Getting A 30k Loan For A Daily. Good/bad Idea?

[PranK]

My only feedback is that if you're driving a 330k Magna now and reasonably happy/content with it, why do you want to spend $30k on the replacement?

Theres lots of great cars that can be had for under 10k and will see you through the next however-many years.

My Bora was $70k new (in 2002, top of the range '4Motion Sport'), I bought it 4 years ago (I've never had a car longer than 2 years which should give you an indication of how happy I am with it) for $8500. Its arguably the best daily under 15k for me. 4 doors for the kiddos, 150kw V6, AWD, full leather and heated seats, a sweet 6 speed with a little bit of poke. 232k on it now and its still *SO* tight. Everything works still and its showing no sign of slowing down. $8500!!!! (You can get em much less than that now.)

Yes, I'd really like a new(er) Golf GTI or an R34 4 door or whatever but for right now with a sole-income household and a big mortgage I can't see why I should spend another $n on a car that will probably not do the daily-thing as well as the Bora.

$30k loan on a daily? I just dont think I could do that.

[admS15]

Considering the fact u r driving a pos magna ATM. U r obviously not swimming in cash. I would say spend around 10k on a newer daily and put the extra 20k towards house or mortgage.

[Ad's]

Dont get a loan for a daily considering you are going to buy a house soon. 30k is stupid for a daily driven car unless you can really afford it and ontop of a house loan too you might be digging yourself a hole. Go out and buy a cheap daily again, something thats realiable and you know will last you.

I drive a N13 pulsar around daily since I got my licence, sure she's rough now but my god does she keep on going. Service it once a year and do the general check ups every now and again and she's sweet, clock stopped at 200k 4 years ago and id say she's done over 300k now also $30 p/w on fuel is a life saver.

Owned my Hr31 for 7 years now and only ever had a small 3k loan to drop the 25 in years ago. She's my Rolls Royce, I don't care what people think of my daily as I know I have something special when summer comes around.

We are paying a extra $200 p/w off our home loan because we can at the present time, we could be paying more but we also save to go on holidays and go out every now and again. I work a second job once a week so that gives me 5k a year to spend on the HR or go out and skid the cheap drifter I have pieced together.

Both my wife and myself don't earn BIG dollars but we plan ahead what we put our money towards, we don't live a life we cannot afford nor do we want to be in large amounts of debit apart from our home loan.

Everyone is different, wants different things. But if it was me I wouldn't want to drive a 30k car around daily for inconsiderate people to dent and destroy, id rather drive my HR on the weekends and leave a semi stress/debit free life.

My 2c.

[Cowboy1600]

Kinks had the right of it.

Buying a house comes down to two things, deposit and servicing.

Getting a loan for a car week eat into your servicing ability. If you earn good coin and are planning a modest home loan, then go for it. If not, then you may want to reconsider.

I suggest you talk to a finance broker. Drop me a PM if you want and I'll give you the name if a good one in your area. He/she will be able to do the calcs for you and tell you what you can afford based on future plans.

[sleptema]

The fact of whether I could afford it or not was never the issue. I could afford a 50k loan over 5 years and still be comfortable, but then I will be sacrificing money that I could be putting extra off the house.

I am grateful for all the input from everyone, I appreciate all the advice.

I have decided to keep the magna for now, and put the money I would be using on the loan into the high interest savings account that I have my house savings going into, and when I get my mortgage, I will put extra onto the house, and when the magna becomes a problem, I can redraw and buy a car outright.

The deciding factor for decision wasn't actually the money, it was the fact that I have no secure parking (only have 1 secure spot) for it for at least the next 6 months until my house is bought (and then maybe another 10 months if I am building), and the fact that I am on FIFO (fly in fly out) the car will be sitting in the open, depreciating and an easy target for thieves. This situation will change when I have a house for myself with a double garage

The main reason I wanted the 30k car was because I wanted to be comfortable, have plenty of power, and look OG as f**k. The car in question was a e92 335i (decked out with m3 body kit ) I am well aware there are much cheaper "dailys" out there, but none of which met all the criteria.

As for the holiday: I have recently just paid for a contiki tour of Europe for a month. Should be awesome!

Thanks again everyone.

[luke gtr]

I was going to ask what kind of car.

I would have said do it.

You already checked you can afford it.

So why not?

Mrs bought a new Mazda 3 18 months ago, was 30k, loves it.

I bought a 2nd hand Evo x 12 months ago(28k), as I wanted one for 6 years, and was finally in the position to do so.

We started building 6 months ago.

So long as you've crunched the figures (which you have), I say do it.

You only live once.

[Hertz Donut]

The main reason I wanted the 30k car was because I wanted to be comfortable, have plenty of power, and look OG as f**k. The car in question was a e92 335i (decked out with m3 body kit ) I am well aware there are much cheaper "dailys" out there, but none of which met all the criteria.

Ok well addressing those points:

- Is the Magna not comfortable? I thought they were a bit of a couch on wheels given they're old bangers.

- How much power does a daily need? If you're at least as fast the nearest P-plater Falcodore then you can stay ahead of the carnage.

- As for looking cool...I drop my son off at his private school in our beat-up, smoky old VS*. Other kids are dropped off in Euros, including some exotics like Aston Martins, Maseratis and Ferraris. This doesn't worry me one bit, because I could easily buy any of them but I'd rather keep my money in my multiple properties, and I know most of the people turning up in the exotics are up to their eyeballs in debt or they're writing them off against their businesses. There's rich people, and there's people who try to look rich. I don't consider myself rich but I'm not about to hurl myself into debt on a depreciating asset just to play "Keeping Up with the Joneses".

[edit to avoid all sorts of e-carnage] NZ is a different culture to Aus so the last point may be moot over there. [/edit]

*...although my son is now keenly aware of keeping up appearances so this may change.

Edited June 8, 2015 by Hertz Donut

[sleptema]

Ok well addressing those points:

- Is the Magna not comfortable? I thought they were a bit of a couch on wheels given they're old bangers.

- How much power does a daily need? If you're at least as fast the nearest P-plater Falcodore then you can stay ahead of the carnage.

- As for looking cool...I drop my son off at his private school in our beat-up, smoky old VS*. Other kids are dropped off in Euros, including some exotics like Aston Martins, Maseratis and Ferraris. This doesn't worry me one bit, because I could easily buy any of them but I'd rather keep my money in my multiple properties, and I know most of the people turning up in the exotics are up to their eyeballs in debt or they're writing them off against their businesses. There's rich people, and there's people who try to look rich. I don't consider myself rich but I'm not about to hurl myself into debt on a depreciating asset just to play "Keeping Up with the Joneses".

[edit to avoid all sorts of e-carnage] NZ is a different culture to Aus so the last point may be moot over there. [/edit]

*...although my son is now keenly aware of keeping up appearances so this may change.

-The magna isn't that uncomfortable, but 20 years takes its toll on a cars suspension. Obviously a newer euro would be a much nicer ride

-More than what mine has. It struggles to overtake when I am sitting on 100.

-It's a 30k 6 year old bimmer - not a god damn aston martin. I thought it was a fair compromise between luxury and price. But yes, my decision to work towards a house has taken priority.

[niZmO_Man]

Get a $10-15k Liberty instead

[zoomzoom]

I do a lot of country highway driving and it's sure nice to have 200kw atw when overtaking.

[r32-25t]

I love how everyone said buying a nice car is so that everyone else can look at you. Hell no buying anything is for you and you alone, having a nice quiet, comfortable and reliable car is wonderful and youll be surprised how nice having all the mod cons really is once you have them

[sydking]

woudlent pay more than 4k for a daily

even an old ford fairmont or fairlane can be had for 2k.

look around

[Anfanee]

Getting a 30k loan for anything other than a house is never a good idea.

If you need to get a loan it means you can't afford it. Walk away and save your money.

Getting loans is a good way of never having any money.

[luke gtr]

Driving home today, after an excessively long day, glad I got my car.

It reminds me what I work hard for, me.

I disagree anf.

Some people can't save.

I'm one of those people.

I can pay things off well.

But, if I save, something always comes up that destroys my savings.

[Anfanee]

doesn't mean borrowing 30k for a daily is a good idea.

The amount of money wasted from borrowing it is insane, put the cash away in a locked deposit account separate from your standard bank account.Transfer it automatically the night you get paid. You get used to it very quickly and sort of forget about it.

Nekminute you have saved 30k for said daily and not wasted thousands on interest.

Nekminute you have a house

There is a scene in the episode "poor and stupid" by south park, cartmun gives all his money away and still finds he is still too rich to get into nascar.

He borrows money and buys all new things on "no deposit, interest free", and on credit cards. His solution to how to have no money. Sounds harsh but it's true. You will never get ahead if you keep spending money on interest.

TL;DR teach yourself how to save. It is the single best bit of advice anyone can get. With good money management it is quite amazing what you can do on a little income.

[Ben C34]

Is a 30k loan for a house a good idea?

No.

Can't drive a house.

Skid video plz

[Piggaz]

I disagree anf.

Some people can't save.

I'm one of those people.

I can pay things off well.

But, if I save, something always comes up that destroys my savings.

That's just no self control/discipline.

[Ben C34]

Can't save.

Can't stop wanking

Etc

[WantGTR]

just finished reading several articles about the supposed housing bubble and the current real estate market. reports are that people are struggling to pay what the market demands.

taking that into consideration you are considering ticking up 30k for a car loan?

im sure theres members here who have the cash to build an 8 sec gtr. just because you can doesnt mean its a great idea.

point is - dont buy expensive things with money you dont have to impress people you dont like. act your wage.

[GTR_JOEY]

Is a 30k loan for a house a good idea?

No.

Can't drive a house.

Skid video plz

Can sleep in a car though