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

[gozzaxr6t]

If I was you I'd look at leaving the trade completely. My trade assistant is on 34 bucks an hour plus works most Saturday's. All he pass my tools to me, clean my mess. Got the best job in the joint. There's money to be made out there and people fall into the trap where they feel safe in their current occupation and are scared to leave. My advice is look around and you'll be be surprises how much you can make doing other work.

[Smoke Pursuit]

Originally Posted by Rapid_Axe

Trying to consolidate debt, **** yes they have tightened up. I cannot consolidate any debt I have outstanding.

You must have too much then.

I deal with alot of finance brokers who do personal loans / car loans / leases and providing you score they are easy enough to get.

Home loans on the other hand are much harder.

[XR6T0Y]

I have a loan which I shouldn't have got for my EL. Now look at what has happened. Don't have it anymore, still paying the loan back on something that I can't use + more.

Don't get a loan!

[CustomG6ET]

with no assets they wont even look at you even with your 27 grand loan. also situations change i got lucky i was earning the same as you a week when i got my 33 grand loan and now im earning $900-$1100 so its easier but there is the possibility that you could lose your job or get sick and if you did get a loan of that size you would have to live at home for the next 10 years. sorry to be a downer but im a realist when i comes to money

[Poetic Justice]

As stated, $600 clear is not a good wicket to be on. Especially when considering a car of that magnitute. I earn somewhere in the viscinity of 2-3 times that and still wouldn't consider that amount for a car.

[Falcman0o7]

Keep your XR8.
Maybe save some coin and whack a supercharger on it mate.
Dont get that far into dept that it may force you into bankruptcy then you'll have nothing.

[GTpilot]

In my situation, I did not have my own business, but used the car lots for work. I novated leased my GT on an interest rate i doubt will be seen anytime soon (6.3%) my payments were still close to 1k per month. But being a novated lease with me doing loads of k's That was fine. Any mods I did were written into the lease and reduced my FBT. It was basically the same as the others tough, pay the tax or put the cash into the car.
12 months later my situation changed, I changed job where I drive to work and drove home. My annual k's were 1/3 what they were. In that first year in my new job I got slugged 3.5k FBT. I had 3 yrs left on the lease. It was at that point I decided to play tight A$$, save like mad and within the next 12 months i saved enough and I paid out the lease. I now own the car, but its worth half what it owes me.
Would I do it again - no. Mainly due to changes in FBT, interest rates, and me not being in the right job for doing high k's.
I'd consider a lesser amount but nothing over 40k, that's basically the point where I could pay it out if need be.
Sometimes finance works for you. Others (most of the time), not.

[GT0132]

If it were me buying a new car I'd be taking the money from my mortgage offset account. Everything goes in there and I take out of it my living expenses

If I owed $27k on a car already and would likely only get $18k for my old car that means $10k left owing plus having to borrow ($60k ??) for the new car. Total debt of $70k

I would not advise to finance a car longer than 5 years. I also have no idea how much personal loan interest rates are, but let's say 9%

Borrowing $70k over 60 months at 9% would require a repayment of $1517 per month. You earn $2,730 so you could do it provided you could do everything else on $1,200 per month for 5 years after which time your car is worth $30k and you'll need to borrow another $50k to replace what you had. The credit merry go round in action. What if you want to leave home or buy a house or your circumstances change. You can't adjust because of your crippling debt. A slave to the car.

Keep the XR8 for 2 more years , pay off your loan and have $10k saved, then go and borrow $25k on a second hand GT if that's what you really want, or else get a better job

[blueoval]

some great advice here.

What you consider as cool and what others consider as cool is a debatable subject.

Some old 70's & 80's cars are pretty cool and they don't have to have 700rwkw and do the 1/4 in 10s. I reckon getting yourself an old school car, thats clean and has the minimum luxuries and still neat for little cash, throw some white walls on it, tint, and just cruise that for a few years. It will cost FA, you will save shed loads, and lose little when you sell the old skool car for a new skool flavor.

If I were in your position, thats what I would do. minimal maintenance required and if there is stuff to do, you could do it yourself rather than taking it to a mechanic to get auto elec stuff done.

[FPV414]

You lost me when you said you think your 7 year old XR8 is "getting on". It's not a new car but it ain't old either.

My Dad's got 7 houses and he's happy driving a 1991 base model Mercedes.

I agree with whoever said their motto with car is that "if you can't pay cash for it, you can't afford it".. Dem realist words.

[makattkd]

Its taken me nearly 10 years to realise the value of a dollar. Car loan after car loan, car after car, never really making any gains, just getting a later model car and more debt. Im nearly 30 and at the point where I don't want to be paying off liabilities any more, but making my dollars work for me.

I am nearly 3 years into a 5 year loan on my FG and Im hoping to have it paid off in the next 6 months by putting every spare $ into that loan (still having a decent living standard etc).

I am in the position that I can claim all my car expenses and depreciation, but now i think that the debt outweighs the benefit the give.

There are some great calculators on the internet that might help or scare young guys off actually borrowing to buy a car.

A $75k loan @ 10%pa after 12 months you have only paid approx $12,000 off the original balance and approx $7,000 in interest!

The interest you end up paying at the end of the term is equivalent to a small car ($20k).

[The Yeti]

Originally Posted by DASH GT

If you cant afford it the bank typically wont give you the money for it.

Not having a go at you (as from what I have read you seem to understand the idea of finace and credit fairly well may be better than I) but I disagree with this statment.

the bank has told me I can borrow obseen amounts of money, money I know I could never repay in this life time, I havent taken it but there idea of managable and my idea in my case was VERY different.

So to the OP I sugest you dont use if the bank will lend it it must be OK as a guide, becasue the bank doesnt care if you can afford pertol insurance food rent or a life as long as you can give them their money back with interest

[Rodge]

Okay there's tons of good advice in here so I'll just add a few snippets from my experience.

1. Just because a finance company or bank will loan you money, that in itself is definitly not a valid reason whether to proceed or not. Wake up and smell the coffee, they are chasing profit and nothing else and don't care one little bit about your overall well-being.

2. Everyone has to live within their means or pay the price for their excesses somewhere down the track. Better to learn this early in your life than later.

3. A combination of trying to increase your income and lowering your sights makes sense to me. Nothing wrong with a 3 year old XR6 Turbo Falcon and the change-over to one is something that's not totally unrealistic in the Op's circumstances, whereas a new SC GT-P clearly is.

4. If you must have a V8 then a second hand SC GS or a used SS Commordore makes at least some sense whereas I think there's almost universal agreement a new SC Gt-P is beyond your means at this stage in life.

5. Hard work and saving has it rewards, I'm thinking a bit more of both when your young and less thinking about flash cars is a good idea.

[Evgeni]

Just to add to Rodge's point.
Have a look at this article.

http://www.news.com.au/realestate/ne...-1226447234233

[2011G6E]

My wife and myself are going through the process of buying a house at the moment for about $300,000 or so. Pretty average for a house around Rocky with the features we want.

However, when I plug in my wifes and my own wage into one of those bank calculators, it comes up with a "capacity" to borrow $900,000!!!!

Cars...well, the only reason we have a $48,000 G6E is because we owned our previous vehicle that we traded in, a 2004 100 series Landcruiser turbo diesel, which meant a change over price of only about $19,000. Otherwise that Ford wouldn't be in the driveway.

There's a reason the old cliché is pretty much always true..."What the hell is that old guy doing in a GT Falcon/FPV/HSV/Porsche etc???"
It's because he's probably used his retirement payout or other monies from investing over the years.
Young, usually Asian, guys in exotic cars are nothing to use as an example either...their rich daddy back in Hong Kong or Singapore has sent them here to university and "supplied them with money to buy a good car".

I gave up many years ago getting jealous of older guys I saw in expensive cars. Unless a younger guy is making a stupendous wage or can access a lease plan through work, it just ain't gonna happen.

If I had it to do all over again with what I know now, I would still be driving the 1971 VH 265 hemi Charger I had when I was 18 back in 1983. I would have poured the money I spent on newer and flasher cars and the thing would be awesome now...I still go over in my mind the mods I would have done as technology advanced over the years...EFI on the hemi, a five speed manual box in place of the four speed, a rack and pinion steering kit, compact and hidden street rod type air conditioning, a stereo that has a face that folds out of the dash...the list goes on and on.
Think classic for a while before jumping into a brand new expensive car that depreciates by 50% as soon as you drive it out of the showroom...

[Smoke Pursuit]

Originally Posted by The Yeti

Not having a go at you (as from what I have read you seem to understand the idea of finace and credit fairly well may be better than I) but I disagree with this statment.

the bank has told me I can borrow obseen amounts of money, money I know I could never repay in this life time, I havent taken it but there idea of managable and my idea in my case was VERY different.

So to the OP I sugest you dont use if the bank will lend it it must be OK as a guide, becasue the bank doesnt care if you can afford pertol insurance food rent or a life as long as you can give them their money back with interest

Having worked in the finance industry for 7 years I know the industry inside out. Typically financial institutions will lend you based upon what you tell them. Everything today is point scored based on income, expenses, assets and liabilities. Sure there are companies out there that have "low doc" products which basically mean they will lend you money on your word, at a high rate.

Run of the mill banks like NAB, Westpac & ANZ will not lend you money unless you can afford to repay the debt. If you do not disclose your proper situation to them (which many people do not) then they will lend you over and above what you can afford. I have seen people go out and buy 2 new cars in the one day. Husband buys himself a new car through Esanda, on the application / interview the financier at the dealership asks him if he has any other liabilities, he says no, finance company approves him because he point scores. Next him and the wife walk into another dealership (say supported by Daimler Chrysler finance. When asked whether they have any other liabilities they state no (even tho the husbands just been approved to buy a new FPV). They end up with 2 unconditional approvals for finance which were based on information prior to them settling for both cars. It does happen believe it or not. They end up settling the cars because once the applications been approved the finance companies don't go back looking for any extra credit on the CRA.

So typically if its a reputable lender and your fully upfront with them then they will not lend to you over and above what you can afford to repay, based on your situation on that particular day.

[GT0132]

Originally Posted by The Yeti

Not having a go at you (as from what I have read you seem to understand the idea of finace and credit fairly well may be better than I) but I disagree with this statment.

the bank has told me I can borrow obseen amounts of money, money I know I could never repay in this life time, I havent taken it but there idea of managable and my idea in my case was VERY different.

So to the OP I sugest you dont use if the bank will lend it it must be OK as a guide, becasue the bank doesnt care if you can afford pertol insurance food rent or a life as long as you can give them their money back with interest

What he said

Last time I went to apply for a mortgage I was told , if I wanted to I could borrow over $1.3M on a 30 year mortgage which at the age of 50 is a pretty financially inept thing to do if you want to quit working by 60. When I inquired why they would consider loaning a guy that kind of money who only wants to stay working another 10 years , their answer was, well I have super don't I ? Sure I do but the income I'll likely get from that won't be enough to make the payments on a $1.3M loan

[Cashie]

Originally Posted by GT0132

What he said

Last time I went to apply for a mortgage I was told , if I wanted to I could borrow over $1.3M on a 30 year mortgage which at the age of 50 is a pretty financially inept thing to do if you want to quit working by 60. When I inquired why they would consider loaning a guy that kind of money who only wants to stay working another 10 years , their answer was, well I have super don't I ? Sure I do but the income I'll likely get from that won't be enough to make the payments on a $1.3M loan

But they also know in 10 years when/if you were unable to keep making payments they could sell your home and get their cash. I've also been offered amounts similar to you and just shaken my head at my bank manager and walked away.

To the OP, I think it has been made pretty obvious that the best advice is to repay your outstanding debt on your car. Also, your question about how people can afford to finance a $70k car, they are on a considerably higher income to you (as they have most likely been working 3-4 times longer than you to progress to these incomes) and as some have mentioned, they also may use their business to offset the purchase.

[Buntz]

Only diehard enthusiasts and boganista's who work in the mines can afford FPV's and HSV's these days.

[b2tf]

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?

Zac

don't do it, even if you can get the nod for a loan the repayments will really hurt and you will end resenting the car. Been there done that.

Your XR8 is a head turner with the numbers to back it up - keep it and enjoy the fact you still have money in the wallet at the end of the week. The guys that come into my work after dropping $50k+ on new cars and theyre still living at home - it just never ceases to amaze me. Theyve got no hope of having the capital to go for a house loan etc - all sacrificed for the sake of a shiny car that a few years later looks just like every other car on the road.

[Winter XR8]

Highly recommend a job in the mines.

[ea90_S]

cheap soloution chuck on some GTP badges on the XR8 and call it a day.

the only loan should be for a house!

[zx10]

Xarate, you seem like a really good guy.

A lot of people would complain and talk trash about their employer/job thinking that they should be getting paid more money. You actually care about your employer and obviously love your job. I love your take on it.

Dont get hung up by people talking trash about making a thousand dollars or more a week and telling you to "fix" how much you make. If you enjoy your job it doesnt matter how much money you get paid.

A very famous man once told the following story and I hope you appreciate it.

“When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down ‘happy’. They told me I didn’t understand the assignment, and I told them they didn’t understand life.”

My point being, take a look at whats really important and really makes you happy in life.

Back on the topic of should you get a loan for a new 335, b2tf is very wise with what he wrote.

[mike_nofx]

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?

When you find the answer to how someone under 30 can afford a newish FPV, let me know mate.

With me on $130k and the wife on about $40k... The cars I can afford are in my sig below, seriously.

[XARATE]

Hahaha may as well put a chev badge on it :p

Its all good guys, i'll keep paying the loan off and keep saving for a block of land. Might even keep my eye out for a better paying local job
Id love to go to the mines but i couldnt leave my dad while he sick, or my partener (shes trying to get a career started) and ive got two little staffys that i could leave behind they would be heart broken

[SSD-85]

I am celebrating as I speak for just (finally) paying off a car loan this week. For the upteenth time.

NEVER again will I finance for a car. Paying cash for a car is the best feeling in the world (which ive also done).

IF I ever felt compelled to do it, it would be for an old Ford. And not more than $10k (loan amount that is, based on my current financial situation).

If the price of finance is even remotely crippling to your current quality of life, then AVOID. Im only 27 & ive been there & done that SEVERAL times. And I have definitely learnt my Gen-Y lesson.

Accept the fact the car is out of your reach. And concentrate on the possibility of enjoying something thats more wallet-friendly.

[XARATE]

Originally Posted by zx10

Xarate, you seem like a really good guy.

A lot of people would complain and talk trash about their employer/job thinking that they should be getting paid more money. You actually care about your employer and obviously love your job. I love your take on it.

Dont get hung up by people talking trash about making a thousand dollars or more a week and telling you to "fix" how much you make. If you enjoy your job it doesnt matter how much money you get paid.

A very famous man once told the following story and I hope you appreciate it.

“When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down ‘happy’. They told me I didn’t understand the assignment, and I told them they didn’t understand life.”

My point being, take a look at whats really important and really makes you happy in life.

Back on the topic of should you get a loan for a new 335, b2tf is very wise with what he wrote.

My boss is very open reguarding the business andts a fine ballancing act, there are ALOT of costs in the auto electrical repair industry. I'll get a pay rise If/when he can afford to pay me more without risking the business.
And yes most of the time i love my job. In particular i love wiring stuff up from nothing (eg wiring a brand new fire truck or newly build hotrod) i dont mind electrical diagnostic and repair but new wiring is my area. You'll stugglevto find a neater wiring job than mine if im given enough time an thats something im proud of.

[SSD-85]

Originally Posted by XARATE

In particular i love wiring stuff up from nothing (eg wiring a brand new fire truck or newly build hotrod) i dont mind electrical diagnostic and repair but new wiring is my area. You'll stugglevto find a neater wiring job than mine if im given enough time an thats something im proud of.

I wish you lived in QLD mate, maybe you could lend me your sevices...

[SteveJH]

Originally Posted by mike_nofx

When you find the answer to how someone under 30 can afford a newish FPV, let me know mate.

With me on $130k and the wife on about $40k... The cars I can afford are in my sig below, seriously.

Depends on what your other expenses are I guess. Specifically business expenses or home loans.

[baboon]

You'll be right! You will never learn for yourself if you dont try.