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.