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

XARATE · 26-09-2012, 10:37 PM

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?

zilo · 26-09-2012, 10:42 PM

mate, please don't do it, cars are money pits.

IMO your finances look like a train wreck about to happen....

FALCONXTV8 · 26-09-2012, 10:45 PM

To be honest I wouldn't think you would be able to get that big a loan based on your income and assets.

For example: for a 60k loan over 5yrs at 8% you will be looking at over $1200 a month, When you factor in other costs such as rego, fuel, insurance plus your other expenses it just doesn't add up unfortunately.

Maybe wait a bit longer until 335 prices drop.

Buntz · 26-09-2012, 11:08 PM

Quote:

Originally Posted by FALCONXTV8

To be honest I wouldn't think you would be able to get that big a loan based on your income and assets.

For example: for a 60k loan over 5yrs at 8% you will be looking at over $1200 a month, When you factor in other costs such as rego, fuel, insurance plus your other expenses it just doesn't add up unfortunately.

Maybe wait a bit longer until 335 prices drop.

That's the real killer... planning out something that you can seem to afford... but then with all that other stuff you need, it's not such a pretty situation.

I'm having to live with less after buying my car. And the adjustment isn't fun, in fact it sucks having to be sensible.

tex · 26-09-2012, 10:45 PM

the repayments on a 50k+ vehicle will be crippling.

I don't think the numbers will stack up in your current situation.

Ford_The_Win · 26-09-2012, 10:48 PM

IMO drive the XR8 till the wheels fall off and save the cash to buy a house or something that you can make money off.

GT0132 · 27-09-2012, 02:05 PM

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

**PridenJoy** · 26-09-2012, 10:47 PM

I think you should look into buying a property before spending that much money on a car. If you already had a house with $100k equity, I would have said if you really want a 335 then go for it, but looking at your post, I think you should have other priorities than a flashy car. No offence.

flappist · 26-09-2012, 10:54 PM

Quote:

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?

You cannot afford it. The monthly payments will be more than you earn.

**Dave R** · 26-09-2012, 11:02 PM

If I were in your position I'd take out a more reasonable $25k for a used FG XR6 Turbo.

SteveJH · 26-09-2012, 11:09 PM

Quote:

Originally Posted by Adrenaline

If I were in your position I'd take out a more reasonable $25k for a used FG XR6 Turbo.

Or just keep the XR8 and pay off the $27,000 he already owes before getting another loan.

XARATE · 26-09-2012, 11:08 PM

Awesome, thanks for the replys guys. I had the idea that my income was probably a bit low but i wasnt sure how low as ive never seen the figure for a large loan and the required income.
Im glad theres people here that talk sense (im only young i need all the advice i can get lol)
Ugg my finances at the moment are fine. Ive got a homelian savings accound thats not accessable untill a set amount is reached and im pauing off my current loan alot quicker than need be and im still very comfortable at the end of each week.

The question stands though. How do you guys do it? Im a qualified auto elec which is ment to be a well paying job?

zilo · 27-09-2012, 03:15 AM

Quote:

Originally Posted by XARATE

Awesome, thanks for the replys guys. I had the idea that my income was probably a bit low but i wasnt sure how low as ive never seen the figure for a large loan and the required income.
Im glad theres people here that talk sense (im only young i need all the advice i can get lol)
Ugg my finances at the moment are fine. Ive got a homelian savings accound thats not accessable untill a set amount is reached and im pauing off my current loan a lot quicker than need be and im still very comfortable at the end of each week.

The question stands though. How do you guys do it? Im a qualified auto elec which is ment to be a well paying job?

Your mistakes are....

(a) you run a V8, you can't afford to run it on your pay...get rid of it, downsize
(b) I bet you can't afford to insure it at your age
(c) you should be saving every cent cause worse times ahead..seriously
(d) you'll wake up soon and realize you're 30 years old and just have a car..nothing else

If you want it all up front then most of your adult life will be spent in catch up mode...just as you finish paying that V8 off it will be a pile of crap with a zillion k's on the clock and you need to borrow for another one...and spend a lot of your pay in interest all your life.

Save up and pay cash!

mike_nofx · 27-09-2012, 08:36 PM

Quote:

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.

SteveJH · 27-09-2012, 09:44 PM

Quote:

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.

grandpa_spec_F6 · 29-09-2012, 08:19 PM

Quote:

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?

Time for some home truths.

I did earn a fairly decent pay packet, wanted to reduce my tax by salary sacraficed a car, biggest mistake of my (financial) life.

Thought I could afford it, told myself 'you earn enough, and it's your hobby'... I bought with my heart and not my head, also didn't seek a financial advisor and instead saw an accountant who said "if the figures stack up go for it!"... well... they didn't... and signatures everywhere mean it's a one-way street, can't back out.

I'm down nearly 1/3 of my 'normal' pay packet and on top of that I went back to my substantive position which means another $100 less a fortnight.

For what I'm paying I could have put down a fair chunk on a house, and this continues for another 4 years as it's a lease.

Don't get me wrong, I love it to bits, I'm extremly grateful to even be in a position that enables me to enjoy driving a car like I have... but in hindsight I'd rather be like my mates who now have houses and drive AU Falcons.

DABOSS · 26-09-2012, 11:12 PM

Mate never take a loan for any kind of depreciating asset.

Your young right save your hard earned cash , set yourself a simple savings plan ie auto debit into a high yield account and then place that cash towards property as an investment.

Because In this country, you gotta make the money first. Then when you get the money, you get the power. Then when you get the power, then you get the 335.

The average weekly income is now around 1000 bucks so 630 after tax your a little ways off my friend , and no way am I putting u down just facts. More OT required if you want this 335.

nstg8a · 26-09-2012, 11:13 PM

I would have thought an auto sparky would earn more than that, I earn more driving a forklift all day.

I'd agree with the above, smash your existing loan first, then worry about a new ride.

Selling a ba xr8 for top dollar won't be easy these days, might as well enjoy it and drive it till it dies.

XARATE · 26-09-2012, 11:15 PM

Selling the xr8 and getting a 25k turbo would leave me with around a $35,000 loan, proabably doable but i dont want a 6cyl lol

SteveJH · 26-09-2012, 11:23 PM

Quote:

Originally Posted by XARATE

Selling the xr8 and getting a 25k turbo would leave me with around a $35,000 loan, proabably doable but i dont want a 6cyl lol

Unless there is a reason beyond "I want a newer one" for selling the XR8, hold onto it and pay down that loan, you will be able to save much more quickly without its high interest rates eating away at your income.

Remember that a $27,000 loan is actually more like a $40-50,000 loan once you take interest into account.

MonsterFG T6 · 02-10-2012, 12:26 PM

Quote:

Originally Posted by XARATE

Selling the xr8 and getting a 25k turbo would leave me with around a $35,000 loan, proabably doable but i dont want a 6cyl lol

Lol I suggest you drive the FG xr6t first hips of fun and NO GT quicker than you only slight difference would be from 80/120kmh but it is so small that in the end GT owner will be so ****ed, no offence but dont discount it just for the number of cilinders and as far as your situation I'd say drive the XR8 and put $50 extra a week on your personal loan that way you will shorten the time of of the loan and in turn it will increase your buying power otherwise you"ll get yourself in a real mess. I did the same well I had to due to shody dealer at Stillwell Ford years ago.

pottery beige · 02-10-2012, 05:57 PM

Quote:

Originally Posted by MonsterFG T6

Lol I suggest you drive the FG xr6t first hips of fun and NO GT quicker than you only slight difference would be from 80/120kmh but it is so small that in the end GT owner will be so ****ed, no offence but dont discount it just for the number of cilinders and as far as your situation I'd say drive the XR8 and put $50 extra a week on your personal loan that way you will shorten the time of of the loan and in turn it will increase your buying power otherwise you"ll get yourself in a real mess. I did the same well I had to due to shody dealer at Stillwell Ford years ago.

we have racing back in radelaide bro.. why dont you head out to the track where the real racing happens............

**Silver Ghia** · 26-09-2012, 11:29 PM

Keep the XR8.

My motto with buying cars: If I cant pay cash for it, I cant afford it.

Loans for cars are money pits, as mentioned above. I've never taken a loan out for a car, besides I've never leased one either, in about 40 years and buying about 5 new cars plus second hand ones over that time.

EB# · 27-09-2012, 07:03 AM

Quote:

Originally Posted by Silver Ghia

Keep the XR8.
My motto with buying cars: If I cant pay cash for it, I cant afford it...

+1
Just pay off your current loan ASAP would be my advice.

2011G6E · 27-09-2012, 04:49 PM

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...

RAPID_BA · 28-09-2012, 07:41 AM

The payments will KO you. Still have insurance and fuel and servicing.

Keep the xr8.

Olbucko · 30-09-2012, 11:59 AM

Quote:

Originally Posted by Silver Ghia

Keep the XR8.

My motto with buying cars: If I cant pay cash for it, I cant afford it.

Loans for cars are money pits, as mentioned above. I've never taken a loan out for a car, besides I've never leased one either, in about 40 years and buying about 5 new cars plus second hand ones over that time.

My rule to! and it feels good to have saved the money and pay cash for a new car and you have much more bargaining power with the dealer

How could you afford to service a $27,000 loan + a $50,000 loan, you would have about $30 a week left to spend! How would you be able to afford the $4,000 dollars for rego and ins per year, let alone petrol and serviceing costs.

I would rather drive a battered Stigma that I owned than be hocked up to the eyeballs with a car loan.

OffRoadFalcon · 26-09-2012, 11:30 PM

I'll say don't do it as well.
Repayments will be huge, the interest will be huge, and it just won't be worth it in the end.
If something went wrong, bye-bye everything. It's a huge risk.

Seen and heard of people do similar things over and over before, sometimes they are lucky, often not.

This is why I always say: Don't buy anything unless you HAVE the money NOW or are CERTAIN (with no risk of something not working out) you will have it soon.

lucas2 · 27-09-2012, 12:19 AM

Try this instead:
http://www.herrodmotorsport.com.au/H...8/Default.aspx

dave351cid · 27-09-2012, 12:26 AM

borrrowing that much for a car would scare me.

it sucks but if you want a new GTP then you had better start looking for a job in the mines or big industry. shop wages dont stretch that far.

thats why i`m still driving my 9 year old Egas BA ute.
concentrate on paying off that $27000 as quick as you can and maintain your XR8 and it will serve you well.