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Discussion Starter · #1 ·
Hey all,

First off, all dollar amounts in this post are in Australian dollars.

The GTR is on my shortlist of favourites cars and I was looking at the price of them on carsales, I was amazed to find that there are many 2009 and 2010 models in the $85,000-$100,000 range with relatively low kms, between 60,000km and 100,000km. This almost seems to good to be true.

I earn $2210 per week. I went on a few financing sights and if I put down a 10% balloon payment I can finance a GTR with weekly repayments of around $280 per week over 7 years. My weekly expenses are roughly $1100. I'd still save 600-800 per week if I financed a GTR.
Do you guys finance or buy ouright? I could save up for 18-24 months and buy one outright, but it's an awful lot of money to spend at once. If I finance, even though the total cost is more, it's not a huge hit at once and would allow me to save and potentially invest.

Anyhow I was wondering what all your thoughts are and which route you have gone with?
Also, is purchasing and maintaining a GTR realistic on my income? What sort of income do you guys have one on? I just want to make sure I'm not missing anything.

Cheers
 

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per week over 7 years
Its a long time to finance a used car in my opinion.

Most finance packages in the UK will be 3-5 years.

Only you will know if its affordable, but make sure you factor in Road tax, Insurance, Fuel, Tyres, Servicing and repairs.
 

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I don't know a great deal about Australian earnings and prices, but from the little I do know, incomes and expenditure is quite a bit higher than the UK. From a quick google search, average Australian salaries are around $90k, which is about £50k, which is way above UK average salaries, and I've no idea about your income tax rates, or car related things like car tax, servicing costs, insurance and so on.

So it's not really easily comparable to the UK.

Only you know if you can afford it or not, but as said above, people don't borrow money for 7 years for a second hand car.
 

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Discussion Starter · #4 ·
Fair point on 7 years being a long time to pay off a car.
However I'm confident if I got a GTR I'd keep it for 10.
I could do it over a 5 year loan, but the repayments on a 7 year loan would be more convenient.
As far as financing goes, do you guys prefer to finance cars whilst letting your savings grow or do you prefer to save up and spend the full amount at once?
Here's my thought process - I currently have $800 left after living expenses and taxes. A loan for a GTR over 7 years will cost me $280ish per week. So if I lease one, I'd still accumulate $500ish towards savings every week. I'd almost be able to empty my savings and pay the car out after 2-3 years anyway.

It's just that this is my first time leasing a car and I've only just pushed my business to a point where a car of this caliber is considerable.

So I'm just not sure how people usually go about this stuff, whether financing is the usual or if people generally save up and buy etc. and what I really need to look out for etc.
 

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I save up and buy, it always works out cheaper in the long run as I tend to keep cars for a decent length of time. If I can't afford it I go without (probably old fashioned approach nowadays but it's what my parents taught me and I've always followed). Whatever way you go I would recommend setting aside the equivalent of £300-500 per month as a fund for car repairs/servicing, especially if you are keeping for a 7-10 years. That way you'll have enough put by in the rainy day fund for any future costs. Hopefully you wont need to use it all, but what you put by is then just savings if you dont dip into it (y)
 

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If you can’t afford to pay cash you can’t afford it.

That’s what we were told as kids growing up.

Probably some truth in it, but today’s world is all finance🙈
 

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If you can’t afford to pay cash you can’t afford it.

That’s what we were told as kids growing up.

Probably some truth in it, but today’s world is all finance🙈
Where you told that by people who bought their house with a mortgage ?

If you can't afford to service the debt, then you can't afford it, which is not the same thing at all.

Plus, at the moment, the price of money is very low (and has been for years). For example, I borrowed £15k for my GTR (the rest came for the sale of my previous car + cash) and I paid back £15,750 over the 24 month period of the loan. 750 quid for 2 years - it was almost free money.
 

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And I'd have had to have waited a further 2 years. So it cost me £750 for 2 years - cheap.

Do you own your own house ? And if so, did you save up and pay cash ?
 

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Also, just because someone has the funds, does not mean that want to use them. So I may well have had the £15k in my bank, but it wanted to keep in there; hence borrowing the money instead.
 

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I think I see a lot of GTRs bought by people and sold again very quickly. I think they do this when they realise the cost of running the car. It's not just servicing a loan - will you have enough money to put aside a chunk a month to cope with expenses? In UK pounds a grand a service, a grand a set of tyres, in fact anytime anything happens in GTR land it's got at least four numbers in the bill....that's what kills people not just buying the thing. It's second hand so it WILL need money spent on it one way or another.
 

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I think I see a lot of GTRs bought by people and sold again very quickly. I think they do this when they realise the cost of running the car. It's not just servicing a loan - will you have enough money to put aside a chunk a month to cope with expenses? In UK pounds a grand a service, a grand a set of tyres, in fact anytime anything happens in GTR land it's got at least four numbers in the bill....that's what kills people not just buying the thing. It's second hand so it WILL need money spent on it one way or another.
I think this happens with a lot of cars, especially high end/high cost cars, once they start to lose value and people see them an affordable. I used to see this a lot when I had an Esprit V8. £60k (1997) and fell to £20k or less around 2010ish.

So people saw a £20k car and assumed (wrongly) it came with associated running costs of a £20k car. No, it comes with the costs of a £60k, and as it's no longer new, it comes with even more bills.

Also, I think it's phycological; you pay a loan each month and you can see your asset so you are happy to pay. But when you pay a repair bill or servicing bill (often a large one), it's money that you have spent for but you still have what you had before.
 

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Discussion Starter · #16 ·
Also, just because someone has the funds, does not mean that want to use them. So I may well have had the £15k in my bank, but it wanted to keep in there; hence borrowing the money instead.
Yeah this is what I'm thinking, rather than spend $90,000 at once, I'd rather finance and keep saying the rest of my leftover money.
 

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Be careful with leasing. Make sure you understand the terms - most leasing companies own the car until you pay it off.

Some lease companies will also force you to have full insurance coverage as well. A lease is nothing more than a long term rental with the ability to buy the car at the end of the "rental". This could also mean you can't sell the car until you pay off the rest of the lease up front.

I would strongly suggest a bank loan with reasonable interest rates if you can. They don't generally need to hold the car against missed or no payments and you are free to sell it when you want.



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I do have a mortgage for a good reason. Can pay it off and have a little spare should I need to.

Putting money into appreciating assets is better than deprieciating assets.

My first house I saved for and paid cash but I would'nt kill myself again doing it, happy to take life as it comes these days.
 

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I think this happens with a lot of cars, especially high end/high cost cars, once they start to lose value and people see them an affordable. I used to see this a lot when I had an Esprit V8. £60k (1997) and fell to £20k or less around 2010ish.

So people saw a £20k car and assumed (wrongly) it came with associated running costs of a £20k car. No, it comes with the costs of a £60k, and as it's no longer new, it comes with even more bills.

Also, I think it's phycological; you pay a loan each month and you can see your asset so you are happy to pay. But when you pay a repair bill or servicing bill (often a large one), it's money that you have spent for but you still have what you had before.
Exactly. They are expensive cars to run and maintain. So as long as you can afford to both buy the car and pay the maintenance/servicing/repair bills, still be able to eat/go on holiday/otherwise enjoy life by all means go for it. But if you're only just affording the car you won't last long with it...
 

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You'll find a good few people just buy them and have no idea how expensive they can be to run and maintain.

I am always throwing money at mine and it has'nt been on the road in ages. A cheap daily has been far better value for money.

Having said that I love cars and have a saff cozzy undergoing a full nut and bolt restoration which is inline with running a gtr in terms of parts and labour.
 
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