Car Written off - Need Help Analysing Options

celiotte on 04/05/2023 - 11:17
Last edited 04/05/2023 - 12:37 by 1 other user

Hi all,

Hoping to get some advice/ suggestions on what I should do..

Situation

  • car was broken into and damaged terribly at the train station (was heading to work in the morning)
  • car has been written off by insurance and we've been given a payout

Options

  1. Buy a cheap 2nd hand car (less than $10k)
  2. Buy a mid range 2nd hand car (~$20-22k)
  3. Buy a new car…

Hoping to get some input as to which option I should go for (dealer or private sale, car models etc.) . My considerations are:

  • I know nothing about cars so am hesitant in buying 2nd hand cars as I may get a lemon or drive it for a 1 month and realise it needs some part replaced which will cost me an additional $5k
  • I would like a car for convenience, at the moment I am relying on friends/ family and I feel bad
  • Trying to save money for a house deposit in the near-ish future
  • Intend to drive this car for the next 3-5 years and maybe more?
  • I had a 2018 VW Golf, 2 of us and no dependents on the way, don't drive too often (1-3 times a week), will PT to work mostly
  • Have been looking at i30s and Corollas due to what I've read on here so far but happy to consider basically anything that is reliable/ affordable

Thank you for any help provided! Just been a bit of a rollercoaster and some mixed opinions between my partner and I so hoping to get 3rd party input

Automotive

Comments

  • Pelicannn on 04/05/2023 - 11:27
    +2

    Please provide details on the type of car you need? What was the car you had tbat got written off? Do you have children? Or just you or another? Family on the way in the next 3-5 years?

    Transport lots of stuff? Drive lots? Drive very little?

    • celiotte on 04/05/2023 - 11:34
      +1

      Added extra information - thank you!

    • HeWhoKnows on 05/05/2023 - 12:17
      -1

      How on earth did OP buy thier 1st car

      OMG!

      Surely this is for OP to decide

  • humilem servum tuum on 04/05/2023 - 11:32

    Does your employer offer novated leasing via salary packaging? You might save a pretty penny this way.

    • celiotte on 04/05/2023 - 11:35

      I would say novated leasing is probably not an option as it would require me to stay for at least X years and I'm not sure if that will be the case at my current job but definitely something I've considered!

      • Mechz on 04/05/2023 - 15:47
        +1

        Pretty sure it's transferable?

  • Drakesy on 04/05/2023 - 11:33
    +16

    Only really two options
    1. Toyota Camry
    2. Mercedes AMG high yield investment.

  • kerfuffle on 04/05/2023 - 11:53
    +1

    New Corollas have a waiting time of at least six months, depending on what you order.

    Source: waited nine months for mine; got by by scabbing lifts from people (helped that I used to drive them around a lot) and renting cars when needed

  • Unorthodox on 04/05/2023 - 11:55
    +4

    Given that you don't use it that often, and don't have kids etc

    Either a cheapo or second hand would be best.

    Honestly, a good enough hatch should be okay, i30 or the Rolls in a year range that has enough of the tech that you require/are comfortable with.
    Also, they're a dime a dozen so even less chance of another break in for a joy ride.

    Second hand car:
    PPSR check
    Sense check (Google/YouTube key checklists)
    Slip a trusted local mechanic $100 or so to check it out
    Test drive
    Or get a friend to help

  • Pelicannn on 04/05/2023 - 11:58
    +4

    I would say a late model i30 would be perfect. Good warranty. Plenty of safety features and tech. Good on fuel as well. 20k would be achievable.

    I owned a 2015 GD i30 Elite and it was an excellent car for the money. Never had any issues in about 80,000km of my ownership.

  • sumyungguy on 04/05/2023 - 12:02
    +4

    If you're hoping to get a mortgage at some point, try to buy something with cash. A car loan will reduce your borrowing capacity.

    • Ozbar Gain on 04/05/2023 - 12:19
      +1

      This is a really important factor! Don't finance a car now if you're going to be buying a house soon.

      Rather get something ~10k that you can afford outright from a dealer

    • apple2016 on 04/05/2023 - 14:22
      +1

      $10k would nor make much difference

  • bobbified on 04/05/2023 - 12:56

    ..car was broken into and damaged terribly at the train station

    and

    I had a 2018 VW Golf

    The vehicle was written off after a break-in? Did they pour petrol in there and light it on fire or something?

    • celiotte on 04/05/2023 - 13:03

      They broke a window, and took the wheels (entire wheels, not just the tires) - brakes calipers etc.

      • bobbified on 04/05/2023 - 13:09
        +3

        That sounds so weird! Someone must have the same car and just needed some parts! Did you have any special rims or anything?

        If what you described above was it and I knew the rest of the car was in good condition, I'd consider buying the "wreck" off the insurance company and get it fixed.

        • celiotte on 04/05/2023 - 13:14

          Everything on the car was as it came so nothing was modded :(

          Do you just reach out to the insurance company or something to do that?

          • bobbified on 04/05/2023 - 13:20
            +2

            @celiotte: You can speak to your insurance company to do that an they'll deduct it from your payout.

            But before you do, it's worth getting someone to look at exactly what needs to be fixed and how much it'll cost to make sure it's worth the effort. Someone that you can trust that knows a lot about cars.

            • apple2016 on 04/05/2023 - 14:24
              +1

              @bobbified: Also OP needs to consider the wait time to get his car fixed. spares are not readily available these days

  • Ugly on 04/05/2023 - 13:22
    +4

    If you’re going to continue parking at that train station, I’d say go cheap.

  • JimB on 04/05/2023 - 14:10
    +1

    What train station so I can avoid it? What was the payout?

    I'd probably get a new car that is in stock.

    A 1-5yo car is is currently historically overpriced to delays with new cars.

    Other than that a 2014 Mazda 3, 2012 Subaru XV or other Japanese car in the low 10's.

    • celiotte on 04/05/2023 - 14:44

      Jordanville.

      Payout was 30k, fairly low for a new car with low kms and insurance was impossible to contact (hour+ waits on call and limited opening hours) - RACV

      • sumyungguy on 04/05/2023 - 14:54

        Fully owned or financed? Insurance cover includes new-for-old replacement?

        • celiotte on 04/05/2023 - 16:07

          Fully owned

          Insurance cover includes new-for-old but I think it was just outside of the 2 year range

          • kerfuffle on 04/05/2023 - 16:23

            @celiotte: You said your car was from 2018. Unless you bought a two-year-old brand new car in 2020 or are insured with Suncorp, you wouldn't have new-for-old

            • celiotte on 04/05/2023 - 16:33

              @kerfuffle: Yup car was bought in 2021 but was a 2018 model

              • kerfuffle on 04/05/2023 - 16:34

                @celiotte: So it was a brand new car that sat in a car yard for three years? Gee, and I thought buying a 10-month old car brand new was a record.

      • JimB on 04/05/2023 - 17:58
        +1

        Jordanville is a pretty safe area but your car was targeted. Not random.

        Just bad luck.

        $30k, just get a new car that’s in stock

  • Wiadro on 04/05/2023 - 14:12

    2 decade old ferrrei with 5000km

  • Ghost47 on 04/05/2023 - 14:14

    What station was this?

    • celiotte on 04/05/2023 - 14:43
      +1

      Jordanville on the Glen line

  • Euphemistic on 04/05/2023 - 14:32

    If you want to save for a house buy a reputable, reliable model for around $10k. basically a Japanese or Korean with standard auto or manual. They are generally reliable and end of the day if it fails - which is unlikely, you can repair it or buy another and still be ahead of a $25k car.

    Buying new will probably be a wait.

    Have a look on carsales etc, narrow it down to 4 or less model options and ask for opinions on the specific models you are looking at. Asking ‘what’s the best hatchback’ won’t get you a decent response. Where asking which would you prefer corolla or Mazda 3 (for example) will get decent opinions on either.

  • lachhelix on 04/05/2023 - 15:52

    I wouldn't bother with a new car personally - get a dealer demo/near new used with a warranty if you can afford it

    • kerfuffle on 04/05/2023 - 15:54
      +2

      When was the last time you bought demo/near new used? They cost more than new cars these days.

      This is the car I have; I paid $44K for mine brand new Near new used, just like you suggested … At a $10K markup.

      • lachhelix on 04/05/2023 - 15:56

        Depends entirely on the car lol.
        They car you purchased is in high demand.

        Plus OP says $22k as a rough budget for a used car, so unless he's spending a lot more than that on a new car, it's going to be a crappy new car

  • Rob-4x4 on 05/05/2023 - 09:56
    +2

    JD Power Dependability study gives a good overall indication of the quality of the various vehicle manufacturers.

    The other thing to consider is that the more usually the more common a vehicle model is the easier it is to get parts and maintenance especially in the long term. I was once told by a person from a large leasing company that in Australia the general guideline is that if there is a Toyota model that suits you needs buy it as Toyota have the best support etc Australia wide compared to any other manufactures .

    https://www.jdpower.com/business/press-releases/2023-us-vehi…

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