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

[XARATE]

Ok this is going to seem like a stupid question, but how do some of you guys go about getting finance for a new car?

Im looking at getting a second hand FG 335 GTP in white with a six spees manual, but im looking at the financial aspect and i cant understand how i can get such a loan with any real assests. I hoping someone can advise me on if my financial position looks good from a banks view. I dont want to go for a loan if im going to get knocked back.

I currently have a 6speed manual 2005 ba xr8 which i could sell privately for around $18,000 and my really my only other assests of any value is approx $10,000 in tool/toolbox.
I also earn $630 a week after tax (auto elec same employer for 5 years) with $200 a week going towards a personal loan of $27000 over the next 5 years (car and medical bill)
Ive got no rent to pay as im at home looking after my sick father and i have a perfect credit rating (one credit card thats emergencys only and two previous loans payeed of well before that were due)

My xr8 is getting a bit on and want something with bigger balls, more stopping power and more modern, i feel i can afford to buy a FG but what do you guys think? Will the bank be in my favour? Im told by people i work with that i may not earn enough?

[zilo]

mate, please don't do it, cars are money pits.

IMO your finances look like a train wreck about to happen....

[FALCONXTV8]

To be honest I wouldn't think you would be able to get that big a loan based on your income and assets.

For example: for a 60k loan over 5yrs at 8% you will be looking at over $1200 a month, When you factor in other costs such as rego, fuel, insurance plus your other expenses it just doesn't add up unfortunately.

Maybe wait a bit longer until 335 prices drop.

[tex]

the repayments on a 50k+ vehicle will be crippling.

I don't think the numbers will stack up in your current situation.

[PridenJoy]

I think you should look into buying a property before spending that much money on a car. If you already had a house with $100k equity, I would have said if you really want a 335 then go for it, but looking at your post, I think you should have other priorities than a flashy car. No offence.

[Ford_The_Win]

IMO drive the XR8 till the wheels fall off and save the cash to buy a house or something that you can make money off.

[flappist]

Originally Posted by XARATE

Ok this is going to seem like a stupid question, but how do some of you guys go about getting finance for a new car?

Im looking at getting a second hand FG 335 GTP in white with a six spees manual, but im looking at the financial aspect and i cant understand how i can get such a loan with any real assests. I hoping someone can advise me on if my financial position looks good from a banks view. I dont want to go for a loan if im going to get knocked back.

I currently have a 6speed manual 2005 ba xr8 which i could sell privately for around $18,000 and my really my only other assests of any value is approx $10,000 in tool/toolbox.
I also earn $630 a week after tax (auto elec same employer for 5 years) with $200 a week going towards a personal loan of $27000 over the next 5 years (car and medical bill)
Ive got no rent to pay as im at home looking after my sick father and i have a perfect credit rating (one credit card thats emergencys only and two previous loans payeed of well before that were due)

My xr8 is getting a bit on and want something with bigger balls, more stopping power and more modern, i feel i can afford to buy a FG but what do you guys think? Will the bank be in my favour? Im told by people i work with that i may not earn enough?

You cannot afford it. The monthly payments will be more than you earn.

[Dave R]

If I were in your position I'd take out a more reasonable $25k for a used FG XR6 Turbo.

[Buntz]

Originally Posted by FALCONXTV8

To be honest I wouldn't think you would be able to get that big a loan based on your income and assets.

For example: for a 60k loan over 5yrs at 8% you will be looking at over $1200 a month, When you factor in other costs such as rego, fuel, insurance plus your other expenses it just doesn't add up unfortunately.

Maybe wait a bit longer until 335 prices drop.

That's the real killer... planning out something that you can seem to afford... but then with all that other stuff you need, it's not such a pretty situation.

I'm having to live with less after buying my car. And the adjustment isn't fun, in fact it sucks having to be sensible.

[XARATE]

Awesome, thanks for the replys guys. I had the idea that my income was probably a bit low but i wasnt sure how low as ive never seen the figure for a large loan and the required income.
Im glad theres people here that talk sense (im only young i need all the advice i can get lol)
Ugg my finances at the moment are fine. Ive got a homelian savings accound thats not accessable untill a set amount is reached and im pauing off my current loan alot quicker than need be and im still very comfortable at the end of each week.

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

[SteveJH]

Originally Posted by Adrenaline

If I were in your position I'd take out a more reasonable $25k for a used FG XR6 Turbo.

Or just keep the XR8 and pay off the $27,000 he already owes before getting another loan.

[DABOSS]

Mate never take a loan for any kind of depreciating asset.

Your young right save your hard earned cash , set yourself a simple savings plan ie auto debit into a high yield account and then place that cash towards property as an investment.

Because In this country, you gotta make the money first. Then when you get the money, you get the power. Then when you get the power, then you get the 335.

The average weekly income is now around 1000 bucks so 630 after tax your a little ways off my friend , and no way am I putting u down just facts. More OT required if you want this 335.

[nstg8a]

I would have thought an auto sparky would earn more than that, I earn more driving a forklift all day.

I'd agree with the above, smash your existing loan first, then worry about a new ride.

Selling a ba xr8 for top dollar won't be easy these days, might as well enjoy it and drive it till it dies.

[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

[SteveJH]

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

Unless there is a reason beyond "I want a newer one" for selling the XR8, hold onto it and pay down that loan, you will be able to save much more quickly without its high interest rates eating away at your income.

Remember that a $27,000 loan is actually more like a $40-50,000 loan once you take interest into account.

[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.

[OffRoadFalcon]

I'll say don't do it as well.
Repayments will be huge, the interest will be huge, and it just won't be worth it in the end.
If something went wrong, bye-bye everything. It's a huge risk.

Seen and heard of people do similar things over and over before, sometimes they are lucky, often not.

This is why I always say: Don't buy anything unless you HAVE the money NOW or are CERTAIN (with no risk of something not working out) you will have it soon.

[lucas2]

Try this instead:
http://www.herrodmotorsport.com.au/H...8/Default.aspx

[dave351cid]

borrrowing that much for a car would scare me.

it sucks but if you want a new GTP then you had better start looking for a job in the mines or big industry. shop wages dont stretch that far.

thats why i`m still driving my 9 year old Egas BA ute.
concentrate on paying off that $27000 as quick as you can and maintain your XR8 and it will serve you well.

[tregs]

Keep your car and save your money mate when your debut free keep saving and buy a house first cars are a waste of money .

[blackf6]

Wooh man, first thing I would be doing is asking for a pay rise and then maybe look at getting another job. And the way you get a loan without assets is called an unsecured loan where the vehicle becomes your security, but it is owned by the finance company till the loan is payed.

[zilo]

Originally Posted by XARATE

Awesome, thanks for the replys guys. I had the idea that my income was probably a bit low but i wasnt sure how low as ive never seen the figure for a large loan and the required income.
Im glad theres people here that talk sense (im only young i need all the advice i can get lol)
Ugg my finances at the moment are fine. Ive got a homelian savings accound thats not accessable untill a set amount is reached and im pauing off my current loan a lot quicker than need be and im still very comfortable at the end of each week.

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

Your mistakes are....

(a) you run a V8, you can't afford to run it on your pay...get rid of it, downsize
(b) I bet you can't afford to insure it at your age
(c) you should be saving every cent cause worse times ahead..seriously
(d) you'll wake up soon and realize you're 30 years old and just have a car..nothing else

If you want it all up front then most of your adult life will be spent in catch up mode...just as you finish paying that V8 off it will be a pile of crap with a zillion k's on the clock and you need to borrow for another one...and spend a lot of your pay in interest all your life.

Save up and pay cash!

[Phildo]

Well, seeing as everyone else is lining up to shoot your dreams down I'll get in line and have a go as well.

Originally Posted by XARATE

Ive got no rent to pay as im at home looking after my sick father

This bit got my attention. Your living costs are very low now, but you're looking at a five year deal with the finance. What happens if/when your living costs increase? Which they will...

You meet a girl... want to shack up with her...

You and your father have some big argument and you both need breathing space for a few months...

Your father passes away and you have to find other accommodation as the house gets sold...

Your father gets worse, goes into hospital long term and the house needs to be rented out at full market value to pay for medical expenses.

Sorry for the negative suggestions. But, not considering possible negative outcomes is what gets people into a heap of grief when there's finance involved.

If you really need a stepping stone then consider a BF XR6 Turbo.

Alternatively, save up cash and buy things secondhand as they come up and do your car up. Wheels, brakes, interior stuff, engine stuff, etc, always come up for sale on these forums at good prices. You could throw five grand at it that you'll never get back, but that's still less than the 20 grand that you'll throw away in interest and depreciation costs on a financed car.

Meanwhile, one Powerball...

[gcg2503]

It's all about priorities and delayed gratification.

Repay your debts.

Save some money for a decent deposit.

Buy a home. Sooner rather than later.

Then when you can, treat yourself to that flash car.

No point having 1-25 cars if they are parked at your parents or landlords house.

[ovaxitd]

or more sensible again if your over the xr8 sell it and buy a cheap runner- less servicing, dropsyour loan from 27 to 10, pay less intrest which gets it paid off even quicker again.
have no loan debt and can start saving quicker.. a ***** load quicker... yes you might not have a toy for a while but its the long term you gotta look at.

most people on here have at one stage had to sit tight and deal with what they had- i myself had a septic that was needed more than a car, 3 years later i could get a nice car- but now i need to start building a house so its going to get sold again as you gotta focus on priorities

once i have a house paid for in cash then its toys time again

sometimes you gotta make sacrifices ;)

best of luck

[AndyXR6T]

Mate hit your boss for a pay rise, buy a house. You will be looking at least $500 a week for a house around $350k (which won't get you much of a house anymore lol). In 5 years time if your doing good financially then look at buying a newer car

[jpd80]

Unless you can afford to pay cash for a new GT, don't even entertain any thoughts of finance.
Not only does it lose value every year but you're stuck paying interest on those losses.

[Black F6]

Could get hit by a bus tomorrow, do what makes you happy, life is too short

[jmack]

cash is the only way to go,my motto is anyone can afford the first repayment to drive around in a new car but its being able to afford the last that counts.people getting their capabilities mixed up with their possibilities

[EB#]

Originally Posted by Silver Ghia

Keep the XR8.
My motto with buying cars: If I cant pay cash for it, I cant afford it...

+1
Just pay off your current loan ASAP would be my advice.