When should I buy my first car?
- Thread starter beekay
- Start date
I used to drive a turbo Nissan Skyline R33... loved it, that was my dream car so to speak... bought it for 18 K back in 2006.
Over a month ago I put down 10% for my first home purchase, a nice new house in Melbourne's north west. I could have still kept my Skyline but with petrol becoming so dear, and cars depreciating so quickly, I decided to sell. Got just a tad over 13 K for it last month. Now I am saving to buy a 2006 Corolla... cheap, reliable and looks allright too.
Ill pay cash for Corolla and then just service my finance for the new house.
After 5 or so years I hope to maybe have enough cash to pay for a 2009 Nissan GTR, speaking of dream cars...
Your monaro is a dud mate, dont buy it... buy a corolla. But then again you probably need a life lesson so go ahead and buy it for 40 K then sell it next year for 30 K...
Over a month ago I put down 10% for my first home purchase, a nice new house in Melbourne's north west. I could have still kept my Skyline but with petrol becoming so dear, and cars depreciating so quickly, I decided to sell. Got just a tad over 13 K for it last month. Now I am saving to buy a 2006 Corolla... cheap, reliable and looks allright too.
Ill pay cash for Corolla and then just service my finance for the new house.
After 5 or so years I hope to maybe have enough cash to pay for a 2009 Nissan GTR, speaking of dream cars...
Your monaro is a dud mate, dont buy it... buy a corolla. But then again you probably need a life lesson so go ahead and buy it for 40 K then sell it next year for 30 K...
beekay
I was driving bombs worth about $3K when I bought them. They were drivable, and maybe didn't lose too much value. I didn't want to get into a loan to buy something exxy- but they were not the best cars, and perhaps not too safe.
But I found that, with a company structure, or support from an employer, I could get a fairly new car, with a "novated lease", which would let me run a car spending pre tax $$. (Thanks Dale!)- so it did not cost me very much more buying a relatively new car (with deductions) than an old bomb (with no expenses).
That suited my situation then- driving a lot of kms. It may not suit now. Especially as there have been a few budgets since. Talk to your financial person.
I was driving bombs worth about $3K when I bought them. They were drivable, and maybe didn't lose too much value. I didn't want to get into a loan to buy something exxy- but they were not the best cars, and perhaps not too safe.
But I found that, with a company structure, or support from an employer, I could get a fairly new car, with a "novated lease", which would let me run a car spending pre tax $$. (Thanks Dale!)- so it did not cost me very much more buying a relatively new car (with deductions) than an old bomb (with no expenses).
That suited my situation then- driving a lot of kms. It may not suit now. Especially as there have been a few budgets since. Talk to your financial person.
We got our brand new CRV in between our 3rd and 4th investment property. Before this we drove a 20 year old falcon. We waited and watched for years as all our friends bought their new cars. What changed...? We had a child and the desire for a safe car was on the top of our list of priorities. Next month we will be getting our second brand new car, the Tiguan. Even safer than the CRV.
We are by no means financially free.
IF you can live without it for the time being I would do that. Your goals are buying more IP so put all your money into that.
JMO.
Sandra
We are by no means financially free.
IF you can live without it for the time being I would do that. Your goals are buying more IP so put all your money into that.
JMO.
Sandra
Here's an interesting debate on the same issue. Variation on the same thing has been debated a few times.
I have come to the realisation that if I am to continue with the IP strategy that I have, the 1999 Holden Barina will have to do me for some time
Maybe one day, but I suspect by then, marriage & kids, will mean that the priority will be a vehicle that is sufficiently, safe, luxurious & well equipped for them comes first.
To be honest however, the feeling and the desire that I once had for a luxury car (SL500 is the one that I have a crush one ATM) has wained over time. Still would like one, but less important to me now that it was 5 years ago.
I have come to the realisation that if I am to continue with the IP strategy that I have, the 1999 Holden Barina will have to do me for some time
Maybe one day, but I suspect by then, marriage & kids, will mean that the priority will be a vehicle that is sufficiently, safe, luxurious & well equipped for them comes first.
To be honest however, the feeling and the desire that I once had for a luxury car (SL500 is the one that I have a crush one ATM
) has wained over time. Still would like one, but less important to me now that it was 5 years ago.
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Same goes for me Buzz. Used to dream about a nice BMW, but doesn't seem as important these days.
Guy in the shop next door to me just got himself a brand new BMW 5 series, and I just thought to myself "wow, so much money on a car!"
Safety is starting to be the bigger concern for me these days, and will most likely be what I look for in a car when I do eventually buy one. Life's too short, and I plan to live long and enjoy my wealth - too many idiots on the roads these days, not going to have it cut short by one of them!
Guy in the shop next door to me just got himself a brand new BMW 5 series, and I just thought to myself "wow, so much money on a car!"
Safety is starting to be the bigger concern for me these days, and will most likely be what I look for in a car when I do eventually buy one. Life's too short, and I plan to live long and enjoy my wealth - too many idiots on the roads these days, not going to have it cut short by one of them!
Same as Buzz and Steve. Used to dream of owning a BMW X5, but when we got our last car, hubby asked me if I wanted to go for the X5 - it took all of half-a-second to say "No".
If someone wanted to give me one, I would say "Thank you" ever so nicely - but I wouldn't spend my $$$ on one! 'Harry Huyndai' gets me from A to B just as comfortably - and costs a helluva lot less to run and service!
Cheers
LynnH
If someone wanted to give me one, I would say "Thank you" ever so nicely - but I wouldn't spend my $$$ on one! 'Harry Huyndai' gets me from A to B just as comfortably - and costs a helluva lot less to run and service!
Cheers
LynnH
I have found a solution to quell this desire, given my aim is to keep buying IP's and my cosy home in a decent suburb.
a) Go Karts - I can't got fast in the Monaro, because when I drive to work, the fastest i can go is 70km/h.
b) Rent a Monaro for a weekend for approx ~$500 at least once (not anytime soon, tho my loans need some interest payment loving).
Some news tho, I will be garaging my parents car for 5 days a week and spending some cash to service my bicycle and get it up to a standard where I cycle it to work everyday. =(
This willl help me get some extra $250 a month though to pay down the loans!
a) Go Karts - I can't got fast in the Monaro, because when I drive to work, the fastest i can go is 70km/h.
b) Rent a Monaro for a weekend for approx ~$500 at least once (not anytime soon, tho my loans need some interest payment loving).
Some news tho, I will be garaging my parents car for 5 days a week and spending some cash to service my bicycle and get it up to a standard where I cycle it to work everyday. =(
This willl help me get some extra $250 a month though to pay down the loans!
I bought my first car when I sold my first house ... when I was about 26. Still got the car, probably shouldn't have sold the house. It was in a good spot.
Be keeping the car until it falls apart, it is a 2000 corolla
Be keeping the car until it falls apart, it is a 2000 corolla
Lots of tight-arses on this forum.
If you really love your cars Beekay, and can sort of afford it, shop around and buy one and enjoy it.
I bought a brand new V8 Berlina in 1989, aged 22, for 36K, mostly financed. "What a mistake, too much for a car" etc they all cried around me. But i love cars and enjoyed it and every car since.
If it makes u happy, do it.
FWIW, i think that history will show the recent Monaro to be a sought after classic and a collectors item probably making it the best investment on four wheels.
If you really love your cars Beekay, and can sort of afford it, shop around and buy one and enjoy it.
I bought a brand new V8 Berlina in 1989, aged 22, for 36K, mostly financed. "What a mistake, too much for a car" etc they all cried around me. But i love cars and enjoyed it and every car since.
If it makes u happy, do it.
FWIW, i think that history will show the recent Monaro to be a sought after classic and a collectors item probably making it the best investment on four wheels.
That is a bit rude. Many of us just don't see value in cars. Now if you were talking diamonds.... well that is different
You are not really asking when you can buy a car, but rather when you can massage your ego.
That's OK. Men have done exactly that throughout recorded history and, presumably, before then. Why else would anyone build a maxi-yacht?
That makes the answer dead simple: When you can afford it!
Buzz, Indexfund ..
I just sold my 1999 Barina and moved up to an R33 Skyline! I feel so close to both of you!
I can now:
a) accelerate up hill
b) use the aircon and still accelerate
and many other things, basically all involving acceleration.
I miss the money that sinks into the car each month..
But I'll tell you .. an R33 GTST was "the" car I wanted years ago. And they are now reasonably cheap ($10k!), and I figured I'm gonna want airbags and ABS and 4 doors and all that rubbish when I have kids .. so I have to get the bug out of my system while I can.
(although I bet 2008 model 350Z's will be cheap by 2012 ... )
However, for the original poster: No. Don't buy a car, and if you need one .. get a toyota with 100,000km on the clock. Cheap, reliable, and they come in all sizes.
I just sold my 1999 Barina and moved up to an R33 Skyline! I feel so close to both of you!
I can now:
a) accelerate up hill
b) use the aircon and still accelerate
and many other things, basically all involving acceleration.
I miss the money that sinks into the car each month..
But I'll tell you .. an R33 GTST was "the" car I wanted years ago. And they are now reasonably cheap ($10k!), and I figured I'm gonna want airbags and ABS and 4 doors and all that rubbish when I have kids .. so I have to get the bug out of my system while I can.
(although I bet 2008 model 350Z's will be cheap by 2012 ... )
However, for the original poster: No. Don't buy a car, and if you need one .. get a toyota with 100,000km on the clock. Cheap, reliable, and they come in all sizes.
LOL, you've got it wrong Sunfish.
Last time I checked, lots of ladies still like to buy shoes, mobile phones, diamonds, clothes. I've even seen quite a larger number of ladies on the road with flash cars these days too. Both sexes are guilty of massaging the ego over the ages.
Having said that, I'm sure some people here when they reach their investment targets, they would duly fulfil their dreams.
Hence why I'm asking. But the part where you're correct, is that I can fulfil my dream whe I can afford it.
Back to the bicycle I go!
Last time I checked, lots of ladies still like to buy shoes, mobile phones, diamonds, clothes. I've even seen quite a larger number of ladies on the road with flash cars these days too. Both sexes are guilty of massaging the ego over the ages.
Having said that, I'm sure some people here when they reach their investment targets, they would duly fulfil their dreams.
Hence why I'm asking. But the part where you're correct, is that I can fulfil my dream whe I can afford it.
Back to the bicycle I go!
Im really glad I sold my Skyline JUST before the petrol skyrocketed... i am sure if I tried to sell it now... id get 2-3 K less easy lol
Enjoy the Skyline, they are greatcars, just wish the fuel wasnt so dear.
Funny how people say they want to buy something with cash, when they have a loan.
That's the way i see it - be it a house loan, or 10 house loans, or just a single 5k personal loan that funded a holiday, you are paying interest.
Basically, any money which isn't in a loan or in an offsett account, is robbing you of savings, so it's not interest free cash at all! What's the difference in extending your loan by $40k for a car, or redrawing $40k for a car?
I'd say don't spend $40k on a car, try to get away with $10k-$20k, plenty of great cars in this price range, and keep the other $20-$30k working for you, saving you interest. This is what i immediately think of whenever i open my wallet, or even whenever i look at a price tag, so yes, i am a tightarse, most of the time anyway
Now choosing a car is an important decision, you want something safe, reliable & economical. Most mid sized cars built since 2000, more or less meet this criteria, but it's hard to beat japanese cars for excellent long term reliability, good resale/low depreciation, excellent value as long as you buy something that's a couple of years old or so, and you can actually be proud or at least satisfied with what you are seen driving in.
That's the way i see it - be it a house loan, or 10 house loans, or just a single 5k personal loan that funded a holiday, you are paying interest.
Basically, any money which isn't in a loan or in an offsett account, is robbing you of savings, so it's not interest free cash at all! What's the difference in extending your loan by $40k for a car, or redrawing $40k for a car?
I'd say don't spend $40k on a car, try to get away with $10k-$20k, plenty of great cars in this price range, and keep the other $20-$30k working for you, saving you interest. This is what i immediately think of whenever i open my wallet, or even whenever i look at a price tag, so yes, i am a tightarse, most of the time anyway
Now choosing a car is an important decision, you want something safe, reliable & economical. Most mid sized cars built since 2000, more or less meet this criteria, but it's hard to beat japanese cars for excellent long term reliability, good resale/low depreciation, excellent value as long as you buy something that's a couple of years old or so, and you can actually be proud or at least satisfied with what you are seen driving in.
Funny how people say they want to buy something with cash, when they have a loan.
That's the way i see it - be it a house loan, or 10 house loans, or just a single 5k personal loan that funded a holiday, you are paying interest.
Basically, any money which isn't in a loan or in an offsett account, is robbing you of savings, so it's not interest free cash at all! What's the difference in extending your loan by $40k for a car, or redrawing $40k for a car?
I'd say don't spend $40k on a car, try to get away with $10k-$20k, plenty of great cars in this price range, and keep the other $20-$30k working for you, saving you interest. This is what i immediately think of whenever i open my wallet, or even whenever i look at a price tag, so yes, i am a tightarse, most of the time anyway
Now choosing a car is an important decision, you want something safe, reliable & economical. Most mid sized cars built since 2000, more or less meet this criteria, but it's hard to beat japanese cars for excellent long term reliability, good resale/low depreciation, excellent value as long as you buy something that's a couple of years old or so, and you can actually be proud or at least satisfied with what you are seen driving in.
Good post.
I could buy a car for 25 K with my new house which I got finance for, instead I will buy a car for 16-18 K (2006 Corolla) and keep the rest of the money for myself...
Hmmm... I bet you don't sink as much into it as I did into my Mistubishi Galant VR4 12 years ago..... that was approx $10k per year (1996 money) to keep it running on top of the fuel bills!
Mind you, it did have a hard life - autocross, hillclimbs, track work (Phillip Island, Winton, Calder....)
Cheers,
The Y-man
