Advice? Someone make up my mind please!

[D3CID3R]

My whole life is in limbo at the moment. I bought a new SS ute in 2004 and absolutely loved everything about it except the lack of four doors. So, January this year I decided to trade it for a new Rodeo dual cab. It's not a bad old rig but it performs like a turtle with a limp and drinks like a camel.

The Rodeo now has just clocked up 6000km today and I reckon its about time to get rid of it. I paid $30k for it and as of this morning the best I can get is $21k, which means it loses $1800 per month in value.

I am very keen on a 2005 VZ SV8 in a yard on Parramatta road, its not an ex gov vehicle. With no effort the asking price dropped to $33500, it has a few marks and I was going to try for at least another grand off to start with. The problem being is finance, the yard will pay out my balance on the Rodeo but the difference is added to the cost of the SV8 of course. Meaning owing more than the SV8 is really worth. (but driving something I really want)

So, do I proceed with the deal and get another gen3? or stick with the old Rodeo and be wondering what might have been for the next couple of years?
Someone please tell me what I want to hear before I need counselling! (buy the SV8,buy the SV8!):burnout:

[Phoon Hoon]

Meaning owing more than the SV8 is really worth. (but driving something I really want)


This happens to all of us at some stage. Borrow 50 gorillas to buy a car, drive it out the driveway and you'll owe more than it's worth. Paying out leases, especially, can be REALLY expensive.

Having said that, if it's not an outrageous amount, buy the car you want and enjoy.

[VooDoo]

6000k's isnt long on the rodeo. Really, you need to keep it long enough that the depreciation is less than what you owe. If you have negative equity in it, pay that out in CASH. If you cant, you cant afford the new car yet. You would just be digging a deeper hole for yourself.

[HBDBerlinawagon]

Hi Ls1

I'm in a similar situation and still own a very tidy VU 3.8 manual in Phantom mica lowered with sports exhaust and a Talon body kit and grange mags.Thing is Im loath to sell it as I want to turn it into a project car(possibly with a LS7 motor) and I paid similar to you when it was a year old with only a few thousand Ks.It was a total emotional buy as it looked incredible and it was sitting right behind a Maloo VU of the same age but considerably cheaper.Good marketing on the dealers part I think.Anyway Ive been very happy with the VU but I too am starting to feel restricted by the two doors and have consequently purchased a high Km VY 5.7L Berlina wagon.

Sorry about the long winded explanation but I think it puts me in a unique position to PERHAPS be able to assist.

A lot depends on what kind of financial assets you have.Do you perhaps own or have equity in a house.If so this may be the best way to get access to more money at a cheap rate.I say this is the best way to go because you may well be able to get a line of credit against the property which can be organised to be an interest only payment for a period of 10 years with some banks which essentially means you will be paying substantially less than what you kight be through a personal loan.

It depends totally on your financial situation as to perhaps what you an access credit wise.

Ultimately you will have to pay for it somehow down the line so if you can afford to be financially extended to add to the current loan it may be the better way to go as it appears theres only one way interest rates will be going and it may well be best to get access to a current fixed rate loan that will not extend you any further than your current position.

The only other thing to do is perhaps maximise the value of the rodeo by private selling

Hope this doesnt complicate the situation,but I feel for you being in this similar situation.

HBDB

[Cobalt]

You have got to be kidding putting a car on a house loan....

The less you pay off the more you pay in interest....If you can't afford the car load plus the house you can't afford it.....

Every cent you don't pay off you house or remove equity you never catch up till the end of the loan..... Can be 30 years so that car looks cheap but when you do the numbers it is a massive expense....

If you leave buying the "pool" for your house till a few years down the track it cost's you a 1/3 of the price even if you are dumb enuf to redraw equity.....

The maximum interest is paid when the principal is the highest....

Only ever redraw equity for something that makes you money not cost u money....

I just bought a $60K Printer for work with a house loan redraw....But it will make me in the vacinity of $250K a year..... That is the only way it is worth the type of hit you will take on interest....It will take nearly 4 months of income to just offset the extra interest I will pay.....

Look at the bank and how paying a little more reduces the term and the cost dramatically... So redraw does this in reverse.....

Chad......

[banshee_lord]

:banana: SV8 SV8 SV8 :banana: DO IT, DO IT!

[HBDBerlinawagon]

Like I said you still have to pay for it in the longer term and thats why I said so.A line of credit facility is only possible if you have a reasonable (probably 30%+) amount of equity in the house and like I say the principal becomes payable post 10 years.The idea is to find some way of paying that prinicipal back prior to the 10 years period.

I myself invest in the stockmarket and usually make enough from year to year to cover such expenditure.But as I said you still have to find some way to pay for your drawdown against the line of credit.I dont know that I would necessarily go out and organise a line of credit just for a car but it is a way of getting things like trips,house extensions,pools etc etc without being tied down by a structured drawdown as one is when using a personal loan(higher rate/payments),renovating-building loan etc etc.

All that I am doing is pointing out different avenues of possible credit that some may not realise they have.And like I say,and I reiterate,you must try and find a way of paying the total loan amount back well prior to the start of the prinicipal/interest period.To do this you must have other forms of investments that make decent money in a reasonable time frame,such as the stockmarket,which is not an easy learning curve on its own.It has taken me 5 years plus to learn enough about the stockmarket to enable me the luxury of spending(wasting?) large amounts of cash on cars.But then isnt this,to an extent,what life is about.Enabling yourself to financially have a life outside your mortgage,carloans etc etc.Its the only way I have been able to do it and my REAL job only pays the average wage today.

It would just make it possible for Ls1 to be able to get into that car a bit earlier without necessarily having to sell the Rodeo straight away.However I thought I did say that it would probably be better if they could simply extend themselves further on the loan and just pay it off anyway.Not an easy task.

Perhaps it was a silly suggestion as some really dont know the financial power their house gives them.But you have to be able to manage it(pay it back quickly via other investments)effectively.

HBDB.

[VZGEN4]

SELL PRIVATE!!!! You'll get a lot closer to the price you're after.

Worst thing you can do is buy on emotion cos you'll do anything to get it!

I bought my previous car on emotion and I paid waaaay to much for it. The best I got offered on a trade in was $8000 and the dealer was telling me how I wouldn't get any more selling private... I ended up selling it priavately for $14000.

At the end of the day you never want to be owing more an a car than what it's worth. When you go to buy you're next car you'll be stuffed.

If you redraw your mortgage to finance a car just think about how much interest you're gonna be paying on the car $$$$$$$.

Don't RUSH take you're time and consider your cost effective options.

[silvervyss]

is it insured ? :diddy:

[SS_Fury]

You have got to be kidding putting a car on a house loan....

The less you pay off the more you pay in interest....If you can't afford the car load plus the house you can't afford it.....

Every cent you don't pay off you house or remove equity you never catch up till the end of the loan..... Can be 30 years so that car looks cheap but when you do the numbers it is a massive expense....

If you leave buying the "pool" for your house till a few years down the track it cost's you a 1/3 of the price even if you are dumb enuf to redraw equity.....

The maximum interest is paid when the principal is the highest....

Only ever redraw equity for something that makes you money not cost u money....

I just bought a $60K Printer for work with a house loan redraw....But it will make me in the vacinity of $250K a year..... That is the only way it is worth the type of hit you will take on interest....It will take nearly 4 months of income to just offset the extra interest I will pay.....

Look at the bank and how paying a little more reduces the term and the cost dramatically... So redraw does this in reverse.....

Chad......

60k printer? what do you do for a crust?

[HBDBerlinawagon]

Im guessing they are a mining geologist or someone in a very highly graphics oriented industry(obvious,doh!)

Mining geologists require extremely detailed survey maps that are around 1X1.5mtrs.

60Gs is nothing if they are doing drill surveys and cross referencing drill data with the map for Bankable feasibility studies for mining projects.These guys can be running several jobs at once and be getting paid quite nicely thankyou very much.

Apart from the fact its 60Gs worth of depreciation.

Am I close?

HBDB.

[cossmo]

6000k's isnt long on the rodeo. Really, you need to keep it long enough that the depreciation is less than what you owe. If you have negative equity in it, pay that out in CASH. If you cant, you cant afford the new car yet. You would just be digging a deeper hole for yourself.


Voodoo is spot on ..... I might be sounding old but if you buy a car you cannot afford or prioritise your car over your house you will end up regretting. I have mates who have made this mistake and absolutely every one of them would do it different second time round.

[HBDBerlinawagon]

I agree Voodoo with one proviso.If you do have a way of making dough quick,like a bit of dabbling in the stockmarket and know what your doing then it is possible to make such financial moves as its very likely that money loaned can be paid back within the year if your good at the dabbling bit.But like I said in a previous post Ive been dabbling in the markets for 5 years plus now.Its not a game for the faint hearted either.

Chances are that LS1 doesnt do this so therefore I agree with you guys.I was simply trying to investigate other avenues for LS1.

I also have a lease that Im paying out on a VU that I bought a few years ago and Ive simply decided to pay it out as its not worth my while to sell it.Unless the boss says I have too!Which is on the cards.

HBDB

[Cobalt]

60k printer? what do you do for a crust?

http://img.photobucket.com/albums/v642/cpj_cobalt/DSC00272.jpg

Print anything that needs to be HUGE... and 1440dpi.....

Banners on vinyl. Posters. Signs. Vinyl. Tshirts. Drawings. Mapping. Pictures of My Cars.....It will die cut and do digital printing....

Sizes 1.4 meters wide by upto to 50m long..... We can print billboard if we like.... i 1.4m drops....

Chad

[D3CID3R]

Thanks everyone for the kind advice, I got talking to a finance bloke at work who said 'sorry to sound like your father... but'. Blah Blah it all went down hill from there.

The plan now is to make extra payments into the loan to reduce the debt to what the Rodeo is worth, wipe that loan clean and start again.

I hate cars!!!!!!!:cussing:

[VooDoo]

Print anything that needs to be HUGE... and 1440dpi.....

Banners on vinyl. Posters. Signs. Vinyl. Tshirts. Drawings. Mapping. Pictures of My Cars.....It will die cut and do digital printing....

Sizes 1.4 meters wide by upto to 50m long..... We can print billboard if we like.... i 1.4m drops....

Chad

DAMN!!... thats a printer. Ill have to get you to do some of some of the cars we have done and block mount em for the shops.