Interest rises are imminent this year and I'm speculating the impact, if any, on the car market.
Do people usually take out a loan to buy a car or do you pay it in cash?
Do You Finance a Car or Pay it with Cash?
Comments
Wouldn't it be better to buy a cheaper car?
I have a cheaper car, I want this one and I don't plan on getting rid of it
they'll make another car
The trend seems to be moving away from non electrics, I think Toyota pledged to be completely electric by 2025, by the time I can afford to pay outright, it might be too late
probably the best loss-making decision one could make.
I'm not looking at it as an investment, I plan to keep this car until I die
And one it in a garage when they decide fossil fuels aren’t allowed?
@[Deactivated]: Maybe they won’t mandate them out of existence but I’m in no doubt that it’ll get more and more expensive to a point it won’t be economical to drive.
I’m going to guess about 10-15 years and certainly by 2050 ‘net zero’ petrol will be priced out of the market. Don’t know about you, but I’m expecting to live longer than 10-15 years.
@Euphemistic: only if there are massive improvements in battery tech, which don't look to be happening any time soon.
10 - 15 years? not sure what planet you are on but electric cars are good for city dwellers who only have a 20 minute drive to work and just plug it in at their house every night, for every other use they are outclassed by petrol or diesel.
@[Deactivated]: 400km range is kinda normal. Pretty rare that a car will do more than 200km a day, even couriers. In 10 years there will be enough of a fast charge network that anyone except those towing will be able to take a 600km trip with a single atom do lunch - which is pretty normal now
Sure, there’ll be outliers that electric won’t suit, but most will be opting for it.
@Euphemistic: 400 km in the best conditions with a new battery, real world conditions are different.
people love to make promises about what electric cars will be able to do, but i will wait until it actually happens.
@[Deactivated]: It’s happening. Just this backward ass government won’t support it while the rest of the western world has made significant ground in EVs. Other countries have up to 20% EV ownership and dozens of models available.
We’re stuck with Tesla and an irrational fear of a cheaper, cleaner, more efficient form of transport for our major cities.
There’s plenty of buyers waiting impatiently to get an EV. I’d have one tomorrow if it had 200km of range and the price of a lightly used Camry, even forgo most of the bells and whistles to make it happen but most of the models we get are so high species that half the features the come with aren’t used.
@Euphemistic: other countries, like europe, which have higher uptake of EVs, are also much smaller than Australia, so the short range is not a problem for them.
it's not an irrational fear, it's just that people prefer petrols and diesels to electrics, places like the UK have actually put more taxes on using ice cars in cities like London, so it's not that people are much more accepting over there, it's just that the government over there making it harder to own a non electric.
anyone who does anything other than city or suburb driving is going to want an ICE car, just because you need range here, which electrics cannot offer. a lot of people also don't want to spend 20 minutes to an hour waiting for their car to fill up when they could do it in under 5 minutes.
the upfront cost of electric cars is also too high for a lot of people.
it's not an irrational fear, it's just that people prefer petrols and diesels to electrics
They don’t prefer petrol and diesel. They just haven’t worked out that by going EV you get to stick it to petrol companies and can have a full tank of juice every single morning.
Yes, they aren’t for everyone but it’s kinda weird how anyone who does get one seems to rave about the power, quiet ride, convenient refuelling and massive saving on fuel costs.
@Euphemistic: at a minimum, petrol wont be available as it is now, anyone with a petrol car might have range anxiety in 10-15 years from now.
what car is it? must be a nice one
@Pluto88: ssangyong musso. it is nice. i was originally looking at a bare bones single cab but the musso was actually cheaper / the same price than the ones from isuzu, mitsubishi etc. who used to be the budget, but quality brands. now they seem to be the same price as old toyota while new toyota prices have gone up even higher
the reason it is cheap is that Ssangyong don't really have much of a presence in Aus so everyone is worried about that, but everyone has to start somewhere and everyone i've spoken to who owns one is very happy with theirs. when i took it for a test drive i couldn't believe it, the interior feels like that of a lexus. after doing some research i wasn't really worried about their future
@[Deactivated]: oh ok, a new one I assume. Just be aware of the resale value of them, might be a lot cheaper to pick up a low km used one down the line.
@Euphemistic: no? i was looking at a few different cars at first, i hadn't decided on which one to buy. your reading comprehension needs some work.
@[Deactivated]: You basically said you’d have a Toyota if you could afford it. Sounds like a compromise to me.
Not knocking buying a musso, I’m sure they’re fit for purpose and will prove reliable but it’s hardly aspirational.
@Euphemistic: i wouldn't actually buy a toyota, unless it was an older land cruiser, the newer ones have common complaints with the DPF. i did look at some used ones, but half the time when looked at used land cruisers they have put all this after market crap on them and abused the hell out of them, they are on their last legs / riddled with problems and i don't have the knowledge or the time to take one as a project car. if you do manage to find one that hasn't been abused, there's always something else, like the price being astronomical or being located on the other side of the country.
Loan, but not through the dealership. Last loan was a 5 year loan with Peoples Choice
Paid in cash for mine. Although my cars are always of the 'shitbox' variety. Back in my day (read: 2020) you could get some pretty reliable wheels for less than $4000, back before all of the dealers suddenly decided that the price tags needed a couple more zeros.
Lease a new one every 3-5 years, GST back and instant tax right off.
Novated leasing? How is it a tax write off?
I'm guessing dealmans owns a business. A tax write off is very different to a novated lease provided by your employer.
Yes
Don't get a loan for a depreciating asset.
Buy an item which appreciates, lease one which depreciates.
Cash. Often I've been able to get better discounts by offering cash over finance.
Loan, because I didn't want to redraw out of my mortgage.
Not very OzBargain-like, I know. But I know I'm not very disciplined when it comes to spending so if I took it out of the mortgage, even though the interest rate is lower, I'd end up paying a whole lot more over an extended period (than an actual car loan with a higher interest rate over a shorter period).
Wouldn't it be much easier to take it out of your mortgage but change your direct debits so that you are putting as much back in the mortgage as your car loan payments would have been + normal mortgage payments? You can't be too undisciplined if you've managed to pay enough extra into the mortgage to be able to withdraw a car's worth.
I understand what you mean. When I took out the mortgage, I had a 50% deposit and I took out a loan that was bigger than necessary so there's plenty available to redraw if I absolutely need to. I go with the minimum payment for the mortgage and rarely ever log in to look to see the progress. Anything more than the minimum, I'd end up going in there to adjust it (eventually) back to the minimum. I do dump extra money every now and then though - so when I had a decent-sized car loan ($7XK's worth!), it was paid off in less than two years. The higher interest rate was almost like an incentive to make me want to get rid of it quickly.
As an example: When I was saving for the house deposit, I'd budget a spending amount each period and sometimes I'd spend it all of it towards the end. Rather than dig into the savings account, I just starved myself or ate like a povo until the next pay came in. I knew that once I started digging into the savings, it'd be gone in no time! That's how weird I am haha (It's just me though and things would obviously be different if I had a wife and/or family to feed!)
Cash, buy what's within your means.
Loan with finance team at SOUTH EAST AUTOS at slacks creek lmao
https://www.facebook.com/1559222044331962/posts/304338859924…
Came here for this link. Wasn't disappointed.
Sadly no finance team in literally months lately
Could sell COVID19 vaccines to SlavOz with that rig.
I prefer Mike Hunts Wholesale Cars in coopers plains.
A classic for the ages
Sadly looks like he may have closed :( Always got a laugh out of seeing his stickers on cars.
Cash if you can, pay for what you can afford, and what does the job.
Invested my cash and used a very low interest loan to pay for my car.
+1
If the interest rate is that good you should sell the car, get another loan, sell that car etc, each time putting the cash in that investment which pays better than the low loan rate
Hah, yeah you’re right mate, if only there wasn’t such a long waiting list for the car.
Not everyone has 50,000+ cash layin round to buy a car with.
A loan is their only choice depending on situation and need of transport to get to work/kids etcMaybe they shouldn't be looking at $50k car…
Not everyone has 5000+ cash layin round to buy a car with.
A loan is their only choice depending on situation and need of transport to get to work/kids etcGotta keep up with the Jones no matter what!
Loan because my last rate was 4.29% fixed and I can make more than that with the money in my account elsewhere.
Isn't the market down over last 12 months, you must be a good picker
Took out a loan at 2.99% and once saved enough, closed it in 10 months. Easy!
If you are buying a Tesla Model 3 then definitely a loan. Works out to be $20k more than average car ($40k) but still end up streets ahead after 3 years due to high resale value (sarcasm).
All of us mortals just try to pay for it with cash if we can.
One alternative is if you got a cheap enough home loan long as you boost your repayments buy what you would have paid in car loan you will always be a few percent cheaper than a car loan.
0% balance transfer for 24 months credit card.
Got a loan when I was young and had good income but not a lot of savings. Paid it off quick, got a decent credit rating out of it which made getting a home loan a bit easier.
Paid with savings ever since. Don’t buy new. Purchase as cheap as practical within means. Only upgrade when we want a change. Current vehicle had for 10yrs.
Buying new this year with savings.
“Don’t buy new.”
“Buying new this year with savings.”
Lol, makes sense.
Ha ha. Doesn’t make sense does it!
Its taken a long time to work out way up to new, and in reality it’s the silly used market that’s pushed us toward new. Near new vehicles aren’t good value. That, and our choice of vehicle where the new model is significantly better than the previous model.
Yes!, Covid changes everything, and Ozbargainers will adapt and evolve.
Make no sense to buy a second hand or demo car now, if can wait buy a brand new with Cash
Cash, hardest part was getting the bank to give me my own money when I went to withdraw it. Had to answer so many questions about what I was doing with it. It's my money I can do with it what I want!
To be fair I'm sure they get quite a few people being scammed, but when I say i'm buying a car I want to withdraw cash you'd think it was pretty obvious.
Use credit cards for the points until the dealer cries for mercy. Then cash.
Got a loan because of the 1% finance deal they were offering at the time. Definitely worth leaving that money in the offset account.
I don't understand how the lending rates are 10% for a car (plus the $1000 admin fee), when the reserve bank is at 0.1%.
I'm still shocked that the dealerships are only interested in discussing how much you are willing to pay per month and not the total drive away cost.Merged from Car Lease or Purchase Outright?
Buying a car this month and not sure whether to go through car leasing or to pay with cash outright.
Intend on leasing for 3 years and then paying the rest of the amount off and keeping the car for another 8-10 years. Not sure if its still beneficial to go through a novated lease if I'm not going to flip the car every 3 years?
Do the calcs and find out. What do you expect us to tell you based on zero information?
OP is just a tyre kicker
3+ years of "going to buy a car". Imagine how long it takes op to buy a house.
Yeah….but like, this time…..they mean it.
Amen… I was literally about to post that someone asked this exact topic 3 days ago and to do a search…
They're the same OP -_-
Report for dupe and maybe they can merge OPs 15 car purchase threads into one.
Do the lease for 3 years. Report back in 3 years. Then we can all learn from you experience. Thanks for taking one for the team.
Oh please !! …. Don't encourage him/her
Take the bus. I fear your indecision could be a danger in the roads.
why not do both?
buy two carsHaha. And report back after 3 years.
Always pay cash
Unless your buying from Southeast Auto
https://m.facebook.com/story.php?story_fbid=3043388599248625…Not cash the nice sales lady told me buying on 14% interest was a much better deal especially after she sold me ceramic paint protection and electronic rust protection.
One I went to told me the EFTPOS is broken, cash only.
Cash unless it's part of my job package.
Those buying with cash are buying hos.
loan, but only because i didn't have the money. still thinking about it, but i don't want to lose out on the car.