Financing a car...Best way to do it?

[deviant]

So I want a new daily (with the occasional on track hoon and I need somewhere to stick my PH stickers) and I am rather taken by a Focus XR5 / ST.

Ex Demo models that are barely run in can be had for $35K and the new LV shape that has just been launched is available for delivery right NOW in Perth for $40K-ish. Not sure I can stretch that far though so I am looking at a 2006-07 model for under $35K

Snag is though that interest rates on personal loans and car finance are at a quite silly 15% at the moment...this means that if I want the car paid off in a respectable amount of time I need to spend $400 / fortnight of which $200 will be on interest alone!!!! Using the mortgage is not an option as we only moved in a few months back so dont have the equity to secure the car against.

So can anyone offer any advice to financing a car and not going broke doing it?

[deviant]

Well I'll be...maybe I will be able to get me a new toy

Cheers Colonial..

[deviant]

I think we can salary sacrifice...but I'm fairly sure I have read its only really worth doing if you do lots of miles?

Will check out fleet stuff..cheers!

[deviant]

So I have heard around the traps that any tom, dick or deviant can legally set up an ABN and lease a car to themselves?

I have also read that if your partner has a decent enough wage he/she can set up an ABN and lease the car to you....so your partner has all the payments in their name and you get the car?

Any truth to these?

I fancy the idea of a lease because I can give the car back at the end instead of spending years and years in silly debt.

[deviant]

Cheers guys. I had an ask around work and the guys that have had a lease in the past reckon they wouldnt bother with it again unless they were earning silly money...but then they might as well just buy the car outright.

I have been looking on cannex.com.au and there seems to be a decent range of finance available for 7-11%.

Now I just ned to try and match up selling the astra, getting a loan and sourcing a car to all meet up within a day or 2 of each other!

[deviant]

Fiddlemesticks said:

Unless you have a credit history from the UK, apply for credit there at 7% and finance it from oz. Cheeky and a little rule bending required but damn it could be a lot cheaper.

Let me know how you go as i might be in the same position for myself in 9-12 months.

Why did some of the guys not like leasing?

Also what Astra have you got - specs/prices etc!

Fringe Benefits Tax (being taxed on luxury items provided by your employer on top of the pre-tax money being taken to pay for the car) meant that they didnt really end up any further ahead than buying a car themselves so they gave up on it. I think it works much better if your earning $100K+ or the car is entirelt supplied by your employer.

Astra details:
2003 TS 2.2L SRI, manual 5spd
Alloy wheels
92,000KM
Black with black interior
CD, A/C, power steering, elec windows + mirrors, ABS, TC, Airbags
$12K...make an offer

[deviant]

Well i'm not sure exactly when it is going to be on the market in which case by the time I do sell it the price may well come down.

You have been here far to long and allowed your stiff upper lip to become all spongey and weak if your ending a sentence with "ay"