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Adam C.
Adam C.
Kincumber, NSW
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I'm 18 years old, almost 19 and I was wondering whether it would be a bad or good thing for me to finance a car?

I'm currently a casual labourer and getting $635 a week, starting next year I'll be doing a apprenticeship and will be getting around $540-$580 a week.

I'm in really bad need of my own car as I'm using my parents and it's getting it of hand.

12 months ago
Comments

Hey Adam,

Congratulations on the job! Nice to get some solid work going through and coll that Mum & Dad are coming to the party!

An excellent point raised by the team is that the car goes down in value VERY quickly so you need to be aware that while the car looks good and goes hard - it is loosing money every moment you look at it and there is nothing you can do about it (unless you buy a very rare car ( like an original GTR XU1 Torana or GTHO Phase iii)

Aside from the obvious benefit for you to get a car, and it appears you can afford the car can I suggest you have a chat with an accountant about "the car is used for the majority of the time for work purposes - what can i claim back on my tax return" so we can get any finance you do get, working for you so you are not having to pay the loan off for the rest of your life.

As this could help you KNOW how much the car may cost you now & how much you can get added back into your tax return at the end of the year so it minimizes the amount of cash you outlay each year to be mobile.

Good luck with it and if you need a hand, would be really delighted to help you get things moving forward.

It only usually takes about 24-48 hours to get finance approved if this is an option you would like to consider.

Regards

Craig Nicholas
0481 383 490
nicholasfs.com.au

Responses

Hi Adam,

The main thing would be to keep it affordable. You will need a car, but the car won’t make you money, you will lose value over time.
If you were to get a loan for $10,000 over 3 years the repayments would be less than $100 per week.
You should also be saving 15% of your wage to help you move out of home one day so if you can live off $300 per week then go for it.
Speak with a local broker about your options and the requirements for qualifying for a loan
Cheers
Scott

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