Is it worth taking out a loan for a car?

[Tatiana]

i personally wouldnt take out such a big loan even with a secure job. your minimum repayments over 4yrs would be around $300pw

Who do you borrow money from... the Mafia? :yeah:

I just put the above figures into the calculator on Car Sales and for $10K over 4 years the repayments are $64.67 a week.

Agree also with Minux, $10K is not a big loan either, but the OP needs to take into consideration running costs along with wear and tear.

 

[greenfoam]

My wife got a loan for a new car, 110$ per week for 5 years for her all things considered the savings in fuel/running costs and warrenty etc made it really no more expensive than driving her old tank which was costing her 100$ per week in fuel alone then you have parts etc (The new car costs $50 in fuel and is much safer 5 star, 5 airbags etc). So in some cases it's well worth it. Instead of after 5 years of having a dead old tank she will have a car still worth something and no doubt will trade it in and buy another new one which will cost much less next time (with a trade in and less interest). With a new car and good insurance you have no worrys about being knocked back on a claim or even if you do loose your job the car will allways be worth very near what you owe on it over the entire course of the loan, so you really can't go wrong. This plan however doesn't make so much sense when buying an old Hilux . But that's a bit of a story anyway

 

[blackdoggg]

personal experience, id say no.
I took out a loan to get my current car, because i spent endless ammounts of money all the time keeping my ex car running so wanted to spend more in the beginning, get something newer so less in maintenence. (Last for a ford, go figure, i learnt my lesson. nah was a nice car, loved it, repairs where jsut its age showing)
But i kinda in a way wish i didnt, like, loans suck.
Im yet to see it go down, im pretty much only killing interest.
Your much better to save a bit, stick it out, loans are to costly in the end.
Its up to you, i suggest against it strongly.

 

[burnsy150]

thanks for the advice guys...just so hard making a decision some people are yes and some are no. As for the car it's a fairly good buy all kitted up for off road brand new motor and turbo etc. I only drive about 3kms to work and back everyday so i'd say wear and tear + fuel won't be to bigger an issue and then if i get rid of the commodore that brings down the amount of money if i have to take out too.....just out of curiosity how much would i be looking at for selling a 96 acclaim 140 000km good condition 8 months rego 4?

 

[Troy711]

Do a lease o a hire purchase. Look into it, you will be surprised at how much better it is than a loan.

 

[hsvpunk]

If you want the car, and know its history then go for it.
Have you looked around at other cars that are like this hilux? and Do you really need a hilux?

As Minux said, a bad rating is the only one you can get.
People say you get good ratings etc.. All that means is that you pay it on time, or before the due date... you dont get anything out of it.
Just means your on the ball, and able to pay things when needed.

no way man, you dont want to have a loan at this age,
one of the benefits of being this age is to not having any loans or repayments, keep the loans for when you get a house haha

Not sure, but he never mentioned his/her age.
Alot of people have loans at a young age.

 

[walesy]

yeah my housemate salary sacrifised his ve ss... it comes out of your pay before tax so your in a lower tax bracket and you get a fuel card too plus insurence, rego, servicing, and tyres (when worn normally, not from burnouts ) are all part of the paid package

 

[coolvxss]

Im planning to do the same thing. Im an apprentice earning about the same as you. I was going to borrow about $10 000. I have looked into it, and i can get the loan over 7years and its about $50 a week. Then every year when my wage goes up, i can pay extra and i should be about to pay it off in few years hopfully, but if something happens i know i have the full 7 years to pay it off.

 

[adamc11]

If you can afford it then go for it. Your not really paying that much interest for something you'll use all the time.

Why do people keep saying this ****?

There is no such thing as a NICE credit rating in Australia. The only credit rating you can have is a BAD CREDIT RATING, the only thing reported on your credit file is BAD CREDIT. No reports of good credit, not nothing.

Are you sure? I know you can have a bad credit rating, but i thought that having loans, credit cards, etc and paying them on time gave you a good credit history for future loans.

 

[andyman]

im considering getting 5k loan and 2g of my own saving and hopefully selling my 450 for 6g to get a new bike,

now is the time for loans, with the interest rate being lowish if your paying it off quick