Need to Buy a Car on Finance. Suggestions Please

DontNeedThis on 24/06/2024 - 11:10
Last edited 24/06/2024 - 15:10 by 1 other user

Hi OzBargain, I need a car as my current car, which I bought for $7.5K six years ago, needs a fix that costs around $5K and it's not worth it.

Now based on what I've seen on OzB forums (specially tax discussions), I'm the only poor person here. Meaning I can afford around $600 a month.

What do you think my best option is for getting a car? Also what kind of car would be a good choice in terms of maintenance cost.

Also, what do you suggest I do with my current car? It's a Hyundai i45 2013. It runs perfectly, but the check engine light is on and I've been told by a few mechanics that it costs around $5K to fix. Something wrong with the injection system or sth. It also doesn't look the best cosmetically. How can I get rid of this car and get some money for it?

Automotive Hyundai I45

Comments

  • Hybroid on 24/06/2024 - 11:19

    You should be able to get something on lease for $150/week. Maybe a BYD Dolphin.

    • DontNeedThis on 24/06/2024 - 11:39
      +8

      I know my budget is small, but are there any better looking options?

      • montorola on 24/06/2024 - 11:50
        +9

        but are there any better looking options?

        Ouch

      • damnable on 25/06/2024 - 08:25

        Beggar or chooser, pick one.

        • DontNeedThis on 25/06/2024 - 11:49
          +3

          Not neccassarily. BYD Dolphin is $37K. I never said I'm looking for an EV. The Haval Jolion, which is a pretty descent looking & a much more spacious car, starts at $27K. Not sure why everyone assumed that I, in my current financial situation, need an EV and took offense when I said I don't like the look.

      • Drakesy on 26/06/2024 - 10:50
        +1

        MG4

        • DontNeedThis on 26/06/2024 - 20:25

          Wow that's a beautiful car! And almost the same price as the Dolphin. Thanks.

    • damnable on 25/06/2024 - 08:24
      +9

      This is a pretty terrible suggestion. Basically suggesting someone with a limited budget buys a new car in finance that include a substantial balloon payment.

      Novated leasing can be a good option, but from the information provided is a poor choice.

      • DontNeedThis on 25/06/2024 - 11:37

        but from the information provided is a poor choice

        Sorry, can you please elaborate?

        • Browsers on 26/06/2024 - 15:40
          +1

          I'll have a go at this. Your budget might suggest your income is limited. Novated leasing is supposedly cheaper than buying with a car loan because the lease cost reduces your taxable income, and the tax you save is bundled into the figures that the leasing companies give you to show the overall net cost to you. By reducing taxable income, the tax savings benefits are much greater for anyone on middle to high income. People on lower incomes won't save as much tax, so novated leasing won't be that much more affordable than a regular car loan, and it comes with other downsides - for example the BYD Dolphin promotion is based on a long 5 year lease commitment and a final balloon payment at 30% of the vehicle cost to acquire the vehicle outright. If your employment situation changes during that time, there is a good chance you can transfer the lease to a new employer, but it is not guaranteed, and the lease might be converted to a regular car loan, which means you no longer get the tax savings.

    • Nucleus Acumbens on 25/06/2024 - 12:41

      Will need someone who knows about car yards to step up, but in 2018, my husband and I bought 2017 Laser sports cars. They were the end of production. Now, I don't understand this bit, but we bought them as used cars from the dealer. Mine had 700klm on it, OH had 5,500klm on his. They weren't ex dealer cars and they had about 10 of them.

      We paid $16,000 each after factory window tint, seat covers front and back, boot cover, steering wheel covers and floor mats. We also added a tow bar to mine (husband can't reverse a trailer for crap)

      When we went to insure them with RACQ, they classified them as new cars and their price was higher, said they were worth 23,000, so needed to insure them for that market value.

      There were current lancers there for $23,000, we had to specially ask for "the ones out the back" but this must be a common thing that goes on so sure someone can explain.no doubt happens with other models too.

      We got those prices on 2 trades 1) a 10 year old 150,000 1.3l Hyundai gets ($2000 trade) and really old Camry sedan that had 560,000 klm on it (said it was gently worn in) for $1500 trade

      Both of our trades were running rough as guts with a plethora of problems but the car yard accepted them.

      We have literally had no problems with either car in the six years we've owned them except replace battery and tyres. Friend does cheap log book services in our driveway and once a year we take them to dealer to get checked on racks.

      Husbands has done almost 200,000, mine 30,000 - brilliant little safe tidy cars that will get you and a few passengers from a-b. Has reverse cameras but not many other bells and whistles.

      As far as finance, I signed contract subject to finance at institute of buyer choice (being Westpac) so they couldn't set me up with any high interest rate loan if mine fell through.

      If going to dealer and trading in your car, wash, shine and detail it as best you can, get it to top of hill and just let it coast into dealers. My OH's car was really on its last legs and my Hyundai blew more black smoke than a volcano!

      My Hyundai was a 1.3l 2010 model. Looked good inside and out (black) just blew black smoke which was kind of embarrassing cos mechanic said not head gasket so NFI how to fix.

      If lancer's are too dear, I must say my little Hyundai Getz hatch 4 door went like the clappers. Bought it new in 2010 for $13,000. Only had 1.3l engine (could have had 1.5) so struggled with full car. Had 5 seats, but could only fit 4 - my sons are all 6ft 4 and built like swimmers.

      It was a ripper of a car. Really roomy inside and under hatch. Towed trailer and jet skis ok. Petrol cost nothing, could park it in the smallest of places, cheap to maintain - worked it hard for 8 years, first carting kids around then their learner & o plate car.

      If trading old car in at dealer rotate your tyres and grab your spare out. (Pick best one) they don't give you extra for spare tyre or mats or seat overs etc. took our bull bar off too.

      Good thing about trading to dealer vs private, no need for RWC

      • Nucleus Acumbens on 25/06/2024 - 12:47

        Red one loan repayment is $276 month
        Blue one loan repayment is $80 a week

        Full comprehensive insurance with RACQ for agreed value of $23,000 (paid about $16,000 in 2018).

        One last thing, for indestructible, if you can, I'd go a Corolla. When I first got my licence I got a Toyota Corolla csx. Smashed it the first day I drove it and things just got worse from there. Mainly reversing accidents, never an accident over 20klm per hour. Ran up the back of a few things, few trailer reverse accidents, even rolled it two or three times.if there was one pole in a 5 acre paddock, I'd hit the pole. One day reversed out of smash repairs straight into another car. Put it in drive and just drove it back in.

        Never once got a scratch. Got out of each one without injury to me (car was pretty trashed though). Went to trade it in on a mx3 in 2001and Toyota man said, don't know what to call it - 2001car but every panel on it is 2021.

        Got sent to Defensive Driving course after last accident, never had another one since.spent 7 years overseas where I didn't drive, but when I got back to Aust. Dunno what all that was about, dad had us driving tractors and farm vehicles and cattle trucks and horse floats since we were tiny.

      • DontNeedThis on 25/06/2024 - 13:03

        Amazing stuff. Thank you so much for taking the time to write this down. May I ask which yard you went to?

    • HeWhoKnows on 25/06/2024 - 14:23

      I suggest Op go es over the posts in the car fiorum

      Plenty of useful information there
      OP can choose which posts are relevnet.

  • Boioioioi on 24/06/2024 - 11:22
    +2

    Do you have any savings? Cheaper to buy outright than finance

    • Ryanek on 24/06/2024 - 11:27
      +1

      Yes obviously, but the majority of the people are not in this position.

      • Boioioioi on 24/06/2024 - 11:55

        I get that, does not hurt to check though. I know quite a few people who do not realise this even though it may seem obvious

    • DontNeedThis on 24/06/2024 - 11:36
      +1

      No savings unfortunately.

      • Boioioioi on 24/06/2024 - 11:55
        +2

        Fair enough, sorry to hear, hope you can find something within your budget. Looks like other people have made some good suggestions.

  • DashCam AKA Rolts on 24/06/2024 - 11:23
    +3

    Depends on your use case, but the GWM Ora has fixed price servicing of $99/year fixed for 5 years and is the cheapest EV on the Australian market at the moment.

    • DontNeedThis on 24/06/2024 - 11:41
      -6

      Thanks mate. Appreciate your help. I really don't like how that car looks though.

      • kerfuffle on 24/06/2024 - 13:59
        +7

        I don't think you can afford to be picky about looks considering your financial situation.

        • DontNeedThis on 24/06/2024 - 14:08

          Is that really the case? I just looked at Haval Jolion and its much cheaper than the Ora. Am I missing something?

  • kekw on 24/06/2024 - 11:29
    +1

    Pretty common issue with their GDI engine. I did sell it off for cheap and let someone else who have the time and effort to due with it.

    What about down payment? 1k or just whatever you get from selling the i45?

    • DontNeedThis on 24/06/2024 - 11:41

      Definitely, but who's gonna buy this?

      • kekw on 24/06/2024 - 11:47
        +1

        Need not to worry who. If you priced it low enough it will sell. Just be honest and open about the issue when asked.

        • DontNeedThis on 24/06/2024 - 11:51

          Thanks. How much do you think it's worth? I've really taken care of it in terms of servicing. This was just unlucky.

          • kekw on 24/06/2024 - 12:04

            @DontNeedThis: With a GDI engine, it takes more than just servicing to maintain it. Regular engine flushes are recommended due to the more prominent carbon buildup in the engine with direct injection system.

            Can't give you the exact but imo look at the market value of the car, factor in the some of the repair cost. Leave some room for people to haggle.

        • DontNeedThis on 24/06/2024 - 11:50
          +14

          Thanks for the suggestion mate, but I can't do this to someone.

          • JIMB0 on 24/06/2024 - 12:01
            +2

            @DontNeedThis: Trade it in to a dealer then as is. They often don't bother checking.

            • kekw on 24/06/2024 - 12:06
              +2

              @JIMB0: second this. Most hassle free way to deal with in this situation but expect maybe 1 to 2k offer lol

  • JimB on 24/06/2024 - 11:44

    You both a 2013 car for $7.5k in 2018?

    I'd look to salary sacrifice/novate lease the cheapest EV you can get. (you can novate lease a used car too)

    Call a few wreckers who will pick the car up from you. You could get between say $250 to $500 for it.

    • DontNeedThis on 24/06/2024 - 11:54

      You both a 2013 car for $7.5k in 2018

      I know, I got really lucky.

      Thanks for the suggestions.

  • djkelly69 on 24/06/2024 - 11:53
    +4

    If it runs perfectly but just has a check engine light on, can't you just keep driving it?

    • DontNeedThis on 24/06/2024 - 11:57

      Good question. My plan is to drive it till its insurance is due. I don't think it's worth driving any more than that because otherwise I need to buy new tyres as well. It's also a bit unsafe and unpredictable when you don't know what's going to happen and when.

      • Broke-Ken on 24/06/2024 - 13:25
        +7

        DJKelly has the best solution, keep driving it now and set aside $600 a month(You were already willing to pay that much for finance anyway) until the car dies, Hopefully you would have saved enough to buy another car, or use it to reduce the cost of your next car, and the finance won't be so big.

        Who cares if the outside doesn't look good.

        Note that a newer car that is more expensive, also comes with expensive insurance too.

        • DontNeedThis on 24/06/2024 - 14:12

          This is very good advice. Thank you.

        • 2esc on 25/06/2024 - 09:35

          As above and you could also check out some online forums. I dont know about the Hyundai i45 but alot if other car brands have really good forum's you can get help. Avoid finance if possible.

  • Drakesy on 24/06/2024 - 11:59
    +5

    *Want to buy a car on finance.

    Friends don't let friends finance cars. Cash or you can't afford it.
    Novated leasing of EV's is kinda worth it although shop around the interest rates are extortionate (11-12%)

    • DontNeedThis on 24/06/2024 - 14:12
      +1

      Thanks mate.

    • Nucleus Acumbens on 25/06/2024 - 13:13

      We bought our last two cars on 3 year contracts from the bank we do business with. Car yard offered finance but it was 3% more expensive and minimum 5 year loan.

      Our payments are same all the way through, there is no big balloon payment at the end. I think this could lead to unwanted trouble down the track.

      I have no idea about novated leases or anything else.

      I was bought up to never borrow money for cars, to only pay up front but when OH's Camry started to limp, didn't have the savings spare.

      I remember when car loans were 3 years old and that was a long time. I see some are 7-10 year loans these days and the cars aren't much more expensive. My 1986 Toyota Corolla was $14,600. My 2010 Hyundai Getz was $13000 and my lancer sports was only $16,000g

      Another thing too is different brands have different warranty lengths. Think Hyundai was a lot longer than Corolla

    • dazza826 on 26/06/2024 - 10:41
      +1

      Yep if you are at an employer where you are free to use your own finance for novated lease and have the administrator manage the lease then its a no brainer.

      For exmaple cba finance is 8.9% instead of the 11-12% with most leases where the novated lease company arranges the finance.

  • Wiadro on 24/06/2024 - 12:18
    +2

    bmw 7 series is the car for you

    • pegaxs on 24/06/2024 - 13:06
      +4

      Not the Mercedes Benz B-180??? I've heard there are a few that are a "ridiculous deal" going around at the moment. But you'll need to rush.

  • rickdwp on 24/06/2024 - 13:49
    +9

    Why is everyone suggestion new cars? You can finance used without an issue. Go buy a Camry, Falcon or Commodore - All of which have there issues but everything is cheap to fix.

    If cost of fuel is a serious issue then go a Corolla but honestly the 20k you don't spend on a new car will buy checks notes a F*** tonne of fuel

    Edit: As for your current car, send it to Grays - You'll still get a decent amount for it because a mechanic who can fix it for 1/4th the cost of a shop will buy it and flip it.

    • DontNeedThis on 24/06/2024 - 14:27

      Grays

      Great suggestion. Thanks.

  • coffeeinmyveins on 24/06/2024 - 16:50
    +4

    0 savings, has to finance a car up to $600 a month, gawks at EV's being suggested.

    What a world we live in.

    Just finance a second hand corolla. If you literally have no savings then you are not in a position to finance a new car worth $30k+ IMO.

    • DontNeedThis on 24/06/2024 - 17:25

      Where did I mention in this post, or the comments, that I'm looking for an EV? Obviously if you go EV, there are fewer inexpensive choices.

      • magic8ballgag on 25/06/2024 - 08:28
        +1

        They're referring to the comments that are suggesting the purchase of an EV.

  • Euphemistic on 24/06/2024 - 17:23
    +3

    How much do you want to spend? Not a lot of point asking for a car suggestion without at least a budget. Secondly you need to think about narrowing it down to at least a style or a shortlist of 3-4 if you want any meaningful answers.

    So far i can see a couple of suggestions that you've just said you dont like the look of whichbgives us bery little to go on.

    Buy a 5-8yo japanese or korean hatchback and save for an EV to replace it in 3 years.

    • DontNeedThis on 24/06/2024 - 17:30

      Thanks for the comment mate. How much can I realistically spend with $600 per month and a couple of thousand of dollars deposit?

      In terms of the style, just a an average looking sedan or small suv. Not sure why the only couple of suggestions that were made here were EVs.

      • kerfuffle on 24/06/2024 - 18:23
        +4

        Maybe because you're done jack-all research on what car you want? You say you want an average looking sedan, yet you're picky about looks. I personally like the Hyundai i30 sedan (well, before they ruined the front with the facelift), but I reckon you'd hate that too. Same if I suggest a Kia Picanto (which isn't a sedan), one of the cheapest cars available on the market.

        • DontNeedThis on 24/06/2024 - 20:26
          -2

          Maybe because you're done jack-all research on what car you want?

          Mate, I was just looking for suggestions on what to do and to see what others think. Some suggested I wait, some suggested I put my current car on Grays, some suggested Novated leasing, which are all really appreciated. No need to get salty.

          Hyundai i30

          That's a beautiful car.

          Kia Picanto

          Beautiful car but I as you said, it's a hatchback.

      • Euphemistic on 24/06/2024 - 18:24
        +1

        In this day and age if you dont have a specific need for a petrol car, you should be buying an EV for the low running costs. In 5 years time ICE car value is gonna crash unless fuel suddenly gets cheaper. Plus there are some good deals on EV leasing.

        YOU need to work out how much you can finance on $600/month.

        • DontNeedThis on 24/06/2024 - 20:27

          Thanks. That was very insightful.

        • AngusD on 25/06/2024 - 09:47
          +2

          ICE car values won't crash until EV tech reaches the point where it overcomes the disadvantages they currently have vs ICE cars, primarily around range, charging time, etc (also charging infrastructure if you're living in an apartment or renting or some other situation where you can't get a charger installed in your home or can't afford to). That may well happen in 5 years, but when it does then the legacy EV tech cars with those disadvantages will crash right along with the ICE cars, if not further.

          But really, if you're spending $600 a month then you're talking about a used car, and probably not a particularly late model one, in which case its value has probably done most of it's crashing already. You're not going to lose a whole lot of resale value on a car that didn't have much value when you bought it.

          • DontNeedThis on 25/06/2024 - 11:38

            @AngusD: Thanks for the comment mate.

            • AngusD on 25/06/2024 - 12:36

              @DontNeedThis: Not knowing your exact budget ($600 a month, but over how many years? What's the interest rate? etc), you'd want to work that out first. Talk to your bank or whatever to figure out what you can comfortably afford within that $600 per month, then take a look at carsales.com.au to see what's around in that budget.. But assuming it's probably under $15k, I'd have a look at something like a Mazda 3 or Toyota Corolla. Low frills, not latest tech, but reliable. Can probably find one in decent nick in the $10-12k range without too many kms on it (I'd look at the number of kms on it rather than the age). Can probably snag one with <100,000kms on it and those cars will run forever if looked after with regular servicing etc.

          • Euphemistic on 25/06/2024 - 13:41

            @AngusD:

            ICE car values won't crash until EV tech reaches the point where it overcomes the disadvantages they currently have vs ICE cars, primarily around range, charging time, etc.

            My guess is that in 5y we will have a much more serious number of EVs in cities and city dwellers basically wont want ICE. Maybe not so much in rural areas, but then farmers are seeing the benefits of having a solar powered car to go into town.

            Charge times are actually pretty good now. Average usage for a city dweller can be recharged overnight on a standard wall plug. You can get most of a charge in the time it takes to get your groceries. Charge infrastructure is lagging, but its also demand driven. More demand, more options. In 5y i think it will be unusual to go to any place you park for 'a while' and not be able to charge. Itll just change the way we work with refueling. You wont have to go fill up, youll just plug in where ever you end up. I also believe its more a mindset problem than a logistical problem. Many people with EVs are oerfectly happy with the charging process and range right now. Of course theres going to be issues if you dont have off street parking or travel 200km per day, but with a 3-400km range you should be able to arrange a charge once a week somewhere in your normal travels and if youre doing bulk kms then an EV can be a lot cheaper than ICE to run.

            But really, if you're spending $600 a month then you're talking about a used car

            I'll admit i have no idea what $600/m means you can get having not leased or financed a vehicle this century. It also depends on wether OP has $600/m for vehicle only or $600 for running costs.

  • turbochris on 25/06/2024 - 08:28
    -1

    Disconnect check engine light before selling.

  • azero on 25/06/2024 - 11:18

    Buying a new car the biggest cost is the depreciation - I don't know why everyone here suggests Ev s that will drop like a rock in value.

    Look at a camry or a corolla or may be a grey import JDM corolla, they will be cheaper.

    If you are getting finance, there is a 2% discount on the rate that a broker or a dealer can give you. Basically what they earn from the loan is the difference between the 2% discount and the actual rate that they give you. So bargain hard on the loan if you decide to go down that path.

    • DontNeedThis on 25/06/2024 - 11:43

      I don't know why everyone here suggests Ev s that will drop like a rock in value

      And everyone's offended that I'm not going with these expensive (compared to ICE) options.

      If you are getting finance, there is a 2% discount on the rate that a broker or a dealer can give you. Basically what they earn from the loan is the difference between the 2% discount and the actual rate that they give you. So bargain hard on the loan if you decide to go down that path.

      Thanks for the suggestions.

  • Tigercjn on 25/06/2024 - 15:51

    Try disconnecting your battery for 10 minutes and see if this gets rid of the check engine light. If not, get Supercheap Auto to read it for you and tell you what's wrong. $24 if you join for free or $30 if not.

    • DontNeedThis on 25/06/2024 - 17:13

      I've taken it to three different mechanics. They get rid of it, but comes back on. They also couldn't tell me what's wrong with it. They just said they need to open up the engine and do some work to find out what the issue is (quoted me $2K to $3K) and said whatever it is won't cost less than $2K to fix.

      • Randolph Duke on 26/06/2024 - 10:50
        +1

        An OBDII reader (or the Supercheap suggestion) will give the error code which will pinpoint where the car thinks the issue is, and then you can make a more informed decision in case mechanics are trying one on. Could be something much simpler/cheap to fix, like a CAM sensor etc.

        • DontNeedThis on 26/06/2024 - 20:29

          All the three mechanics that I took the car to said that the error code could be a few things and not really specific.

      • Euphemistic on 26/06/2024 - 11:25

        Is it still driving fine except for the engine light? Still need to find ojt what the code is and instwad of plunking down finance on a new one or spending half the car's value on repairs just keep driving it and saving for the next one. Its value is very low, if it really breaks down its not gonna lose much value.

        This may not be brilliant advise if you have no alternative transport. If you can live without a car for a few weeks while you organise the next one then theres no harm in it blowing up

        • DontNeedThis on 26/06/2024 - 20:31

          no harm in it blowing up

          Very optimistic sir!

          Joking aside, I wish I could find out what's wrong with it without spending so much money. All the three mechanics that I took the car to said that they couldn't pinpoint the issue just by reading the code and that they needed to open up the engine wivh would cost $2-3K

      • Kooratz on 26/06/2024 - 11:30
        +2

        I have been ignoring my 2006 corolla engine light for the last 7 years, the car still running perfectly…I'll drive it till last breath…

        • DontNeedThis on 26/06/2024 - 20:32

          I've been ignoring mine for 3 years now.

        • Jake D on 01/07/2024 - 12:24

          almost definitely an 02 sensor, can keep ignoring.

  • DavidH68 on 01/07/2024 - 14:44

    I recently purchased a car using finance (2021 Hyundai I30N DCT Hatch) , can highly recommend IMB Bank for finance , 6.24% fixed interest for a $36,000 5 year secured loan.

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