30k personal loan (help)

Beetus · 03-01-2007, 11:19 PM

Hey everyone
IM in a bit of stick
I wanna get rid of my mr2 and get a 30k personal loan........ i got a 21k loan through a finance company im (im 18 btw) for my mr2 and my transit van i owe just over 18k left on it........ if i sell the mr2 and get that loaned payed off....... what is the chance of me a 18 year old gettin a 30k personal loan...... im 18 and a half...... ive had a 2 year 4k loan payed off in 6 months, and had the 21k loan if i sell my car payed of in 6 months 2.... i wanna go through a bank whats my chances........ i wanna get a au xr8 ute, fix my van up a bit and spend a bit on the ute....

Venomous · 03-01-2007, 11:23 PM

Just my advice,
Taking out loans on cars probably arent the right thing.
Cars depreciate so you'll end up loosing money.
I say just start saving up for a house

b2tf · 03-01-2007, 11:36 PM

Quote:

Originally Posted by Venomous

Just my advice,
Taking out loans on cars probably arent the right thing.
Cars depreciate so you'll end up loosing money.
I say just start saving up for a house

everybody says that. i didnt listen, im 20 and took out a loan to buy my XR (wasnt anywhere near 30k though), and I say why not! Plenty of time to buy a house down the track.

How you would go with getting 30k I dont know though, it depends on the situation that you are in jobwise etc etc.

Beetus · 03-01-2007, 11:36 PM

im not interested in a house..............

robjh80 · 04-01-2007, 10:52 AM

Quote:

Originally Posted by Beetus

im not interested in a house..............

"But you will be"

Perhaps not right now, but probably a couple of years down the track,

It goes something like this

You get a girlfriend, she wants to live together, she then wants or accidently gets pregnant, you are then on a single wage supporting your lovely wife and child and hence get yourself stuck in the rental trap completely at the whim of the landlord who can kick you and your young family out into the gutter whenever he so feels like it, the rent keeps increasing annually at what is now at record rates never before seen in Australia, "oh and you also have a large personal loan on a depreciating asset to pay for, your old car!!"...........my point is you have to plan for your future now, as hard as it seems, it's the harsh reality.

Have you looked at the figures for a 30k loan from the bank, here's a screenshot of what it will cost you, this is based on todays unsecured rate of 11.49% over 5 years from a major bank, they will all be about the same rate.

As you can see the loan will cost you $659.63/month in repayments and over $9500 in interest charges over the 5 years..........your 30k loan has just cost you more like 40k in repayments................."big deal I hear you saying"

But of course it's actually much worse than this when you take into account all the dead rental money you'll be paying out over those 5 years as well, let's say $300/week (which is an extremely conservative amount), that equals a staggering $78,000 in rent over the 5 year period + $40,000 in loan repayments = $118,000.

And what exactly are you left with after 5 years when you'll be 23 years of age?..........."a 5 year old car worth ????"

"Do what others who know better are telling you from experience" and put your money into real estate which is appreciating all the time whilst saving you that dead rent money and slowly trapping you into a life of instability and uncertainty.

Whatever you pay for property today will be cheap in comparison to what it will cost you in the years to come.

I bought my own home at 22 and have never ever looked back, with the equity I now have in that property I can walk into any bank, throw the deeds over the counter and get any loan I want to buy any car I want........"if I so wished to."

Sorry about the long response, I just hate seeing young people making such decisions at an early age knowing that they will live to regret them when they get a little older and wiser, "nobody is going to look after you in this world but yourself."

Beetus · 03-01-2007, 11:37 PM

i earn bout 1100 a week..........i drive for a job so i sorta need to spend some money on the old transit lol

b2tf · 03-01-2007, 11:39 PM

Quote:

Originally Posted by Beetus

i earn bout 1100 a week..........i drive for a job so i sorta need to spend some money on the old transit lol

sell the MR2, use that cash to make a nice payment on your loan for the transit. Fix the transit and keep on working, you'll have your 30k soon enough without even needing to take out a loan.

Some weeks I bring in less than half what you do and I still save minimum $200 every week. Just got to be smart with your money.

GK · 04-01-2007, 05:54 PM

Quote:

Originally Posted by b2tf

sell the MR2, use that cash to make a nice payment on your loan for the transit. Fix the transit and keep on working, you'll have your 30k soon enough without even needing to take out a loan.

Some weeks I bring in less than half what you do and I still save minimum $200 every week. Just got to be smart with your money.

Coming from a 20 year old, that is smart (and quite mature) advice!

GK

gtfpv · 03-01-2007, 11:49 PM

Quote:

Originally Posted by Beetus

i earn bout 1100 a week..........i drive for a job so i sorta need to spend some money on the old transit lol

iwas 18 i was an apprentince at 16 in 7500, pa at 17 i was on 12000 and 18 25000 19 35000 20 40000
by the time i was 20 id had 3 cars took holidays every year went out drinking every week and had $ 40 000 cash in the bank .

and your on $1100 a week are 18 . havent got a cent and want to borrow money for a car ,!!!!
whats wrong with youngens these days . cant save a cent. if you cant save for something you'll always be in debt .

Venomous · 03-01-2007, 11:54 PM

Quote:

Originally Posted by gtfpv

whats wrong with youngens these days . cant save a cent. if you cant save for something you'll always be in debt .

Lol in a year and a half working afterschool and weekends in fast food i saved up $5500. That was on fairly low wage, i don't think thats too bad!

04-01-2007, 01:57 PM

Quote:

Originally Posted by gtfpv

iwas 18 i was an apprentince at 16 in 7500, pa at 17 i was on 12000 and 18 25000 19 35000 20 40000
by the time i was 20 id had 3 cars took holidays every year went out drinking every week and had $ 40 000 cash in the bank .

and your on $1100 a week are 18 . havent got a cent and want to borrow money for a car ,!!!!
whats wrong with youngens these days . cant save a cent. if you cant save for something you'll always be in debt .

Quote:

Originally Posted by Venomous

Lol in a year and a half working afterschool and weekends in fast food i saved up $5500. That was on fairly low wage, i don't think thats too bad!

Exactly.. i work at a supermarket part time (started working when i was 14, finished my VCE)... Paid for my car entirely, plus the $10,000 or more i've spent on mods... Plus mountain bikes worth around $5,000... Still got plenty in the bank. Just depends if you're money minded.

In relation to the thread, loans are bad news dude - save for what you want, it's much more rewarding and you'll enjoy what you buy if you actually own it properly.

Venomous · 03-01-2007, 11:39 PM

Well i'm 16, i already own a car i am MORE then happy with, soon will start
saving up for uni.
And then after that if i need to get a loan it will just be for a house or what not.
I guess it depends on how you manage your finances.

rapidchris · 03-01-2007, 11:39 PM

yer it depends on your income and living arrangements, just go to a bank ect and check.....you never know your luck

Falcon_Phill · 03-01-2007, 11:50 PM

Im about to take a loan just for a paintjob. Im not very good with money sometimes, if i have $200 sitting there ill find something to spend it on. So rather than get a loan over 2 years this time, im going to go for 6 months so that all the money i have spare actually goes to the loan that ill have to pay off with larger amounts and quicker. Did that help? I dont think so.. and also 30k is a huge amount im borrowing nowhere near that.

Green X · 03-01-2007, 11:50 PM

I know a guy who got a 28,000k Loan at 19 and he was making half of what you are at the time he went for it.

My advice would be to borrow the absolute minimal amount, You look to be quite good a paying the loans off and pulling 1100 a week at your age should have no problems paying it off quickly, Just be sure you are safe in the Job you are doing thou.

As for Buying a house at 18 that was the last thing on my mind and now at 22 it’s still 4-6 years away.

Beetus · 03-01-2007, 11:57 PM

ok heres there the problem i need the ute for a backup for when the transit is off the road im a courier im a subby, i dont get holidays and i live comfortably.......i dont want a house and from the bank calculations ill be paying the same as i am now.... just a bit longer.....and the insurance on my current car is a joke....... 3800 a year the ute is way less so ill be better off and ill have a back up car for work aswell as it being a ford!!! hehe

feebs · 04-01-2007, 12:03 AM

Honestly... never owe money on ANYTHING unless..

1) it earns you money
2) it is tax deductable
or
3) you live in it.

ANything else. pay cash.

And dont get a credit card

Most of us take a few too many years to learn the above.. if you start now you will do well.

crispy79 · 04-01-2007, 12:32 AM

Quote:

Originally Posted by feebs

Honestly... never owe money on ANYTHING unless..

1) it earns you money
2) it is tax deductable
or
3) you live in it.

ANything else. pay cash.

And dont get a credit card

Most of us take a few too many years to learn the above.. if you start now you will do well.

take the above advice

can u lease it??

as a subbie it could be a tax write off

XR8-260 · 04-01-2007, 12:44 AM

By the time you pay off a 30K loan the car would be worth a fraction of its original value. Invest in shares/property and you'll reap the benefits later. My 2 cents.

:

charles_wif_xf · 04-01-2007, 01:22 PM

Quote:

Originally Posted by feebs

Honestly... never owe money on ANYTHING unless..

1) it earns you money
2) it is tax deductable
or
3) you live in it.

ANything else. pay cash.

And dont get a credit card

Most of us take a few too many years to learn the above.. if you start now you will do well.

Listen to feebs, he makes a lot of sense. I'm hanging to buy a BA Mk2 XR6T manual, but I'm waiting till I can pay KESH (paraphrasing the Lebanese dude on "The Castle").

I'm even seriously contemplating throwing some heat (and an engine rebuild) the XF's way just so I don't have to pay 25+ for a nice XR6T. About $6 large will beef up the XF and extend it's life another 10 years or so.

05MkIIFutura · 04-01-2007, 01:37 PM

Why do they even make XR's in utes. Anyone who actually uses the things to do what they are designed to do would'nt go near a worksite with a $45,000 ute.

poolkeeper · 04-01-2007, 04:57 PM

Quote:

Originally Posted by 05MkIIFutura

Why do they even make XR's in utes. Anyone who actually uses the things to do what they are designed to do would'nt go near a worksite with a $45,000 ute.

I use my xr as a work ute, so does my dad with his pursuit- soon to be new tornado...

But on topic, dont get the loan..

Zedjay · 04-01-2007, 12:06 AM

just buy a AU trayback i dont think the XR8 could compete with it as a courier anyway

and i think you will get a shock when you try to insure an XR8 at 18 as courier use

Beetus · 04-01-2007, 12:08 AM

no it will be personal insurance and its only backup eg a few days a year........... i still wanna do it up and i miss my old v8........gotta 4 turbo

x351 · 04-01-2007, 12:21 AM

I agree with feebs. When I was 21 in 1996 I bought a V8 VN Calais for $18,000, spent $10,000 fixing everything I broke, then sold it for $10,000 three years later and was glad to be rid of it. Since I bought a house I have never had more money for cars because you dump all your $$$ in it and can pull it out when you want to buy/do something to your car. And you don't waste money on rent!

Beetus · 04-01-2007, 12:25 AM

Quote:

Originally Posted by xb hardtop

I agree with feebs. When I was 21 in 1996 I bought a V8 VN Calais for $18,000, spent $10,000 fixing everything I broke, then sold it for $10,000 three years later and was glad to be rid of it. Since I bought a house I have never had more money for cars because you dump all your $$$ in it and can pull it out when you want to buy/do something to your car. And you don't waste money on rent!

you bought a commodore lol no wonder naa well ill be 25 by the time i pay this off ...........if not earlier heaps of time for houses, just gettin the ute secures my job and gives me a great car to drive........

feebs · 04-01-2007, 12:52 AM

Quote:

Originally Posted by Beetus

if not earlier heaps of time for houses, just gettin the ute secures my job and gives me a great car to drive........

I would agree with some of what you are saying.. you only live once right?? Why not enjoy it, I would love to have always had a flash car.. ( and still wouldn't mind it :-)

But a 30 grand personal loan is as bad as say.. a 10 grand credit card, you might as well just strap yourself up and assume the position right now.
You will be regret it and end up hating that car.

Look at leasing options and find out how you can write off vehicle purchase/running expenses against your income.

rapidchris · 04-01-2007, 12:17 AM

well if you take it to work sometimes write it off in your tax, i do on my xr6t ute it it only goes to work once in a while......

LUXO_8 · 04-01-2007, 12:49 AM

why not sell your mr2, pay off the loan and lease the ute...

you should be able to write the lease for tax purposes...

Franky · 04-01-2007, 12:57 AM

Stuff getting a loan when you make that much, try to put as much of away as possible then in a few months you'll be able to walk in somewhere and buy something with cash.

I only make half of what you're on and I put away 90% of it, may be a ***** now but in a year or 2 i'll be laughing

Also have to note that if your sick of a car you've had for what a year or two, whats not to say you'll be sick of the XR8 in the same time. why don't you wait until you're 21 then you can get a proper XR8