Have you got a price ceiling?

[Palmy]

Originally Posted by Gir

You're young, still live with parents, and are about to dump your life savings on a car. It's a deprecating asset, so you're basically throwing that money away.

I'm a couple of years older than you, I also live with my parents, but that's because I'm saving 500 a week to buy a house. I have the savings to buy a GTS outright (assuming reasonable price), but I'm buying a GT on loan to get credit rating and because I can keep my saving rate while paying the loan off.

You could buy a car outright, but instead you're going to pay a bank probably around $10,000 (12.99% over 4 years on $35k) to loan you that money so you can "save" at the same time?

With logic like that you're the last person who should be giving financial advice.

[Staticfrost]

Originally Posted by Palmy

You could buy a car outright, but instead you're going to pay a bank probably around $10,000 (12.99% over 4 years on $35k) to loan you that money so you can "save" at the same time?

With logic like that you're the last person who should be giving financial advice.

if you getting a loan for 12.99% your getting screwed...

Can always pay about the min there for not incurring as much interest.

[Gir]

Originally Posted by Palmy

You could buy a car outright, but instead you're going to pay a bank probably around $10,000 (12.99% over 4 years on $35k) to loan you that money so you can "save" at the same time?

With logic like that you're the last person who should be giving financial advice.

1. Not borrowing the full amount
2. Saved money is a house deposit
3. Not borrowing for 2-3 years
4. Interest will be less then 2k
5. Doing it for credit rating, to help reduce interest on my future mortgage.

[Nafe]

I don't want a GTS so I doubt I will be anywhere near $40k. Well fingers crossed.
$35k *should* be enough!

[Palmy]

Originally Posted by Gir

1. Not borrowing the full amount
2. Saved money is a house deposit
3. Not borrowing for 2-3 years
4. Interest will be less then 2k
5. Doing it for credit rating, to help reduce interest on my future mortgage.

That may be the case, but I still dont see how giving away money for no reason helps you?
Unless you've defaulted a loan, been indicted for fraud, declared bankruptcy or previously been refused credit due to unsuitibility, credit rating (or more accurately credit score) is largely irrelevent.

[Gir]

Originally Posted by Palmy

That may be the case, but I still dont see how giving away money for no reason helps you?
Unless you've defaulted a loan, been indicted for fraud, declared bankruptcy or previously been refused credit due to unsuitibility, credit rating (or more accurately credit score) is largely irrelevent.

I don't like having a saving balance below 20k. This is one of the reasons I've never had to take a loan before.

[jonbatz01]

Its worth it...soooo very worth it haha....

My motivation is simple, i like that car i buy it.
If it WAS unaffordable before, i will make it affordable by working/finding a job that helps me work towards it.

Not everyone has cash in hand (me for example) but you can always work towards it (loan towards it), i dont want to be in my 50s or 60s before owning my dream car, i would rather be indebt young and with everything i every want.
Seems to be working for me so far



BTW back on topic, $40ks max ill go, already got rid of the EVO 8 MR, gonna get rid of the track 6.5 to finance this. Purchased another Ae86 for track fun!

Originally Posted by Skorov

Cool cool. A lot of other people have told me the same thing. And it is good advice. Anyone in a similar position should definitely have a long hard think about whether it's worth it for them.

[Cruiser]

Well my hope is 40 K driveway for a GTS Auto, although i'm not expecting that it would be likely.

[nix]

Originally Posted by Neilus

Toyota have to be thinking long and hard about this.....Subaru must be waiting with baited breath. If Toyota push anything above $40,000 Subaru will sell more WRX,s than they can get there hands on.

The golden opportunity for Toyota is if they don't get too greedy they will have a mountain of people not only buying the 86 but also getting their cars serviced, extra warrantee, accessories, tint, wheels, finance and the list goes on and on.

On the other hand if they do get greedy on a few thousand dollars here and there on the 86 the will loose so much........

This is a generation of customers that pretty much left Toyota in 2006. Just one stroke of a pen and they could get them all back in droves!

Good luck Toyota..... balls in your court.

I don't know about a mountain of people. With such a limited supply they can charge whatever they want for the thing and people will still pay.

Originally Posted by sticky

yes yes - i doubt most 86/brz buyers will be making use of their back seats often though.

Unless you're a midget or contortionist that back seat isn't seeing much action.

[nix]

Originally Posted by Nafe

There isn’t anything comparable to this for $40k new. No light weight, RWD sports coupes. At all.
Maybe some sport FWD’s.
And in regards to value against a WRX.. It’s a totally different car. I have no want of AWD turbo, high centre of gravity sedan. If this car was $50k I wouldn’t buy a WRX. Again, comes down to your wants.

As to a price cap... I dunno. I keep telling myself $35k, but we will see. I won’t spend above $40k. And that has nothing to do with the WRX pricing :P

A WRX will still smash it on paper or around a track. Don't get me wrong I am in love with the concept of the 86, but realistically if they price the car too high, droves of potential customers who just want a fun new car and not a 'perfect 80kw driving experience' will jump ship to a wrx or golf or whatever.

[nix]

Originally Posted by JiB

Ok... so i have looked through these posts. You guys are dedicated fans of 86, toyota's market.

(all prices for car i have changed to gt model (people that said gts i took 4k off))

Now 12 people gave a ceiling, 4 people were $40k or above.
Now lets say the Cost of the car was $25k (toyota austs cost)
and they chose to sell the car for 40k they would sell 4 of them to us, 8 would say no way. "profit" of 15k per sale = 60k
if they chose to sell it at the lowest price ceiling here. 33k they would sell 12 cars @ a "profit" of 8k per car= 96k profit...

now "profit" was clearly an indication on not a number...

what do u guys think ?

I think that a tiny sample selection + paper napkin maths makes for a good story.

[os86]

Originally Posted by Gir

1
5. Doing it for credit rating, to help reduce interest on my future mortgage.

this does not make sense to me, I work in a private bank. if you need real advice feel free to PM I will be happy to assist with any questions you may have.

I think what you are trying to imply is that you are building a good credit rating by borrowing and not defaulting on it, to make this easier for yourself, just get a credit card with 2k limit and use it responsibly.

Sometimes buying the car outright does not make sense especially if you have an ABN you could look into a novated lease and claim depreciation and interest deductions to minimise taxable income. Works best for self employed / sole proprietary ...


anywyas enough bank talk

[Billy2224]

Originally Posted by davey90

LOL! yeah, this might sound a little weird...Still with parents (so they pay the house and stuff, i contribute and give my parents 150bucks each month as a "thanks for looking after me"), besides that ever since i saw the very first prototype for this car (@AIMS) where they were going to dub it the new Celica. I've been curious till just mid last year i started to save like mad. which i worked up to get 15k by June + Sell the current car then loan the rest = Toyota GTS 86 (hopefully).

Yea well I think I've set the bar of the youngest person being only 19!!
After working my ass till it dropped, I had a choice of buying a 29k car a long long time ago, but I made the brilliant decision of holding back as the choice of a car was more of a 'luxury' than a necessity, and continue to work several jobs on the side of being a uni student. (and these are not maccas jobs lol, tv commercial advertising and website development is where most of my income is in)

My ceiling is not a cent higher than 40k, and to be honest for this kind of car, I feel like it should not be priced any higher than 38k to begin with!!

[70NYD]

Originally Posted by nix

I think that a tiny sample selection + paper napkin maths makes for a good story.

his numbers are off but the point is valid. long term sales with less profit per sale is higher than short term sales with more profit per sale.