Peoples thought on routine updating cars

[kwaka738]

What Voodoo_SV6 says is spot on. Cars depreciate significantly in the first couple of years and then the rate of depreciation slows. If you have lots of money then trading in on a new car every few years isn't an issue. But do the maths. You are spending significant money and after updating a few cars over 6-8 years you will have lost heaps. You will continue to have a new car that will depreciate significantly each time you buy a new one. You may have a nice modern car but it comes at a cost.

If your current SV6 is a good car then hang onto it. After another 3-4 years it will still be worth about $10k so the rate you will be losing money will drop right off and you will have those extra $$$$ in your wallet for the things you want to buy (eg the deposit on that house). For every $1000 you don't have to borrow on a home loan from the bank it will save you tens of thousands of dollars over the length of your home loan. A house is an asset that will appreciate in time whereas a car won’t unless it’s Peter Brock’s ex-Bathurst A9X.

The only person to benefit from you buying a new car every couple of years is the car dealer.

Cheers

[burleighboy86]

If it were me personally, I would begin focusing on a house.
The decision rests with you, but in Australia cars will always depreciate, houses thus far show no indication of depreciating short of a GFC hitting us. Which the market is certainly starting to show signs of - high unemployment and stonewalling employers wanting highly qualified highly experienced employees for low pay when no one is giving that experience, and also fire sales of defaulted houses by banks - but thus far I've been unable to find out what suburbs these reside in - presumably mining towns. When/if the government abandoned their float on the real estate bubble it will crash - but it's highly unlikely they will do so when their taxing the entire system and gaining so much revenue at the cost of living and affordability. It won't be long before it becomes impossible for a single income individual to afford a home.

I earn over $80k a year, and things still get tough at times. Sure, I have a young family, but I'd consider my income pretty good. It will get to a point where my missus will have to work too. But where do the kids go? I really couldn't imagine how families in cities can afford to live on a single income.

[SV666]

Again thanks guys for the honest replies, and my decision has been made to do the right thing and save up for a house. For me I'm a manager in kmart so my wage is decent for my current lifestyle (still living at home) which is why I was able to buy a brand new car in the first place and pay it off as quickly as I have been. I know it will be a lot harder going into a mortgage with a single income, I should of mentioned earlier I would be looking to get a place with my girlfriend. Only problem atm she hasn't got a stable job as of yet and has basically been causal averaging 30 hours + with casual wage her boss hasnt been bothered to make up a contract or anything but then again she wont receive all benefits as you would as a part time or full time. With that she has managed to buy her own brand new car (mazda 3) with the help from her family. Bottom line is I need her onto a full time job for at least 3-6 months before banks will look at her for a credit rating she also took out a small loan for the sake of the credit rating so hopefully that will help when it comes to the time to get the loan. My theory was to upgrade while she gets into a better job and when the time came I should be back to square one again.

Again from all the responses it would be beneficial on my part to start saving, all I can in the mean time.

Thanks guys.

[mint]

I don't get why anyone in their right mind would be asking for finance advice on a car forum.

At least you got largely sensible advice!!! And looks like you came to the right decision. Good luck to you.

[RiCeY]

Are you suggesting car enthusiasts couldnt possibly have any idea when it comes to financial decisions?

[Kernal]

Buying a brand new car is like masturbation, it all feels great when you're 'sealing the deal', but when its all over you realise you've just f@#ked yourself.

[huthy14]

Buying a brand new car is like masturbation, it all feels great when you're 'sealing the deal', but when its all over you realise you've just f@#ked yourself.

Lol I know that feeling