stolen parts, so the police took it off us. Only four grande down the drain.
I know this is slightly off topic, but are there Islamic loans here, i.e. interest free? Just curious :).:
We own our car outright, 2005 Holden Astra.
I'm single, and own my car outright, I drew back some of the extra payments on my home to buy it as that was a much more sensible option than taking out a far more expensive personal loan - I Now own my home too. I only bought a smaller car, a ford focus - I am not into putting big bucks into cars, they aren't worth it imo and I've never felt the need for some status symbol.
Loan. 2007 Tiida.
Agree, but not everyone has the luxury of paying cash for a car.:
Yes there are.:
We have only ever brought cars that were second hand and that we could afford to pay for outright or at least well over half. But with our current two vehicles, we leased our family car through DH's work (salary sacrifice) and and DH is paying off his new ute for the farm. for our situation it works out better financially to pay vehicles off.
We own my car, 03 holden station wagon, and we have a loan on DF's hilux which he bought brand new in 2009. i always yell at him that he bought a brand new car to fill with dirt and dust and i get a second hand one!
small loan on one, own ute and other car outright. going to sell one very soon
ETA:
should clarify - our car is used as security on a personal loan we took out for IVF treatment
we bought it outright when we sold my house when i moved in with DH (and traded my car and the two he inherited from his brother)
the cars we own outright (ute and small sportswagon) were cheap cars but great for what they do
we opted for the much cheaper (both immediately and long term) version of vehicle. both liked the territory but bought the hyundai santa fe
i will return to full time work probably start of next fin year, at which time i'll get rid of the santa fe and salary sacrifice for a newer car (possibly a new santa fe - love my car!)
We have a loan on ours, it's a second hand 2002 mazda 121.
Unfortunately we didn't have the luxury of buying it outright.
Own my car (2008 Toyota kluger) loan on DP's ute as it's through the business.
All my previous cars were under loans though.
Sent from my iPhone, more than likely while I should be doing something else!
I don't know many people who can purchase a car outright....but I do know alot who seem to change their cars almost as frequently as their hairstyle! One girl I know who is about 28 has had around 6 brand new cars and 2 second hand ones in her driving lifetime.
We own both of our cars. They're nothing flash but they do the job. I"m considering getting a loan for newer car but don't know if I want the commitment right now.
We just payed ours off. We got a loan for it because we needed a bigger car than a 2 door after DD1 was born, LOL. The loan was for 5 or 7 yrs or something but we payed it off in 2 yrs.
We own both our cars, something we are darn proud of LOL!!
We have a 2007 Nissan Patrol and an Astra (not sure of the year 2008 I think). We were able to purchase each car after each home we've sold. Saving or investing the bulk of the money but using x amount of $$$ to pay outright for our cars. We always joke if we ever get kicked out of our house at least we can live in our cars :)
Loan. We've borrowed for all our cars over the years except DH's work van which we bought outright. We've only ever had one brand new car - a Hyundai Excel. We've never borrowed more than $17k for a car though and always paid the loans off.
Loan for ours.
My 1st car was a loan. Sold it when we decided we only needed 1 car and DH had loan on car he had then
This is our 2nd car loan on a family car in time we have been together.
Could not afford to pay outright. All above cars are and were 2nd hand never new.
We have a 2010 Captiva LX
we bought ours outright. we were lucky in that we lived for a few years in Fiji and as there was nothing to spend our income on we were able to save loads. so when we came back we bought a brand new honda civic :)
it's a grandma car but we love it :lol:
We own our 2008 Camry.(we are a 1 car family!) Redrew on our home loan some of the extra money we put in. We bought second hand, the car was $20000 and cost $16000 changeover with trade in :) it only had 16,000km on it and saved us HEAPS on a newie :)
Own my 2009 Holden Wagon and we own DH's 2000 Volkswagen New Beetle. Going to be selling the New Beetle and DH will be buying a bomb to get to work and fish in, we also own a VW kombi but it's being sent away to be totally done up over a couple of years.
Once we build our house we will be upgrading the wagon to a new VW passat - but will need a loan for that!
we own my 2004 mazda 323, paid it off before DD1 was born, refuse to buy another car as long as this one is running! great runabout car!
DH's novated lease through work, we get allocated money as part of his salary to buy and run a car, every year, currently own a Ford GE6 turbo (he's in love with it lol ), we get a new car every 3 or so years, but we only buy what we can afford and we generally dont go over what's allocated so we arnt out of pocket
:redface: umm....I'm 28 and have had 6 brand new cars and 1 second hand one...:
2 of them were DH's through work, my current car is a loan and we own the usedy outright.
We own DH's car and mine is leased through his work for tax purposes. The lease ends either next year or the year after at which point we will own it outright.
we have owned.... A Mitsubishi mirage bought brand new in 2004
A batman car
A ford :)
Two 98 model bmws
A Torana
A Holden ute
2 datsun 180b's
A Lexus"...... And that is just in our relationship.....
We now own a statesman, Holden.... Outright.. And a motorbike though dh has no current license...
always paid cash and never buy what we can't afford, thats just our way
Bought outright - both cars ::D
One is a crappy old Ford Laser and one a not quite so crappy Hyundai Excel
We own a 2005 Mazda 3 outright, bought through a car loan which has been paid in full over 5 years, and recently traded our 2007 Lancer VRX for a 2010 Outlander with a loan to cover the difference (the Lancer was initially purchased new through finance but paid out early).
The Outlander is our family car but isn't brand new - was bought as an ex-fleet vehicle with low k's and scored some pretty decent savings on it.
Would love to be in a position to buy our cars outright, but for now this works for us as we don't have a mortgage (yet).
I bought my first car outright for $1000.. a little yellow charade :)
We went through a looooong sad list of dodgy 5th hand crappy, unreliable cars which we owned but would spend way more trying to keep them going, but it was all we could afford outright.
So we finaly bit the bullet and got our 2004 Territory on loan. We are about half way paying it off, and by the time we pay it off it will be worth pretty much 1/8 of what we paid if that lol!! But it will be ours!! And we will then probably trade it in for another loan for a newer model!
Our first two cars were purchased third- or fourth-hand, and bought outright - DH's was an old VL that he bought for $1500 off a neighbour (as junk) and got it running after a couple of years of working on it and throwing money at it. We sold it as a 'project' to another friend when DD1 was due (it still wasn't running great and I wanted a 'family' car), luckily a mate of DH's was looking to sell his VP, we paid $1000 when we got the keys, and gave him another $2200 when we received our baby bonus a couple of months later. It did us very well for about a year, then started stuffing up so we took the plunge and went into debt for a second-hand VZ, thankfully we got a really great deal on it as we bought at the right time - we still have that car and DH paid out the loan when he got his inheritance, so we now own it outright.
DH was looking at getting an industry job a few months ago and the shift work and commute meant we would need a second car, so we got another loan (just over $8k) for an Astra, which is 'my' car for running around town with the kids. We'll be keeping both of these until they die on us :) Unless we win Lotto or DH gets a trade, and then when we're in the position to, he wants to get a loan for a 4WD so we can go camping in new places :)
Own my car outright. It's a 07 or 08 Kia Rio. Bought with cash and a trade in. I had a loan for my last car which I kept refinancing with credit card debt until I finally cut my card up. I was so proud when I finally paid off that loan. By definition, most cars are a liability, not an asset so I'd rather not go into debt for one. (as per my old finance class, an asset produces an income, a liability produces an expense)
DH's car is financed. Once that's paid off he'll probably lease something. I need to start saving for the next car which I'll probably buy in 3-5 years.
Own my little second hand Toyota Yaris, can't see myself ever taking out a loan for a car, rather just not have one personally (didn't get mine till 2yrs ago when I was pregnant with DD and thought I would need the convenience but still barely use it). DP also owns his car, second hand too.
Never had a credit card or a loan for anything, the idea of owing money freaks me out >.>
03 landcruiser and 05 SS commodore. Own them both outright and we worked bloody hard to pay them off ASAP!
We have a 2005 Ford Sedan which will be paid off in Januray 2012 when we will upgrade to a Ford Territory or Explorer but not brand new!!
DH's has a 1996 Ford Ute we own outright
We own both our cars (Mazda 3 and Mazda CX7) outright. DH has always been awesome with finances though and has never had a car loan. I had a loan for my first car but then I met DH and that was it :)
Thanks to my ex, I've had a horrid credit history and was never eligible for a car loan or such.
I then met, and married my DH and have had to use him as my guarantor , but finally at the age of 25 and a half, I'm paying off (through a brilliant finance company) my first ever car, a 2001 Toyota Corolla Ascent liftback.
It's on a 5 year loan, and was $9k..
And even though it's not a brand new, expensive car, I'm proud of the fact that it's mine and I'm ALMOST at a year of paying it off without missing a payment :)
Ever since I can remember I've been 'financially challenged' - never being able to pay for things outright that I want so badly, and having to layby things and extend laybys so I can have extra time to pay things off (even though I work full time, all money goes into bills and maintaining/feeding my DS and DH and trying to save up for bubba 2s arrival) so for me to even get this car loan (on a guarantor loan, regardless) is a huge thing for me, something that, for myself, I'm so proud of :)
(sorry for the babble)
Sent from my iPhone using Tapatalk - even though I should be cleaning ;)
We have a 2010 Mazda CX7. We bought it outright using money DH got from his work redundancy. Previous cars to this one have always been via novated lease through my work.
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We have a Mazda 6 and a GSXR750 (Road Bike) and paid cash for both. We're about to buy a CX7 and a new bike of his choice for DH will pay cash for them as well, then sell the other car and bike and put that cash back into our savings account...
I've never had a car loan, or any kind of loan, have always paid cash outright. I'm only able to do this partly because I earned and saved alot of money early in my career and then also received inheritances from my parents who both passed away when I was young. But I sort of see this as fair as while other people may have their parents chip in for their first car or house, pay part of their wedding, have them live under their roof until they are ready to move out, pay their education costs, give them $50 here or there, buy things for their babies or children or even mind the kids for them a day or two, I never have and never will have any of that, my Husband is the same, we do it all completely on our own with no help from anyone, nothing to fall back on.
If I didn't have it this way I still wouldn't have a loan, having that debt hanging over your head and paying that much extra money for something that is only losing money just doesn't make sense to me. I understand people need cars and can't always afford to pay cash outright but I don't understand people who cry broke or neglect their bills yet have a flashy $40k plus car in the driveway courtesy of the bank either..
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).