Cold feet..
 

Hey guys, first post here.

So close to getting a GT86 Manual 2014 on finance ready for their arrivals late this year.

I plan to use the Toyota Access Finance program (Car has guaranteed future value after 4 year term and Toyota will buy it back as a balloon payment or I can sell privately/keep the car and pay the rest of the loan. This is based on condition of the car at the end of the contract period and an agreement is made on how many km's will be driven over the period.)

Since I have never been in a payment contract for a car or any large purchase before, could you take a look at my situation and tell me whether you would make the jump or not if you were me?


Details:

8.75% Interest over 4 year term
$6000 deposit
My weekly salary $450 (When I finish my degree in just over a year this will be somewhere between $600 and $750).
Expected Car repayments including insurance $130.
I will sell my current car after the loan starts for ~2k.

Cheers :cheers:

I'd shop around for a lower interest rate.

Regional forum...

Look at getting a loan at PenFed: https://www.penfed.org/


Great auto loan rates.

8.75% geez

regardless happy for you and wish you all the best!!!

http://www.runemasterstudios.com/gra...s/welcome2.gif ......jdb_

Where is NSW .. ??

humfrz

OP is in Australia guys, and financing there is a WHOLE different ball-game than what we see in the US.

think that is new south wales

i'm assuming that they fuck you over more with respect to interest rates there...

Sorry I'm gona move this to the Regional Forum.

But yeah..financing a car in Australia is bullshit. GTS auto starts around $44k..

Thanks for the info.

I reckon I can't comment on that financing "opportunity" .... but it sounds miserable.....:(

humfrz

Unless you can get a great limited offer on your finance like Toyotas 1.9% for its Prius in the past, or Ford's 2.9% for its Focus, the lowest interest rates you will get here will be a minimum of 7%. I don't know how that stacks up to yours in the US but yeah.

I doubt you'll find a lower Interest rate on the 86 mate. i tried and couldn't get under 8%.

If I were you I'd save a little more and try to put down 50% Deposit.

Do you pay rent or board at all? If not I'd think about whether you will be in the future if within the loan repayment period.

I'm in the USA; I'm unfamiliar with Australia.

Is this a purchase, or a lease?



I would NOT.

Perhaps I misunderstand, though.

You are in college, currently earning around $23,400 per year? You are about 21 years old, with another year to go until you finish your university studies?

And you anticipate earning around $36,000 per year following graduation?

And this car will cost over $30,000?

That is a big expense for someone just starting out in life, with so many other expenses, possibly including student loan payments.

Perhaps it would be wise to postpone this expensive purchase until you've completed at least one full year of successful employment following graduation. Things might look different to you at the end of that period.

I suspect this is not what you want to hear. But you did ask, right? :)


I am confused by your numbers.

In the USA, insurance alone would cost a single, 22-year-old male $130 per month.

Yet, you say car payment AND insurance will be only $130? How can this be?

If we assume that the total price of the car in Australia, with tax, title and license fees is $33,000, then you would finance (33-6) $27,000 for 48 months @ 8.75% interest. The monthly payment = $668.70.

Interest cost = $5097.60

Total cost = $668.70x48+6000=$38,097.60

Now, you will own a paid-off car that's four years old at the end of this loan term, but still, this is a lot of money to spend on your transportation needs at this early point in your fledgling adult life.

Such an expensive purchase at this time seems unwise.

I'm in Melbourne Australia and I got my finance at 6.7% from Toyota Australia.

Another important point to bear in mind: Just because the lenders, the "grown-ups," will agree to lend you a great deal of money for a car or a house … does not mean it is a good idea to make the purchase.

Those same grown-ups irresponsibly loaned massive sums of money on bad mortgages not so long ago … and nearly brought the entire western financial world to its knees. These bankers regularly encourage people to borrow more than is wise. They are not your friends.

You are wise to have "cold feet."

Listen to your feet. ;)

I can't comment on your financials other than to say that having lived in NSW, things are different there. I had a company car (Holden Commodore) and didn't have to deal with transportation expenses.

I miss Oz and will return. Your country has so much to offer from fun blokes with positive attitudes, agreeable climate, exotic tropical locales, urban adventures and beautiful women who are attracted to Americans that I was sad when transferred back to the US.

If you live with mom and dad and have literally zero expense maybe you can pull it off. If you have expense I wouldn't do that if I were you. You have to factor in petrol parking insurance maintenance rego. Your life will be miserable without much money to spend on. I much rather buy cheap car and still be able to go out with friends. If you're just curious about driving it, you can just "treat" yourself by renting 86 once awhile for a week ender or something.
And remember you have huge residual payment after 4 years and if you can't come up with the dough that pretty much means kissing your car goodbye.

Buying a car that pretty much equals the total amount of money you make in a year.... I sure as hell wouldnt do it unless you plan on living at home, eating boxed noodles and having the social life of a hermit.

If you need to ask if you should do it, odds are, you probably already know you shouldnt.

Dont do it.

Save up and wait until you finish school and get a better job.

Cheers for the advice everyone, I probably should have added a few more details. As of January I will be earning 500 p/w while still at uni with less than $50 expenses per week. I have also been renting an apartment for the last two years, my share was $185 p/w and I NEVER missed a payment, I payed double on some occasions to help out my roomate because I was still able to save, even though I was earning $400 sometimes less p/w.

Taking what you have all said into consideration though, I am now looking at 2012 models, which I could save up a 1/3 deposit for and finance at $90 p/w as of next year, we'll see how it goes.

Thank you all a lot :bow:

There is the key to the misunderstanding.
The $130 you quoted was per week.
Here in the U.S. we talk in monthly payments.
So $520 per month including insurance, which is a lot closer to what we would expect.

Car payment is weekly? And a lump sum at the end? da fuk is going on

O WAIT everything is backwards in australia i forgot

I have a feeling you are going to be like me. I'm 25, I make decent money but having my $430/month car payment for more than a year now, I wish I had waited and moved out of my moms basement first. Not including I put down 2k and the ~2500 in taxes. Plus winter tires and wheels another 2k. So in 1 year thats ~11500 more I could have saved for a place to live. I don't regret it but if I could do it differently I would say the better way is move out -> buy new car.

Not backward, upside down. That's why they drive on the left. If they tried to drive on the right they'd drop off the Earth into space.

The footwell heat works quite well on my FRS. If you were wondering.
I've had to use it several times this week.



HTH. HAND. WTFOMGBBQ.

That seems like a very sensible approach :thumbup:

Remember, good things are worth waiting for :)

Holy moly on your interest rate! Nothing down, and for 72 months I was able to get 1.99% APR through my Credit Union. Payed $10k on it first month after I sold my car private party. I think you should go checkout credit unions.

I got 2.54% rate from Toyota financial. Some people even got a lower rate. I wouldn't go with that high of a rate, unless your credit is really bad. Welcome and Good Luck!

Op is in Aussie, rates are much higher. For comparison, variable deposit rates at the moment is 2.25% I think.
But really if I'm earning 500 PW and rent and expense cost me 200 PW, I'd be very careful in getting loan. Last thing you want is getting a default record on your name when you're so young.