Researching Best Way to Purchase $35k Car

subywagon on 12/11/2016 - 00:11
Last edited 12/11/2016 - 09:06

I'm considering purchasing an MQ Triton GLS. They seem to average around $35k new (I want the titanium or black paint). It would be the first vehicle I've bought over $5k.

I don't mind buying near new, the thing is near new prices are pretty much the same as new… how much would you expect them to depreciate?

So I have $35K in cash and I'm trying to decide what would be the best way to purchase it, car loans normally have crappy interest. I don't have any credit cards or debt, except for a small mortgage.

I'm thinking my options could be:

1 get and use a credit card, get points?

2 Use homeloan for cheaper rate, as I will be selling the property once the reno's are finished

3 Just use cash?

What other suggestions can you guys think of?

Thanks

Financial

Comments

  • oscargamer on 12/11/2016 - 07:51

    if you are selling the house soon, then keep your cash in an offset account to your mortgage and increase the mortgage to buy the car

    OR

    depending on your employer, novated lease may be the way to go

    • subywagon on 12/11/2016 - 09:05

      I'll look into the offset account. Also I'm self-employed. Thanks for the reply.

  • Euphemistic on 12/11/2016 - 09:36
    +1

    You've only ever driven cheap cars. The biggest saving for a car is to get an older one. There is a significant difference between new, near new and a couple of years old in price, but not that much in features or condition. Apart from some minor external damage I reckon my 2007 ute is 'near new'

    • whooah1979 on 12/11/2016 - 12:02

      Also I'm self-employed

      buying a 10 year old used commercial vehicle could end up costing more in lost business.

      • Euphemistic on 12/11/2016 - 16:22

        Didn't have that info before.

  • orza on 12/11/2016 - 11:49
    +1

    Most dealers will let you place the deposit on credit card but charge approx. 2% fee to pay the balance, and Amex still attracts a surcharge for the deposit. We used our home loan for the cheaper rate, and didn't bother with the dealer's 'gap insurance' which is a rort

  • NotAMoodle on 12/11/2016 - 21:16

    If they DO NOT charge for Amex, definitely get the https://www.ozbargain.com.au/node/262944 110,000 points on referal signup then you'll get 2 points per dollar for you $35k spend. 180,000 Amex points straight away for next to nothing. That's what I would be doing, even though you probably won't get a $35k limit, just get the dealership to split the payments, charge the card, pay the card off then charge the card and repeat.

    I love to travel so the extra effort would be worth it for me, however it might be in the too hard basket for you and easier just to pay cash. Each to their own though!

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