Good afternoon! Cheapies
We are looking to buy a vehicle new/used. Looked at Toyota Hilux, but seems the second ones are all around $30k plus with very high mileage. Could consider a new car with finance if the deal is good. Any suggestions or tips for buying please. Not considering EV at the moment.
Recommendation on Buying a Car with Finance or Any Good Deals
Superpower21 on 20/03/2022 - 13:55
Comments
We are hoping to spend around 25k for second hand but definitely under 40k for new car, prefer 4WD. Haven't been car shopping for very long, not sure if this is a realistic price range. My friend bought a Nissan x trail with 1% finance a few years back. That's why I thought there might be some special deals out there that I don't know about.
The main thing to remember in the car industry, is the deal usually wins. If a finance deal is amazing like "1%" then this just means you are paying more for the car. If the car is "in sale" so cheaper, the finance rate us higher.
I think you are not being realistic with price for a reliable brand. High kms are ok if the servicing has been done always and that can be evidenced, also if not a lot of heavy towing.
Finally, I would look at diesel as high kms are less if an issue as long as you can evidence the above.
Tough market for vehicles, all the best with it!
Thanks for the tips about the deals. We really need to rethink what would be more realistic.
Can you put the car on your mortgage? Eg. If part of your mortgage is floating or you have a mortgage overdraft facility. Might be cheaper finance that way.
Yes, I was thinking if we can't get anything cheap, will just take out the loan from our floating account. It's just the rate keeps going up, it would be better if we can get a fixed finance deal and knowing what we are actually paying in advance.
I would expect a car finance loan to be a lot more than mortgage rate even if it increases.
We've just gone through a similar exercise. Due to shipping delays with new vehicles coming into the country, second hand vehicles are selling for a premium.
I don't think less than 40k for a 4WD with low Kms is realistic - we found we were looking at mid-40s for a second hand vehicle.
Ended up looking at new vehicles as they are slightly more expensive but have the benefit of not having been used + warranty + roadside assist etc.
As above, if you finance a car, you end up paying more overall due to interest. However this may be the only way you can afford to buy new. Consider that you could probably trade-in a near new car to a dealer in a few years and purchase another vehicle when there are more options in the market? But of course you need to be sure that the value you will get is more than what is owing on the car.Thank you for sharing your experience. Probably is a good idea to pay a bit more getting a new car as you said.
Do Anything but finance a used car. Especially if it's 25k.
You are taking out a loan on a depreciating asset. Which is pretty much the worst thing you can do from a financial view point.
If you have a mortgage then add it to that and increase your payments to cover it.
may be worthwhile comparing prices at https://www.2cheapcars.co.nz/
They are at the lower price range. and seemed to have lower prices compared to the similar models/ mileage etc compared on trademe.
They are mainly imports with low margins apparently, their electric vehicles often get sold out quickly..
I think they also offer extra $500 most weekends..
There was a rumour that they import damaged cars and do a poor job fixing them, because of this they never show you a CIN either online or in store.
That's all I heard and I have no proof that it's true but do your due diligence if buying from them.
They have been slapped with fines couple of times for improper trading and lying to customers. So do your research. There are lots of car dealers to choose from for imported cars.
Firstly I think a real Cheapie would ask themselves: "why do I WANT pickup truck in the first place?"
"I drive on dirt roads!"
"I tow heavy loads!"
"I have a large family, and I want to keep them safe!"None of the above reasons actually point to NEEDING a pickup in my opinion. Actual NEEDS and WANTS are quite different in my experience.
Secondly, a real Cheapie would probably never consider car finance, trade-ins, or dealerships; dealers will GUT you for everything, now more than ever.
Rather than dropping $30,000 finance on a thing you want that looses 20% value annually, paying $200 for an inspection of the best privately sold car that satisfies your needs will likely save thousands across the board.
Or forget about all that and consume as much as you can and borrow as much as you need to get the things you want. That's what life is about, right…?
Haha… Straight to the point. Thank you!
We have bought our last 2 cars on the last week of March, both second hand at the dealership, a Honda and a Nissan certified used vehicle. Sales peoples are really keen on getting their numbers up for the end of the financial year and we got some good deals on both occasion we didn't finance thought.
Thanks for the tips. We will have look at the dealership.
Good point, next week is the end of financial year so dealers are extra desperate to pump up their numbers because cars sold directly = $ from manufacturer rebates.
If you're careful, you could get a good deal. Here's some tips: https://youtu.be/Oy3JJZKBAZs?t=235
I should also mention, for Honda New cars, despite their price promise, they can still negotiate a few freebies, like free onroad costs and free servicing (and a few extra accessories). so I ask for the max combo before signing up.
Their Price Promise is bollocks anyway.
"It's to ensure all of our customers can get a "fair" deal, even those that are crap at negotiations."Translated from corp speak:
"We say this so we can rip you all off equally."I always call them out on it. Always negotiate.
If you don't, they'll gut you like a sheep and send you to the Ming Mole for that special paint protection.
How much are you willing to spend? And what are you after? 4WD? Family car? Towing? Commutes? Long distance? Fuel economy?
There is so much to consider, need more information.
What ever you decide, if I were you I'd put as little as possible on finance and try and pay as much in cash as you can. That means you get a cheaper car now, but pay far less in interest over time and can put the savings towards something better on future.