I am in my second last year of a four year degree at university and have approximately $16k in savings and currently drive a 2001 Toyota Camry (turd) that is fully insured and maintained by my parents - I only need to pay for petrol. I've been thinking of getting a 2012+ Ford Falcon FG MK2 XR6 ecoLPI but am hesitant as my final year of uni will involve a year of placements and that would mean significantly reduced income. At this point in time I am also seriously considering postgrad studies as I cannot see myself teaching full time in a high school.
Should I hang on to turd or should I just bite the bullet and get the car that I want soon? Will the price of second hand FG MK2 ecoLPI Falcons realistically drop to under $20k by the end of this year?
20 year old male: buy car now or continue driving old bomb?
Last edited 17/02/2015 - 02:56
Poll Options
- 104Keep turd
- 4Buy XR6 and be poor
Comments
I think it's more realistic to keep your POS than impulse buying another car. Keep saving, you're still young. There's no need to waste money you don't have for an image. Would also be really silly to buy another car if you have no emergency fund / have to fork out a lot for books et cetera in the near future.
If it's not going to blow up in the next year just keep it. You'll be able to get a better car with the extra money.
The fact you're asking the question means you know the right answer. You'd be stupid to buy the car now. Run your existing one into the ground then (when you have a clearer picture of what your financial future looks like) go out and buy the car of your dreams, which I hope is not a second hand ford falcon.
Buying this car would be the antithesis of OzBargain. Save your money and count your blessings that you have a free car.
Spending your savings on an item that will be worth less and less each year, that will cost more to run and is, frankly, not that great a car to begin with, would be a terrible choice.A car made in 2001 is not an old bomb!
My parents have cars from 1978 and 1989!
The most modern car we have in the household is a 1998 and thats far from being called an "old bomb"
yeah, especially if it's a Toyota, any Japanese car no matter how old cannot be called an old bomb.
The only real reason to upgrade is if the current car is unsafe.
Prices of Falcons will drop at the end of the year when they stop making them.. People think (already) that as soon as they stop making a car parts immediately become hard to get.Keep saving to avoid a loan when you do upgrade, but wait until your income stream can support owning a car. I don't imagine that Insurance on a 6cyl is going to be cheap for a 20 year old.
PS.. apart from insurance cost for you, I love the choice of car.. fuel economy of a 4cylinder hatchback, but with twice the space, twice the power and probably 4 times the torque.
Australians are so stupid to not have bought this car in droves! Instead buying crappy SUV's with underpowered engines from hatchbacks, jacked up suspension and a heap of plastic skirting.People think (already) that as soon as they stop making a car parts immediately become hard to get.
Until recently, I was driving around a 1989 Magna. Loved that thing to death. The amount of spare parts I obtained through scrap yards saved me heaps over the years. There's so many. Likewise for Commodore and Falcon parts.
I think you should find a happy medium. If you are not confident that the Camry will be reliable then I would consider a new car, but maybe settle for something around the $10k mark to play it safe. Also if you are single and looking, having a reasonable car goes a long way with the ladies.
Keep the turd until is can't run anymore. If your parents are taking care of maintenance and rego etc - milk it. Save your $$$ for a house deposit. If you need to buy a car if this one dies, don't spend more than $10k on it at your age.
If someone else is paying rego and maintenance keep driving the turd as long as possible. Use the money to travel now while you are still young, or put towards a deposit on property. My advice from someone who wished they did both.
I would definitely keep it.
Keep your car if you ever want to be in a position of FU
you are mental to even consider buying a different car at your age and position. nothing wrong with a 2001 camry - yeh sure its not glamorous but you have your whole life for that. 16k must be your whole life savings - are you going to be happy the product of your working life to date is a second hand ford falcon? haaha no way, you'll get buyers remorse big time.
anyway you are at that great age where you can start to discard the friends or girls that think you are not 'cool' because you drive a 15 year old camry. you'll find those sort of people are best to be disposed of right about now in your life.
You post on Ozbargain asking for advice to buy a performance sedan?
I hope you aren't studying marketing.
The points raised by many here are quite informative.
The car you are considering is a performance car. If you want to own it, then to get the best out of it you need to drive it accordingly. To and from the Pizza shop doesn't cut it and doesn't do the car much good, Open road driving (even at speed limit) is where it's suited, thats going to cost you in money, time etc things as a diligent student you probably don't have at this time in your life.
Have you also done an online check of the cost of insuring this car as a 20 year old? That in itself should scare the shit out of you, so much so your current turd car is going to look pretty in comparison.
And to impress the chicks you are going to have to maintain this dick extension, weekly car wash, premium petrol, watching where you park it, being stopped by coppers more often and so on. Paying a hooker each week is probably a cheaper way to get laid :)
Let alone finding its depreciating faster than the fuel you use each week
Hey, my car is a 2002 car and I don't consider it a turd. :) Sure, the peer pressure is strong for a man my age, but I love going to the markets in less desirable areas of Brisbane without worrying about someone scratching/stealing my car.
I agree with scubacoles, if safety or reliability is a consideration then definitely change the car. However, if the car is running fine, I think you should keep it considering you just said money may be tight in the future.
Thanks for all the replies guys, I guess buying a car will have to wait. Turd is in excellent mechanical condition with low kilometres on the clock. She was previously driven by my mum who would at most drive 8000km a year. Parents agreed to insurance front for me if I did go down the new car path but as noted above in richox's comment spending the majority of my savings isn't a good idea.
Also, is an LPG car even a good consideration? The reason I was thinking about an upgrade was for fuel savings (albeit in the $20/m range) and drive a car that would deliver more than 2x power and torque.
LPG car even a good consideration?
Depends on price differential you pay for the LPG.
An LPG secondhand may also be problematic in that the engine runs hotter and if the valves aren't strengthened then they can burn out. I had this once in a VS commodore. The car ran for 300K but one of the valves burnt out. Now I saved much more than the cost of the LPG and the cost of replacing the valve (but at the time the car wasn't worth reinvesting in replacing the valve.
So it depends on the mileage you do. If it's a lot then the LPG is a good deal, if its not a lot the extra you pay isn't recovered by the savings.
Also, is an LPG car even a good consideration?
Definitely for EcoLPI which gives you Petrol-like litres/Km. (provided you're not paying (much of) a premium to purchase over a non-LPG model)
Have you calculated comprehensive insurance for a 20yr old driver in an XR6?
The poll has spoken.
yeah hold off cars are a money pit, Falcon will loose HEAPS in value when they are no longer made here.
They loose heaps anyway I had BF mk2 XR6T bought $47k traded $14k in 4 years plus spent heaps on it (113ks)
*lose not loose!!!!!!!!
Similar to other comments: Save up and invest your money. Buy a house or unit or other investment. There is plenty of time to get a nice car later. There will be so much to choose from. Cars only depreciate. If you have an old car, there isn't much more depreciation going on, it's just maintenance/running costs and fixing broken things.
dont get a ford fgt
Why do you get your parents to pay for all your upkeep costs and insurance if you have $16,000?
I don't understand why you refer to your Camry as being a "Turd" yet you say that it is in "excellent mechanical condition" and you basically have all expenses paid by your parents anyway. If you don't want it there are plenty of people out there who would appreciate it then to think of it as a Turd and want to get rid of it
You can kinda compromise. Plenty of sweet cars out there you can get for $7g-$9g.
Some examples are
Mazda 3 SP25
Honda Civic VTIR
Honda Integra VTIR
Toyota Corolla SportivoI want a large family car for the extra space, as well as more power
You're willing to give up a decent car completely financed by the bank of your parents to pay for your own one? The only way you are going to realise that this is a bad idea is when the time comes you have to support yourself and change your perspective of money. If you're doing it because you're embarrassed in what you drive then a car isn't going to fix your insecurities.
The lady and I could buy brand new luxury European cars cash, but we're not idiots. We drive Toyotas from 1996 and 2001 and have our money parked in investment vehicles (heh… punski)that appreciate. Not only are you forgoing your 16K, but the rough $650 in the first year if you have that in a savings account at 4% compounding daily. And if you think that's nothing, that's approx. $50 a month which is what people pay for a phone plan and we all know how many people complain that they can't even afford that.
I've come to consider my financial situation and I've decided to hold on to my car for a bit longer and save the money for a house deposit. Maybe (hopefully) someone crashes into my car and I'm not at fault and I can find a reason to gain a new car from my parents.
I can find a reason to gain a new car from my parents.
Or, and here's a thought, you can start fending for yourself now and stop sponging off your parents?
What if I told you I already support myself financially and I pay board and that my parents want to support me (hence the provision of turd), and have previously discussed the possibility of a new car if this one gets wrecked and it's not my fault?
@niggard:
That's great, but you're the one that's hoping for them to replace it. It may have been discussed, but do you think they'd rather have the money to treat themselves? You know, the money they worked hard to get? Many people actually work their ass off to get their own possessions, and as a result you might say there's more pride in what they own. If you had actually worked for ever dollar of that 'turd', you'd have more value in it.Some people would be happy to have a 14yo family size car, especially for their first car! Unfortunately you show the attitude of someone that's just been given 1 too many gifts that you haven't truly earned.
have previously discussed the possibility of a new car if this one gets wrecked and it's not my fault?
You have discussed this…? What is the actual probability of this happening?
Paying board isn't analogous to supporting yourself financially…come back to us when you have insurance and rates bills in your own name.
Your parents are doing you a massive disservice…you're pretty much a man-child. You have no worry about wrecking your car because parental insurance has got you covered…you have no appreciation and have no sense of value…You think you're living like an adult on your own dime discovering yourself when really your parents underwrite the whole thing.
@nerangsta: I'm a full time student studying locally, it wouldn't make sense for me to move out at all. What else is there I can do?
You're right. Moving out doesn't make sense… Just like buying a car doesn't make sense when you've already got one. Words to the wise; save your money.
well, everyone here as given you their advice and suggestions, up to you to make the call.
Sometimes the best way to learn it to make the mistake. All the best with what you decide to end up doing,
I went through 4 cars in my P and younger years, and thinking back i wish i just kept my very first car (a 1986 corolla).
Are you going anywhere that you need a newer car?
You have a gift car which gets you around town now and is helping you save for what may be a lean time ahead.
On the other hand… just get the car as it sounds like your parents would be there to make sure you don't need for cash anyway.