Hi Ozb,
I am looking at buying a brand new car and was looking at the Swift. Cheap and cheerful, 15k with auto. But saw the 0% Camry deal over 4 years and that caught my eye. I was wondering what would you guys think is the best option?
Really looking for help on this.
Thanks
Jees $16k car vs a $25k car…?!
Need to work out budget and size requirements before we would have any clue what is the best option, and even then I think only you can answer that one.
The other thing as I understand, the current Toyota 0% finance deals are all demo cars. While this may not phase some, it means that you're not getting a brand new, never driven by another consumer, car.
When buying check the KM's travelled. We bought a "demo" 3 years ago that had only 5km on the clock. Toyota sold a record number of Camry's in Dec, most were registered on Dec 29, this meant they are then sold as "demo's" but essentially a new car. These new cars arent even driven out of the lot, or tested or driven by another consumer. Only thing is warranty starts from Dec 29 not the time you buy.
Many manufacturers do it. By putting tons of demo's on, they look like they've sold a lot (for VFACTS mainly), when in reality the dealerships are full of licensed cars
Why are there so many people asking silly questions about car recommendations recently? Please tell me what is better, car A, or car B which is very different to car A. Or the other guy who wanted to buy an SUV with way too many km's. People are losing the ability to do their own thinking.
$25k can get you better cars than the base Camry.
Hi guys thanks for coming back to me, yes I can get the swift for cash and yes it's just for a run around. I am thinking that if I get it new I can run it for 7 years easy. The Camry though just seems tempting as it's 0%. It is a great deal, isn't it?
It is a good deal (although I preferred the pre-NYE deal), but financially, do you see yourself better off paying $25k over 4 years or $15k up front.
If you think you will have a use for the larger car, than sure, consider it, but if it's only a consideration because it's 4 years interest free… well you're prepared to drop an extra $10k (less once inflation is factored in) just for an interest free deal?
And in 2yrs and 40-50,000km that Camry is worth $17000-18000.
Not the best idea to buy just based on an interest rate
Thanks for the comments guys I think I'll pull the trigger on the swift and see how much I can get off paying in cash.
Cheers
Forget about 0% interest. That interest is paid off by profit in your purchase. I'm not saying 0% is bad, but it has the same effect as reduced price. Don't get fooled.
Keep negotiating your price. Always look for at least 10-15% off the original price they offer no matter its has a 0% finance or not. And actually in the end you can ask for a even better price if you don't want 0% finance when it is offered.
Seconded, forget the 0%, the extra fees in the contract will over the life of the loan will add back the difference you would otherwise pay on a loan with a say 7% interest rate.
Remember the Reserve Bank of Australia lends money at 1.5% to the banks or lenders, why would they lend to you for 0% and loose money.
Comparison rates takes into consideration any fees. So if it's 0% comparison, than there are no fees (short of the fee for PPSR registration).
As I've mentioned in previous threads, if you've got money in an offset, a 0% offer with no discount can be equal to or better than haggling 10% off for a cash payment. In saying this, research of prices is still key.
Depends on your requirements. Lets break it down to Swift or Camry - they are very different cars, different segments on the market. Which suits your needs most?
Do you need a bigger family car or does it just appeal to you cause of the 0% finance? If you are just looking for a cheap runaround car to take you from A to B then i would go the swift.
The catch with the 0% finance is that you are unable to negotiate the price you pay for it and have to agree to all their terms, conditions, fees and balloon payment, etc. Are you paying cash for the swift or also getting that out on a loan?