Cars & Motorbikes Car Finance Tips

Discussion in 'Living Room' started by Michael.Knight, 12th Aug, 2015.

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  1. Davothegreat

    Davothegreat Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    335
    Location:
    Sydney
    My understanding is the lenders take the monthly payment of the car loan and compare to what that same monthly payment would be able to service for a home loan and use this to calculate your serviceability.

    Eg take a typical 30k car loan which costs say $600 per month and compare that to what $600 per month would service as a mortgage - around 100k. So in this example, having a 30k car loan has the same effect on your serviceability as an extra 100k on your mortgage. If this is correct then that's a big hit and obviously exponentiates once you get to larger car loans.
     
    Davothegreat, 4th Sep, 2015
    #41
    chylld likes this.
  2. geoffw

    geoffw Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    11,679
    Location:
    Newcastle
    I used to have just second hand cars for many years. But when we had a lot of cash from a business sale, we decided to get a new car. Just a Hyundai i30, but a car I really like. We upgraded from a Falcon which we had bought at 30,000 km- when we finally ran it to the ground, it had 230,000 km. We no longer needed a big car, with the nest now empty.

    It was about $20,000 - I was actually surprised that new cars were so reasonable. I really like the usb port and bluetooth- and it drives beautifully as well. Gadgets are important to this nerd- it's great having a huge choice of stuff to listen to, not just limited to radio stations and the CDs I could fit into the car. I've had it about 30 months, I'll probably keep it about the same time again.
     
    geoffw, 4th Sep, 2015
    #42
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