I'm looking at buying a new car, but I'm not sure if I should finance it or save to buy a cheaper second hand one. Is it worth getting a personal loan for?
Hi Saxon, I guess it comes back to the purpose of buying the car and how quickly you need it.
If you are using the car for your business then you could finance the new car with either a hire purchase or leasing facility. It is important to get the structure of the hire purchase or lease facility correct as they allow for a balloon or residual payment to help keep the monthly repayments within your budget during the term of the loan.
The added benefit of buying a new car are the new car warranties.
If the car is not for business, you can still have the option of being able to finance a new and used car. My advice would be to work out what type of car you would like to buy, what your price range is and then visit a couple of car dealerships and ask them for their best deal.
A car dealer may also look to offer some finance options so you could get their quotes and then seek advice from a couple of finance brokers to compare the price, interest rates, loan structure and monthly repayments. If you do finance the car you need to make sure the monthly repayments fit within your budget plans.
Best of luck
Exciting stuff that you are looking to buy yourself a new car. The first thing that you need to work out is what your budget is & the purpose of the cR. The purpose being are you going to use this for personal use not business/work purposes.
If it's for personal use then I would suggest a second hand car. You can get some food ex demo cars at the auctions. Pickles at Milperra is a good spot. In this case perhaps just a personal or car loan would be the better option.
If this is for business or work purposes I would suggest a new car as you will be able to get a good deal on a lease or hire purchase as well as a good long term warranty.
Hope this helps.
Feel free to contact me to discuss further.
Buying a brand new car definitely has the benefit of capped servicing and warranty, however cars can be personal so it's all about your choice of make model and how much you want to spend. If you have your eye on a pricey car but want to budget your spend a car loan can be quite useful and I can help you structure the loan to ensure monthly repayments suit your affordability.
Do keep in mind that depending on what you do for work you can claim deductions for car expenses and even more so if self employed.
On a separate note, I have access to a dealership network which can potentially give you a discount of up to $8,000 on your car purchase.
Key Finance and Investments