Is it worth taking out a loan for a car?

[nemesis_adrasteia]

that sounds like a great way to do things... maybe i should give it a go

 

[aetude]

1st no second yes. depends on what u use the car for.. if its for making money then definately

 

[vorn]

go for it.:thumbsup:

i got out a loan for 12g, for 5 years. $65 a week and I was only getting $500 a week back then, and I was living fine.

get a loan that wont penalize u for putting in more, that way u can try to pay it off in 3 years and you wont have

to pay too much interest

 

[sleek_vp]

well realy it depends on how you look at your situation me for instance i had a bad credit rating for a few years which caught up to me so i paid them coz i finish my apprentiseship a year before my loan term ends which is 2012 so it works out well there plus the loan itself isn't too bad for the loans category i fall into. i pay ge $126 p/w over 5 years at 16.75% compared to non paid bad credit loan which is at 30%!!! crazy

 

[MasterOfReality]

I never take out loans for items that depreciate.

One of the quickest ways of throwing your cash in the bin.

Save and buy a cheapy until you finish your apprenticeship.

 

[danja]

All I can say is work out how much the full term of the loan would cost, then ask youself "would I pay that much for the car?"

Example, guy above who got $10k loan @ $50p/w over 7 years = $18,200 over the life of the loan. If that's what you're getting for your Hilux, say "would I pay $18,200 for this Hilux"?

It's a fine and admirable strategy to say "I'll pay it out sooner than I have to", but when it comes to borrowing money remember you should plan for the worst. Lot of folks in the US forgot that little detail, and now we have a global financial crisis thanksomuch!

Also bear in mind it's harder to sell an encumbered vehicle if you decide 4 years into the 7 that you want to sell it, and that it will be worth less by then.

 

[mas996]

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

hire purchase?

 

[ScoHar]

My 2 cents, From experience im a few weeks off finishing my 10g loan, and I wished I never did it, although I am getting quite excited about the extra $100 im gonna have a week I felt it was an average experience, The car I bought was worth $10000, 2 years after I swapped it for a VR V6 kitted car, which I sold for $6500 and got my VP V8, which is about $4000 now so I guess that over the 3 years i've been paying my loan its been about $14000ish, and i've ended up with a $4000 car. Save your money and start small.

I know you may or may not keep the car for 3+years but its a big call to know where you are at my kinda age (you must be somewhere round my age) in 3+ years time.

 

[Ozzie]

Doesnt a 10k loan end up being about 18k with all the intrest?

 

[sleek_vp]

I never take out loans for items that depreciate.

One of the quickest ways of throwing your cash in the bin.

Save and buy a cheapy until you finish your apprenticeship.

no i did that already with a cheap car which costs next to nothing to run, the car loan is to fix my credit rating to get a house loan at the end of my apprenticeship, dude i know car values depreciate i didnt buy a car for that reason, i woulda bought a boat but we needed a car so diddo