How do people finance 70,000 odd $$ to purchase a new car - Page 5

2011G6E · 28-09-2012, 10:43 PM

I met a guy once (back in 1987) who was only 24 and had a Porsche 911.

All of us were stunned...how the hell did he do it? What drugs did he sell?

Easy. Well...not "easy", but "fricking hard slog".

He said he had always dreamed of owning a 911 since he was a kid. He knew he would never afford a new one, but he wanted one...any one.
So when he left school at 15 (like most people did back in the seventies unless they were going to uni), he worked hard at two jobs...day time as a brickies labourer, and nights in a take away store. He said he didn't go out, rode a pushbike, and didn't even have a steady girlfriend until he was 21. He sacrificed, drove mum and dads car if he needed a car, lived at home, and worked like a bastard, putting every cent he had into the bank. He didn't drink, gave up smoking, and only rarely went out when it was somewhere free.
He finally purchased a slightly tatty but mechanically good 1972 911 when he was 23, spending every cent he had and going into hock for a few thousand. He paid off the loan, got the car painted by a friend who worked at a panel beaters (an apprentice who talked the boss into doing it as part of his training), and fixed the bits that needed fixing.

Then he could start to live life properly...with a 911 in his driveway.

Nothing is easy...I sometimes wonder if he still has that car. I'm guessing he still does.

flappist · 28-09-2012, 10:52 PM

I knew a guy in Maryborough who had a Rolls Royce at 19. Same story as above, he worked his bum off to pay for it and even though is was about 2000 years old it was a ROLLS ROYCE.

There is not enough space on this server to fit the number absolutely stunning young ladies he was "friendly" with. If you google "style" you will get a pic of him......

zilo · 29-09-2012, 12:21 AM

The common theme seems to be:-

People who only have a small pile of money will happily spend the entire pile and then borrow more to get a car they can't afford.

People who have a big pile of money will not reduce their pile simply to get an assett that is non performing.

It's a cycle of poverty stimulated by recurring debt.

The original thread poster simply has to decide which group he wants to be in....

Buntz · 29-09-2012, 12:26 AM

Quote:

Originally Posted by 2011G6E

I met a guy once (back in 1987) who was only 24 and had a Porsche 911.

All of us were stunned...how the hell did he do it? What drugs did he sell?

Easy. Well...not "easy", but "fricking hard slog".

He said he had always dreamed of owning a 911 since he was a kid. He knew he would never afford a new one, but he wanted one...any one.
So when he left school at 15 (like most people did back in the seventies unless they were going to uni), he worked hard at two jobs...day time as a brickies labourer, and nights in a take away store. He said he didn't go out, rode a pushbike, and didn't even have a steady girlfriend until he was 21. He sacrificed, drove mum and dads car if he needed a car, lived at home, and worked like a bastard, putting every cent he had into the bank. He didn't drink, gave up smoking, and only rarely went out when it was somewhere free.
He finally purchased a slightly tatty but mechanically good 1972 911 when he was 23, spending every cent he had and going into hock for a few thousand. He paid off the loan, got the car painted by a friend who worked at a panel beaters (an apprentice who talked the boss into doing it as part of his training), and fixed the bits that needed fixing.

Then he could start to live life properly...with a 911 in his driveway.

Nothing is easy...I sometimes wonder if he still has that car. I'm guessing he still does.

That's some dedication to being a motoring enthusiast.

I don't think I would be keen on giving up some years that I could be spending with friends and family.

But then again, I'm probably not an enthusiast after all.

disco · 29-09-2012, 01:32 AM

Just read this whole thread and all the opinions, there's some very good advice on here.

I think this is what's going to happen mate - I think somehow, some day you are going to have a nice GT-P or even better, you know why? Cause you actually sound like a pretty switched on guy.

You have pride in your work, are loyal and considerate of your employer, you look after yr sick dad and have a plan. Importantly you actually came on here and were candid about your situation and asking for people's advice.

A lot of young fella's would have just gone out and got themselves into a serious amt of financial trouble (which is what this situation would lead to) thinking they are invincible and not realising things can go wrong, and circumstances do change.

Many here have given you great advice, take it in and learn from others experiences. What you're dreaming about is normal matey, we all like nice things and you shouldn't feel bad for wanting a nice 335 GT-P.

You will get one. It'll just be a matter of time and one day you'll be glad you ended up behind the wheel of your dream car the 'smart' way.

Good luck.

Dave.

OLDFORDNUT · 29-09-2012, 07:09 AM

My mates son who is 28 and working as an refridgeration aircon installer in W.A, mines just brought his dream car,bank said he could spend up to $100,000 personel loan seperate from his home loan(went halves with his mum on a new home this year)went and sat down with me over a coffee and said he could get the new GT-P but thought it was unwise so got a 2010 model 335 in his favorite colour for $54,000,he cant get the smile off his face and plans on having it paid off in 3 years, the thing is he is earning $200k a year and still would not buy new as he thought it wastefull.

jpd80 · 29-09-2012, 08:59 AM

Quote:

Originally Posted by OLDFORDNUT

My mates son who is 28 and working as an refridgeration aircon installer in W.A, mines just brought his dream car,bank said he could spend up to $100,000 personel loan seperate from his home loan(went halves with his mum on a new home this year)went and sat down with me over a coffee and said he could get the new GT-P but thought it was unwise so got a 2010 model 335 in his favorite colour for $54,000,he cant get the smile off his face and plans on having it paid off in 3 years, the thing is he is earning $200k a year and still would not buy new as he thought it wastefull.

If you don't want/can't afford to to buy new, then the next best thing is to be an enabler for those who can.
Buy a near new GT for higher than dealer trade in price off an owner looking to upgrade or buy new.
I would sooner see entry buyers and fellow enthuiasts supporting each other than letting dealerships cash in..

Perhaps this is key, geting people into clubs and associations and using the filter down process
of furthering the enthuiast group and enabling the new car buyer members to perpetuate.
Eventually some buyers will climb the ladder and become new car buyers too.

Chrisosicko · 29-09-2012, 09:19 AM

Unless ur in good financial position stay far away from a 70g loan. The loan repayments are only half of the equation. On my 2012 gt petrol alone is over $100 a week. Not to mention the maintenance side of thing. Tyre 300 a corner is being very modest. And don't even get me started on the brembos. I'm only 23 and insurance through just car is the cheapest u will get at 50 week

SXR6 · 29-09-2012, 09:28 AM

Keep your head down tail up. Work. You'll get it one day.

I finished school in 2002. Got my first job and always wanted an XR8 but couldnt afford it so I made do with my first 'expensive' car which was an AU XR6. which was traded on a BA XR6T. which eventually then traded on my 'dream car' BA XR8. Ended up being 26 yrs old with a car worth 25k and owed me over 35k. But I had my car!! lol.
So got comfortable with the XR8 and started making double payments to **** off the loan and get back in front. Paid the car out.
Saving for a house deposit ended up spending the deposit on a skyline lol. oops. (car is an investment though, rare kind of skyline)

Im in a similar job as you but work in telco, was on similar coin. Work at it mate, people will notice. I got head hunted from a job I did in qld. Some big wigs spotted it, liked it and wanted the guy who did it. I get a phone call. My wage trippled over night.

Im 27 now have a mortgage and just got myself a FG GT(not a 5L but still I dont care its a GT!). Have ALOT of toys and a ****ed off mrs and alot of debt hahaha. But its well worth it. I dont want to be 50-60yrs old before I can afford my toys and be almost too old to enjoy them.
Having said that I havent got kids yet. So Im enjoying life while I can ha.

H.G · 29-09-2012, 10:50 AM

what annoys me is that now I have very little money.. I can get finance rather easily. but when I had a truckload of cash.. I couldn't get a loan to save my life.

blueoval · 29-09-2012, 11:17 AM

Quote:

Originally Posted by H.G

what annoys me is that now I have very little money.. I can get finance rather easily. but when I had a truckload of cash.. I couldn't get a loan to save my life.

To put it bluntly:
That's because the banks don't like people like that. They make money off people who struggle to pay the bare minimum and who 'want it now', rather than someone who has the cash to write off a loan when ever they want. They don't make money that way.

Banks are opportunists to the have nots and would rather be in control of those who don't have control of their finances. They have no interest in those who do.

Interest free loans are a massive target for the have nots. The 'you deserve it' catch phrase is there to fool people who don't have the funds to pay cash for it, or who are poor at controlling their finance. 'Yes sir, we can offer you finance, no interest, no deposit for 24months, sign here', and then BAM, you don't read the small writing where it says if you don't pay the minimum off, you will be hit with 30% interest calculated daily. Making an expensive purchase cost you more than double by the end of the term.

I hate loans, I have learnt the hard way and it was a bitter pill to swallow. I have learnt, that if you CANNOT afford to make MORE than the minimum payments on a loan or at least get some form of tax benefit, you will be a slave to the system.

over

FPV_Steve · 29-09-2012, 06:41 PM

I am one of those young guys who took out a loan to buy my first car. Got the F6 Typhoon while I was young (23yr old at time of purchase) because I am still living at home and I had access to cheap insurance through work.

After 1 1/2 years, I've nearly paid back all of the $35k I borrowed and will probably be looking at $3k in interest paid for the loan. Pretty happy with that considering the enjoyment I get from driving the car. Don't regret the purchase or the loan for a second.

All of this has been on a wage very similar to the OP, so if I was the OP and really REALLY wanted something different, then aim for no more than $35k on a loan. Should take 2 years to repay.

But having said that, I am also annoyed that I don't have anything saved for a house deposit just yet.

gtfpv · 29-09-2012, 06:42 PM

well i haven't read all of the posts here but most of them , and i am SURPRISED people dont think THE OP is in a good position .
HE lives in a town where a decent house costs $200 000, HE IS ON A SECURE $630 PW NET , NOT PAYING rent OR mortgage !!!!!
has a savings plan and account ....
HAS GIRLFRIEND with A hoooouse !!!!!!
AND IS THE SOLE BENIFICIARY . of a house where he lives with a sick parent .
HAS a 2005 V8 XR8
and only a 27k loan FFS !!!!!!

THIS GUY CAN AFFORD IT !!!! in fact when he is 40 !!! HE MIGHT LOOK BACK AND SAY TO HIMSELF F ME !! what was i worried about i should ve bought the GT !!!! ( but that is just a maybe )

MY advice though !!! hang off; in less than a decade , you'll probably be giving advice here . that others can only hope to aspire too LOL !!!!!!

grandpa_spec_F6 · 29-09-2012, 08:19 PM

Quote:

Originally Posted by XARATE

The question stands though. How do you guys do it? Im a qualified auto elec which is ment to be a well paying job?

Time for some home truths.

I did earn a fairly decent pay packet, wanted to reduce my tax by salary sacraficed a car, biggest mistake of my (financial) life.

Thought I could afford it, told myself 'you earn enough, and it's your hobby'... I bought with my heart and not my head, also didn't seek a financial advisor and instead saw an accountant who said "if the figures stack up go for it!"... well... they didn't... and signatures everywhere mean it's a one-way street, can't back out.

I'm down nearly 1/3 of my 'normal' pay packet and on top of that I went back to my substantive position which means another $100 less a fortnight.

For what I'm paying I could have put down a fair chunk on a house, and this continues for another 4 years as it's a lease.

Don't get me wrong, I love it to bits, I'm extremly grateful to even be in a position that enables me to enjoy driving a car like I have... but in hindsight I'd rather be like my mates who now have houses and drive AU Falcons.

XARATE · 29-09-2012, 08:45 PM

Quote:

Originally Posted by gtfpv

well i haven't read all of the posts here but most of them , and i am SURPRISED people dont think THE OP is in a good position .
HE lives in a town where a decent house costs $200 000, HE IS ON A SECURE $630 PW NET , NOT PAYING rent OR mortgage !!!!!
has a savings plan and account ....
HAS GIRLFRIEND with A hoooouse !!!!!!
AND IS THE SOLE BENIFICIARY . of a house where he lives with a sick parent .
HAS a 2005 V8 XR8
and only a 27k loan FFS !!!!!!

THIS GUY CAN AFFORD IT !!!! in fact when he is 40 !!! HE MIGHT LOOK BACK AND SAY TO HIMSELF F ME !! what was i worried about i should ve bought the GT !!!! ( but that is just a maybe )

MY advice though !!! hang off; in less than a decade , you'll probably be giving advice here . that others can only hope to aspire too LOL !!!!!!

Haha thanks mate

reading like that makes ne realise i do have it pretty good. I'll doing what ive been doing for the last 12months but i'll also change a few things.

I'll stop buying lunch for work (i do it twice a week) and on top of that i'll throw another $100 a week at my loan.
My loan is unsecured and varible rate which means i can withdraw any extra i pay onto it. Should i lock it in and lose the withdraw option or keep it unlocked (for withdrawing in emergencys) and cancel my credit card thats there for emergencys?

People are also Suggesting buying a cheap runabout to save on fuel. I had that though a month ago and bought a good vr commodore ute but at the same time my partner got her p's (about frikin time too) so my fuel usage dropped from one tank a week too around a third a week. So adding rhe cost of anothers cars rego, insurance and running cost (services and parts) the ute was deemed to be a bad decision and i sold it on and made a profit

XARATE · 29-09-2012, 08:46 PM

Ps my partner and i have been $40 away each every week since march for a holiday and my god it adds up fast!!!

gtfpv · 29-09-2012, 10:11 PM

Quote:

Originally Posted by XARATE

Haha thanks mate

reading like that makes ne realise i do have it pretty good. I'll doing what ive been doing for the last 12months but i'll also change a few things.

I'll stop buying lunch for work (i do it twice a week) and on top of that i'll throw another $100 a week at my loan.
My loan is unsecured and varible rate which means i can withdraw any extra i pay onto it. Should i lock it in and lose the withdraw option or keep it unlocked (for withdrawing in emergencys) and cancel my credit card thats there for emergencys?

People are also Suggesting buying a cheap runabout to save on fuel. I had that though a month ago and bought a good vr commodore ute but at the same time my partner got her p's (about frikin time too) so my fuel usage dropped from one tank a week too around a third a week. So adding rhe cost of anothers cars rego, insurance and running cost (services and parts) the ute was deemed to be a bad decision and i sold it on and made a profit

well currently mate , your young , you have no problems with your current scenario.
you will not get 18 000 for a 2005 XR8 . thats what i got for my 2005 GT .
KEEP THE XR8 , and pay as much as you can off the loan .

Olbucko · 30-09-2012, 11:59 AM

Quote:

Originally Posted by Silver Ghia

Keep the XR8.

My motto with buying cars: If I cant pay cash for it, I cant afford it.

Loans for cars are money pits, as mentioned above. I've never taken a loan out for a car, besides I've never leased one either, in about 40 years and buying about 5 new cars plus second hand ones over that time.

My rule to! and it feels good to have saved the money and pay cash for a new car and you have much more bargaining power with the dealer

How could you afford to service a $27,000 loan + a $50,000 loan, you would have about $30 a week left to spend! How would you be able to afford the $4,000 dollars for rego and ins per year, let alone petrol and serviceing costs.

I would rather drive a battered Stigma that I owned than be hocked up to the eyeballs with a car loan.

KIWI-1 · 30-09-2012, 12:52 PM

Reading your last post, and the many sensible things you have done so far, I can't imagine you'd be stupid enough to borrow the $70k.

MonsterFG T6 · 02-10-2012, 12:26 PM

Quote:

Originally Posted by XARATE

Selling the xr8 and getting a 25k turbo would leave me with around a $35,000 loan, proabably doable but i dont want a 6cyl lol

Lol I suggest you drive the FG xr6t first hips of fun and NO GT quicker than you only slight difference would be from 80/120kmh but it is so small that in the end GT owner will be so ****ed, no offence but dont discount it just for the number of cilinders and as far as your situation I'd say drive the XR8 and put $50 extra a week on your personal loan that way you will shorten the time of of the loan and in turn it will increase your buying power otherwise you"ll get yourself in a real mess. I did the same well I had to due to shody dealer at Stillwell Ford years ago.

leighm · 02-10-2012, 01:26 PM

Quote:

Originally Posted by XARATE

Haha thanks mate

reading like that makes ne realise i do have it pretty good. I'll doing what ive been doing for the last 12months but i'll also change a few things.

I'll stop buying lunch for work (i do it twice a week) and on top of that i'll throw another $100 a week at my loan.
My loan is unsecured and varible rate which means i can withdraw any extra i pay onto it. Should i lock it in and lose the withdraw option or keep it unlocked (for withdrawing in emergencys) and cancel my credit card thats there for emergencys?

People are also Suggesting buying a cheap runabout to save on fuel. I had that though a month ago and bought a good vr commodore ute but at the same time my partner got her p's (about frikin time too) so my fuel usage dropped from one tank a week too around a third a week. So adding rhe cost of anothers cars rego, insurance and running cost (services and parts) the ute was deemed to be a bad decision and i sold it on and made a profit

Good thinking. Debt free is a lot more stress free. Your withdran option and credit card are only problems if you use them. If you don't use them and they don't cost you anything to have then keep them. If they both server the same purpose, you don't use them but they are costing you money then lose one of them.

pottery beige · 02-10-2012, 05:57 PM

Quote:

Originally Posted by MonsterFG T6

Lol I suggest you drive the FG xr6t first hips of fun and NO GT quicker than you only slight difference would be from 80/120kmh but it is so small that in the end GT owner will be so ****ed, no offence but dont discount it just for the number of cilinders and as far as your situation I'd say drive the XR8 and put $50 extra a week on your personal loan that way you will shorten the time of of the loan and in turn it will increase your buying power otherwise you"ll get yourself in a real mess. I did the same well I had to due to shody dealer at Stillwell Ford years ago.

we have racing back in radelaide bro.. why dont you head out to the track where the real racing happens............

2011G6E · 02-10-2012, 06:50 PM

Quote:

Originally Posted by Buntz93ED

That's some dedication to being a motoring enthusiast.

I don't think I would be keen on giving up some years that I could be spending with friends and family.

But then again, I'm probably not an enthusiast after all.

Hey...you want the Porsche in the driveway or not...?

Be it for your first car or that dream car later in life, there's going to have to be hard choices and sacrifices made.

jamesson1980 · 02-10-2012, 06:56 PM

Someone on the first page posted a link to a supercharger.. That is the seed of a good idea for your situation.

You may not want/need a supercharger exactly, but if you save a little bit in the coming weeks/months, do some little modification or improvement to your XR8 you will get that feeling of novelty or something new/different (which I know all about from when I was younger), which might lead you to discover a new passion for your XR8 and cull your desire for something newer/better/faster.

I was in a similar situation, I have my FG XR6 which is paid off but I really wanted to upgrade to an XR8. I didn't really want to go into debt again so I saved a few bickies, put the XR8 bonnet on, had a sunroof installed and some dark tint and my little pea brain has been satisfied ever since with my born again XR6

F6 Dan · 02-10-2012, 10:28 PM

Save save save !!! And pay back your loan ASAP - best advice I can give.Turned 40 this year , have had my own business 5 years have worked really hard , 5am starts for 12 years and the feeling you get from paying cash for something or owning it outright is what it's all about. Work hard to enjoy the things that mean the most to YOU not what anyone else thinks . Good luck

Ps hope your Dad gets better soon

Now back on topic

nstg8a · 02-10-2012, 10:42 PM

I've got a mate of mine who really should have read this thread 18 months ago.

He came round the other day asking if he could store his xr6t in my garage for a few weeks, turns out he's in deep do do debt wise, there's a repo order out on his car, and he's out of ideas on how to get out of it.
From what I can work out he owes something like 35k on his car, which at best is worth 20ish. Plus he's got loans, credit cards, all the usual nasties. He thinks he's close to 100k in debt and he earns 40k a year.
So selling his car isn't an option, because he won't get enough to clear the debt, obviously now he's defaulted on payments no one would lend him money, and I hate to think what the payments would be on a 100k personal loan anyway.
He's talking bankruptcy could be his only Option.
He thinks keeping the car as long as possible gives him leverage over the finance company but I think he's just making it worse.
It's just too easy to get finance these days IMO.

**Professor Farnsworth** · 03-10-2012, 12:44 AM

finance can be a very evil mistress to those who approach it blindfolded

Keepleft · 03-10-2012, 07:09 AM

Quote:

Originally Posted by SXR6

I dont want to be 50-60yrs old before I can afford my toys and be almost too old to enjoy them.

Oi - don't knock oldies of 50 (I approach that), as we too can still get out and enjoy our toys. Sure, we may weave around a little and come close to sideswiping you or running you down at shopping centres, but still . . . . .

Quote:

Having said that I havent got kids yet. So Im enjoying life while I can ha.

Kids will take your time, your time will not be your own anymore, you will learn this and will learn to be patient and to save $. Wifies - often require much help too.

Besides being very, very old - I have a 28yo wifie and 3 kids, and life insurance:-)

I'll be 70 one day and will cackle with delight as I pass an HWP in the NT at top speed in the derestriction zone - cept owing memory fatigue,- will come to realise that derestriction had ended some 22 years earlier!! Least I'd have 'enjoyed'. Mutter mutter cackle....

Quote:

Originally Posted by Professor Farnsworth

finance can be a very evil mistress to those who approach it blindfolded

Some kinda expensive lady of the night eh? Looks great on the outside, but in?! Not so much....

2011G6E · 03-10-2012, 08:50 AM

Quote:

Originally Posted by Professor Farnsworth

finance can be a very evil mistress to those who approach it blindfolded

Truer words were never spoken...we have a GE Creditline card just for emergencies (last time we used it was to buy a washing machine when ours crapped itself and we didn't have the readies lying around to buy it). The trick with them is to pay more than the "minimum" amount, which was $40 a month. Then we got a letter a week or so ago proudly saying that now the minimum was only a low low $25 a month!!
Of course, this probably means that you will never catch up to paying off the principal and interest, and will be paying for decades to come...but I believe that's the idea...

Quote:

Originally Posted by SXR6
I dont want to be 50-60yrs old before I can afford my toys and be almost too old to enjoy them.

Hmm...there's no easy way to say this, so I'll say it...

Welcome to the real world.

I remember back when I was 17 and starting out, we would see "old guys" driving things like Fairlanes, Statesmans, European cars, and we would all whinge and say "How come only old people (from our point of view, people over 50...

) drive those things?? It's not fair...us young guys would get more fun out of them!", and I stil remember thinking it every time I saw some old guy driving a Porsche or other high end HSV or FPV vehicles before I came to my senses.

I'm 47, and last year we bought our first brand new car, a $47,000 G6E. That price would have been staggering to my younger self if I could see me now, but we not only had to wait until I had a better paid job, but until the kids were all grown up and off our hands and we owned a house and other priorities first.

If you want that brass ring, you're going to have to be prepared to wait...but you don't have to...you can go ahead, find a friendly finance guy, and get that crippling $70,000+ loan right now...you'll have the expensive car of your dreams, but probably won't be able to afford to drive it very often because of the repayments and also insurance which will hammer a young driver with a premium car...

Wife and kids?
If I look back to when I was eighteen when I got married (yes yes...if I was a murderer, I'd be free by now...

), I could have forgotten the girlfriend and spent all my money on myself by buying the new car of my dreams at the time...which was a Fairmont Ghia ESP 351 with four speed and all the options. I would have had an expensive car that none of my mates at work could hope to afford, a car we usually only saw "old guys" driving who "wouldn't appreciate it as much as us young blokes". I wouldn't have had a wife and three kids sucking away my time and money from my dream car...

....But I know which one I would rather have now...I'd rather be that 47 year old guy with a great wife and three grown up kids and little grandkids who has only just now managed to purchase a brand new car (and motorbike a couple of years ago) that are exactly what I wanted, the way I wanted them, instead of just having to accept whatever is on the second hand car lots...

AU Mont · 03-10-2012, 09:16 AM

Quote:

Originally Posted by jamesson1980

I was in a similar situation, I have my FG XR6 which is paid off but I really wanted to upgrade to an XR8. I didn't really want to go into debt again so I saved a few bickies, put the XR8 bonnet on, had a sunroof installed and some dark tint and my little pea brain has been satisfied ever since with my born again XR6

pouring more money into a car on mods that you are already seriously thinking about selling is not a good idea at all.