Why cant I buy a new car?
- Thread starter want2bewealthy
- Start date
Been there, done that, 2 near death experiences later, i prefer ABS brakes and airbags
Hmmm yea... good question..
Im only really thinking of it because it needs work which costs money and is depreciating rapidly, IO could potentially save around 5000.00 by selling now as opposed to later, I still dont know what to do!
Yes, I need a family type of car to carry all my guitar gear around, Ive got quadboxes [fits in most boots except for some smaller cars] amp heads, guitars and effects, sometimes even small PA systems and things.
Up here, we have to travel long distances sometimes and we have "the wet season" which lasts 6 months with rain almost evey day, travelling long distances at high speeds on a scooter? I feel much safer in a car.
So I do need a sedan or wagon,
I dont need a new car but I want something that I wont need to upgrade for a while and something thats going to be reliable and not have to replace much, if anything.
I really dont know what to make of that ;]
With respect to depreciation, then you will incur far more than $4000 than with a new car. Ultimately you can easily do the financial exercise (inclusive of tax benefits) and see what the bottom line impact is.
I am guessing though you are seeking our the OK to justify the want of a new (or near new) car. I went through the same feelings a couple of years ago. At the time, I had the serviceability to buy another property and a new car. I did then purchase another IP, and realised a car purchase would not allow me to buy another IP or PPOR.
As I have progressed in purchasing property, as soon as I had one IP, I wanted another. Then when I had the second, I started thinking of the third and fourth. The reality was any car purchase would impede not only another property purchase but future development on one of my IP's, which seriously challenged the need, which was ultimately a 'want' of a new car.
Currently I am driving a 1999 Holden Barina, great little small car, but no Merc! I'll wait for IP 5 (or maybe IP 6
) before I consider the Merc.If it sounds like I am totally focussed on IP acquisition, I admit it. My first car back in 1990, was BMW that I took a personal loan for and continued spending money on cars for the next 10 years before I started to re-assess. I sometimes think of what if I started my IP journey in my mid 20's. I don't think about it for too long because I could have purchased a 500SL that I am in love with the equity that would have been built up over the past 10 years. Looking backwards is not a worthwhile exercise
Ultimately though, what's good or right for me, may not be for anyone else. It's your call...up to you...I refer you back to your nickname...want2bewealthy. Good luck with your decision.
This is VERY TRUE - I am 31 and can attest to that. Only 5 years ago I was still copping it left and right about being 'cheap' and/or silly about investments. Now they all ask how much I'm worth. I smile, and say "remember all that travel you guys spent your money on? I could do that every year until I die and still leave money behind". I don't tell them the actual figure. Bear in mind that the reason most people judge this way is purely because they don't understand what you're doing.
As to cars, my view is to buy new, but keep for a long time 6-10 years. I always buy off the lot, and always for substantial discount (10-20%) off new RRP, negotiated on the basis of model changeover and popularity. I use cars for work and have a good tax deduction on this basis. Also, I have a large working income so a few hundred bucks a month really doesn't impact me much (when I put several thousand into investments monthly, on top of PPOR payments). Vehicle reliability is important to me, and I take good care of my cars (I currently have two - one is driven by my wife). At present my vehicles are 2 and 4 years old, and I don't anticipate replacing either for at least 3-4 years.
Ultimately, it depends on your priorities, tax position, and ability to carry debt. Think carefully and dispassionately, then act.
Hi W2BW
Don't overlook government auctions in your state. In SA you can pick up some absolute bargains.
Govt departments get rid of their flleets after a period of time or when the odmeter reaches i think it is 40000km.
These cars are late model:
Recently a mate of mine bought a car retail 21000 auction 13500.
You have to monitor a bit when you go some days alot of car dealers not a good day to bid and can be overpriced.
But on the off days when not many around thats when to strike.
Most still have warranty.
Cheers
BC
PS you can get the catalogue emailed to you.
Don't overlook government auctions in your state. In SA you can pick up some absolute bargains.
Govt departments get rid of their flleets after a period of time or when the odmeter reaches i think it is 40000km.
These cars are late model:
Recently a mate of mine bought a car retail 21000 auction 13500.
You have to monitor a bit when you go some days alot of car dealers not a good day to bid and can be overpriced.
But on the off days when not many around thats when to strike.
Most still have warranty.
Cheers
BC
PS you can get the catalogue emailed to you.
Having worked in hospitals and rehab units I will never go near a bike . A friend is a pathologist and after her first weekend working in Westmead Coroners unit sold her VW and bought a Volvo.
For me a car is something to get me around as safely as possible though I've just treated myself to a second hand Volvo S80 ( top of the range turbo with all extra's ). Someone paid around 100K for it five years ago . Just picked it up for 25K .
For some reason Volvo's depreciate quite quickly in Australia though apparently that doesn't happen in Europe. A comparable BMW or Merc would be over 50 K at this stage.
Cliff
For me a car is something to get me around as safely as possible though I've just treated myself to a second hand Volvo S80 ( top of the range turbo with all extra's ). Someone paid around 100K for it five years ago . Just picked it up for 25K
. For some reason Volvo's depreciate quite quickly in Australia though apparently that doesn't happen in Europe. A comparable BMW or Merc would be over 50 K at this stage.
Cliff
I say go and get yourself a new car depending on your financial circumstances which are not totally clear.
But driving around in a $5k car that isn't up to date in safety terms and has the potential to stop by the side of the road from strange noises is not a way to live. How would you take this car on a road trip and the like!
I know there are lot of people that will not support buying a new car but there are potentially many benefits to it.
1. you will enjoy it
2. you and others in the car are likely to be safer
3. you will enjoy it
4. there's potentially tax benefits that minimise the cost of the car
5. you will enjoy it
6. you only get one life so driving a $5k piece of you know what isn't likely what you want out of that one life!
7. you will enjoy it
yes you also want to invest in another property, but you can't stop buying cars, food, clothes etc. if you get rid of the car now at $5k, you go out and buy a new car. if you wait a while longer the car is worth $2k if you're lucky and you still have to go out and get a new car anyway. only you can decide what is a suitable amount of money that you can spend on the new car.
speaking from experience, i like to drive and not that we have the fanciest cars but my husband upgraded his last year from an 11 year old car with 250,000kms on the clock to a brand new car with leather, sunroof, sports kit, heated seats etc and a year down the track i still love getting in it and enjoying the drive. if you spend a lot of time in a car driving then you might as well enjoy that time.
after all, it's that car that may drive you to the next property.
But driving around in a $5k car that isn't up to date in safety terms and has the potential to stop by the side of the road from strange noises is not a way to live. How would you take this car on a road trip and the like!
I know there are lot of people that will not support buying a new car but there are potentially many benefits to it.
1. you will enjoy it
2. you and others in the car are likely to be safer
3. you will enjoy it
4. there's potentially tax benefits that minimise the cost of the car
5. you will enjoy it
6. you only get one life so driving a $5k piece of you know what isn't likely what you want out of that one life!
7. you will enjoy it
yes you also want to invest in another property, but you can't stop buying cars, food, clothes etc. if you get rid of the car now at $5k, you go out and buy a new car. if you wait a while longer the car is worth $2k if you're lucky and you still have to go out and get a new car anyway. only you can decide what is a suitable amount of money that you can spend on the new car.
speaking from experience, i like to drive and not that we have the fanciest cars but my husband upgraded his last year from an 11 year old car with 250,000kms on the clock to a brand new car with leather, sunroof, sports kit, heated seats etc and a year down the track i still love getting in it and enjoying the drive. if you spend a lot of time in a car driving then you might as well enjoy that time.
after all, it's that car that may drive you to the next property.
Some excellent points all round, Im still undecided, this post has made it even harder to decide!
Think I have to upgrade as I found some other things that need replacing soon and know that I will have to upgrade sooner or later,
I wont be spending a hell of alot on it though and Ill have to save really hard after splurging the cash on it to help justify my descision and get back onto the IP path ASAP.
Think I have to upgrade as I found some other things that need replacing soon and know that I will have to upgrade sooner or later,
I wont be spending a hell of alot on it though and Ill have to save really hard after splurging the cash on it to help justify my descision and get back onto the IP path ASAP.
OK. time to be more direct! Buy the smallest, newest car that suits you. You can buy new cars driveaway for 15k or less these days. If the car only has to move 1-2 people, these types of cars are fine. They have plenty of safety kit, and are dirt cheap to run. Also, because you didn't pay much for it, it can't really depreciate that much. They also get good warranties.
If I was looking for a new runabout (and for the occasional trip), I would be checking out the Hyundai Getz, Toyota Yaris, Holden Barina and Suzuki Swift. If you are happy with small wheels, all of these work well.
If I was looking for a new runabout (and for the occasional trip), I would be checking out the Hyundai Getz, Toyota Yaris, Holden Barina and Suzuki Swift. If you are happy with small wheels, all of these work well.
that's true. my 1st car was a hyundai excel for $13.5k drive away. saold it around 5 yrs later for $10.5k
We were in a similar position about four years ago, our car (which we bought second hand just before the bottom fell out of the second hand car market) was worth very little and was a bit of a lemon. We needed to spend a few thousand to get it right and we bit the bullet and bought our first new car.
We have three kids and often have other kids sleeping over and being ferried with us to soccer games etc so we went for a Numbus 7 seater wagon which had impressive safety features. We bought a demo model which had been driven by the sales manager of the car yard and I think it had about 2.5k on the clock but we saved about $7K, and it had cruise control and a few added extras (including free 3 year servicing) thrown in.
Our plan is that we will drive it for at least ten years. It is the first car that I feel completely confident in.
To me a car is a lump of metal to get me from A to B and I don't get involved in the "my car is better than your car" thing like some folk I know - my neighbours for one.
First thing is safety, then price. Personally, I wouldn't want anything much smaller than our wagon because even though it is larger than the small cars which have fantastic fuel efficiency, I would worry about being hit by a 4WD in our car, let alone in something smaller. Some of those 4WDs are so high that they would just come straight in the window and all the steel bars in the doors would do nothing to protect us. Bit scary!!!
Of course, being hit by anything bigger than that - well... doesn't really matter what you are in I supose.
I hated spending money on a lump of metal, but it is carrying precious cargo so I don't have any regrets.
Wylie
We have three kids and often have other kids sleeping over and being ferried with us to soccer games etc so we went for a Numbus 7 seater wagon which had impressive safety features. We bought a demo model which had been driven by the sales manager of the car yard and I think it had about 2.5k on the clock but we saved about $7K, and it had cruise control and a few added extras (including free 3 year servicing) thrown in.
Our plan is that we will drive it for at least ten years. It is the first car that I feel completely confident in.
To me a car is a lump of metal to get me from A to B and I don't get involved in the "my car is better than your car" thing like some folk I know - my neighbours for one.
First thing is safety, then price. Personally, I wouldn't want anything much smaller than our wagon because even though it is larger than the small cars which have fantastic fuel efficiency, I would worry about being hit by a 4WD in our car, let alone in something smaller. Some of those 4WDs are so high that they would just come straight in the window and all the steel bars in the doors would do nothing to protect us. Bit scary!!!
Of course, being hit by anything bigger than that - well... doesn't really matter what you are in I supose.
I hated spending money on a lump of metal, but it is carrying precious cargo so I don't have any regrets.
Wylie
Transporting around your offspring tends to radically change priorities in your car purchasing criteria.
Sportiness, steering 'feel', style, flat cornering, sub 9 second 0-100kph times, <--- what are those things??
Our only car is a 7 year old volvo wagon. Even though it is getting a bit old now it still has loads of airbags incl curtain bags, abs, awd, etc. Yes it costs a bit to keep on the road being a euro car, but I'm not going to compromise safety for anything.
Sportiness, steering 'feel', style, flat cornering, sub 9 second 0-100kph times, <--- what are those things??
Our only car is a 7 year old volvo wagon. Even though it is getting a bit old now it still has loads of airbags incl curtain bags, abs, awd, etc. Yes it costs a bit to keep on the road being a euro car, but I'm not going to compromise safety for anything.
I recall an article that interviewed a crash test researcher in the US. They asked what car he drove. answer was one of those huge 'Suburbun' SUVs and when asked why, he said that the inescapable deciding fact in traffic accidents is the mass of the vehicle you are in. A hyundai Getz with air bags is really no match for a large 4WD, which causes a dilemma when lookign for a fuel efficient vehicle.
I spent $16k on a 4yr old, ex-lease Alfa 147 that way. If I sell it I'll make a tidy profit on it! It's the only way to go.
That's odd, I've heard 4WDs are unsafe compared to a normal family sedan or station wagon. However, this was from the most reliable source of information, A Current Affair.
Besides, bigger vehicles take a lot more to pull up then smaller ones. My ford festiva has saved me on two occassions now. If I had been driving a 4WD, I don't think I would have pulled up in time.