Not in Debt for a Car

Viewing 3 reply threads
  • Author
    Posts
    • #345286
      emillie

      I’m 23 years old, a student and working part-time. I live in Australia, so I could live without working (I have access to benefits), but I want to have some financial wiggle-room.

      My car is getting older an a little more unreliable, and I’m planning on selling it and upgrading in a couple of months. However I don’t plan on getting into debt to do it; I’ve saved up a few thousand, and will add the money from the sale of my older car to it, and buy a newer one with that money.

      Am I the only young person who’s not getting into debt over a car these days? Maybe it’s more so here in Australia, but everyone I know is getting locked into a car loan/financing before they’re really earning, and I don’t get it!

    • #458672
      quapawmom

      It is not just in australia! many americans are in the same boat….err car? lol I had to get a loan because I wrecked my car (well it was wrecked for me) and the insurance was not enough to buy a reliable replacement that would get me to and from work and kids around without needing maintenance early.my payment is less than $200/mo so I consider it worth it for the peace of mind and lack of stress I would have had with the shape of car I could have paid cash for.

      I have only had to replace the tires and my boyfriend traded some other tires for those! I did not however buy a fancier newer etc car just to do so as a lot of people do.

    • #458673
      FreebieQueen

      @emillie 551142 wrote:

      I’m 23 years old, a student and working part-time.

      Am I the only young person who’s not getting into debt over a car these days? Maybe it’s more so here in Australia, but everyone I know is getting locked into a car loan/financing before they’re really earning, and I don’t get it!

      Not the only one, but definitely one of the SMART ones! Both of my sons have done the same, working part time while they’re in school full time to earn and pay cash for their cars as well as their insurance 6 months in advance at a time to avoid ever accidentally missing a payment.

      Sometimes if you can tough it out for awhile you can get a decent deal on a vehicle, other times, you end up with a jalopy. It also makes a difference what year and model you purchase too, I have a friend that bought a used BMW, but then couldn’t afford to drive it due to the cost of insurance & minor parts/maintenance.

      It’s great to know that the younger generation is thinking and planning ahead, congratulations! You’re doing a great job at keeping your debt low.

    • #458692
      Sallysmart

      I am not in debt for any car and I have five. Mind you I have been in debt for them on short term. I usually buy it at the dealer loan and later place it on my line of credit to pay it off faster.

      I want to sell two of them now and be down to three. One is a work vehicle for transporting my care people around. The others are toys I bought over the years with my hubby who has since passed on.

      Now I don’t need all of these vehicles so must downsize.
      The trick is to save as you did, or have a line of credit you can lean on when its paid off so planning ahead is a great start. My line of credit is lots less interest and I can pay as I like.
      My last purchase was a 1955 Chevy as a collection car. I had half as cash and the other half I put on line of credit and now I can sell it for much more if I want, it was only an investment.

Viewing 3 reply threads
  • You must be logged in to reply to this topic.