How do people afford to...

buy a new car??

I'm becoming an IHC buddy so they'll be included in the normal stuff I do as a mum with my girls and I'm also taking a little girl from kindy on regular outings at the same time.

I'd like to get a 7 seater so we can all fit but how do people buy a new car when you don't have the full amount in savings (this is what we've done in the past)

I've thought maybe people add it onto their mortgage or get a car loan (but the interest must be huge??)

So how did you afford a new car??

Ta

We had to buy one before we had the total amount ready to buy straight out..

We put the remaining amount on the credit card (3k) waiting for our mortgage fixed term to end so we could put it on there.

We paid half cash and we sort of used the mortgage - its sits as a separate loan and its been paid of in the same time as it would have been through a finance company only difference is the interest is 6% which is a lot better than finance company was offering.

Don't stick it on your mortgage, you'll take 25 years to pay that car off as well at the next one you put on your mortgage & the next one.

Heard that from a financial advisor.

Individual loan is the way to go if you need to replace your car & can't pay for it out right. We got a loan through marac which deals with bigger car yards, smaller car yards are around 3% more.

we got our car loan through finance now. was really unimpressed. our own car completely died so we HAD to buy a new one as soon as possible. had two companies offer the finance and chose finance now cause the terms they offered were great. HOWEVER, when we went to sign, they stacked on a further $2K of fees. I wasn't informed about them and went off at the guy - but we had bought the car through auction already so we were just waiting for everything to be signed. also the $2K in fees was a legit fee that the other company had included - so regardless where we went, we would've had to have paid for it.

our interest rate is 11%. not great but as i said, we weren't in the position where we could afford to wait.

We got my car brand new 4 years ago and stick it on our overdraft account. I think it is all paid off now.

We bought ours- nz new jap import, 96 estima that only had 31km on the odo, so nothing flash but it's practical & in the 2 years we've had it have only paid for reg, wof, insurance, & services- no repair bills yet- with a combination of our (very hard) savings & inheritance from DH's nana, got a pretty good cash discount too.

We paid cash for our new car, but the one i'm trying to sell we paid half cash, half loan. Its all paid back and I WISH someone would buy the bugger!

[QUOTE=AandCsmum] Don't stick it on your mortgage, you'll take 25 years to pay that car off as well at the next one you put on your mortgage & the next one.QUOTE]

The loan doesn't have to be over a 25yr term though, you can have the new amount over a shorter period eg 5 years or however long you need. Or you can get a secured overdraft so the interest is the floating rate.

PS - that is really lovely why you are buying a new car Brenna

Edited by pikelets