Quick Advice for Buying a New Car Needed

Lhowlz on 21/09/2022 - 11:46

Yo, I'm 19 buying my first car and as we all know used car prices are cooked right now, so I've saved up about 25 grand for one :)

I know what you're already thinking, and nah I trust myself and it's my decision so don't want to see people going on about how it's too much money to spend on my first car and whatnot, so don't bother making a comment like that because I won't care haha.

ANYWAY I'm making this post because I need advice on what method I would be better off using to purchase one I've already got my eyes on. Specifically, should I pay full in cash, or should I finance it even though I can already afford to pay it in full?

Personally I would prefer to finance it because I don't want to chuck all my money away after I saved up for almost 6 months. However my parents said that I might end up getting stiffed by the dealership and paying more for it, which honestly I don't care THAT much about because it's preferable to instantly having no money. Also, I think financing would make it easier to pay for insurance and rego since I'd have more money available.

What do you guys think :) ? Should I pay in cash or finance?

Poll Options expired

  • 219
    Pay in cash.
  • 26
    Finance it.
Automotive

Comments

  • GG57 on 21/09/2022 - 11:49
    +3

    Buying a vehicle is more expensive than just the purchase price, as you acknowledge. If you have $25k., what is your budget for the vehicle purchase?

    • howlz on 21/09/2022 - 11:52

      22 grand with a few grand spare just in case :p

      • kerfuffle on 21/09/2022 - 12:00
        +13

        And is that including for costs like insurance (which presuming you're a male is gonna cost $$$$)?

        • ATangk on 23/09/2022 - 15:33
          +8

          nekminnut "no insurance at fault accident, pls help"

          • Makaveli99 on 23/09/2022 - 21:05

            @ATangk: Haha there too many people like that. Don’t want to spend money for insurance, they are so cheap but dumb. Hard to feel sorry for that. Oh topic to OP but a key point.

  • [Deactivated] on 21/09/2022 - 11:52
    +3

    Just make sure to buy a Merc.

    • howlz on 21/09/2022 - 11:54
      +18

      Lol hell no, I'm actually most interested in a 2021 Kia Cerato. I know how much of a money pit those dated luxury cars are

      • [Deactivated] on 21/09/2022 - 11:59
        +5

        😅
        Should put that in the description. Good choice Kia are reliable cars just stay away from their gdi engines.

        $25K probably isn't enough to get a Cerato at it's lowest trim tho. Maybe you could try your luck at the dealer. Also what body type are you getting? Hatch or sedan? If it's sedan consider the i30 sedan as it's based on Kia/Hyundai's new platform.

        Maybe ask your parents to chip in or save a bit more.

        • kerfuffle on 21/09/2022 - 12:01

          If it's sedan consider the i30 sedan as it's based on Kia/Hyundai's new platform

          For $22K? Where do you find one of those?

          • [Deactivated] on 21/09/2022 - 12:04
            +1

            @kerfuffle: Nowhere. OP def needs more money. But I personally think the i30 sedan is better than than the cerato sedan. Also I read Ozb posts last year where a person managed to get a i30 sedan elite from $35k down to $30250 plus paint.

            • kerfuffle on 21/09/2022 - 12:07

              @[Deactivated]:

              Also I read Ozb posts last year where a person managed to get a i30 sedan elite from $35k down to $30250 plus paint.

              Was that before you have to wait more than five months for one?

              • [Deactivated] on 21/09/2022 - 12:09

                @kerfuffle: Nope.

                Here's the post. https://www.ozbargain.com.au/comment/10325317/redir

                I actually happily wait a year for that car as I think $30250 for that car is a lot car for your money!
                Really modern looking car with great infotainment.

                OP did mention that he cancelled after delays were too long.

            • Brianqpr on 23/09/2022 - 09:27
              +1

              @[Deactivated]: Having driven both i30 and Cerato I actually prefer the Cerato, but both are decent options.

              • [Deactivated] on 24/09/2022 - 19:08

                @Brianqpr: What made you prefer the Cerato over the i30?

        • howlz on 21/09/2022 - 12:01
          +2

          Yeah going for the sedan, and fark I guess I got to save up a bit more then lol no way my parents could chip in when 3 of my brothers are also on the prowl for a first car :D

      • Bid Sniper on 21/09/2022 - 12:56

        Great car and choice for the new driver. Got a friend a 2019 wagon and he loves it.

        That budget look ex demo or slightly used, plenty on wholesalers (eg https://www.pickles.com.au) that and i30s since they are fleet vehicles.

        • Brianqpr on 23/09/2022 - 09:26
          +1

          We bought a 2020 ex demo Cerato for $22k drive away two years ago. Only had 10km on it. Very happy with the car and it cost less than a new car we bought in 2003.

          • [Deactivated] on 24/09/2022 - 19:09

            @Brianqpr: Was that base model?

            Great deal. Cerato are now expensive as… :/

      • timthetoolman on 21/09/2022 - 13:14
        +2

        With your opening like containing Yo and cooked, I had you pencilled in for a commodore with Howlzy number plates for sure

        • miwahni on 21/09/2022 - 23:57
          +2

          I was thinking Toyota 86 (possibly rebadged to BRZ)

          • htc on 22/09/2022 - 12:08

            @miwahni: Is it really that fun to drive? The new gr86? or older model?

            • soaringphoenix on 23/09/2022 - 09:00
              +1

              @htc: Of course, definitely 1000 times moreso than i30 and Cerato

              • htc on 23/09/2022 - 16:32

                @soaringphoenix: When you say fun, does it make you feel more in control of the car, the sound, other than the looks of the car?

                • soaringphoenix on 23/09/2022 - 19:28
                  +1

                  @htc: Looks has very little to do with fun in my books. You can't see the vehicle exterior from the driver's seat after all.

                  The joy of a car like an 86 or BRZ is largely in the handling and balance, as well as (manual) shifting and steering feel. This is all the product of combining lighter weight, weight distribution, centre of gravity, suspension and other components. I'm not an engineer so I can't go into the technical details, but this is my experience of owning an MX5. The thrill of these types of cars comes from being able to throw it into a corner and shift 1-2-3 flat out of it.

                  • htc on 23/09/2022 - 22:06

                    @soaringphoenix: So these cars are very good for drving around curves, If you ware driving on highway/motorway, probably not as much fun and burns lots of petrol.

                    Do you take them to track to have fun? Or do you find banked curves to drive this beast?

                    • soaringphoenix on 23/09/2022 - 23:27
                      +1

                      @htc: That's right.

                      The better a car is in the curves, generally the worse it is on the motorway - due to having harder suspension and lower ride height. Soft suspension that is good for soaking up bumps on the motorway in contrast results in more body roll and less tight cornering. Most sports cars are also much louder on the motorway due to weight saving being favoured over sound deadening, as well as exhaust drone, tyres being designed for performance rather than highway comfort, and many more factors.

                      The track is the safest and most responsible way to enjoy them. That said, there are many car clubs that frequent various routes such as the old pacific highway, bells line, Galston gorge etc.

                      • htc on 24/09/2022 - 07:19

                        @soaringphoenix: I drove a toyota corolla, fwd, I remembered on several occasion, when I make a right turn with high speed, my steering wheel went out of control and had to try to brake immediately. I felt I lost control of the car. Is it because it is fwd?

                        Do you use novated lease to save cost on petrol when you drive a sports car?

                        Does driving a sports car attract a lot of attention in public?

                        Always thought these sports car cost a fortune until recently I flicked through a car magazine while I was researching about hybrid cars and ev and first discovered Mazda miata, then later toyota 86 and the brz and found out they are not as expensive as I thought. In fact I never knew they existed. Now I start to pay more attention while I was driving and started to notice more of these cars on the highway and streets.

                        It never occur to me Toyota can make cheap verson (more reliable) of European sedan, they could also make cheap version of European sports car.

                        • bakemon0 on 24/09/2022 - 19:05
                          +1

                          @htc: The problem with fwd is that when you're cornering, the wheels are doing two things at once (turn and accelerate) which makes it worse at doing either at the same time
                          .
                          The 86 is great at handling but it's missing low-end torque and acceleration so those European sports cars are still much faster

                    • letmethefuqin on 24/09/2022 - 22:44

                      @htc: I get 330k on e85 and 450k on 98
                      I think burns a lot of petrol is a false statement

      • Brianqpr on 23/09/2022 - 07:37
        +2

        Cerato is a great car for the price.

      • sakurashu on 23/09/2022 - 20:51
        +2

        Great car - it's what I purchased last year but it did set me back 26k

        • [Deactivated] on 24/09/2022 - 19:11

          what body type and grade?

    • greatlamp on 23/09/2022 - 09:53

      Mercedes provide a 2 year factory backed warranty on their used cars. They are also one of the highest rated in reliability at the moment. Ironically this is not a terrible idea.

  • spackbace on 21/09/2022 - 11:53
    +2

    The dealer won't charge you more for either method, it just means you'll be paying more due to interest on the loan. If anything, dealers prefer you finance as that means more commission for them.

    Do you have credit history? If not, you could always do half cash, half finance to get yourself history for when you want to buy a house

    • howlz on 21/09/2022 - 11:56
      -4

      Nah I have no credit history, which is another reason I'm leaning towards financing. Half cash half finance seems smart.

      • Malarkey on 22/09/2022 - 11:05
        +46

        Taking out finance just to build "credit history" is a pretty terrible idea.

        • OpenAI on 22/09/2022 - 13:06
          +5

          Especially it can be achieved with no annual cost CC

          • Hardly Normal on 23/09/2022 - 02:35

            @OpenAI: I was under the impression that credit cards don't hold that much weight with credit scores unless you are missing payments. Could be wrong though.

      • aliceisstupid on 23/09/2022 - 08:09
        +15

        I had no trouble getting my mortgage with no credit history (inc never having had a credit card). Needing credit history is for Americans

        • od810 on 24/09/2022 - 13:46
          +1

          This, australian credit system is a lot different to American one. As long as the bank see you have decent job and decent cash, they will likely approve the loan.

  • netjock on 21/09/2022 - 12:01
    +4

    Personally I would prefer to finance it because I don't want to chuck all my money away after I saved up for almost 6 months

    What is the interest rate? You have to work to pay those charges.

    However my parents said that I might end up getting stiffed by the dealership and paying more for it

    Why don't you ask the deal what their rate is and then internet compare car loan rates?

    honestly I don't care THAT much about because it's preferable to instantly having no money. Also, I think financing would make it easier to pay for insurance and rego since I'd have more money available.

    You should care. If you can't afford rego and insurance then don't buy a car.

    I'm 19 buying my first car

    Listen to your parents unless they have never had a car.

  • Drakesy on 21/09/2022 - 12:01
    +52

    19 and a 25 grand car is not what i'd call a sound financial decision.

    When i was 19 i owned a 15 year old subaru that you couldn't kill

    Now i'm older and my cars only worth $10k.
    Spending your life savings from a young age on a depreciating asset is not a great decision.

    But hey it's your choice.
    If buying secondhand or euro just budget another 20% in repairs

    Right now if you finance a vehicle you'll be losing big time with the interest rates the way they are.

    • Bid Sniper on 21/09/2022 - 12:54
      -1

      I disagree

      P platers are over represented in vehicle fatality statistics. I strongly suspect its much higher than average due to them driving old beat up cars. Better a P plater crash a $25K car, walk away, learn a lesson than suffer serious permanent injury or death.

      OP wants a late model Kia Cerato, great choice

      • Euphemistic on 21/09/2022 - 13:01
        +19

        Crash stats are much higher due to inexperience and a young persons risk taking behaviour.

        There’s probably not going to be a massive difference between a $10k and $25k vehicle in terms of safety, unless the p plater specifically targets a vehicle with current active safety features. Just get a car with airbags, ABS and a decent original crash rating - and keep a decent set of tyres on it.

      • Drakesy on 21/09/2022 - 13:27
        +1

        As Euphemistic said.

        A $10k car would have the same, if not a very similar amount of airbags.
        And no matter how many safety features a kia cerato has, if it crashes into a great big SUV/4x4 the passenger inside it is going to be in a world of pain.

        • Bid Sniper on 21/09/2022 - 13:35
          +3

          Safety is more than just airbag count.

          Drive the same model car thats a decade newer, massive difference in handling, chassis stiffness, safety festures like crumple zones and active safety features. Its the same model but completely different car. 10K would not survive a impact from SUV but 25K much better chance.

          In the end what is your life worth? Do you trust other drivers on the road? Do you trusted a old used car to be safe and crumple zones not weilded shut due to previous accident repair?

          Im in NSW, rather spend more on a safer modern car. Insurance can replace cars, so cost isnt really an issue. Fixing permanent injuries however…

          • Stopback on 21/09/2022 - 13:43
            +5

            @Bid Sniper: Older vehicles (those built 2001 or earlier) are over-represented in fatal vehicle crashes.

            Those older vehicles account for 20% of all currently registered vehicles on our roads, but are involved in 36% of fatalities.

            In contrast, newer vehicles (those built between 2012 and 2017) account for 31% of the fleet, but are involved in just 12% of fatalities.

            To be fair the odds are still very low of being in a fatal accident but if you have the cash to spare. It's not much.

            Bascialy as long as the car isn't from 2001 it's less safe. I would say the next step is 2010.

            Most cars from 2009 have crumble zones and side air bags and abs which are the main safety features

            • Bid Sniper on 21/09/2022 - 14:58

              @Stopback: So let me get this straight.

              So your telling this kid, its ok to increase their risk of a fatal accident (or any accident) to save a measly $10K, for a car that is insured for anyway. Also increased risk of injury, possibly pernament to save $10k.

              This is an acceptable thing to say to this young person?

              • Euphemistic on 21/09/2022 - 15:24
                +9

                @Bid Sniper: It’s not that straight forward. IMO there isn’t a ‘massive difference’ in handling etc in newer cars. Sure, they are better but considering that model runs are around 5 years, some as long as 10y, and each new model is incrementally better there’s not a lot of room for ‘massive improvements’.

                The biggest improvemts in recent years are active features like lane keep assist and AEB and unlikely to be on a sub $25k car.

                $10k is a lot of money for a 19yo to spend on a depreciating asset. Could be better invested/saved for a house deposit.

                FWIW I got a sub $10k car with AWD, ABS, and stability control, we aren’t recommending OP buy a 1979 VW beetle.

                You obviously disagree and that’s cool, not everyone has the same risk profile.

                • CocaKoala on 23/09/2022 - 10:27
                  +2

                  @Euphemistic: The autonomous emergency braking alone will make a modern car "massively improved" in terms of safety when compared to an old bomb.

                  It literally means the difference between crashing and not crashing, or crashing at 60kph vs crashing at 20kph because the autonomous system has taken over and either stopped the vehicle or greatly reduced the speed, allowing the occupants to walk away alive.

                  Further and incremental improvements to things like abs, electronic brake force distribution, active steering assist, rear cross traffic alert, lane departure warning, lane keep assist, active yaw assist, fatigue detection, etc actually matter.

                  There's a reason older cars are involved in more fatal crashes, and I will never buy an old banger for a family member.

                  • Euphemistic on 23/09/2022 - 13:37

                    @CocaKoala:

                    The autonomous emergency braking alone will make a modern car "massively improved" in terms of safety when compared to an old bomb.

                    Don’t disagree with that. Just harder to come by in a $25k vehicle which is why i suggest an slightly older car.

                    and I will never buy an old banger for a family member

                    I guess it depends on your definition of ‘old banger’. My definition would be closer to anything pre-ABS than it would be anything 5yo like some others think.

                    As mentioned above bought a 2008 model car for under $10k with ABS, airbags, AWD and stability control, those features go along way to making a safer vehicle especially combined with an alert driver.

                    The single biggest influence on vehicle safety is the nut behind the wheel. Plenty of drivers have never been in a crash, caused a crash etc regardless of any safety aids.

                    • CocaKoala on 23/09/2022 - 14:36

                      @Euphemistic:

                      Don’t disagree with that. Just harder to come by in a $25k vehicle which is why i suggest an slightly older car.

                      Ok, that's a fair point but while it reduces the number of options there are still cars with exceptional safety features for that money.

                      I just searched and one could get a brand new Picanto (< $20k in fact) or Rio in that budget, and both have AEB and a host of other safety features.

                      • yokel on 24/09/2022 - 14:02

                        @CocaKoala: I’ve got it emergency braking in a 2020 Kona. Should be able to get a hold of a used Kona or similar that has depreciated a little already. Very happy that it doesn’t have a CVT auto either.

              • Stopback on 21/09/2022 - 15:37
                +1

                @Bid Sniper: yes, you would gain higher life expectancy investing the money else where.

                fatality rate per 100 million vehicle kilometres travelled (VKT) in 2020: Australia’s rate of 0.44

            • jsheroes on 23/09/2022 - 12:18
              +1

              @Stopback: This is a wonderful example of correlation not equalling causation. What proportion of those older cars you reckon are driven by young people who are much more likely to make poor decisions or the road? What proportion of the new cars?

              Yeah.

    • [Deactivated] on 21/09/2022 - 13:10

      I know what you're already thinking, and nah I trust myself and it's my decision so don't want to see people going on about how it's too much money to spend on my first car and whatnot, so don't bother making a comment like that because I won't care haha.

      • Drakesy on 21/09/2022 - 14:02
        +5

        I chose to purposely ignore that part of his post and give him some hard hitting life advice :)

    • neonlight on 22/09/2022 - 19:41
      +2

      Mate when I was 19 I was literally driving a sht box like a Daihatsu Mira 199x which costed 2.5k. I then used that car to work hard few years studying and working casual jobs everywhere and saved I finished uni with it. I the graduated and got a second hand Honda Prelude 98 VTi-R ATTS which I owned for 10 years til I got married. That was my proud and joy driving a manual as well (I learnt and got P plates, coached under an ex-F1 driver)

      I want to relive that moment but I get the OP wants a decent car with savings might be a lifetime experience but even then my budget before was only 16k not 25k

      25k for a car plenty of options but with the market right now I wouldn't invest in a car it's not worth it. Buy something cheap invest in yourself

      • gimme on 23/09/2022 - 07:37
        +2

        No you weren't LITERALLY driving a shit box. Anyway my pet hate…

    • cbs78 on 24/09/2022 - 16:09

      Usually I'd agree. But with the current prices on used cars, better value to get new

  • captaincabinets on 21/09/2022 - 12:12
    +4

    New Cerato is minimum 27.5k. Why not get 2 year older model with 15k ks on it for ~7k less

    https://www.carsales.com.au/cars/details/2019-kia-cerato-s-m…

    • [Deactivated] on 21/09/2022 - 12:14
      +1

      manual and in nt. Not a great as weren't these cerato's going for 22.5k da only a few yes ago?

      • kerfuffle on 21/09/2022 - 12:31
        +1

        Are you the OP?

  • Lovemydeals on 21/09/2022 - 12:16
    -1

    If you have the cash now, would recommend that. Otherwise see what interest rate you can get for finance & see what the total cost of having the car will be.

    • GregRust on 23/09/2022 - 09:52

      I wouldn't advise taking out finance on a car if you can avoid it.

  • jv on 21/09/2022 - 12:16
    +8

    Quick Advice for Buying a New Car Needed

    Don't pay too much.

  • pegaxs on 21/09/2022 - 12:18
    +38

    Don't get loans on depreciating assets.

  • jv on 21/09/2022 - 12:19
    +14

    Should I pay in cash or finance?

    This has to be the dumbest question I've seen here for a while.

    How will you make enough returns on you 'saved cash' to pay for the finance costs?

    • gmail92 on 21/09/2022 - 12:36
      +2

      Yep, put simply;

      If investment return > cost of finance ; Use finance.
      If cost of finance > investment return; Use cash.

  • toniyellow on 21/09/2022 - 12:26
    +1

    Pay cash, but don't go direct to a dealer, try a car broker e.g. MotorScout.

  • oscargamer on 21/09/2022 - 12:29
    +3

    Find a dealer with the actual car you want, colour, spec etc

    If they have it sitting on their lot, go in and buy it.

    Ask for mats and a full tank and $1k off the rrp. You may or may not get that deduction.

    Pay cash deposit of $500. Walk away and collect it a few days later.

    Get insurance.

    CHECK IT Thoroughly before paying the balance and driving away.

    Or, get a couple of broker quotes and deal with them. I prefer that option, rather than the stupid games at a stealership

  • iamherenow on 21/09/2022 - 12:34
    +7

    Personally I would prefer to finance it because I don't want to chuck all my money away after I saved up

    You need to think it through a bit more.

  • Euphemistic on 21/09/2022 - 12:37
    +9

    Pay cash, but only spend half your savings and invest the rest - even if it’s just a term deposit.

    $10k for the car, $2k for insurance.

  • toomuchdogfur on 21/09/2022 - 12:39

    Finance isn't worth it when you don't have some way of offsetting the costs (e.g. salary sacrifice). Yeah it sucks to suddenly have little/no cash after all that hard work saving, but is there any reason you need to have a big cash reserve right now? Presuming that you live at home, you're mostly shielded from most big sudden money draining events (house repairs, rent/mortgage increases, etc).

    If you're still working, you can save that money back up anyway!

  • Switchblade88 on 21/09/2022 - 12:54
    +1

    You could get a competitive loan from a bank - you don't (SHOULDN'T EVER) get one through the selling dealer.

    But as a 19yo, with limited employment history and credit history, as a bank I'd also be a bit iffy on a $25k loan to a teen. So cash is still going to be the most straightforward option for you.

  • whatwasherproblem on 21/09/2022 - 13:00
    +4

    so don't want to see people going on about how it's too much money to spend on my first car and whatnot, so don't bother making a comment like that because I won't care haha

    Too bad, I'm making one.

    What do you guys think :) ? Should I pay in cash or finance?

    Follow your heart.

    (Literally: because it doesn't matter. Whether you pay cash or finance a $25k car for a 19 year old's first beater is only the second most foolish financial decision you've made in that paragraph, so it actually really doesn't matter at all. It'll be a good lesson.)

    • Drakesy on 21/09/2022 - 13:29
      +2

      It really is choose your own financial demise.
      Via monthly repayments or excessive depreciation.

      OP is setting themselves up to fail.

  • Stopback on 21/09/2022 - 13:12

    19 with 25 k saved. Go on a three month holiday

  • Quantumcat on 21/09/2022 - 13:45
    +9

    Why don't you buy a cheap car and use the rest as the beginning of your house deposit savings? What a waste spending that on a car. If you can get into the housing market by the time you're say 22 or 23, and continue to make sound decisions (of which spending 25k on a car at your age is not one) you're on the road to being well off financially for the rest of your life. Or, you could get into shares and ETFs and stuff, but that requires more research and thinking which could be a problem for someone who is wanting to blow their inheritance or however it is you got the money right away like this…

  • Taro Milk Tea on 21/09/2022 - 14:23
    +1

    Another member since…

    • websterp on 21/09/2022 - 14:31

      To be fair, he's already mentioned that he's after quick advice…Must already be at the dealership waving his 25K in shiny new notes!

      • [Deactivated] on 21/09/2022 - 18:54

        And now OP is to be never ever seen again…

  • andresampras on 21/09/2022 - 14:29
    +2

    OP my suggestion drop your budget under $20k ($15k preferable) and pay cash for a car that's a bit older (I'd consider as old as 10 years). You'll still need to budget for insurance (preferably comprehensive) and rego/ctp

    $25k (ie. all your savings) on your first car, particularly when you're not a car enthusiast (considering you're looking at a cerato) is bonkers.

    You may not see it now, but you'll thank OzB after a year or two of car ownership.

    Car purchase is front of mind atm for you, I get it. But you would benefit from looking at the big picture.

  • boomramada on 21/09/2022 - 16:24
    +2

    Since you are 19, your insurance premium is very high $$
    I wouldn't go for new car, probably get a $5-10k car and at least third party insurance.

  • dasher86 on 21/09/2022 - 16:57
    +1

    Yeah get an older car and spend about 10-15k.
    You're most likely going to get into a Bingle while on your Ps.
    Save the money and look at getting something better for your second car once you have a bit more experience and know how to look after it.

    • boomramada on 21/09/2022 - 20:37

      Since OP asking this question from a bargain site, I would stay under $10k so risk level is low enough that don't need comprehensive insurance.

      OP seems to know how to save money, not many 19yo with $25k around these days. Probably save for house deposit or something then later can get a flashy car.

      That's pretty much what I did years ago.

      • Euphemistic on 21/09/2022 - 22:17

        under $10k so risk level is low enough that don't need comprehensive insurance.

        This is only true if you can afford to be stuck without a car or replace it from your savings at short notice.

        If OP spent half his savings on a $10k car, then it might be worth the savings. If OP spent all his savings and lives payday to payday then comprehensive is more important. The less you can afford to lose your car, the more important it is to get comprehensive.

        Also worth noting that if you get finance you often are required to get comprehensive.

  • miwahni on 22/09/2022 - 00:05
    +3

    You know what? If there ever was an age to be impulsive and careless, it's 19. Spend your $25k on the car you want (just - if you can avoid finance, do). Life will come crashing down around your ears soon enough, you may as well enjoy yourself while you can. Time enough to be cautious later when you have a mortgage and partner and kids and responsibility. If you have none of those things now, just go enjoy yourself with your new car.
    Yes, I know, this is Ozbargain and we're all supposed to be frugal etc…. but hey I will never be 19 again and I wish I'd let my hair down a bit at that age, instead of going into debt for my first house.

  • The tiger on 22/09/2022 - 07:49
    +2

    Definitely you should buy a second hand car as most young drivers are without much driving experience, and they tend to be careless and impatient. Get some extra money to pay the high amount of car insurance. Why not try to get a used Toyota Corolla or Yaris or eve, a Kia Pincato. Always be careful owning and driving as a young boy.

  • 2esc on 22/09/2022 - 09:10

    When you say cash you mean you can pay straight out of your account dont you? As i understand your not allowed to pay with actual folding money/cash on a new vehicle now due to government regulations.

    • Tleyx on 25/09/2022 - 09:01

      I just paid cash for a vehicle yesterday

  • Jugganautx on 22/09/2022 - 09:50
    +7

    Your first mistake is spending 25k on your first car…

  • LFO on 22/09/2022 - 10:45

    which honestly I don't care THAT much about because it's preferable to instantly having no money

    You have answered your own question. Go finance.

    However, before knowing your feelings towards financing I definitely will go for cash in hand and avoid all the many charges, paperwork and costs associated to financing.
    You have saved a lot, just do it again.
    From your post, in 6 months you'll have a fully paid car and $25K again. No brainier.

  • Willy Beamish on 22/09/2022 - 11:49
    +3

    Just buy a used car and keep saving. /thread

  • Orgazmo on 22/09/2022 - 11:53
    -1

    I used a broker for my last car and saved $2000. PM me if you want their details.

  • Daddy Chill on 22/09/2022 - 13:48
    +4

    Must be school holidays again

  • core101 on 22/09/2022 - 13:56

    Your accountant will be able to answer the finance question.
    Sometimes you have to spend more on a near-new car with warranty, vs. people who want above Redbook prices for their fatigued high-millage, possibly accident repaired, decade old technology and styled lemon.

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