I live in North Queensland Australia and the housing market has gone through the roof over the last five years or so. The market is now slowing down. I'm single and have been saving to get a morgage. I have a healthy deposit, however my car is not in good shape it's twenty years old and is requiring more and more outlay. My question is... do I get a new car, second hand car and use some of my savings? Or do I keep saving and when I'm able to find a house I can afford (which I don't feel will happen for at least another two years) get extra on the loan for the car?
2007-03-09 17:38:00 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
You are going to march to your own drum but If this old man could make you do anything I would make you come up with the money you need for your home ahead of anything else. A new car sounds great, but having a home, your own home! now that would be great. Two years and you are on your way. I'm not in your shoes but my house isn't paid for yet and I am well over 60 years old,.......hey guess what I have one other bill, if you guessed a car you would be right. stick to your guns and follow your plan and get the house first and for two more very short years fix up the old one that you have already it is also a known vehicle to you and another used one might be worse than the one that you already have.
2007-03-10 08:49:07 · answer #1 · answered by ffperki 6 · 0⤊ 0⤋
ALL cars irrespective of their age cost money to maintain and run. If you by another car you could be buying someone else's problems even if it is newer than your old one and expensive.
Cars get to a point where almost everything seems to go wrong and you have your hand in your pocket all the time. Eventually, everything gets fixed and you have a reliable car again. This might cost $2000 - $3000 dollars but it is still cheaper than buying another car AND you own it outright (as opposed to finance on a vehicle or a mortgage extension)
If you are young (under 25yrs) you will pay through the nose for comprehensive insurance premiums on a modern/expensive car so try to wait until after 25.
Cars depreciate very quickly in value so it will never be an asset like a house will; if you finance through the mortgage, the loan will be over a 25 - 30 yr period for a car that probably won't be around for that long.
If your current car is past maintenance, replace it now. You have to think of safety. But try to spend as little of your deposit as possible. Make sure the new car has a road worthy certificate and even get it checked out by the RACQ before you commit to buying it. They will give you a comprehensive report on the condition of the car and, if you ask them, a list of what parts are likely to need replacing soon.
Hope that helped a bit. Good luck
2007-03-09 18:11:07 · answer #2 · answered by Sue W 3 · 0⤊ 0⤋
A rule of thumb is which you will desire to have 3-6 months dwelling expenses saved up as an emergency fund. Assuming you have that, you are able to spend the surplus on a motor vehicle once you like it. inspite of the undeniable fact that, paying for a motor vehicle will decrease critically into the money which you're saving for a down value, so i'd stay away from paying for a motor vehicle until you certainly need it.
2016-12-18 09:45:13 · answer #3 · answered by ? 4 · 0⤊ 0⤋
There's no reason to go into debt when you have money already, I would buy a cheap car that will get you through till you can get your mortgage, you would end up paying more if you got a loan anyway with interest and all.
2007-03-09 17:44:41 · answer #4 · answered by wesside145 2 · 0⤊ 0⤋
DON'T BUY NEW! Keep your $ and purchase a good used car...cars are the worst investment that you can spend $ on. They are the only item that you purchase >$15k that will depreciate at such a fast rate.
2007-03-09 17:44:50 · answer #5 · answered by Ronnny321 2 · 0⤊ 0⤋