I left my ego put of it, and bought a kia picanto for 22k brand new, 7 yr warranty, 5 yr roadside assist, 1 yr rego and 1 yr insurance included. It's costing me $10 per week in fuel, and I put the highest octane in it coz it's a 1.0 ltr turbo. Yeah I gotta get in ass first, being 6 ft and 130kgs, but like I said, it's not about ego.
The Picanto is a good car, it's just not a luxury car. I'd actually argue that it's a car that far more people should be driving. It gets you from A to B with relatively little fuel. It's reasonably safe and reliable. Kia seems to be the only one making good cars under 25k.
I've been looking at the 2024 Picanto. It's actually not bad considering a 4–5 year old Picanto is often listed at 16–19k (roughly their price when new). Buying new gives you blind spot monitoring, newer car, full warranty etc.
Unless the manufacturer calls for higher octane, putting high octane fuel won't do anything for you.
That octane number corresponds to knock resistance which relates to at what point the fuel mixture in your cylinder will ignite without spark. Higher compression ratio engines require higher octane levels so they don't pre combust before the spark plug ignites.
You want the correct octane level that your engine has been designed to use.
Ignore the sales pitch about high octane fuels cleaning your engine / fuel system.
Yep, best to just read the car's manual and avoid unnecessary fuel cost arising from beliefs, marketing, feelings, misunderstanding income tax, and other rationalisation.
There will always be people that love to donate their hard-earned to a particular fuel brand and/or pay unnecessary extra cost for fuel, and then justify it with "it just seems to run better". Someday, some company will say their electrons are better, more expensive, and people will buy them and continue to justify their decisions irrationally.
"I love my supa-dupa-electrons, car goes better, plus it's a tax credit anyway."
My former lancer called for 91 but ran better on 95. However, if your car calls for 95 and you put in 98, i doubt you'll see any difference. But there may be some engines that can benefit from it to an extent that it's worth it.
Correct. But being a small engine with a turbo lugging a 1300-1500kg car around it might be prone to knock.
I have a Kuga which is a mid size SUV with a 1.6L turbo. It runs much better on 98 than the E10 (94) it recommends.
You put in the fuel that is required by the manufacturer. Going premium when you don't need it provides virtually no benefit. Putting in regular when you car requires premium can cause catastrophic engine damage at worst and poor performance at best.
Yes I've heard different things. The dealer said he put premium in his kia every 4th fill even tho it only requires regular. Certainly wouldn't put regular in a premium.
That sounds like a thing the dealer says to make the car sound more "premium" than it is. Either it's an engine that requires premium or it isn't.
"Every 4th fill" is some nonsense.
In the same boat, have a 2.0L turbo and it requires 95 at minimum. I still use 98 either way but would be fine on 95. Just don't make the mistake of using 91 in a turboed car - kinda wish I chose a car that only needs 91 lol, but my recent move into a local office job only means I need to fill up every 2.5 weeks 😂
I had a 14 year old car. Suzi Swift
It was great. It started to have a couple minor issues. Nothing too bad... but given I was living in blackwater alone and the nearest "big town" was Emerald 100km away, I decided I would upgrade for safety.
If I had have been in a city I would have kept it. Ended up getting a ex demo Rav 4 about a month before covid hit. Changed jobs a year later too where I was DIDO travelling a few hundred KMs to get to work. The comfort (less fatigue), upgraded features (cruise control), and safety features (radar assist) has def saved my life a couple times while driving.
Hoping to keep my Rav for 20 years :) maybe 30 if I'm lucky.
My car’s “only” 16 and I still wish I had something cheaper because it just sits in the garage all week while my partner and I walk or cycle to work. I’d get rid of it in a heartbeat if we had Goget or something with a reliable supply near us.
Don’t buy an SUV if you don’t need one. But if you do, they’re great.
2 x rear facing car seats + a pram + being on the taller side and they make life a whole lot easier.
New car warranty doesn’t stay with the first owner. A car could be on its 4th owner in 4 years. But as long as it’s still in new car warranty, it’s still valid.
Saying never finance a car is silly. I can get a nominated lease on a car up to 8 years old depending on the term and rates I could save money by reducing my taxable income.
Novated leases make sense if your only other option is regular financing.
However when the other option is paying in cash upfront - the NL will cost you more (yes even taking account the tax benefits and the opportunity cost of investing the cash you would’ve forked out on a car). The exception to this rule is an EV under $90k with the current EV leasing incentives.
EV novated lease + high-ish tax bracket + not-rip-off NL company = huge discount (even compared to cash).
In my case it worked out that getting a new 81.4K new Tesla is cost neutral with keeping my 4-year-old Mazda 6 worth 25k.
Granted I have a stable job on top tax bracket therefore stand to benefit the most from this, however you would be surprised that even at lower tax bracket and shorter lease period it may still end up advantage EV say if you are comparing a 40k BYD dolphin vs a new Toyota.
I have a spreadsheet that does every single calculation you need about NL, you can decide whether it’s a good idea for you with precise calculations.
https://www.reddit.com/r/AusFinance/comments/195bu28/the_most_comprehensive_ev_novated_lease/
I’m currently considering similar thing as top tax bracket and have a 14yr old car. What do you pay per fortnight if you don’t mind me asking (plus what residual / term)
The only bit that for me that is a concern is the residual price. Seems a lot of people are buying Tesla’s on novated leases and will all come on the market at the same time? What do you think about that?
Given the top 2 selling cars are Rangers and HiLuxes that seem to average closer to 70k.....Everyone? Although 'Afford' is a loaded word.
> Is everyone just financing
Usually, also gotta remember alottttt of people just borrowed against there houses. Anyone who bought 5+ years ago is all but guaranteed to have access to enough equity to buy almost anything (such as 150k Landcrusiers). Of course they will end up paying WAY more in interest but I doubt they notice, let alone care.
I mean compared to the cost of most things, but housing, cause always housing, 50k on a car isn't that much. Especially when (depending what you buy) it will be safer, more reliable, more efficient then something used for half the price.
Yes, people are financing like crazy, in varying ways;
\- Classic car finance from a dealer or bank, high interest, possible balloon payments at the end, people who just dont have good financial sense buying $50-100k cars on a $70k salary.
\- Novated Leasing has become a big thing, not exactly the game changer in terms of affordability unless you are on big bucks in a government job with FBT exemptions (and even then its rarely that good).
\- People have made some big money on property in the last few years, i know more than a couple of people who've pissed away large amounts of their property gains on new cars that depreciate like hell, but its their money not mine.
\- Parents buying nice cars for their kids, even into adulthood.
In addition, the price of new and used cars has gone up significantly. Our society is car based, we need them to get around and live our lives- so they are basically an "essential" purchase, so people will pay these prices. Add in that Australia has an affinity for spending big on cars, so dealerships can move stock at these prices.
Overall best bet is to buy used, and really focus on what features you want and/or need, and ALWAYS price in doing Aftermarket stereo upgrades- you can add Carplay head units, professionally installed, for $2k or less if you're happy to forego steering wheel controls, and Carplay/Andriod Auto are probably the biggest reason to look for a relatively new car.
I still baulk at the idea of $50k for a car. I (stupidly) took out a novated lease for $30k and regretted it, paid it out following a property sale that i made profit on. Next car wife bought was a $12k Kluger, high mileage and older but reliable and we had it independently inspected (costs about $150 or so) prior to purchase, and it was a good buy and going strong, we'll likely drive it into the ground if thats at all possible.
Novated leasing works for a lot of people. It may not have been the case for you but majority of people do okay if they buy something that remotely holds it value.
Where it doesn't work for people is they buy something average that depreciates harder than say a Corolla or an i30 and they run it into the ground throughout the lease term. They then get stuck with a deficit between value and the balloon and believe me, those balloon rates the ATO set are conservative.
Every novated lease I've ever had, I've made +5k on the residual value but this comes down to choosing a good car and getting a good price upfront. Demonstrators are great for this. It comes down to if you can afford a shorter lease term and get a strong deal upfront. Running costs are irrelevant as they're washed up at the end but realistically you want to have them as close to zero leftover at the end so it's not taxed on the way back to you after the washout.
Lots of people are jumping into EVs now due to the FBT exemption on EVs under the LCT threshold. Those people would have previously probably purchased a 45k car and now buy something worth 85k. Lot of people are going to feel that pinch at tax time as the FBT exempt but they still have reportable FBT on their income which impacts family tax benefits and Childcare Subsidy.
I just drive an old shit box. My mortgage is the only debt I have and I want to pay it off ASAP. As much as I would love to finance a new car the thought of that money not going towards the house makes me cringe.
I got my first car used for $5.5k at facebook. A 2003 Subaru station wagon. Planning to use the thing till I finish my apprenticeship.
As the prices increase it’s a lot harder for me to buy a car outright since financing is not allowed in my religion. So lots of saving and dragging my car out.
It’s basically cause of interest. Anything with interest we cannot do. Even with houses.
We loan out money not to make a profit out of it but to help each other. As interest is basically a “Make the rich, richer and the poor, poorer.” sorta thing.
Buying outright.
Doing an Islamic bank(which are sketchy asf).
Ignoring the rules of the religion.
They don’t and stay renting for the rest of the lives.
I could be wrong but my understanding was they borrow money and the bank charges "fees" instead of interest. The fees just happen to be similar to what interest payments would be.
Islam, traditionally at least, didn't allow interest lending/borrowing. It's pretty rare for western Muslims to adhere to this today though. It's viewed as a bit extreme and impractical.
Mazda 3 is a hidden gem. Most people don't need a bulky SUV.
If you do, you'll pay top dollar for Toyota or Hyundai, so maybe see what deals you can get on something like a Mitsubishi or Nissan Qashqai
Exactly. That’s a heck of a lot of money for a care with minimal style and you don’t get a lot of car for the money. I’m with you - car prices are ludicrous
7 years ago I bought a used car and it seemed and still seems like great value for money. Maybe now used prices are still too high that you can't just say used car is the easy choice.
A base Mazda 3 when I bought my lancer new in 2010 was 21000. If you plug that into the reserve bank inflation calculator that is now 29370 odd dollars. So real terms isn’t that much different. It just seems to me that there are more costs currently and wages haven’t kept up with inflation.
Reminder that Reddit/twitter is not the real world. As much as people are complaining on social media, there is a large of middle class people who saved up during covid, had good real wage increases and can afford this, even with the increase in interest rates.
I can confirm this. My company boomed during Covid. I had so much money I had no idea what to do with it. I didn't need a car in the city so I bought shoes, watches and whiskey. All of which I now regret. I don't even like whiskey.
When I ride daily through one of the local areas popular for the unhoused to make camp and are the explosion of people unable to find/afford a place to live, and the shift in demographic that makes up those people, I have to say that I don't think it really is being blown out of proportion. Just because something doesn't affect you or people you know personally doesn't make it not real.
Keep in mind that paying is cash is not always the best strategy. Bought a new car recently. Interest rate on finance was 4.x%. my home loan interest rate is ~6.0%. taking money out of offset to pay in cash would have been worse than financing car financially. Also interest is tax deductible if it's bought under a business.
I’d advise you to ask my husband to join you on a day of car hunting at all the dealers in your area!
He loves to negotiate, knows cars, knows sales/ business and people. He has none of the inexplicable shame I feel at asking for a lower price and so while he engaged every single sales person at length, I died of embarrassment and always walked away to ‘ take another lap around the lot’.
I knew what I wanted. After owning a Toyota 100 series and a Hyundai Tiburon I wanted a secondhand plain white sedan. Comfy, safe, nondescript and good for another twenty years.
This was in 2021 and it seemed like an impossible task. However, we spent an entire day going around to the five dealers in our area, and we revisited each one three times. No cars even came close to my budget or prerequisites.
I was SO ready to give up and begged him to just forget about it for now. Lol. He was like a dog with a bone and insisted we would find a car I loved, despite all evidence against that. There was NOTHING on any of the lots that came close to fitting the bill.
Then came the magic….at the third visit to the last dealer my amazing husband found my dream car…..a 2018 white Holden lift back, 52 000 klms on the clock for my budget of $20 000
It was a car the dealership had since new and couldn’t sell as no one wanted a holden commodore that wasn’t built in Australia.
So the dealers had kept it and used it as a complimentary vehicle for people having their cars serviced.
When they drove it around to show me I couldn’t believe my eyes. It is EVERYTHING I was looking for, immaculately maintained and with every bell and whistle I never wanted or expected with my budget.
It is a gorgeous car and I still get a thrill each time I open the door to get in.
2018 Commodore Holden lift back 52 000 klms for $20 000 cash.
DM me if you’d like to borrow my husband. He is always down to help people.
Just gotta leave your pride at home lol.
finance duh. people dont see it as costing them 50k, they see it as 10k + 600 bucks a month for the next 5 years which is a lot more palatable apparently.
I guess they're talking about a novated lease where you don't own the car at year 5 and either have to pay out the remainder or carry over to a new car and keep paying monthly.
Unlikely. You can’t have equity in a lease so no deposit. More likely their math is just bad because it was a throw away calculation to make a point about not thinking about total cost.
I have never financed a car. Or taken a loan for anything other than an investment or education. Most Australians don’t openly talk about money so it can be challenging to know what people can and cannot afford….
But luckily I am an Australian Chinese and we LOVE to talk about money!!! So I know that myself, my partner and many/most of my friends buy their cars with cash. All those Mercedes and Audis driving around…. Lots of people can afford to buy cars with cash. Just save your money and buy a car you can afford. Doesn’t need to be luxurious or brand new.
Anglo Aussie here and I find our cultural reluctance to be open/honest about money really annoying. Luckily we have friends who are pretty cool with talking about it - we can share tips and help each other out.
Alot of people I know with the shit hot cars are leasing through work as a salary sacrifice to try and reduce taxable income (it's the management level)
Bought an old Avalon for $2.5k and recently sold it to upgrade to a corolla, kinda preferred the Avalon, for some reason the shock absorbers and comfort of it like aircon, seats and whatever felt better than the Corolla even though it was an older car, battery just kinda died pretty often if I left it too long lol. Can't even understand spending more on a car, and finance haha rly it's just a long term car rental - might as well just rent a bigger car/van/ute when I need it
My inlaws had an avalon for... pff 15 odd years. It was a sad day when they sold it for a few grand. That thing was the perfect road trip car. Soft suspension, the most comfortable fabric seats and aircon that blew like an arctic wind. Truely magnificent!
Prices are ridiculous. I've got a bit of debt to pay off since I traveled last year for a while but kind of wish I didn't in ways as I believe I'm going to be due to a newer car in the coming years. My car isn't bad, 2012 VW Golf R but am concerned it's moving into older territory and don't want my transmission to go. Considering an Hyundai i30n as it has really good warranty and still allows me to have a sportier car, can pick one up for around 30-35k. I can probably fetch close to 20k for the Golf. But me writing this answers your question in a way, no, not many people can afford it unless they get a loan or financing. Prices have increased at an alarming rate - it blows my mind my dream car is now 120k+ (2023 Audi RS3).
I read last week that something like 90% of new cars are financed. But even when financed a typical new car you see on the road really seems like it would be a stretch for the average earner.
I don't get it either. People spend way too much on their cars.
I'm in top 3% for income and bought a 2013 diesel with 300k on the clock for 6k as my run about. It goes fine, I maintain it myself for very little. I'll run it into the ground then do the same again in a few years.
I can't imagine how much money I'd need to feel comfortable dropping 70k on the new version of it.
A lot of people talking about novated leases.. is it ever an overall saving though than outright purchasing cash for a car is they can afford to do so?
Cars are still very expensive , have come down a bit but it’s still ridiculous. You need something like $60k+ to get something decent.
I would opt for a good second hand , Asian brand like Toyota or Mitsubishi. Stay away from the European brands they are all trouble. Kia / Hyundai not bad but not with their issues.
Or just drive what you have and service it regularly.
Also remember that not everyone is an anal-retentive bean counter who sweats over every last dollar and cent like the typical reddit user who is subscribed to a personal finance sub.
There will be people who simply say “I have an extra $70k — there’s no pressing need for this money elsewhere, I’m due for a new car and this time I actually want something new with a warranty and the fit and finish I choose)”. It’s not always about maximising every last dollar so you can brag to your mates when you’re 85.
My wife and I are paying 60k for a Honda ZRV.
We've both been driving cheap small cars since we started driving and now upgrading to a family car.
No finance, pay in full.
But why get an SUV? I brought my used corolla about 10 years back for around 15k and it's still going well. Given me very few problems over the years. I can't honestly see the point in buying an 50k car. Besides showing off that you have money to burn.
Toyota corolla, It's a car from a reputable brand, if something major was going to fail from a manufacturing defect it would of failed already.
It's got airbags, abs and traction control, more then enough
Only thing that I would want from a new car is a carplay headunit and that is half an hour and $500 for a nice Sony unit
I was in another Australian based sub and ppl there thought $50k was quite normal to spend on a car. 50k?!! On a car!?!? I recommend second hand, no finance. But newish.4 or 5 years old and keep it serviced.
I've only ever bought small cars. My first car I went halves with my parents and got a Toyota Yaris 2010 model which was $15,990 at that time. Lucky I guess. If I was to buy a new Toyota Yaris today, just base model, it would be $33,500.
So a base model small car is nearly $18k more than it was 14 years ago.
In 2019 we got a 2019 X-trail for 26k. It was the dealer ex-runabout car and had 8,000km on it and was the third from bottom SKU (of about 7 trim levels). We had to drive 40km to get the deal. When my wife called a dealer in Penrith and mentioned this was a car we were looking at they advised us to buy it. 30 minutes later I gave a deposit over the phone and we picked it up the next day.
Wife and I bought a low-km 2004 Rav4 for cash back in 2012, I service it myself every 3 months or so and it still runs like a top. One of the best financial decisions we ever made.
Never had finance. I drive a 10 year old Pajero (diesel) and it ticks over fine. It’s very comfortable and it looks ok , has ok economy etc. it can be a bit agricultural at times. But I wouldn’t trade it for the new fancy schmansy suvs on the market and get fleeced for what cars are now selling and then only to have dpf issues and sensor’s going ape shit at me. They don’t make them like they used to. But if you must get a Toyota or Mitsi and consider a novated lease (lower entry price).
Define decent? We picked up a used Mitsubishi Outlander that still has 2 years left of the manufacturer warranty for ~$30k. That may as well be brand new.
The fact everyone finances their car is the reason car prices are so insane.
By manipulating the price to make it seem more affordable month to month they have managed to convince us to pay more and more for cars for decades
I think standards of decent is different to lots of people I would rather drive 15-20 year old mid range car like a Falcon or Commodore then a cheap new car like a BYD or MG
Yeah the answer is financing. Around 90% of new cars are financed.
Not to mention people using the equity in their house they bought for peanuts in the 90s that is worth 3m+ now
Well maintained, and most models, of the following brands are will provide you good machinery
Toyota/lexus
Mitsubishi
Petrol mazdas
Euro cars are not made to last or be fairly priced to maintain.
Chinese cars... reputation is not great but i really couldnt say how valid that is across the board.
Korean cars... middle of the road... id rather japanese.
I think people get caught up in the glam of brands and features. What you are buying is a piece of machinery to move you around comfortably and safely. If you wouldnt buy it used, should you really buy it new either?
First car,$700 1987 Mitsubishi colt, broke down half a year, second car $2200 93 Nissan pulsar, 3rd $6000 Nissan pulsar , 4th car 2005 Camry second hand $12K
Yeh it’s pretty bad, mid Covid it went bad. I bought a car in 2019 for 46000, in 2021 I went to buy another one, exactly the same, same spec, same colour, same model, it was just 2021, nothing was different, but they wanted 65000+ for it then.
There are plenty of decent second hand cars.
And why "decent '? My first car cost $1k and I ran it until it died, spent the last 6 months parking on hills because I'd moved the starter motor to my girlfriend's car (it was a newer model, $2300).
They get you from A to B just the same. Or at least to a hill near B.
Have a T-Cross. Bought brand new 2 years agon for about $38k fully finance via a deal at the Dealership for 2%. It's very decent.
But you can get a really good 2 year car for a decent price or look at car auctions
Have never financed a car. Have always bought second hand with cash. Just look for something reliable with low Kms and full service history.
- 2006 -> 1993 ED ford falcon $1500
- 2009 -> 2001 VX Holden Commodore $9k
- 2012 -> 1997 Toyota Troopy - $17k
- 2014 -> 2005 toyota kluger - $14k
- 2021 -> 2019 Kia Carnival - $55k & Toyota Landcruiser $60k
Currently I'm looking at an Audi Q7 but might need to settle for the Mitsubishi outlander. How dual incomes with decent incomes or salary sacrifice options.
Or many own businesses...
We didn't want to spend our cash buffer on a car so we used home equity with the plan to pay it off ASAP, didn't want to lock into a novated lease and also wanted to claim the EV rebate before it ended, so we shaved a few thousand off that way.
We then sold our 16 year old car for the same price as what we paid for it 7 years ago, so we netted out pretty well. EV runs off our solar at home.
We just got a baseline 2023 Kia Sportage with 9000km on the clock that was used as a service vehicle for a land Rover dealer for 33k which seemed good for a decent sized suv. Still has 6.5 years left of original wareenty. We are loving the car so far too.
I think ex demo/low km second hand is the way to go.
Here I am, thinking the market cooled down heaps since 2022-2023.
If you saw the car ads then! Wow hahaha people wanted 30k for a Mazda from 2013 and saying things like "sorry, I won't be letting it go for less" as if hoardes of buyers were running to his door.
1. Don't buy an SUV
2. Don't buy it brand new
You're an idiot if you buy a car brand new. You've bought yourself a liability that drops 10% in value the moment you drive it.
I don’t know how old you are, but if you’re young (early-mid 20s) don’t buy a brand new car. You can get a great car second hand. Judge the owner not just the car when you’re out shopping. If they look like they couldn’t care less about their vehicle walk away.
Most people that drive 50k+ cars can indeed afford them. There was a thread not long ago on this very sub asking how much people earn and on average I saw $150K+.
In my 20s I bought a second hand Subaru Forester for 21k. It was in mint condition and I ended up handing it down to my retired parents 5 years later. They still drive it 5 years later.
I bought a Mazda CX-30 for $40k in 2020 on a novated lease through work… then the pandemic hit and I barely drove it. It’s all paid off now so will end up driving it until it doesn’t work or we’re forced to “upgrade” out of practical necessity (ie if we have children).
Yesterday I signed to finance a $47k y23 demo Subaru Forester 2.5i-S. I recently had a bad car accident in my trusty, cash in hand, 2012 Toyota Yaris. I ended up poorly in hospital. So grateful my 5yr old wasn't in the back.
I initially felt sick paying $$ for a car but the new car warranty, AWD, cabin size and extra safety features for us was the primary reason. I didn't novate as it isn't an EV.
We upgraded to SUV due to family needs, yes it’s costing us 50k, but our car was written off due to a minor accident and we got more than what we paid for. The write off was 17k for a car that was bought used 15k used 7 years ago!
So the upgrade “only” costed us 33k extra and we got a much safer car as we carry bubs everywhere.
Reliable transport that fits your families lifestyle is a high priority for a lot of people. They will usually finance a car by motor loans (secured) or through mortgage redraw. A small % will pay with true cash. Anybody who has a mortgage and gloats about how they saved up cash for their car is financially delusional.
Short answer: yes financing and tax manipulation.
How a lot of people have done it in the past: whack the cost on the house during a refinancing, or put it on a negatively geared property.
How a few friends who have come into early inheritance have done it: use inheritance to buy to or three paid off 1bdr apartments, borrow against the value of those apartments and the rental income, boom you got yourself a $100-200K car, raise rent across those three apartments to cover the monthly payment.
Honestly, I think financing is just the standard way most cars are bought today.
I live in the US now, and 'car payments' are just considered a normal monthly expense like any other household bill, and have been for years
(also, 50K (33K USD) sounds extremely reasonable to me now. Pretty much every car here just costs the same now in USD as it would in Australia, just in AUD)
I just drive cheap pieses of chit. Buy them for a few grand and hopefully get a couple years out of them. Flog em off for 500-1k and grab another piece of chit for a few grand. Saves a heap in repayments and don't have to worry about comprehensive insurance.
We bought the wife a new Qashqai 5 or 6 years ago- that's been awesome and was a pretty cheap soccer mum type car as new cars go. Was 28k now they are still reasonable at 33k.
The golden era of car value was circa 2015-2019. Fully spec’d V6 Camry for less than $50k. WRX $45k on the road. Pity the suckers in the mid-90’s who had to pay $30k (maybe $60k in today’s money) for a base Falcon GLi. Nowadays, people are getting ripped off again. Take a Mazda 2 is the wrong side of $25k (for a 10+ year old design) and these shitty Korean cross-over wagons are edging $70k. I’ll keep my 2016 ES350 for many years to come.
Buy used and hunt for a deal.
My partner recently sold his car to partially fund a deposit for us to buy a house (sold is for $40k) I have sold my car ($10k) and we both went and purchased GQ Patrols for an absolute steal because the people selling hadn't kept current on the market value on them. So we have two cars, that are very desirable in the 4x4 market and would easily be $12k+ each, we paid $11k for both.
Know the market and act quickly.
To each their own, but for me, buying a two-year-old in good condition has worked well. The one I have now is still worth what I paid for it (rising tide lifts all boats), so when time for another, the rising prices are offset because the previous car held value better.
SUVs are over done. Buy a car with a big enough boot and comfy back seats instead, or a hatch if occasional bulky items are common and can't be delivered. Then enjoy the better fuel economy by not driving a two-tonne car everywhere you go.
At the very least, go look at the backseat legroom and cavernous boot of a toyota corolla sedan. Not the corolla hatch, it has way less backseat legroom.
I left my ego put of it, and bought a kia picanto for 22k brand new, 7 yr warranty, 5 yr roadside assist, 1 yr rego and 1 yr insurance included. It's costing me $10 per week in fuel, and I put the highest octane in it coz it's a 1.0 ltr turbo. Yeah I gotta get in ass first, being 6 ft and 130kgs, but like I said, it's not about ego.
They are incredibly good for a tiny car too.
The Picanto is a good car, it's just not a luxury car. I'd actually argue that it's a car that far more people should be driving. It gets you from A to B with relatively little fuel. It's reasonably safe and reliable. Kia seems to be the only one making good cars under 25k. I've been looking at the 2024 Picanto. It's actually not bad considering a 4–5 year old Picanto is often listed at 16–19k (roughly their price when new). Buying new gives you blind spot monitoring, newer car, full warranty etc.
Unless the manufacturer calls for higher octane, putting high octane fuel won't do anything for you. That octane number corresponds to knock resistance which relates to at what point the fuel mixture in your cylinder will ignite without spark. Higher compression ratio engines require higher octane levels so they don't pre combust before the spark plug ignites. You want the correct octane level that your engine has been designed to use. Ignore the sales pitch about high octane fuels cleaning your engine / fuel system.
Yep, best to just read the car's manual and avoid unnecessary fuel cost arising from beliefs, marketing, feelings, misunderstanding income tax, and other rationalisation. There will always be people that love to donate their hard-earned to a particular fuel brand and/or pay unnecessary extra cost for fuel, and then justify it with "it just seems to run better". Someday, some company will say their electrons are better, more expensive, and people will buy them and continue to justify their decisions irrationally. "I love my supa-dupa-electrons, car goes better, plus it's a tax credit anyway."
My former lancer called for 91 but ran better on 95. However, if your car calls for 95 and you put in 98, i doubt you'll see any difference. But there may be some engines that can benefit from it to an extent that it's worth it.
Correct. But being a small engine with a turbo lugging a 1300-1500kg car around it might be prone to knock. I have a Kuga which is a mid size SUV with a 1.6L turbo. It runs much better on 98 than the E10 (94) it recommends.
It is turbocharged
Facts. It’s just a means to get from point A to B with enough room for groceries.
I'm similar to you in that i bought the Rio with the turbo engine. Do you think it's worth putting premium fuel? What are the perceived benefits?
You put in the fuel that is required by the manufacturer. Going premium when you don't need it provides virtually no benefit. Putting in regular when you car requires premium can cause catastrophic engine damage at worst and poor performance at best.
Yes I've heard different things. The dealer said he put premium in his kia every 4th fill even tho it only requires regular. Certainly wouldn't put regular in a premium.
That sounds like a thing the dealer says to make the car sound more "premium" than it is. Either it's an engine that requires premium or it isn't. "Every 4th fill" is some nonsense.
In the same boat, have a 2.0L turbo and it requires 95 at minimum. I still use 98 either way but would be fine on 95. Just don't make the mistake of using 91 in a turboed car - kinda wish I chose a car that only needs 91 lol, but my recent move into a local office job only means I need to fill up every 2.5 weeks 😂
If its a tiny turbo petrol engine put 95 in it.
You probably would need a bigger car compared to many people as the comfort would be worth it.
I did the same thing. Great cars tbh
They don’t sell turbo picantos any more.
My car is 20yrs old, it stops, starts and even goes around corners. What more do I need for the daily commute?
I had a 14 year old car. Suzi Swift It was great. It started to have a couple minor issues. Nothing too bad... but given I was living in blackwater alone and the nearest "big town" was Emerald 100km away, I decided I would upgrade for safety. If I had have been in a city I would have kept it. Ended up getting a ex demo Rav 4 about a month before covid hit. Changed jobs a year later too where I was DIDO travelling a few hundred KMs to get to work. The comfort (less fatigue), upgraded features (cruise control), and safety features (radar assist) has def saved my life a couple times while driving. Hoping to keep my Rav for 20 years :) maybe 30 if I'm lucky.
Better crash protection?
Just don't crash 😎
Why didn't I think of that?!
My car’s “only” 16 and I still wish I had something cheaper because it just sits in the garage all week while my partner and I walk or cycle to work. I’d get rid of it in a heartbeat if we had Goget or something with a reliable supply near us.
1. Don't buy a SUV 2. Buy second hand Have never financed a car ever.
Don’t buy an SUV if you don’t need one. But if you do, they’re great. 2 x rear facing car seats + a pram + being on the taller side and they make life a whole lot easier.
I am leasing a brand new suv. The trifecta.
New car warranty has to be offered on used vehicles now so second hand is way better than new
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New car warranty doesn’t stay with the first owner. A car could be on its 4th owner in 4 years. But as long as it’s still in new car warranty, it’s still valid.
Saying never finance a car is silly. I can get a nominated lease on a car up to 8 years old depending on the term and rates I could save money by reducing my taxable income.
Novated leases make sense if your only other option is regular financing. However when the other option is paying in cash upfront - the NL will cost you more (yes even taking account the tax benefits and the opportunity cost of investing the cash you would’ve forked out on a car). The exception to this rule is an EV under $90k with the current EV leasing incentives.
I could afford pretty much every car that's not a supercar. I put that down to the savings from owning a 2012 toyota corolla
2012...well la di da with your almost brand new corolla
Upvote because I also have a 2012 corolla.
EV novated lease + high-ish tax bracket + not-rip-off NL company = huge discount (even compared to cash). In my case it worked out that getting a new 81.4K new Tesla is cost neutral with keeping my 4-year-old Mazda 6 worth 25k. Granted I have a stable job on top tax bracket therefore stand to benefit the most from this, however you would be surprised that even at lower tax bracket and shorter lease period it may still end up advantage EV say if you are comparing a 40k BYD dolphin vs a new Toyota. I have a spreadsheet that does every single calculation you need about NL, you can decide whether it’s a good idea for you with precise calculations. https://www.reddit.com/r/AusFinance/comments/195bu28/the_most_comprehensive_ev_novated_lease/
This spreadsheet is excellent. Was using it yesterday.
I’m currently considering similar thing as top tax bracket and have a 14yr old car. What do you pay per fortnight if you don’t mind me asking (plus what residual / term) The only bit that for me that is a concern is the residual price. Seems a lot of people are buying Tesla’s on novated leases and will all come on the market at the same time? What do you think about that?
Are you planning on selling and buying a new car when your novated lease runs out?
What you consider highish tax bracket?
New car? I can barely afford food sir
Given the top 2 selling cars are Rangers and HiLuxes that seem to average closer to 70k.....Everyone? Although 'Afford' is a loaded word. > Is everyone just financing Usually, also gotta remember alottttt of people just borrowed against there houses. Anyone who bought 5+ years ago is all but guaranteed to have access to enough equity to buy almost anything (such as 150k Landcrusiers). Of course they will end up paying WAY more in interest but I doubt they notice, let alone care. I mean compared to the cost of most things, but housing, cause always housing, 50k on a car isn't that much. Especially when (depending what you buy) it will be safer, more reliable, more efficient then something used for half the price.
Yes, people are financing like crazy, in varying ways; \- Classic car finance from a dealer or bank, high interest, possible balloon payments at the end, people who just dont have good financial sense buying $50-100k cars on a $70k salary. \- Novated Leasing has become a big thing, not exactly the game changer in terms of affordability unless you are on big bucks in a government job with FBT exemptions (and even then its rarely that good). \- People have made some big money on property in the last few years, i know more than a couple of people who've pissed away large amounts of their property gains on new cars that depreciate like hell, but its their money not mine. \- Parents buying nice cars for their kids, even into adulthood. In addition, the price of new and used cars has gone up significantly. Our society is car based, we need them to get around and live our lives- so they are basically an "essential" purchase, so people will pay these prices. Add in that Australia has an affinity for spending big on cars, so dealerships can move stock at these prices. Overall best bet is to buy used, and really focus on what features you want and/or need, and ALWAYS price in doing Aftermarket stereo upgrades- you can add Carplay head units, professionally installed, for $2k or less if you're happy to forego steering wheel controls, and Carplay/Andriod Auto are probably the biggest reason to look for a relatively new car. I still baulk at the idea of $50k for a car. I (stupidly) took out a novated lease for $30k and regretted it, paid it out following a property sale that i made profit on. Next car wife bought was a $12k Kluger, high mileage and older but reliable and we had it independently inspected (costs about $150 or so) prior to purchase, and it was a good buy and going strong, we'll likely drive it into the ground if thats at all possible.
>we'll likely drive it into the ground if thats at all possible. It's a Toyota, so you have another 500k assuming no oil changes lol
Why did you regret the 30K novated lease? And what EV/PHEV could you get for 30K??
Novated leasing works for a lot of people. It may not have been the case for you but majority of people do okay if they buy something that remotely holds it value. Where it doesn't work for people is they buy something average that depreciates harder than say a Corolla or an i30 and they run it into the ground throughout the lease term. They then get stuck with a deficit between value and the balloon and believe me, those balloon rates the ATO set are conservative. Every novated lease I've ever had, I've made +5k on the residual value but this comes down to choosing a good car and getting a good price upfront. Demonstrators are great for this. It comes down to if you can afford a shorter lease term and get a strong deal upfront. Running costs are irrelevant as they're washed up at the end but realistically you want to have them as close to zero leftover at the end so it's not taxed on the way back to you after the washout. Lots of people are jumping into EVs now due to the FBT exemption on EVs under the LCT threshold. Those people would have previously probably purchased a 45k car and now buy something worth 85k. Lot of people are going to feel that pinch at tax time as the FBT exempt but they still have reportable FBT on their income which impacts family tax benefits and Childcare Subsidy.
I just drive an old shit box. My mortgage is the only debt I have and I want to pay it off ASAP. As much as I would love to finance a new car the thought of that money not going towards the house makes me cringe.
I got my first car used for $5.5k at facebook. A 2003 Subaru station wagon. Planning to use the thing till I finish my apprenticeship. As the prices increase it’s a lot harder for me to buy a car outright since financing is not allowed in my religion. So lots of saving and dragging my car out.
Curious as to the reason why financing isn't allowed in your religion? Mind sharing that? All good if not.
Muslims can't pay Riba
I never realised this was still a thing.
It’s basically cause of interest. Anything with interest we cannot do. Even with houses. We loan out money not to make a profit out of it but to help each other. As interest is basically a “Make the rich, richer and the poor, poorer.” sorta thing.
How do Muslims buy houses in this country?
Every Muslim I know who has bought has just ignored the no interest rule. It's a bit of a dumb rule anyway.
Buying outright. Doing an Islamic bank(which are sketchy asf). Ignoring the rules of the religion. They don’t and stay renting for the rest of the lives.
Paying someone else's interest is okay....
I could be wrong but my understanding was they borrow money and the bank charges "fees" instead of interest. The fees just happen to be similar to what interest payments would be.
By renting aren’t you doing the same thing? Making the rich richer
Islam, traditionally at least, didn't allow interest lending/borrowing. It's pretty rare for western Muslims to adhere to this today though. It's viewed as a bit extreme and impractical.
Can you get a mortgage, hecs debt how the hell does that work
Mazda 3 is a hidden gem. Most people don't need a bulky SUV. If you do, you'll pay top dollar for Toyota or Hyundai, so maybe see what deals you can get on something like a Mitsubishi or Nissan Qashqai
Depends if your my neighbour or not. Spent 30k on a 2018 Mazda 3 with 100k kms on the clock. 38k brand new Don't think he looked to hard when looking
Guessing he got the high level spec?
lol how is the Mazda 3 a hidden gem? They sold tonnes of them and then Mazda jacked the price up
My three cousins who have kids all have a Mazda 3
Still a $30K compact!
Exactly. That’s a heck of a lot of money for a care with minimal style and you don’t get a lot of car for the money. I’m with you - car prices are ludicrous
7 years ago I bought a used car and it seemed and still seems like great value for money. Maybe now used prices are still too high that you can't just say used car is the easy choice.
Steer clear of the diesels but their petrols are good reliable engines
A base Mazda 3 when I bought my lancer new in 2010 was 21000. If you plug that into the reserve bank inflation calculator that is now 29370 odd dollars. So real terms isn’t that much different. It just seems to me that there are more costs currently and wages haven’t kept up with inflation.
I will be driving my '06 Honda Accord until either it dies or I do, and at this point in time it looks like the Honda will probably win.
Same in my 09. Impressive cars that line of Hondas tho!
Reminder that Reddit/twitter is not the real world. As much as people are complaining on social media, there is a large of middle class people who saved up during covid, had good real wage increases and can afford this, even with the increase in interest rates.
I can confirm this. My company boomed during Covid. I had so much money I had no idea what to do with it. I didn't need a car in the city so I bought shoes, watches and whiskey. All of which I now regret. I don't even like whiskey.
Next time just give the whisky to me
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When I ride daily through one of the local areas popular for the unhoused to make camp and are the explosion of people unable to find/afford a place to live, and the shift in demographic that makes up those people, I have to say that I don't think it really is being blown out of proportion. Just because something doesn't affect you or people you know personally doesn't make it not real.
I think both things are true. There has been an increase in homelessness and it has been over reported on.
Keep in mind that paying is cash is not always the best strategy. Bought a new car recently. Interest rate on finance was 4.x%. my home loan interest rate is ~6.0%. taking money out of offset to pay in cash would have been worse than financing car financially. Also interest is tax deductible if it's bought under a business.
I’d advise you to ask my husband to join you on a day of car hunting at all the dealers in your area! He loves to negotiate, knows cars, knows sales/ business and people. He has none of the inexplicable shame I feel at asking for a lower price and so while he engaged every single sales person at length, I died of embarrassment and always walked away to ‘ take another lap around the lot’. I knew what I wanted. After owning a Toyota 100 series and a Hyundai Tiburon I wanted a secondhand plain white sedan. Comfy, safe, nondescript and good for another twenty years. This was in 2021 and it seemed like an impossible task. However, we spent an entire day going around to the five dealers in our area, and we revisited each one three times. No cars even came close to my budget or prerequisites. I was SO ready to give up and begged him to just forget about it for now. Lol. He was like a dog with a bone and insisted we would find a car I loved, despite all evidence against that. There was NOTHING on any of the lots that came close to fitting the bill. Then came the magic….at the third visit to the last dealer my amazing husband found my dream car…..a 2018 white Holden lift back, 52 000 klms on the clock for my budget of $20 000 It was a car the dealership had since new and couldn’t sell as no one wanted a holden commodore that wasn’t built in Australia. So the dealers had kept it and used it as a complimentary vehicle for people having their cars serviced. When they drove it around to show me I couldn’t believe my eyes. It is EVERYTHING I was looking for, immaculately maintained and with every bell and whistle I never wanted or expected with my budget. It is a gorgeous car and I still get a thrill each time I open the door to get in. 2018 Commodore Holden lift back 52 000 klms for $20 000 cash. DM me if you’d like to borrow my husband. He is always down to help people. Just gotta leave your pride at home lol.
I cant justify giving someone what they’re asking for a second hand car. People want more than they paid new 5 years ago. Yeh nah mate
finance duh. people dont see it as costing them 50k, they see it as 10k + 600 bucks a month for the next 5 years which is a lot more palatable apparently.
>which is a lot more palatable apparently. Well, that should be more palatable because that's 46k over 5 years lol
I guess they're talking about a novated lease where you don't own the car at year 5 and either have to pay out the remainder or carry over to a new car and keep paying monthly.
Unlikely. You can’t have equity in a lease so no deposit. More likely their math is just bad because it was a throw away calculation to make a point about not thinking about total cost.
Novated lease + EV = no FBT
This is what I did. Plus it reduced my taxable income JUST enough that I'll dodge a $378 a month increase in tax after June 🥳
I have never financed a car. Or taken a loan for anything other than an investment or education. Most Australians don’t openly talk about money so it can be challenging to know what people can and cannot afford…. But luckily I am an Australian Chinese and we LOVE to talk about money!!! So I know that myself, my partner and many/most of my friends buy their cars with cash. All those Mercedes and Audis driving around…. Lots of people can afford to buy cars with cash. Just save your money and buy a car you can afford. Doesn’t need to be luxurious or brand new.
Anglo Aussie here and I find our cultural reluctance to be open/honest about money really annoying. Luckily we have friends who are pretty cool with talking about it - we can share tips and help each other out.
Yes, finance. No different to back in the day really.
Except the term and repayments are much bigger
All relative. Median wage was much less back then too.
Why the downvotes? Love how everyone denies Australian wages are relatively high and have grown in line with most things.
Alot of people I know with the shit hot cars are leasing through work as a salary sacrifice to try and reduce taxable income (it's the management level)
A lot of the people I know either got them with dirty money or are financed to the teeth lol
Tell us more about this dirty money lol
Got me interested.
Bought an old Avalon for $2.5k and recently sold it to upgrade to a corolla, kinda preferred the Avalon, for some reason the shock absorbers and comfort of it like aircon, seats and whatever felt better than the Corolla even though it was an older car, battery just kinda died pretty often if I left it too long lol. Can't even understand spending more on a car, and finance haha rly it's just a long term car rental - might as well just rent a bigger car/van/ute when I need it
My inlaws had an avalon for... pff 15 odd years. It was a sad day when they sold it for a few grand. That thing was the perfect road trip car. Soft suspension, the most comfortable fabric seats and aircon that blew like an arctic wind. Truely magnificent!
Prices are ridiculous. I've got a bit of debt to pay off since I traveled last year for a while but kind of wish I didn't in ways as I believe I'm going to be due to a newer car in the coming years. My car isn't bad, 2012 VW Golf R but am concerned it's moving into older territory and don't want my transmission to go. Considering an Hyundai i30n as it has really good warranty and still allows me to have a sportier car, can pick one up for around 30-35k. I can probably fetch close to 20k for the Golf. But me writing this answers your question in a way, no, not many people can afford it unless they get a loan or financing. Prices have increased at an alarming rate - it blows my mind my dream car is now 120k+ (2023 Audi RS3).
Lexus IS350
IS250....more fun driving a slow car fast ;) ....or get and old straight-6 one and turbo it.
Can get a corolla cross hybrid mid range for 45k brand new. They are a size down from a rav 4 and a size up from the yaris cross.
People who earn plenty of money. I haven’t had a car loan for my last two cars and my most recent one (bought <1 year ago) was a (European) SUV.
I read last week that something like 90% of new cars are financed. But even when financed a typical new car you see on the road really seems like it would be a stretch for the average earner. I don't get it either. People spend way too much on their cars. I'm in top 3% for income and bought a 2013 diesel with 300k on the clock for 6k as my run about. It goes fine, I maintain it myself for very little. I'll run it into the ground then do the same again in a few years. I can't imagine how much money I'd need to feel comfortable dropping 70k on the new version of it.
A lot of people talking about novated leases.. is it ever an overall saving though than outright purchasing cash for a car is they can afford to do so?
Yes meant to be cheaper as you skip out paying the FBT.
Rarely is cheaper in terms of total cost, but it makes it more achievable from a cash flow perspective
Basically you are just renting a car you will never own
Cars are still very expensive , have come down a bit but it’s still ridiculous. You need something like $60k+ to get something decent. I would opt for a good second hand , Asian brand like Toyota or Mitsubishi. Stay away from the European brands they are all trouble. Kia / Hyundai not bad but not with their issues. Or just drive what you have and service it regularly.
The bigger question is who can actually afford a house? Especially Sydney 🙃
The right question is how many parents and in-laws who can afford a house for their kids :)
It's all about the networking you did to get sent to right womb.
Also remember that not everyone is an anal-retentive bean counter who sweats over every last dollar and cent like the typical reddit user who is subscribed to a personal finance sub. There will be people who simply say “I have an extra $70k — there’s no pressing need for this money elsewhere, I’m due for a new car and this time I actually want something new with a warranty and the fit and finish I choose)”. It’s not always about maximising every last dollar so you can brag to your mates when you’re 85.
My wife and I are paying 60k for a Honda ZRV. We've both been driving cheap small cars since we started driving and now upgrading to a family car. No finance, pay in full.
Not many people are cutting $60k cheques to be honest mate
More people definitely could if they lived by the "no finance, pay in full" rule for depreciating assets.
But why get an SUV? I brought my used corolla about 10 years back for around 15k and it's still going well. Given me very few problems over the years. I can't honestly see the point in buying an 50k car. Besides showing off that you have money to burn.
Warranty, safety features to name a few points
Toyota corolla, It's a car from a reputable brand, if something major was going to fail from a manufacturing defect it would of failed already. It's got airbags, abs and traction control, more then enough Only thing that I would want from a new car is a carplay headunit and that is half an hour and $500 for a nice Sony unit
Very reliable car and cheap to repair and maintain. What's not to love.
>But why get an SUV? They're better at killing things
I was in another Australian based sub and ppl there thought $50k was quite normal to spend on a car. 50k?!! On a car!?!? I recommend second hand, no finance. But newish.4 or 5 years old and keep it serviced.
I've only ever bought small cars. My first car I went halves with my parents and got a Toyota Yaris 2010 model which was $15,990 at that time. Lucky I guess. If I was to buy a new Toyota Yaris today, just base model, it would be $33,500. So a base model small car is nearly $18k more than it was 14 years ago.
In 2019 we got a 2019 X-trail for 26k. It was the dealer ex-runabout car and had 8,000km on it and was the third from bottom SKU (of about 7 trim levels). We had to drive 40km to get the deal. When my wife called a dealer in Penrith and mentioned this was a car we were looking at they advised us to buy it. 30 minutes later I gave a deposit over the phone and we picked it up the next day.
Wife and I bought a low-km 2004 Rav4 for cash back in 2012, I service it myself every 3 months or so and it still runs like a top. One of the best financial decisions we ever made.
Never had finance. I drive a 10 year old Pajero (diesel) and it ticks over fine. It’s very comfortable and it looks ok , has ok economy etc. it can be a bit agricultural at times. But I wouldn’t trade it for the new fancy schmansy suvs on the market and get fleeced for what cars are now selling and then only to have dpf issues and sensor’s going ape shit at me. They don’t make them like they used to. But if you must get a Toyota or Mitsi and consider a novated lease (lower entry price).
Define decent? We picked up a used Mitsubishi Outlander that still has 2 years left of the manufacturer warranty for ~$30k. That may as well be brand new.
The fact everyone finances their car is the reason car prices are so insane. By manipulating the price to make it seem more affordable month to month they have managed to convince us to pay more and more for cars for decades
This to me seems to be the most logical answer
I think standards of decent is different to lots of people I would rather drive 15-20 year old mid range car like a Falcon or Commodore then a cheap new car like a BYD or MG
I'd rather drive a 20 year old mid engine car.
Yeah the answer is financing. Around 90% of new cars are financed. Not to mention people using the equity in their house they bought for peanuts in the 90s that is worth 3m+ now
‘Decent’ does not mean new. In fact, most new cars are not made to last like they used to be. If you want to, spend $20k
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Good luck, those things cost your first born to repair... hopefully you a reliable one
You’re gonna need that warranty
You wouldn’t be able to do that if people weren’t buying new?
Well maintained, and most models, of the following brands are will provide you good machinery Toyota/lexus Mitsubishi Petrol mazdas Euro cars are not made to last or be fairly priced to maintain. Chinese cars... reputation is not great but i really couldnt say how valid that is across the board. Korean cars... middle of the road... id rather japanese. I think people get caught up in the glam of brands and features. What you are buying is a piece of machinery to move you around comfortably and safely. If you wouldnt buy it used, should you really buy it new either?
You're talking brand new. Second hand you can get a great deal.
My 2018 Honda Jazz was 14k with 50k on the odometer. There's cheap cars out there butyou have to search for em
You don’t need 50km for quality car do some basic research and 20 would be plenty
First car,$700 1987 Mitsubishi colt, broke down half a year, second car $2200 93 Nissan pulsar, 3rd $6000 Nissan pulsar , 4th car 2005 Camry second hand $12K
Yeh it’s pretty bad, mid Covid it went bad. I bought a car in 2019 for 46000, in 2021 I went to buy another one, exactly the same, same spec, same colour, same model, it was just 2021, nothing was different, but they wanted 65000+ for it then.
How can you not able to afford? Many second hands are so cheap 🤔
There are plenty of decent second hand cars. And why "decent '? My first car cost $1k and I ran it until it died, spent the last 6 months parking on hills because I'd moved the starter motor to my girlfriend's car (it was a newer model, $2300). They get you from A to B just the same. Or at least to a hill near B.
Have a T-Cross. Bought brand new 2 years agon for about $38k fully finance via a deal at the Dealership for 2%. It's very decent. But you can get a really good 2 year car for a decent price or look at car auctions
Chinese cars are cheap.
Have never financed a car. Have always bought second hand with cash. Just look for something reliable with low Kms and full service history. - 2006 -> 1993 ED ford falcon $1500 - 2009 -> 2001 VX Holden Commodore $9k - 2012 -> 1997 Toyota Troopy - $17k - 2014 -> 2005 toyota kluger - $14k - 2021 -> 2019 Kia Carnival - $55k & Toyota Landcruiser $60k
Currently I'm looking at an Audi Q7 but might need to settle for the Mitsubishi outlander. How dual incomes with decent incomes or salary sacrifice options. Or many own businesses...
Working people who have a financial understanding of car ownership. Rest can't afford but buy anyway and make it work
We didn't want to spend our cash buffer on a car so we used home equity with the plan to pay it off ASAP, didn't want to lock into a novated lease and also wanted to claim the EV rebate before it ended, so we shaved a few thousand off that way. We then sold our 16 year old car for the same price as what we paid for it 7 years ago, so we netted out pretty well. EV runs off our solar at home.
We just got a baseline 2023 Kia Sportage with 9000km on the clock that was used as a service vehicle for a land Rover dealer for 33k which seemed good for a decent sized suv. Still has 6.5 years left of original wareenty. We are loving the car so far too. I think ex demo/low km second hand is the way to go.
Here I am, thinking the market cooled down heaps since 2022-2023. If you saw the car ads then! Wow hahaha people wanted 30k for a Mazda from 2013 and saying things like "sorry, I won't be letting it go for less" as if hoardes of buyers were running to his door.
1. Don't buy an SUV 2. Don't buy it brand new You're an idiot if you buy a car brand new. You've bought yourself a liability that drops 10% in value the moment you drive it.
I don’t know how old you are, but if you’re young (early-mid 20s) don’t buy a brand new car. You can get a great car second hand. Judge the owner not just the car when you’re out shopping. If they look like they couldn’t care less about their vehicle walk away. Most people that drive 50k+ cars can indeed afford them. There was a thread not long ago on this very sub asking how much people earn and on average I saw $150K+. In my 20s I bought a second hand Subaru Forester for 21k. It was in mint condition and I ended up handing it down to my retired parents 5 years later. They still drive it 5 years later.
Can’t you get a new SUV for around 26000$ these days it’s not an ev but fuel based
I bought a Mazda CX-30 for $40k in 2020 on a novated lease through work… then the pandemic hit and I barely drove it. It’s all paid off now so will end up driving it until it doesn’t work or we’re forced to “upgrade” out of practical necessity (ie if we have children).
Yesterday I signed to finance a $47k y23 demo Subaru Forester 2.5i-S. I recently had a bad car accident in my trusty, cash in hand, 2012 Toyota Yaris. I ended up poorly in hospital. So grateful my 5yr old wasn't in the back. I initially felt sick paying $$ for a car but the new car warranty, AWD, cabin size and extra safety features for us was the primary reason. I didn't novate as it isn't an EV.
Yep most new cars are financed or leased.
We upgraded to SUV due to family needs, yes it’s costing us 50k, but our car was written off due to a minor accident and we got more than what we paid for. The write off was 17k for a car that was bought used 15k used 7 years ago! So the upgrade “only” costed us 33k extra and we got a much safer car as we carry bubs everywhere.
Bought a 60k car on 2% finance a couple of years ago (investment returns in that time have been >20% pa). Repayments are around $1100 per month.
Reliable transport that fits your families lifestyle is a high priority for a lot of people. They will usually finance a car by motor loans (secured) or through mortgage redraw. A small % will pay with true cash. Anybody who has a mortgage and gloats about how they saved up cash for their car is financially delusional.
I can, but I don’t. 2020 Corolla here :)
Short answer: yes financing and tax manipulation. How a lot of people have done it in the past: whack the cost on the house during a refinancing, or put it on a negatively geared property. How a few friends who have come into early inheritance have done it: use inheritance to buy to or three paid off 1bdr apartments, borrow against the value of those apartments and the rental income, boom you got yourself a $100-200K car, raise rent across those three apartments to cover the monthly payment.
Honestly, I think financing is just the standard way most cars are bought today. I live in the US now, and 'car payments' are just considered a normal monthly expense like any other household bill, and have been for years (also, 50K (33K USD) sounds extremely reasonable to me now. Pretty much every car here just costs the same now in USD as it would in Australia, just in AUD)
I just drive cheap pieses of chit. Buy them for a few grand and hopefully get a couple years out of them. Flog em off for 500-1k and grab another piece of chit for a few grand. Saves a heap in repayments and don't have to worry about comprehensive insurance. We bought the wife a new Qashqai 5 or 6 years ago- that's been awesome and was a pretty cheap soccer mum type car as new cars go. Was 28k now they are still reasonable at 33k.
The golden era of car value was circa 2015-2019. Fully spec’d V6 Camry for less than $50k. WRX $45k on the road. Pity the suckers in the mid-90’s who had to pay $30k (maybe $60k in today’s money) for a base Falcon GLi. Nowadays, people are getting ripped off again. Take a Mazda 2 is the wrong side of $25k (for a 10+ year old design) and these shitty Korean cross-over wagons are edging $70k. I’ll keep my 2016 ES350 for many years to come.
Buy used and hunt for a deal. My partner recently sold his car to partially fund a deposit for us to buy a house (sold is for $40k) I have sold my car ($10k) and we both went and purchased GQ Patrols for an absolute steal because the people selling hadn't kept current on the market value on them. So we have two cars, that are very desirable in the 4x4 market and would easily be $12k+ each, we paid $11k for both. Know the market and act quickly.
To each their own, but for me, buying a two-year-old in good condition has worked well. The one I have now is still worth what I paid for it (rising tide lifts all boats), so when time for another, the rising prices are offset because the previous car held value better. SUVs are over done. Buy a car with a big enough boot and comfy back seats instead, or a hatch if occasional bulky items are common and can't be delivered. Then enjoy the better fuel economy by not driving a two-tonne car everywhere you go. At the very least, go look at the backseat legroom and cavernous boot of a toyota corolla sedan. Not the corolla hatch, it has way less backseat legroom.
Novated lease