18 Year old's first financed car - Finance tips? - Page 2

Laminge · 24-01-2008, 11:46 AM

Dont speak to the Bank, most of the lending staff are your age these days and need the sale.

If you havent got at least half the value of the car in cash, dont bother.

ToddyXr6 · 24-01-2008, 12:03 PM

hey guys new to the new forum. If i was you keep what you have and save. Im only 17years old and doing year 12vce this year and i own a AU II xr6 ute, in perfect condition.

troppo · 24-01-2008, 12:46 PM

A record of savings is just as good as a record of servicing a loan when it comes to credit ratings AFAIK. Both show that you can live your lifestyle with x amount of dollars untouched and left over each pay.

gozza · 24-01-2008, 12:49 PM

Theres no such thing as a GOOD credit rating

Only a Bad one - Its a Myth

end of the day if you want the car then bloody get it

92ebfairmont · 24-01-2008, 04:36 PM

how u goin mate, i just turned 18 n got finance for my 1st car however i make $500 a fortnight as an apprentice mechanic, if i made what u did id save but dont think too many ed xrs r gunna be around, my brother drives a green ed xr6 - lowered csa 17s etc very nice car but took him 4 months to find... if you save you have plenty of time to look

ure choice but

thexyking · 13-04-2008, 08:30 PM

Some good points here about not needing to borrow money to establish a credit rating. 30 years ago the bank may have wanted to see you do this but these days paying all you bills on time and saving some money along the way is far better than meeting payments on time and making the financiers rich.

If you pay interest on your credit card you shouldn't have a credit card.

If you really have to have a car, make sure you have at least 50% of the purchase price in cash, but you'll be better off not buying a car you can't pay cash for.

dane · 01-05-2008, 11:19 PM

lol this may sound stupid but i recommend you dont borrow for the car and just save for a new car.

another thing to consider is insurance being only 18 on an XR6 it would be rather expensive.

either way all the best

XR8 Uterous · 02-05-2008, 01:21 AM

Quote:

Originally Posted by dane

lol this may sound stupid but i recommend you dont borrow for the car and just save for a new car.

another thing to consider is insurance being only 18 on an XR6 it would be rather expensive.

either way all the best

Good job on the thread mining.. well, atleast while the thread is here i may as well ask, how did you get a 1999 BA Falcon?

P6LTD351 · 02-05-2008, 01:44 AM

Quote:

Originally Posted by EL XR6

Good job on the thread mining.. well, atleast while the thread is here i may as well ask, how did you get a 1999 BA Falcon?

Must've been the special "3 years before release" edition.

On the topic of borrowing money for a car: I wouldn't do it. I have done in the past in my mid twenties, but got my brain back (now 29) and now I have $20000 in the bank that gains me at least $116 interest per month. Much different to taking a $20000 loan (which will probably end up being around $26000 when finally paid) and when it is paid, the car will probably only be worth $7000.

Chamelion · 02-05-2008, 02:35 AM

Loans need not be bad..

Ours - $6000 over 3 years at 10.99% fixed rate (Easystreet unsecrured personal loan).

Total payment is about $7049.63 at $45.19 per week min repayment.

$6.72 per week in interest... VERY SMALL price to pay so that we can have the car now as opposed to saving for 2.5 years and having to drive a peice of in the meantime.

Matt.

P6LTD351 · 02-05-2008, 02:53 AM

Quote:

Originally Posted by Chamelion

Loans need not be bad..

Ours - $6000 over 3 years at 10.99% fixed rate (Easystreet unsecrured personal loan).

Total payment is about $7049.63 at $45.19 per week min repayment.

$6.72 per week in interest... VERY SMALL price to pay so that we can have the car now as opposed to saving for 2.5 years and having to drive a peice of in the meantime.

Matt.

Yes, granted with a small loan like yours it makes sense, but too many people take loans for cars of $20000, $30000 and more. By the time they pay the loan off and all the interest, their car is worth next to nothing. Some people need to have longer term goals. Maybe buy a car for $5-10,000, put money towards a house, then over time buy their dream car. A lot of people want everything now, and not work for it, and find that they get themselves in trouble. Yes not all loans are bad, but when you take a loan on a DEPRECIATING asset, you must think it through carefully.

st33l3y · 02-05-2008, 10:33 AM

Mate, whatever you do, DO NOT go for an XR. The insurance for an 18 y.o. is ridiculous for them (I bought an AUIII XR6 on finance a few months ago). Compare nearly 2 grand as opposed to around $500 for a Fairmont Ghia with a Ticky engine, as they are not classified as 'sports cars' like the insurance labels the XR's.

I don't regret buying it one bit on a loan though...

big_waity · 02-05-2008, 10:46 AM

I haven't read all of the answers, but I assume they will be simmilar.
I have four points for you and don't really care if you ignore me.

1 - and ED ex-taxi is not worth $1500. Sorry mate, but you can get a fairly tidy ED for that money or the other way, you can get an AU ex-taxi for that money.

2 - 7 grand is steep for an ED XR6. Sure they are a nice car, but I have had 2 mates who have both recently bought a very tidy EL XR6 manual(strange coincidence I know), both under 200,000 ks. I think they both paid around $7,500 for them.

3 - Make sure you look into insurance costs when buying a car. Insurance at 18 is expensive and they don't care that an XR6 isn't much different to a stock Falcon, the insurance is dearer again. Make sure you can afford it before you buy the car.

4 - I am 25k in debt and about 15-20k of that is for cars that I bought between 18 and 24. I currently drive a bog-stock XF sedan that I paid $300 for because I wasted too much borrowed money. Now, feel free to ignore me, but seriously, put up with your current car as long as you can and save up for your next car! If you can't save for it, you can't make the repayments!

Good luck!

big_waity · 02-05-2008, 10:55 AM

Just another side point on that.
I have just done a quick comparison in insurance costs between an EF GLi Manual and an EF XR6 Manual insured by an 18 year old with AAMI.
GLi: $1081
XR6: $1217

That is actually less of a jump than I would have thought, however, it does bring back the point that your $7000 car will cost $1200 to insure, so you need $8200 at least.

P6LTD351 · 02-05-2008, 11:03 AM

Quote:

Originally Posted by big_waity

4 - I am 25k in debt and about 15-20k of that is for cars that I bought between 18 and 24. I currently drive a bog-stock XF sedan that I paid $300 for because I wasted too much borrowed money. Now, feel free to ignore me, but seriously, put up with your current car as long as you can and save up for your next car! If you can't save for it, you can't make the repayments!

Good luck!

Exactly! That's where I was coming from too!

Wally · 02-05-2008, 11:32 AM

$7000 for an old car seems excessive to me, especially one that has over 100kkm. I would asume the XR6 badge means it would probably have been given a hiding during it's life?

Purchase method... well $7k isn't a lot of money, but if you're on the breadline it's the difference between buying a girl a meal or going dutch at maccas. A no frills loan without redraw will cost you little in repayments. Specific car loans/hire purchase are like credit card repayments they are ignored as a credit rating plus, only negative if you don't pay.