1st Job: Buy My Own Car or Keep My Parent's Car

LBlack Brown Blue on 26/02/2017 - 23:50
Last edited 27/02/2017 - 09:00

Hi,

I have just finished my Bachelor's and moving interstate to start my first job. I really want to buy a car now but the bank will not give me a loan. My parents are insisting that I keep their spare 4wd until I buy my own car in one year time. My parents gave this to me in last year of uni to use like my own car which was very nice and lovely of them.

My plan is to get a loan in 3 months and buy a car of around 15k. My parents really want me to take their 4wd for atleast 1 year with me and then buy a car from my savings.

Being a 22 year old guy I am a very much into sedan type of car. If I don't take their 4wd with me, I will have to use bus everywhere for atleast 2/3 months until I get a loan and saving for my car. I don't want my parents to feel bad that I am not respecting them. At the same time, 4wd is not really what young people drive and I feel embarrassed driving it.

Please give suggestions:

  • Take the car with me
  • Don't take the car and buy my own car in 3 months

Update:

Automotive

closed Comments

  • pao2x on 26/02/2017 - 23:58
    +141

    Take the car, it is wasteful to pay 8% p.a or so for a car loan

    • ialam99 on 01/03/2017 - 09:12
      +1

      Your lucky they only charge 8%…my one tried to charge me 15% until i noticed and queried it. They only reduced it to 12% but its still stupidly high

      • pao2x on 01/03/2017 - 11:20

        That was what I was offered by salary packaging. I promptly said no and Ill just buy cash

  • PVA on 27/02/2017 - 00:00
    +107

    take the 4wd, simple choice mate.

  • [Deactivated] on 27/02/2017 - 00:23
    +115

    If I don't take their 4wd with me, I will have to use bus everywhere for atleast 2/3 months until I get a loan and saving for my car. I don't want my parents to feel bad that I am not respecting them. At the same time, 4wd is not really what young people drive and I feel embarrassed driving it.

    Sorry dude but that sounds really immature and absurd. Take the 4WD - you're incredibly lucky to have parents that look after you like that. Put the ego aside and think about how silly it would be to take out a loan as a young person, for no reason other than wanting a sedan over a free 4WD. Seriously.

    You have a long life ahead of you and plenty of opportunity to buy yourself something you prefer. You might actually find that a sedan doesn't suit your needs or tastes down the track.

    • Black Brown Blue on 27/02/2017 - 00:58
      +30

      I agree with you, I am no fan of loans either. I think the best thing to do is keep the car for at least a year or two and go from there.

      • ATangk on 27/02/2017 - 23:31
        +5

        Thats hardly what I would call a proper 4wd. SUV is the better term for it. Also, itll be safer (since you cant speed as easily)

        • This Guy on 28/02/2017 - 00:47

          Easier to roll!!!

        • banana365 on 28/02/2017 - 13:06
          +2

          @This Guy: But you'd still be going some to manage to roll it. People tend (or should) adapt their style of driving to the type of car. I used to have a Mini (one of the original ones) that I happily threw round tight corners and barely slowed down, more recently I've had a raised Landcruiser - I tended to drive like the boring old fart I truly am and really backed off before taking corners. It never came anywhere near to rolling, even when playing off road.

        • macrocephalic on 02/03/2017 - 10:15

          Are all four wheels driven? Then it's a 4wd.

        • ATangk on 02/03/2017 - 23:36

          @macrocephalic: AWD*
          Lets leave 4wd to off-road capable vehicles.

        • macrocephalic on 03/03/2017 - 10:49

          @ATangk: That tribute will go offroad. Not serious or challenging terrain, but I would happily take one onto the beach.

      • OBone on 28/02/2017 - 21:37
        +4

        Do not be in such a rush to get yourself into debt for what is one of life's biggest liabilities.

    • The Wololo Wombat on 28/02/2017 - 10:03
      +30

      How is this even a discussion? What is with my generation…. :'(

  • PJC on 27/02/2017 - 00:31
    +30

    I will have to use bus everywhere for atleast 2/3 months
    4wd is not really what young people drive and I feel embarrassed driving it

    A combination of bus and 4WD will keep you mobile and save more money. Giving in to your ego is neither sensible or frugal.

  • subywagon on 27/02/2017 - 00:51
    +31

    lol city kids… 4WD's are awesome and tough :P I'll take it

    • Empiresearth on 28/02/2017 - 17:40
      +1

      I won't even think of driving sedans, I always drive 4wd, believe me take it 4wd you will be happy always.

  • chriise on 27/02/2017 - 00:54
    +11

    i got an accord euro, looking for a 4wd. Fancy a trade? (i'm also in my 20s).

    • Kangal on 01/03/2017 - 23:07
      +1

      ^OP…. here's a solution!

  • Black Brown Blue on 27/02/2017 - 01:26
    +37

    Thank you for all your suggestions. I knew this was coming and I had to make a choice one day. I will make the wisest decision and keep the car for at least a year; this will be the best decision financially.

    First time I have asked something on Ozbargain, really appreciate everyone's input.

    • Steptoe on 27/02/2017 - 01:32
      +11

      Oh, and don't borrow to buy a car… and don't spend $15,000 either. You need to get over to Mr. Money Mustache and get set for your retirement

    • PJC on 27/02/2017 - 07:26
      +14

      If your parent allow, keep using that 4WD for years and increase your savings. I suspect they will be pleased if you avoid hastening into debt.

    • ozbjunkie on 27/02/2017 - 15:18
      +4

      There's a lot of pressure to be seen doing the "in" thing - which is often at odds with the "smart thing".

      By all means by a sweet car for yourself if it's what you want - but the younger one learns the lesson that "it's not worth impressing people who probably don't care about you anyway" the richer one becomes literally and metaphorically.

      TLDR buy toys not status symbols

      • dsp26 on 28/02/2017 - 00:52
        +3

        but it never works forcing the mindset on the young.. until they wake up one day and realise for themselves that they can't pay their bills with others opinions.

        • ozbjunkie on 28/02/2017 - 15:10

          I'm just banking on the fact that in my personal experience of slowly overcoming being a (profanity) - it only takes 100 times hearing something before one listens.

          Best to get started.

    • Warehouse on 28/02/2017 - 22:43
      +2

      This really is the best decision you will make. Moving interstate without a car will be the decision that you will regret making if you ever decide to change your mind. 3 months may seem short but it will definitely hurt.

      Just think about how impractical it would be to not have a car. E.g. Heavy weather/rain/wind/heat - car > bus. What if you want to go shopping for the week - you're going to take the bus won't be able to carry more than 1 or 2 bags. What about when you figure out, as much as you tried to plan, that you still need another peice of furniture or accessory in your new house? Again having the option definitely makes the difference.

      It may not be pretty or perfect, but when you need the most and it's not there you'll be kicking yourself with hard regret.

      I know you have already said that you will take the car/4wd but I hope I've convinced you to stay with that decision if you ever come to hesitate going forward.

      • Euphemistic on 01/03/2017 - 07:13
        +1

        Millions of people do just fine without a car, saves then a fortune. Just not that many in Australia though.

    • AlanHB on 01/03/2017 - 23:02
      +1

      Cool. If you like you can save up for a different car with the cash from your new job. It's loans like these that can stay with you for a very long time.

    • realfancyman on 28/02/2017 - 19:15

      Not exactly his car to sell is it?

      • Jalif on 28/02/2017 - 23:30
        -1

        He wants to buy a car, not fund a meth habit.

  • spackbace on 27/02/2017 - 01:51
    +3

    Keep the 4WD, use the next 12 months to learn how to save and not to waste money.

    You haven't said but what is the 4wd? And year/kms?

    • subywagon on 27/02/2017 - 01:54

      Was wondering the same myself.

  • ExtraSalt on 27/02/2017 - 06:57
    +7

    Firstly, Congrats on finishing your studies. Your parents must be so proud! Secondly, get what you can afford. I would suggest using the 4WD until you have more than that $15K that you want to borrow. There is no better feeling and self-accomplishment than buying your first car especially if you can feel like it's a major upgrade to what you currently drive.

  • sparkles on 27/02/2017 - 08:01
    +7

    It's becoming a regular occurrence to see posts from university graduates mentally spending money they haven't even earned yet.

    Why not start with a car that cost $4k-$5k either paid cash out of your first three months paychecks or via a much smaller loan that you pay down hard? It's not surprising the bank won't lend $15k, it's because it's too much for someone that has no employment history. You can upgrade the car later (if really necessary) once you are established in the job and have higher borrowing capacity.

  • boccos on 27/02/2017 - 08:02
    +3

    Cars are lovely things and everybody would use one if they had one. But they are a wasteful money pit. Depreciation is a killer on new vehicles. Very few people can actually profit on a car. Stick with the old 4wd, and keep it until it barely runs, save some money, then give it back or ask if you can trade it on your own car, then buy near new car (2-4 years old).

    • Ughhh on 27/02/2017 - 13:17
      +1

      Very few people can actually profit on a car.

      Who the hell buys a car for profit? Maybe if your taking about some rare lux or vintage car, but not everyday cars! Apart from being a vehicle to get you from A to B, a car is more like a toy.

  • nubzy on 27/02/2017 - 08:13
    +4

    No one really cares at all about what you drive. So long as you have a comfortable and reliable car, who cares. There is nothing to be ashamed of driving an old car, and I know a few wealthy people who drive cars that are 10+ years old. Once they have lost value to depreciation it doesn't cost much to run a car IF it is reliable. Depending on value you might not need to get comprehensive insurance and can just get by with TPP, do your own maintenance with occasional service/checkup at the mechanics and then your only main expense is fuel. A 4WD is a great versatile car and you could really enjoy it while you are young, they are great for exploring, so take it.

  • slow on 27/02/2017 - 08:15
    +12

    Get a free car, or waste heaps of money on a new one??

    ???

    • lainey13 on 27/02/2017 - 19:17
      +4

      Yes! I didn't know "embarassment" and "looking cool" was worth getting into a pile of debt for.

      • secondstory on 28/02/2017 - 01:36
        +2

        That's funny because these are exactly some of the very reasons as to why a lot of people out there actually spend what they can't immediately afford. Oh, society..

  • supnigs super skids on 27/02/2017 - 08:34
    -4

    Take the bus unless ypu wanna get mistaken for a soccer mum

  • Gronk on 27/02/2017 - 08:34
    +1

    Unless the 4wd has major issues or requires expensive work I think you'd be a bit nuts not to take it.

  • TakaHas on 27/02/2017 - 09:21
    +2

    take your parents 4wd. u'll get over buying new car eventually. u better off saving $ for home deposit or if u insist, buy a more premium car.

    at your age, just treat the car as getting from point a to b. if u get new car, u'll worry about it being damaged.

  • Stewardo on 27/02/2017 - 09:24
    +4

    At your age the last thing you need is a loan, no one will be impressed is you drive a lancer, loans are just a commitment you don't need in your life. Go and enjoy your youth. Your parents are smarter than you think, take the car.

    • secondstory on 28/02/2017 - 02:07
      +2

      Go and enjoy your youth

      You gave some great advice just now, but it is somewhat contradictory. His age is the prime age where peers (or at least I'm assuming the generation he would be interested in mingling with) are impressed by a flashy new car which could very well go on to becoming the very medium to enjoying a full youth.

      The wise choice would be to take his parents car, but this comes at the cost of a young self esteem and possible social life (whether real or perceived) - he is currently weighing up between enjoying youth and taking the car. Some young people may get quietly offended by this as it may appear as though instead of listening to the young person's opinion, one would be forcing their own upon them (even though you are just trying to help guide them down the path of a stable future). We can't tell them what they will and will not enjoy, so this is the best we can do.

      That said, I agree that he should take the car.

      • FW190 on 28/02/2017 - 09:51

        a flashy new car

        read the OP again, he wants a Lancer EVO and has a budget of $15k, it will be anything but new or flashy, $15k might get him a trashed previous gen EVO

  • Ozbargainite on 27/02/2017 - 09:38
    +3

    Your parents are bloody legends.

    Lancers are one of the oldest "new" cars on the market BTW.
    That's not a knock on lancers though.

    You have definitely made the right decision keeping your parents car, be sure to show them your appreciation in some way.

  • WT on 27/02/2017 - 10:37
    -1

    as someone who has been into fast cars before I could even drive, bikes, karts and basically anything with a fast engine or rail corners, I would not suggest an evo 10 as a first car.

    I would also never take a loan for a depreciating asset as its a double whammy

    the Evo 10 while fast with some basic mods, has no soul. Its just a fast 4 door. A friend of mine had one with a fair amount of mods, got bored of it and sold it for an MX bike and tow car

    Comp insurance will be expensive, at least 2K per year until you are 25

    if you have the "itch" I would suggest a kart, it is still one of the cheapest and safest ways to have fun on 4 wheels. You will get most of your money back if you maintain it when you go to sell and will able to keep your helmet, boots and suit for the rest of your life provided your weight doesnt fluctuate.

    • supnigs super skids on 27/02/2017 - 14:10

      I have an evo and it's awesome fun. Evo x+ is crappier just like the r35+ gtrs

      • WT on 28/02/2017 - 10:31

        I concur

        The 7 was shit but the 8/9 has potential. The 4 was also junk in its day too. I was pretty close to pulling the trigger on a 9 when they first came out.

  • dasher86 on 27/02/2017 - 11:44
    +2

    Keep driving the 4wd and forego the $80k car investment loan…

  • Euphemistic on 27/02/2017 - 12:01
    +3

    Ha ha ha. I thought you meant a 4wd! That's only a soft roader. While it looks a bit like one, it isn't something you are going to take bush bashing is it? I pictured that you'd been loaned a land cruiser, or patrol or something. The tribute will be fine in city traffic, borrow it and save for what you really want.

    When I was young my parents kept my grandfathers car after he passed away. Then when dad got a job with a company car they still kept it for kids. The car was a long way from cool for a young driver, a baby poo brown automatic 4cyl wagon. but it got me from a to b just fine while I saved for my own car. I bought a 4wd as my first owned car, a Suzuki Sierra becuase it was great fun in the forests around home.

    • Illian on 02/03/2017 - 02:32

      A boxy brown wagon? That sounds like heaven to a lot of car guys, just ask the Jalopnik crowd, I'm in my early 20's and buying my second car, it's going to be a brown SUV, and only because I couldn't find a decent enough wagon in the price range.

  • HeWhoKnows on 27/02/2017 - 12:31
    +5

    Parents ALWAYS give the BEST advice. Take it!

    • itajac on 27/02/2017 - 14:11
      +4

      That's because they have your life long interest at heart. They're not just there to use or abuse you, like those "friends" who care about what you drive.
      Instead save up for a house deposit, so when you leave your parents home, you have a "pad" to move into :)

  • adn on 27/02/2017 - 23:07
    +4

    Evo for sure. life is short and 15K isn't too bad if you have a full time job after a bachelor.

    Surprise you can get an evo 10 for 15K. Hook me up.

    • Tech and cars on 28/02/2017 - 09:09

      haha, Yeah! I was thinking the same.

      Maybe it's a ralliart lancer that he's calling an evo 10.. :/

  • airzone on 27/02/2017 - 23:09
    +4

    Please, only purchase a westpac approved high performing asset.

  • skywards on 27/02/2017 - 23:19

    Who are you trying to impress really ?

  • BartholemewH on 28/02/2017 - 01:34
    +3

    I'd take a V6 Tribute with 175k's over a Lancer.

  • Mrgreenz on 28/02/2017 - 06:24
    +3

    Keep the car. Save to buy with cash. Keep parents happy, be more responsible with your cash. Win win

    Maybe buy a fancy haircut if your trying to impress chicks

  • Tech and cars on 28/02/2017 - 09:08
    +4

    For a lot of people cars are more than just an A-B object. I've personally owned an evo(which some people here on OzB refer to as a lancer, lol) and can tell you - the people and friends I've made as a result through the car clubs are now my lifelong friends.

    If you do fall in this category - then it could be worth spending on a car only once you can afford to buy it outright. People go on many holidays a year and don't have anything to show for it other than experiences- in the same way, the car can give you this same effect if you meet other like minded enthusiasts.

    If you are buying a nice car for vanity related reasons, then I would advise you to not do that - as there are much better ways to do that.

    In general, most of the ozbargain community will see a car as a depreciating asset and won't recognise it for it's 'emotional' value - but these same people are okay with travelling and having a holiday a couple holidays for $2-3k. At the end of the day, it is your money - do what makes you happy.

    I would advise to not get a loan. Have the car paid out. I sometimes dislike the ozB community as they keep thinking people buy nice cars to impress others. I personally don't think that is the reason people buy nice cars.

    • airzone on 28/02/2017 - 12:04
      +1

      I miss my old skyline. :(

    • CRS34 on 28/02/2017 - 16:47
      +1

      car enthusiasts ftw

    • ssyl9 on 28/02/2017 - 17:17
      +1

      I am all for buying nice cars if you can afford it.

      Buying an Evo as a fresh grad when you have a free car? That is just wasteful in any books.

      There is no reason why he cannot save a year or two and see if he still want it. Maybe he will be glad that he didn't spend 80k on a car (with loans) as he needs the money to do other stuff like eat/get a girlfriend/go out with friends..

      What is the point to have a flashy car if you need to survive with half a cup noodle a day and not able to afford petrol?

  • FW190 on 28/02/2017 - 09:21

    edit

  • Excelsior on 28/02/2017 - 09:22
    +3

    The hate is real out here!

    Hey at least the guy didn't ask for suggestions about getting an $80k car as a fresh grad…

    • cheng2008 on 28/02/2017 - 22:21

      He only asked for a $15k car and some people are already treating him like he's asking for $80k lol

      • Excelsior on 01/03/2017 - 09:10

        I know, the stakes are high on OzBargain when it comes to these things hahaha.

  • pao2x on 28/02/2017 - 09:44
    +3

    Don't forget insurance for under 25s is gynormous, better you keep a car under your parents name

  • ShannonN on 28/02/2017 - 12:23
    +1

    You don't say what job you have obtained, what salary you get etc if you are moving Interstate it will cost you, then there is rental accom in new state, fuel costs etc do a budget and see IF you could even repay a loan for new car before you even think of buying.

    A reliable free car is worth a mint for two reasons, it is a gift from parents to help you get by they want you to survive and thrive not go to debtors prison ? Accepting their gift shows them you accept them and their desire to give you the best start in new "life" they can.

    Another solution is get a decent g/f who owns a flash rev heads car to take you to the illegal drags and illegal street meets where you can meet great friends and socialize like some need to do - she gets the speeding fines not you,she pays the car payments and rego. insurance etc not you.

  • Tombf2g on 28/02/2017 - 12:24

    The car in your link that you want to buy IS A 4WD… also good luck getting an evo 10 for 15k

  • xcess on 28/02/2017 - 13:23
    +1

    Use their car, youll have plenty of other chances to waste money

  • ddxsamx on 28/02/2017 - 13:50
    +2

    Keep the parent's car until you have a decent income.

    As an evo owner, you will have MUCH more to spend than 15k. There will be many unforseen expenses (maintenance, breakages) that will occur along the way

  • Ahbal on 28/02/2017 - 14:15
    +1

    Mate keep the car! If your parent don't need it (in this case they gave it to you) there is no need at all to waste you money! It's a great chance to save yourself some money.

  • urzu on 28/02/2017 - 15:15
    +2

    Take the 4WD, it WILL come in handy when you inevitably have to haul things around

  • pandas on 28/02/2017 - 15:59
    +1

    Have you lived away from home previously, as you mentioned you were moving interstate? There will probably be a lot more to think about rather than a car. Eg Rent, bills, Daily expenses such as food petrol insurance. Keep the 4WD and see how things pan out first I'd suggest.

  • Caped Baldy on 28/02/2017 - 16:25
    +1

    Don't do the loan, waste of money. A tip I've heard for buying cars on a budget is not to spend more than a quarter of your annual pay on one. There's a lot of added costs with buying a car especially at your age. Insurance (<25yo and male), change of ownership, maintenance etc. Cheaper to keep in your parents' name.

    Save up the money and get something nice to thank your parents.

  • ssyl9 on 28/02/2017 - 17:11
    +1

    Buying a car with a loan when you already have one is one of the most wasteful ways to spend your money…

    A Car is just what you use to travel around, as long as the 4WD still runs good with no issues, you should be using it. You can buy your flashy evo later when you actually have the money to spend.

    you should rather save the money up to try buy other stuff like a property.

    4wd is not really what young people drive and I feel embarrassed driving it.

    This is not a valid excuse… think of all the young people who don't even have a car and have to support their parents/kids/spouse with their money. No one is gonna laugh at you coz you drive a old 4wd…

  • SilentBob on 28/02/2017 - 18:37
    +4

    Geez these questions getting a bit ridiculous.

    Take a free car or take the bus until I get a loan to buy one for myself.

    No brainer…

    4wd is not really what young people drive and I feel embarrassed driving it.

    WTF? Car > No car

    You need to change the way you think about life, kid.

  • [Deactivated] on 28/02/2017 - 18:38
    +1

    I can't believe that you were even considering not taking it. It might be dumb not think about not getting it, but at least you did the smart thing to ask here.

  • SilentBob on 28/02/2017 - 18:43
    +3

    Next week on Ozb,

    Should I wipe my bum after I took a poopie? I don't want to disrespect my parents by doing it myself and not letting them do it..

    • jenkemjunkie on 01/03/2017 - 09:45
      +1

      It's just I'm sick and tired of screaming for my mum from the toilet to let her know I've finished. I'm getting older - bending over so she can clean me is a little more taxing on my body. What if I don't wipe properly and when my mum does the washing she sees skid marks on my jocks? She will be so mad! She would insist she go back to wiping so she doesn't have to buy me more jocks

  • wkd on 28/02/2017 - 18:56

    take the 4wd and think about it this way. the faster you save, the faster you can get your lancer.

  • captobvious on 28/02/2017 - 21:12
    +1

    Free car bro! Take it. why would you want to get a loan for a car?
    even better get the ownership papers and trade it in ;)

  • peterw1 on 28/02/2017 - 21:46
    +1

    You say you would be embarrassed driving a 4wd, but feel no embarrassment taking a loan for a depreciating asset? I don't understand this. The good thing about finishing your studies and becoming a taxpayer is that now you are in the real world. Welcome and buyer beware. I would suggest you only buy a performance car after 25 when your insurance costs should drop, in the meantime build up your no claims bonus, else your coin will be working for the insurance company via high premiums.

  • lostn on 28/02/2017 - 21:54
    +1

    Depends how well paid the job is.

    But if you're looking to be financially prudent, take the car since they want you to have it. You will have opportunities to buy your own car later once you've saved up. Taking a loan means you have to pay substantial bank interest. Taking a free car, doesn't.

    Who cares if you're embarrassed to drive it? It's your first job, and you're 22. No one is going to judge you for it, and if they did, why should you care what other people think?

  • [Deactivated] on 28/02/2017 - 22:24
    +1

    Why the hell would you want a Lancer?

    • SilentBob on 01/03/2017 - 15:13

      Personal preference obviously, which is not the point so don't get into this car vs that car etc.

    • captobvious on 01/03/2017 - 23:47

      the answer is lancer

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