G’day all,
In the market for upgrading to a new ride and am wondering what sort of purchase option to go with (pay upfront, finance, loan, etc).
Assuming you have all of the following options available in the poll for purchasing, which one would you go with?
- If financing, the goal is to pay off the loan asap to save on interest / insurance
** Drives less than 8k annually if that matters for
——- read below if you got time ——-
My own understanding of each below,
1 - novated lease: Their math doesnt add up, good if you’re driving alot, has residual amount, 0 upfront cost, change of employer may be troublesome for rest of the term
2 - finance: rates aren’t the best, some finance wont allow early exit and may attract full amount of interest lost. flexible deposit + residual payment
3 - personal loan: higher rates, slightly lesser insurance, can pay earlier
4 - equity: flexibility to pay earlier without penalties, lesser insurance
5 - all from savings: not much left for a rainy day soon after purchase, lesser insurance, no interest paid
Get a cheaper vehicle