Short Term Car Purchase Options

kma on 02/03/2023 - 20:55
Last edited 02/03/2023 - 20:56

Another day another what car should I buy post!
Umm not really, this one is slightly different, here is the scenario;
We are normally a two car household, right now we have one and are struggling (work, kids drop off etc).We are relocating overseas in October for a few years. So, for the next 7 8 months we need another car. We are not fussed about the type of car as long as it has at least 4 doors. The things I want to consider:
- reliable, would be used daily mainly for school drop off's, and as a shopping cart.
-whatever car we buy, we need to be able to get rid of quickly before relocation.
- there is going be a loss at sale, as less of a loss as possible is ideal.

I do not have much cash to buy with, I do not want to spare any more than $3k (personal reasons, i need some money in the bank). So not sure if I can buy anything for this money outright these days that are hassle free and reliable.

I am happy to buy one with a loan, and really don't care about the value of the car in this case (20k to 50k is fine) but this is where i want to cut my losses and be able to sell it quickly points come in.

I have looked at rental options, and taking uber to school and back etc and at the end of the day, they all add up to more than what I will lose in buying/selling transactions.

What would you do in this situation? And which car would you buy that ticks the boxed?

Automotive

Comments

  • mskeggs on 02/03/2023 - 21:00
    +2

    $3k is too low a budget for a trouble free car in this market.
    Suggest $6-$8k for an unexciting car like a Camry, i30 or similar.
    Hard to see how you would lose much money in 7 months. If the rego is renewed you might even sell for more.

    • kma on 02/03/2023 - 21:32

      So in summary the suggestion is to avoid loan and arrnage an additinal $3/$4k to buy. Thank you

    • lgacb08 on 02/03/2023 - 22:22

      depending on the state, in NSW old car with longer rego can always sell but not the case for other states where a RWC is needed, VIC is notorious for this, a decen looking car might get slugged with $1000 extra repair comes RWC time, not sure how the situation in QLD like tho.

  • simplystu on 02/03/2023 - 21:10
    +1

    any other ways of getting by with just 1 car for next 7 months?

    1.) family or friends to help out - even take kids to their house, then kids walk from there (my nieces used to do that daily).
    2.) guessing you don't live close to work … rideshare with other workmates - OR - even bicycle to work ?

    Personally, reckon buying a car for such a short amount of time - isn't worth it … avoid if at all possible.
    But … I don't know your 100% personal circumstances.

    • kma on 02/03/2023 - 21:34

      You are right, id avoid in usual situation. We have tried living with one car last couple of months and its not working out. Im paying about $700 in uber cost a month.

  • dtc on 02/03/2023 - 21:15
    +2

    It’s a cliche but a 2000 ish Camry is fairly bullet proof. It may well need new brakes, bushes, tyres and all the rest, but the engine should be good. But it will probably cost you closer to $5k

    And you can sell it on quickly for the same reason.

    • kma on 02/03/2023 - 21:39

      Thank you. If i have to put/ repair all/some of the above, it might cost $1k to $1.5k - woupdnt it end up cheaper to get a decent car like a 2015-2017 corrolla with low kms for 15k-20k, sell for, say 1k less than the purchase price and perhaps 1k in loan costs so all up about $2k loss but trouble free motoring?

      • dtc on 03/03/2023 - 10:09
        +1

        Whether you have to repair or replace all the bits will depend on the car. It will be a 20 year oldish car so things will need replacing, but the current owner may have done most of it or it may be 'good enough' to survive until October. If you get an old car, I wouldnt look at it as a car that you can use for long interstate drives or anything, its a short drive city car and that allows a bit of 'protection' if the car carks it, you shouldnt be too far from home.

        Keep in mind that the more expensive the car, the higher risk you might lose extra on the re-sale - as used car prices come down, as interest rates bite (which might actually increase 2nd hand prices but might not etc). Lose 10% on a $20k car is equivalent to 40% on a $5k car; plus selling a $5k car for $3k will take you about a week; holding out for the deal on a $20k car might take you a month. Do you have the time to do that?

        Others have said use public transport etc; but if you are transporting kids around to different destinations at the same time then that isnt really feasible. However if a mix of uber, public transport, borrowing cars, bike etc works, then you can try that.

        btw, I sold my 1999 Camry about 6 years ago for $2.8k and thought that was a good price. The fact that they cost more than that today is ridiculous! https://www.carsales.com.au/cars/details/1999-toyota-camry-c… is the cheapest on Carsales, some are priced at $6k. Which shows just how overheated the market is at the moment and the risk that the $20k car today will be worth $15k by the end of the year

        • kma on 03/03/2023 - 11:24

          Thank you, aome really good points.

  • Gunnar on 02/03/2023 - 21:18
    +1

    I’d try and stick to the budget of $3k than trying to get a loan.

    I’d also look at something that looks rough but works well.think something from the 90’s like a Falcodore, Avalon or Camry. You’d be able to get it cheap, parts are a plenty and at the end of the day if you have to get rid of it you’re only losing $3k. If you find a high km car but one that’s been freeway driven (ie country car) then it would be a safer bet. Look for something within that budget that’s been mechanically looked after, even if it is a high km car and looks rough externally. Remember for this money you really need to buy the seller and not the car because you’re after someone who will tell you what the car is like and can prove what they’ve done to it with receipts (these sellers do exist but are hard to find)

    Also make sure you don’t have to do rego in between because that will get you financially

    My reason is I’d rather lose the entire 3k on a car than spend $30k and having to sell it for $25k because you’re in a rush to get rid of it.

    • kma on 02/03/2023 - 21:42

      Fair point! I just replied to the above post, if i get a loan for a neat corrola hatch, it will likely sell quickly and loss likley be lower than $3k and wouldnt have to worry about issues. Wouldn't that make a better deal in comparison?
      Well noted the point about rego, thank you

  • Drakesy on 02/03/2023 - 21:48

    Buy a high km (but well maintained) 12-13 year old sedan/hatchback. Either Mazda, Toyota, Kia or Hyundai
    Should be able to pick something up for around $4k.

    Wouldn't go below $4k though, you're getting into scrap there.

  • Pete10001 on 02/03/2023 - 22:04

    Personally I would try to keep Ubering and or take public transport if and when that's possible. If you factor in the cost of a loan, rego, fuel and insurance then you are getting fairly close to the cost of Ubering. Plus if the car is a cheapo you may end up with unexpected repair bills and or time without the car while it is being repaired.I certainly would not get a big loan for the sake of having a car for half a year.

  • kma on 02/03/2023 - 22:07

    Last month uber costed me a bit over 700.
    For 8 months it would be about $6k.. infind it quite expensive

    • kctt on 02/03/2023 - 22:44

      It looks like very easy math to me. Buy a car for $5K which is less than your Uber cost in 8 months. Sell when you go overseas and you should always in better situation than Uber. Besides it's more convenient than Uber. Imo it's easier to sell a cheap old reliable car at 5K than a more expensive newer car.

    • Pete10001 on 02/03/2023 - 22:44
      +1

      I would consider public transport, walking or biking in addition to taking Ubers. Your shopping you can get delivered by Coles or Woolies. You won't find a decent, reliable car for a few thousand in this market. I've been looking for a second car myself and in that price range there is nothing that isn't likely to give you a headache. Plus when it comes time to sell it you will need to go through the hassle of dealing with lowballers, timewasters and such.

  • Euphemistic on 02/03/2023 - 22:33
    +2

    Just go buy a $3k basic car. Japanese or Korean. If it blows up, but bother one, you’ll still be ahead of Uber payments.

    Something like this would likely be fine.

    2001 Ford Laser Lxi 4 Sp Automatic 5d Hatchback on Gumtree http://www.gumtree.com.au/s-ad/1308785094?utm_campaign=socia…

    Despite the general feeling here that all old cars are rubbish, there’s plenty of people that buy these things and run them for a few years.

    Then you can virtually give it away at the end and you’ll be in front.

  • holdenmg on 02/03/2023 - 23:50

    Hi,

    There is some odd thing Toyota offer, https://www.toyota.com.au/kinto but I presume this would add up.
    I think it evolved from Renting vehicles to customers who were having Cars Serviced or waiting for a new car delivery and only intended for a day or short-term.

    Other options like drivemycar.com.au would add up, and used to be cheap(ish) pre-covid.

  • thatonethere on 03/03/2023 - 07:59
    +1

    You could look at car subscriptions. Often they are by the week or month. Couod be less hassle than buying and selling a car.

    Just read fine print on insurance

  • ifyareckon on 03/03/2023 - 08:18

    consider Turo/Go Get/Uber carshare for the time you actually need a second car. If not needed all week, could work out a better option that having to sell quickly when needed to head overseas. No rego/insurance costs to worry about either.

    • bargain crazy on 03/03/2023 - 08:36

      This. Have you factored in the school holidays as you may not need 2nd car during that period. I am saying may as I don't know your personal circumstances.

      • kma on 03/03/2023 - 08:58

        Good point, i had not factoered in school holidays. Ill do some calculations. Otherwise we do need the car everyday

  • FocusRider on 03/03/2023 - 08:53

    Buy a scooter

    • kma on 03/03/2023 - 09:00

      My commute to work is 40km each way on a highway. City traffic is fine with scooter but i wont do it for highways.
      Partner does school run mostly but doesnt have a bike license..

  • rockman117 on 03/03/2023 - 09:51
    +1

    i'd buy a yaris/echo for $4k. can break even when it comes time to sell. they're pretty easy to sell on as they're reliable and cheap on fuel perfect for food deliveries.

  • Jaduqimon on 03/03/2023 - 09:59
    +1

    When selling in NSW, if it has 6month + rego and runs no check engine light, no panels missing, you can get 2k for it minimum lol

  • Seraphin7 on 03/03/2023 - 10:26

    Budget of $3,000. Reliable motoring. Limited loss on resale.

    Choose two.

    • kma on 03/03/2023 - 11:20

      Thanks for the comment. The question are at the end of the post if you can suggest.

      • Seraphin7 on 03/03/2023 - 11:55

        Personally, I'd suck up the current situation and supplement with Ubers or similar where necessary.

        Alternatively, I'd be looking at various car rental arrangements, whether or not something like GoGet if that's going to work for you, or a "long term rental" if you need something parked at your house.

        But my personal view is biased by the fact that I'll place a significant value on my time. I wouldn't be too keen on getting involved in buying and selling vehicles in the scenario described.

        • kma on 03/03/2023 - 18:52

          Thank you, fair point

    • Euphemistic on 03/03/2023 - 19:35
      +1

      I reckon you can get all three.

  • Drifta on 03/03/2023 - 19:17

    I just sold my 2016 camry and took me about a Month with plenty of low ball offers along the way. I wasn't in a rush so it worked for me.

    As others have suggested get something for about 5k with Rwc. Usually to get a Rwc the car has to pass basic checks and if you have the service history/repair history you can have confidence it will last you the time you need.
    Not too hard to find these on car sales or Facebook marketplace.

    You can also consider buying from a dealer and selling it back to them. You will lose about 3k in the process

    Sell the car afterwards and list it about a month before you leave. You can sell it with or without Rwc at a lower price.

  • Pete10001 on 18/03/2023 - 18:17

    Did you end up making a decision one way or another?

Login or Join to leave a comment
Login Join