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Daily Discussion Thread: Wed 06 Sep 2023
(aussie.zone)
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this post was submitted on 05 Sep 2023
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Anyone here have suggestions/know of an unbiased financial advisor?
We’re paying way too much on car rental now so looking to replace that with our own car.
Tossing up between buying a brand new 2023 Corolla hybrid sedan for $37k driveaway, getting a used 2020 Corolla hybrid hatch with 52000km for $30k driveaway (but my wife and I collectively agree that the 2023 option would be better). From dealer.
Also tossing up between a novated lease vs a People Choice Credit Union car loan (not doing cash anymore). Have trouble doing a true comparison taking into account the balloon payment but from my limited abilities, it seems like the CU is cheaper when factoring in that $11k novated balloon.
My personal experience is that Novated Leases are not financially competitive compared to a car loan and buying outright. Especially at the lower end of car cost scale like you are.
The GST savings are minimal/non existent, the tax savings are minimal, the maintenance and admin costs are inflated and of course that damned balloon. You'll end up paying way more than you should for the car with the added pain of a direct reduced income.
Thank you:)
I also read that people should go into a dealer with a preapproved loan for added negotiating power.
Would $31k be reasonable the brand new car mentioned above, or should I go lower or higher?
I really don't know anything about new Corollas so I can't really tell you. The Hybrid seems pretty popular these days
All good no worries.
Will see how far I get with negotiating a price with the dealer then. I'm pushing to get the hybrid sedan to the fuel economy (close to 1000km per 43L tank, and the sedan's economy is better than the hatch)
Don't be afraid to shop around and get prices from far flung dealers. Even if you don't intend to travel that far you can use the quote to negotiate down the price at your preferred dealer.
Used car market is ridiculous at the moment!
Financially speaking this might be most sensible option, due to how much we are paying to rent cars... I love seeing my wife have huge smile on her face whenever we arrive at some forest or park.
That said, I also received another quote from another novated lease provider. First line of the email said 12 months wait lol.
Yeah Im not saying dont buy something, Im saying maybe look at other options if you want new. The Mazda 3 has a great reputation and I THINK has at least some stock. Personally Im looking at a Kia Sportage, but even thats like 6-8 months wait.
Yep. I've done some drives in various cars as well. But will continue to look around and do test drives.
I'm also looking at getting hybrid as their fuel economy is pretty much through the roof (and I heard it's less maintenance other than replacing the traction battery every once in a while).