Financing your car? (1 Viewer)

[rozymisty]

I got my licence in september and since then, ive only driven once..which i miss. I wish i didnt rush in.

I dont think id be approved for a car loan from the big banks due to my defaults etc and also given that the banks are tightening their lending criteria due to the GFC.....and its going to take me ages to save up for a car...im shit at saving, plus im putting more money towards paying off my credit cards quicker.

I am thinking of doing salary sacrifice through work, a novated lease its called, where i pay it off in 5yrs, and pay a lump sum at the end to own it. But then again given my lack of driving experience, i dont really want to get a brand new car and have an accident and write it off. I am more likely though to get approved finance through them coz i work for Queensland Health, and they know that its going to be coming out of my pay anyway.

the other option, is car card finance, ie Get Set, or Motor Finance.....but hm ive heard they arent all that good.....what do you think? My friend just said to get a cheap car, but i dont want a bomb. And considering like a old car can be about 10k, i may as well spend another 4k and get a brand new and reliable car

I need help...i really want a car before xmas....

 

[quik.]

If you have defaulted on loans in the past and currently have credit card debts, while also finding it hard to save, I'd say adding a loan on top of these things is a p stupid idea

 

[rozymisty]

Ive defaulted apparently on a credit card payments a few times. but thats in the past, and its the only form of 'credit' that ive had. Of course i regret getting a credit card....

 

[F2001]

How many kms do you do per year?

Lease is only worth it [on a new car of course] if you travel alot or plan to in order to reduce your FBT. There is a lot of negotiation to get a good policy on a lease.

Most people lease for the tax benefits or simply not being stuck with a 3 year old car after the lease is expired (these are the people who don't buy it out - they move on to another lease after lease after lease etc).



There are better, much more cost effective ways to avoid tax LEGALLY.

Personally, I don't like owing money on such things like cars. However much I love them.



I reckon you should see a financial counselor. Most are free. No one here can give you an opinion without knowing your whole financial situation in greater detail.
That said, I"ll spit it out anyway. Deal with it; public transport and the like. Then save up for a cheap reliable car to get from A to B and buy it outright. Keep it for a while.

 

[John McCain]

What old cars are $10k, how old do you think is old? Buy any decent japanese 4-cylinder small car built in the past 20 years that's been regularly serviced, and it will virtually never break down without warning, and rarely require repairs or maintenance. This is the truth.

Taking out a loan, that attracts interest, for an asset like a car, which depreciates madly, is seriously stupid, you lose on both ends.

Why would anyone want a new car? They don't go as well as used cars (engines need to be broken in), lose value like mad, and you have to pay for massively overpriced stealership services to keep your warranty.

Just get a nice little used car for like $3000. Get a mechanic to inspect it and identify any faults beforehand and you'll be sweet.

 

[rozymisty]

Hm didnt know that you have to break in the engine for a new car.....only knew that the value goes away pretty quick.

I do use public transport, but i am a shift worker and its not good or safe getting the bus home alone at like 11.30 at night. Earlies its fine to get the bus, but afternoons and night shifts its annoying having to sit at the bus stop hoping some drunk looney doesnt come near me....there have been several recent attacks near the hospital, so yeah thats a bit scary. Plus im sick of not being able to do my grocery shopping properly and having to go back heaps of times since i dont have a car to carry all my stuff in....annoying.

I like the idea of novated lease coz it means all costs are taken out of my pay. Like if i got a $20K loan, and i drove 10k km a year, id see a difference of 306 a fn from my pay and my finances are better.
If i did it all separately, id be paying like $400 a month for a $20k car loan so yeah it works out better.....

Hm might just do a $500 deposit and get the rest through the car dealer....hm not sure....

but then again i get my profesional development money soon i hope, so thats about 1500, and i spent like most of that on conferences this year, so its backpay so i could use that for the car.

Only thing is i would have to get an auto....i want a reliable car too....ive had a look on the Used Cars - New Cars - Search New & Used Cars For Sale - carsales.com.au site and the cheapest they had was like $6000........

 

[seremify007]

Lease is really only good if you're in a higher income tax bracket and as mentioned above, you need to drive at least 25,000km a year to keep the FBT down.

Honestly speaking, it sounds like you are living beyond your means and I'd be weary about taking on any additional debt until you've saved a bit more (start putting money away regularly) and stabilised your finances. With your credit history, I think you may have to pay a premium on your interest rate to borrow (presuming they will lend you the money) or you will need to take out an unsecured personal loan (which can be 15% p/a!- almost as much as a credit card).

Nothing in life is free. And those who are impatient and 'must have things now' get burned with extortion.

As mentioned above, just get a cheap used car for under $5k and buy it outright when you've saved enough. That way if you lose it or write it off, you don't lose anything more than what you've put in. Insurance will probably be a lot cheaper too.

ps. I just went to carsales and searched for minimum of $2,500 and maximum of $5,000 (to get rid of the sub $2k cars which usually are unlicensed or undriveable/requiring substantial work to be performed to make them roadworthy), and quite a few decent picks popped up.

 

[David Spade]

wow

10k kms a year is not very much

a late model hyundai excel with like 60000kms would be worth like $5k

get something like that

cheap to run etc


Seriously why are you considering borrowing $20k to finance a car that you will only drive 10k a year and you already have money problems

and you are like 27

 

[ClockworkSoldier]

wow

10k kms a year is not very much

a late model hyundai excel with like 60000kms would be worth like $5k

get something like that

cheap to run etc


Seriously why are you considering borrowing $20k to finance a car that you will only drive 10k a year and you already have money problems

and you are like 27

I'm with him.

Simply save a small sum of money (5 or 6k should do it) and go looking. Sometimes the best way to find a good cheap car is not by looking on the net and in papers.

Always get it checked by a mechanic.

 

[rozymisty]

hah thanks for making me older...im 25....

hm well i am getting on top of my finances....paying more off my credit card. well wtih the Kms i didnt know how much ks youd do a year coz i obviously dont drive....

gah why did i have to go and get my licence now, coz like im wasting my p2 year.... hm oh well

 

[Azamakumar]

How exactly is it wasted?

 

[David Spade]

Lah

 

[seremify007]

hah thanks for making me older...im 25....

hm well i am getting on top of my finances....paying more off my credit card. well wtih the Kms i didnt know how much ks youd do a year coz i obviously dont drive....

gah why did i have to go and get my licence now, coz like im wasting my p2 year.... hm oh well

For what it's worth, pay off the CC first since it has the highest interest rate and PLEASE don't go and get another loan >_> Good luck with saving up for the purchase of the car.

 

[babikakez]

wow

10k kms a year is not very much

a late model hyundai excel with like 60000kms would be worth like $5k

get something like that

cheap to run etc


Seriously why are you considering borrowing $20k to finance a car that you will only drive 10k a year and you already have money problems

and you are like 27

Thats exactly what I have. I have a ten-ish year old Excel thats only done 70,000 kms. I reckon I've done 15-18000 of that in the first year I've had it. No need for a brand new car, just have to look smartly.

 

[rozymisty]

How exactly is it wasted?

well coz im 25 when i got my licence, i only have to have my p2 licence for a year and then automatically go to a open licence. I dont feel confident with my drivign and not driving doesnt help does it? I know there are open licence drivers who are shit at driving too, but yeah i just wanted to practice and stuff....and i realy enjoyed driving...

 

[Azamakumar]

take defensive driving classes then
having a license doesn't mean you HAVE to have a car and you HAVE to drive it EVERYWHERE

 

[2sXc4yU]

work as prostitute

i hear they getting $100 a pop

 

[seremify007]

work as prostitute

i hear they getting $100 a pop

Dude, did you just crawl out of some hole after finishing the HSC, and come onto BoS and randomly make cracks at every person you can find? Kids these days... no respect.