Best way to buy a car?

If I am to buy myself a new car (not brand new car), I will look at my financial goals and if the purchase will add any burdens to my goal.

Taking on a car loan is not a biggie as long as you use the cash that you saved to invest which make up the interest you paid plus some investment return, as you are not using your cash to pay off a car you are not limiting your opportunity cost.

 

Exactly. The missus got one for around the 12k mark and around 50k km. Like brand new and she loves it. Shes happy, im happy

 

"CASH", and private sales ,you can pick up c class Mercedes 75klms full service log books one owner
8-10 years old range for under 8k off the street in upmarket areas in Brisbane no middle people ,because as mercs are new in the 55k range the trade in price on new is 7k it may not be a "AMG",BUT C180 run like tanks..

 

I've heard of some mob who pays cash for houses too.

 

This was a cash purchase... and yes they had a translator

 

Just don't tell them that it's bushfire prone.

 

For those that have asked...

Last year I spent over 100K supporting a family of 4 overseas, and took the family on a lot of travel - the whole 'once in a lifetime' thing.

That's why no cash - but I've paid off over 50K of non-deductible debt in 6 months... more to go.

A car was never in the equation as another outlay. I had a goal of paying off the 100K debt by the end of the year, but instead I bought another house.

Property is taking a temporary back seat and instead I'm working on doubling my salary again this year but it's a (lot of) work in progress and not guaranteed. This won't be sustainable and compatible with a nice life, but I want to wipe the debt in spectacular fashion then chill out a bit.

And yes, I desperately need a budget - but currently we function on the - we don't have any spare cash, don't buy anything model.

 

I always pay cash for cars. I don't want to pay interest on something that depreciates in value.

 

Both

 

In choosing a specific car, we are limited to one that fits 3 car seats. My wife is not mentally ready for a van

 

LOC with tenants & taxman paying its way.

 

What's the servicing and repair bills on these like? I've heard people get reamed on European car repairs, also due to the cost of parts.

 

Not many sedans can fit 3 car seats, you may want to check this:

https://www.cars.com/articles/2014/10/which-cars-fit-three-car-seats/

 

I bought a 2003 Falcon ute with 91,000 on the clock recently for $5000 from a corporate liquidation; I will probably get that amount back again when I sell it in a couple of years.

I can't conceive of paying a hundred grand plus for a car, I'd be too worried about where to park it all the time!

 

Depends on what model you buy,C class new start at about 55k ,AMG 3982ccV8 TWIN superchargers 7 speed dual clutch maybe 295k plus,Mercedes Servive dealers 230$$ per hour-if you find a mercedes trained enginered technician that start her or his small business maybe and this is what I pay 100$ per hour labour cost,spare parts compared to Toyota 4x4 are in the same cost factor..
The last one I bought was 8.5 k 67 klm's on the clock,full service books 2006 model off the side of the road ,spent about 2.5 k on getting to run right, A service is about between 400-600 $$$,B service about 1200 - 1500$$, but they 25000 klms between service..
This is all you need to know,if you intend to buy any Mercedes and only private sales find the model you like and it must be made in Germany,when you find the model you like prior to even making one offer just ring any Mercedes LIC Dealer quote the model number and plate number and ask what the trade in cost is ??,and offer only 500 bucks above that price because most times the people selling private who want to keep up with the jones up the road and buy a new model already know the trade in price and are just looking for a punter to pay more,if they don't take your offer just walk away,because with all the new models out there you will have several to look at ..imho..

 

Keep in mind that cars are a depreciating asset, so best to avoid if possible. If you must buy one then get a cheap one.

Best not to borrow to buy a depreciating asset, but keep in mind that when you pay cash you are also really borrowing as you are diverting funds from a loan or offset account which could be saving you interest.

 

i bought a car thru one of my loc for $20k

Sold $20k in shares and repaid loc

On my investment loc purchased $20k in shares.

Converted my debt from deductivle to deduxtible

 

Correct Terry. I've said it before and I will continue to say it again, debt & capital are 2 sides of the same coin. It's people's perceptive that's the difference.

 

@Bran, is that car going to be used frequently? Perhaps using go-get might be an option?

 

Yes. Several times a day, and to transport 3 kids