What hope do they have with a parent like that?

[Simon]

I'm reminded of my first car - a $220 Valiant sedan.

I had a VC Valiant when I commanded my own squadron of 130 odd soldiers in the Army. Mine was the oldest and cheapest car in the car park (in the best parking spot too). Some people got the point when I told them about my feelings on debt - most didn't.

I sold it at a profit when we moved OS. Sorry to see it go - esp as retro is back in

 

[lizzie]

This is why I aspire to the view that it is good for kids to learn the value of money for themselves by working and saving for things, not being handed them on a silver platter.

again - this comes down to the way they are taught, rather than just handing them stuff. for our just-3yr old we are going to buy a unit for her future when she turns five, but rest assured, she will be thoroughly taught the value of money and how she has to be smart about it. and that she has to give back to society.

 

[skater]

I don't know Lizzie, sometimes it comes down to the way they are taught & sometimes you just have to let them do things themselves to really appreciate something.

My two daughters are teenagers now, and they both have jobs. I have noticed that they are more protective of the "stuff" they have paid for themselves.

We don't intend to give them anything (large, like real estate) but will be more than happy to guide them on their own journey & to help in other ways. I feel this way they will learn their lessons & be self sufficient earlier than if they just learn that mum & dad are there with a hand-out whenever they want it.

 

[units4me]

1HO, I don't reckon that the girl is being over extravagent in a new $19000 small suzuki. It could be an important lesson for her in budgeting anyway.

Also, all new cars now come with a 3/5 year warranty because she may not be mechanically minded.

Anyone like to guess what a new engine or transmission in an old Honda or Hyundai cost?

 

[alwayscurious]

Heave sigh

My brother in law did exactly this.

Young. (23's) Married. one child. Low - middle income.

Had reasonably if ugly Camry (No power steering) to drive.

Were also talking buying a house at some stage in future.

Were thinking brand new ($30k) all wheel drive car.

We encouraged them to go to auction & get decent, already depreciated, second hand car, maybe 2-3 years old, and pay cash or BANK loan at most.

Found out today - brand new KIA, on HIRE PURCHASE (ie DEALER $$$ Finance) which is about the most expensive way to purchase a car.

Makes me sad. Still, they are young. They will learn for themselves.

But then again, maybe they won't.

We made stupid mistakes - plenty of them. Have been quite lucky and gifted with wise friends and the ability to listen, really.

It is so much less painful learning from other people's mistakes than your own.

Methinks they look at where their parents are (now retired with plenty of super & assets, can afford new cars / caravans etc)

Sigh. Sigh Sigh.

I guess they can kiss buying that home goodbye for a few more years.

 

[lizzie]

sometimes it can also depend on who your partner at the time is. my ex husband used to have to have the latest and great car every 2 years and loved big game hunting in other countries (very expensive for a stuffed head on the wall) - needless to say he was high maintenance to keep and we barely had a brass raso left over at the end of each month.

in hindsight, best thing that ever happened when we separated ... instead of 11 properties and being able to stay at home i'd have been driving a flash red sports car to my mundane and despised, but well paying job, every day.

 

[perky29]

Agree there lizzie.
My wife is a very good saver, always has been. She was taught that by her parents.

My mother and father taught myself and brother how to save from an early age. But they were not savvy. It took a booming 1988 housing market for me to see what property can be like - by that time my mum and dad had divorced and my uncle's (on my mothers side) terrace in Sydenham had gone from 53k to 110k in 18 months.
I was encouraged by Uncle and Mum to buy a property - and after seeing a friend at similar age buy in Newcastle we drove up and pretty much bought the 1st house we saw in Waratah - a shop that paid most outgoings etc and had fairly good rent for 79k.
I was 21, my brother 19 - he had to be dragged kicking and screaming into it, but I got my way in the end.
We paid about 2300 per month into it, when interest rates were up to 17% - paid it off after just 4 years.
In the meantime my fiance (soon to become wife)and myself bought our 1st PPOR with money saved by her, and the sale of my V8 Commodore.
10 months later we had to sell for the sake of my brother and fiance, they had no savings and wanted that dream house 2km's away from us (to get one up on us I would imagine). Anyway, they still live there, their house is worth a similar amount to ours (we have since moved into the hills district) - but they owe around 350k and we owe nothing on ours.
So parents can help nuture a certain attitude to investing - but if your partner thinks differently it can easily make that whole thing unravel if you dont watch out!!

 

[kathryn d]

My fiance (husband 12 days later) picked me up at Melbourne airport. Went to his car. I thought I was back in my teen years. It was a 1971 Holden (which looks very much like a Charger to me)A multitude of tan/gold tone paint.
He didn't believe in spending much for a vehicle.Thrifty I thought, this is good.
After 2 1/2 months and getting everything sold we were ready to fly back to Canada. The morning we were to leave he threw his bicycle in the trunk (boot) and headed off.Sold his car for $200 and rode his bike back to the house and off to the airport we went.
When we return to Aus I told him I never want a new car, but a little newer than his last?
BTW mine is a 1997 Rav so not new here either. I've had it 6 years.

 

[The Y-man]

Anyone like to guess what a new engine or transmission in an old Honda or Hyundai cost?

Reconditioned or straight second hand engine is not that expensive (my corona's engine was about $500). I discovered however, that FITTING the damn things is the expensive bit!! (cost more than the engine - be worse I imagine for the EFI engines with wiring harness, sensors etc etc.

Cheers,

The Y-man

 

[units4me]

I had to replace the V6 engine in the wife's car. Fortunately, the manufacturer replaced it under warranty (had it 5 years), but if not for that, I would of had a $9000.00 bill.
Still, I had to pay about $1400.00 for consumables (what the ?????) but I was just so rapt that I didn't have to pay for the engine.
$500.00 barely pays for a service on most modernish cars, let alone a new engine.
Not everyone has a mate that can/would do it for them.

 

[LucasK]

This is something I've noticed heaps of my friends doing, buying $15-20K cars when they dont even have money to spare.

I've got an even better strategy - date a girl who drives a nice car. Hey, why can't a guy be a golddigger for once?

 

[Pete]

pyrite

It might be Fool's gold.....

 

[Jindaro]

It's been great reading all your thrifty, money saving car stories and now I'll add my recent one.

I owned a '94 dual cab ford courier ute with 250,000km on the clock and knew it was going to require some major works within the next year or so (gear box, clutch, rings - yep, father was a mech. engineer and taught his daughter well )

I had the opportunity to purchase a '96 calais with 120,000 on the clock, immaculate condition (and I mean immaculate), all maintenance records included from a friends father.

Sold the ute for $5K, bought the calais for $8.5K and now know that the calais won't need any major works for another 150-200,000km. To me, that's a cheap swap over as I would have had to spend the same monies on the ute within the next few years.

Now I have a nice comfy car with all the mod buttons on it - heheh - only problem now is I have to use a trailer instead of piling stuff in the back of the ute. Gee I loved the ute!!!

 

[lizzie]

sharon - you should see the bottom of my corolla sedan. i have no idea how all that (&%%$ gets in my car as i only drive around the kids ...

... and paint and drop sheets and vacuum cleaner and hoses and scrapers and pavers and mulch and lawn mower ...

 

[skater]

sharon - you should see the bottom of my corolla sedan. i have no idea how all that (&%%$ gets in my car as i only drive around the kids ...

... and paint and drop sheets and vacuum cleaner and hoses and scrapers and pavers and mulch and lawn mower ...

This is something I can really relate to.

We have a Toyota Rav 4 which until recently was in a relatively good condition. Until of course it became the "work" vehicle. The lid came off a 6 litre tin of paint in the back of it & we had paint everywhere. It took hours to clean it up (thank God it was water based paint). There is still remains of paint in the back, on the mud flaps, it's even on the steering wheel. It really looks like a tradies car now.

 

[lizzie]

ooo yeh - gotta have the paint on the steering wheel! another reason i only by $20 watches from bigw - they always get covered in paint. should see my mobile phone - yep - paint.

 

[Oynas]

1st Home Owner, personally I don't think it's a good idea to go around telling other people how to spend their money. I have been there and done that. You should let people do what they want to do because different people have different values. Personally I wouldn't get married and have children in my 20s because children are depreciating assets with immense liabilities, but for other people they value children so it's not my right to tell other people how much they should value something.

 

[Corey Batt]

What the hell Oynas, this thread's last comment was in 2006.