Title is my first question. The 2nd one is:
Should I take a loan for 28k at about 7-8% and pay remaining cash down? Or does it make sense to go for a 2020 new one for about 3ish percent?
2019 MY20 Kia Sorento Sli Diesel AWD, 2800kms - $42,000. Good or Bad?
Ltorrentkid on 05/11/2020 - 18:55
Comments
I was hoping you'd provide reasons to support your argument.
Because the new model is going to be 100 times better than the old model, and the old model is going to have terrible resale. Isn't this obvious?
No, not the 100x better one isn't obvious to me. Interesting you'd say a 1 year old car is 100x worse. It's also about money, so the question.
@torrentkid: The dude gave his opinion that new > old. That's a very clear reason.
If you don't like people disagreeing with you then you're at the wrong place.
Taking a loan on a depreciating asset such as a car is one of the worst financial decision ever.@brokenglish: I don't see where I said I don't like his opinion. I just disagree that same car models 1 year apart can be a 100x worse unless its a major facelift for that line. The resale argument was good one though.
@torrentkid: The other side of the ‘new is better’ coin is that buying the first generation of a new model is also increasing the risk of new model bugs that haven’t been ironed out fully.
it’s often considered preferable to buy the second generation of a new model so they’ve had a chance to fix some minor bugs.
Some people seem to think that a new model pretty much makes the old model obsolete, it it doesn’t. If you think that, the marketing has worked a little too well.
Yes, the new one will be better, but 100x better? Methinks some are prone to exaggerating. Same with ‘terrible resale’, sure the value of he older model does drop a bit, but it doesn’t make it ‘terrible resale’
Thanks, OP, bought 2.
Glad to be of help always!
Anyway… seriously…
No, buying it on finance is never a good idea, especially so much of it on finance at such a high rate. What you would be better off doing is buying a slightly older version with low km on it for a lot less money, therefore you are getting the same vehicle, still under warranty and your borrowed amount is a lot less.
The other thing is, do you need diesel? Are you doing long trips or pulling heavy loads? Maybe forgoing the diesel for the petrol option may also save some money.
So, the older year variants, the best one I found was a 2017 for 30k with 114k on the Odo. I thought 2019, 3k, $42k made more sense in that aspect. What am I missing?
@torrentkid: Maybe look at something like a 2018~19MY vehicle with 10~20,000km on it. Should be able to squeeze a bit more of a bargain out of that than the 2020 ex demo.
Also consider that the car market is a bit stupid at the moment with unlocked super and buyer demand pushed up because of public transport and COVID concerns. If you can put off the purchase for a while, the market may flatten out or you may be about to pick up a better deal on a old stock run out model 2020 stock.
@pegaxs: Unfortunately, we do not have a vehicle at the moment & need one badly. So, waiting is not an option for me. But I do understand what you are trying to say. There aren't many used Kias around & none with that kind of mileage on them.
Maybe look at something like a 2018~19MY vehicle with 10~20,000km on it. Should be able to squeeze a bit more of a bargain out of that than the 2020 ex demo.
OP is looking at a 2019 ;) MY20, you know, that old chestnut!
But yes, Used Cars are asking ridiculous money when you compare them to a $42k 2019 model
I wouldn’t get the 2019 Sli - I have the 2019 GT line which is a good car but you only get blind spot monitor, rear cross traffic alert in the top spec I think. I paid $55k for the GT line brand new, $42k for a used Sli sounds very steep. The new model I think you get that safety stuff standard, the Apple play is wireless, a whole raft of improvements more space more modern better resale value etc.
I don’t object to borrowing to buy a car if it’s not a high yield investment vehicle though - 7 years warranty coverage and it still being worth something at that point down the track are worth paying a bit of a premium for.
Even though the car has only 2800kms?
That’s part of the problem - because that 2019 is almost new it costs too close to the next generation of Sorento. If it was me I’d definitely get the new model
Didnt like the answers at r/ausfinance?
Multiple sources, different target audience. :-) On the good side, at least one known face.
In my opinion, 42k is a good price for a 2019 model. Every few years, a new model will be released but it doesn't mean that the old models become obsolete. The previous generation Sorrento has always been a popular model winning multiple awards and hence you cannot go wrong with the purchase. Unless you're particular about any of the new features in the 2021 model, there's no reason why you shouldn't buy the 2019 model. The way I see it, the price of 42k is achievable only because of the new release and therefore this is once in a few year's offer price. Regarding the finance, you can compare the savings of 7% vs 3-4% over the loan term and then make a decision.
I cant believe $42k is discounted. We were so lucky.
Don't get a loan to buy a depreciating asset.
OP, don't mind the haters. If you like what you see, buy it.
I agree but unfortunately nothing in NSW.
It's a great and reliable car. We bought ours when they were fairly new and not many on the rd in 2010. It was during the once in a lifetime brisbane floods and that dealership had to move all their cars to higher ground.
We paid $30k for demo with 1000kms cash deal. Kia had a $5k discount and dealer gave another $5k off.
After the deal finished, went back to $39,990 for base. The demo had a few inc extras like side Steps, mats, cargo mat etc7 yrs warranty and we had it for 9yrs. Sold it last yr for $13k with 120kms. Never had any mechanical issues. Serviced once a yr only. A couple of times we had dead battery but that was it.
Went to win many awards and become highly demanded. Friends that were surprise we chose Kia eventually sold their X5 and bought the Kia luxury model purely for reliability. The older BMW suvs had a lot of issues. They don't care that it's under warranty but the inconvenience of always having loan car for weeks at a time.
We bought the standard model because we didn't know better at the time and didn't want to spend $40k+ on Kia. For $30k 7 yrs warranty, it's too good to refuse.
Btw, we chose Kia because at the time, it was the only SUV/ 4x4 that could fit 2 reverse facing baby seats side by side and there's still room to get in the 3rd row through the side seat. This meant we could utilise the 3rd row for family members etc with everyone other suv, we had to take out 1 baby seat to get to 3rd row or make my mum climb through the boot! We had twins and an older child in booster. It's truly the perfect family car.
I wouldn't buy either, but you'd be a moron to buy an outdated model when the new model has just been released.