Finance or Owned outright?

mell · Post by **mell** » Wed Nov 09, 2005 8:48 pm

my new rims are partly financed.....does that make u feel better

GoldFTO · Post by **GoldFTO** » Wed Nov 09, 2005 10:05 pm

Own my out right..

won the lottery and bought my 15K FTO and im so happy that i own it because i love my car so much...get it off defect tommorow prolly..

NorthQLDFTO · Post by **NorthQLDFTO** » Wed Nov 09, 2005 10:29 pm

Own my FTO outright... Although it never seems to stop costing me money! DAMN YOU AND YOUR GROUP BUYS SHUE!

khunjeng · Post by **khunjeng** » Wed Nov 09, 2005 10:33 pm

I own all my cars outright...although its a good idea not to tie up all your cash in these kinda of "assets" ...but as the FTO is pretty cheep I couldn't resist in getting one...for my other half of course!!!

Actually I've done a a lot of work investigating financing in the past(novated lease, hire purchase, bank loan) and found in most cases outright is best (even assuming your in the highest tax bracket which is 90+k this year)..the good thing about outright is that typically you don't have say 50k to splash about so u end up bying a cheeper car...when at the end of the day is always a more sensable option...why??? depreciation kills you on new cars...eg have a look at a current price of the 2002 Porche Boxter S - current selling for ~80k or even less! Brand new they were 135k (not including on road costs like stamp duty!) Who has 55k to throw away over 3 years??? If you do - i suggest getting a better Porche

My 2cents...

Slither · Post by **Slither** » Thu Nov 10, 2005 12:18 am

khunjeng wrote:Actually I've done a a lot of work investigating financing in the past(novated lease, hire purchase, bank loan) and found in most cases outright is best

Most people who finance their cars can't afford to buy it outright, or don't want to wait the 7 years it would take to save up for it.

Jase · Post by **Jase** » Thu Nov 10, 2005 8:20 am

I got a 10k personal loan from the bank to get mine. So i guess it's financed.

GoldFTO · Post by **GoldFTO** » Thu Nov 10, 2005 8:28 am

WOW its pretty scary to find out how many people buy there cars out right!!!

i thought a lot of people would still have to go for loans!!!

ahew · Post by **ahew** » Thu Nov 10, 2005 8:35 am

yep bought mine outright too.. after regretfully selling my s13 dorifto mobile. did have a loan at first to tide me over though... so i gues you'd say it was a bit of both?

FTO338 · Post by **FTO338** » Thu Nov 10, 2005 10:17 am

khunjeng wrote:I own all my cars outright...although its a good idea not to tie up all your cash in these kinda of "assets" ...but as the FTO is pretty cheep I couldn't resist in getting one...for my other half of course!!!

Actually I've done a a lot of work investigating financing in the past(novated lease, hire purchase, bank loan) and found in most cases outright is best (even assuming your in the highest tax bracket which is 90+k this year)..the good thing about outright is that typically you don't have say 50k to splash about so u end up bying a cheeper car...when at the end of the day is always a more sensable option...why??? depreciation kills you on new cars...eg have a look at a current price of the 2002 Porche Boxter S - current selling for ~80k or even less! Brand new they were 135k (not including on road costs like stamp duty!) Who has 55k to throw away over 3 years??? If you do - i suggest getting a better Porche

My 2cents...

My last job was an area manager for large financial company, & from what you said, you are looking it from a domestic point of view, there are members here who use their FTO for "business propose", therefore, it will be more beneficial for them to lease a car then own it outright. As each monthly payment are 100% tax deductible, & some finance company will include fully maintained package as a deal, so thatâ€™s including services, tyres, & petrol. But if you claim it using depreciation, then the percentage won't be 100%. Of course how much you get back is depends on your tax bracket, & how good your accountant is & I'm not going to write 50pgs to explain the tax law of OZ.

But rules of thumb. For every dollar you get back as depreciation, you get back 3 dollars with leasing. And it only apply to "business or work" purpose use.

GoldFTO wrote:WOW its pretty scary to find out how many people buy there cars out right!!!

i thought a lot of people would still have to go for loans!!!

Hmmmm why would it be scary?? And what makes you think lots of people have to go for a loan?

khunjeng · Post by **khunjeng** » Thu Nov 10, 2005 2:23 pm

FTO388 you are 100% correct I was assuming that ppl would be using an FTO for personal use only and hence they would take up a Novated Lease using the Stat. method...In the end of the day its an easy way to get a new car this way with no cash...however I'm totally against it...a hire-purchase used in most business cases is the way to go if you can cos as you say nearly everything is 100% deductable.

My point - buy an FTO and not a porsche, save you money and buy a house with a big deposit

FTO338 · Post by **FTO338** » Thu Nov 10, 2005 2:46 pm

khunjeng wrote:My point - buy an FTO and not a porsche, save you money and buy a house with a big deposit

Yep can't agree more to this. At least house don't depreciate in term of "dollar value"

ahew · Post by **ahew** » Thu Nov 10, 2005 3:18 pm

well the house can depreciate and, if you're in sydney, it has been proven this year that house prices do go down in value (not all rosey like how the builders & developers try and make you believe).

however whether you want to realise that loss by selling or sit and wait and pray for prices to go up is a different thing altogether.

it all has to do with knowledge. there are also cars that appreciate in value, like collector's cars. this is rare but it does happen! you just have to know what you're buying and be smarter with your money.

anyway.. end of rant.

RichardH · Post by **RichardH** » Thu Nov 10, 2005 3:20 pm

Own outright.

- Rich

FTO338 · Post by **FTO338** » Thu Nov 10, 2005 3:46 pm

ahew wrote:well the house can depreciate and, if you're in sydney, it has been proven this year that house prices do go down in value (not all rosey like how the builders try and make you believe).

Yes & no, because if you look at the value of most housing for the last 5yrs, they are all gone up in value despite the reason fall. Yes there are some over priced place where people had lost their money, especially brand new apartment near CBD, but that only like max 1% out of the total housing industry.

I sort of agree with you with the collectable cars, but most of those cars are over 1 million dollars, & if you spend that much money on investing a car, you can easily get more return on share or commercial property.

By the way we are generalizing at the moment & not specifically target any type of housing or cars

FTOluv · Post by **FTOluv** » Thu Nov 10, 2005 3:55 pm

a car is a car, and people generally buy cars like FTO's, Porsches and so on becuz they like them and not just for transport.

If u want transport just buy yrself a Commonwhore and call it a day

khunjeng · Post by **khunjeng** » Thu Nov 10, 2005 4:30 pm

lol I thought we were talking about finance and who has it...knew I shouldn't have opened my mouth...

FTO338 · Post by **FTO338** » Thu Nov 10, 2005 4:43 pm

hehheehhe don't worry bro, is usually me who carry on talking crap, just look at my post counts.

Back to the topic people.

AERODYNAMIST · Post by **AERODYNAMIST** » Thu Nov 10, 2005 6:16 pm

outright all the wayyyyyy

ahew · Post by **ahew** » Fri Nov 11, 2005 1:14 am

hehehe.. yeah i tend to go off topic too... as you can see

carry on people!

rxboy · Post by **rxboy** » Fri Nov 11, 2005 10:32 pm

I originally financed 1/2 the cost of my car with the best lending organisation in the world..... my parents

I own the whole thing now