I'm a financial idiot - what should i do? - Page 2

Yellow_Festiva · 16-03-2015, 11:05 PM

Quote:

Originally Posted by Ben73

When saving for my overseas holiday, I pumped all my holiday savings onto my mortgage and redrawed when I needed to pay for the holiday. Seamed better using that several thousand dollars to reduce my mortgage interest for a year than sitting in a savings account accumulating 3.2% interest a year or whatever it is.

Which you then need to declare and pay tax on....

zipping · 16-03-2015, 11:46 PM

Don't forget on the second loan there can be establishment fees and loan maintenance fees which you already probably have on your home loan. Why double up with a second loan? 1 is simpler.

cheap · 16-03-2015, 11:51 PM

I would screw the price down as much as possible, simply tell the seller you will be paying cash. Go the redraw and pay it back asap, besides you will probably be paying less in interest than taking out another loan.

tlub · 17-03-2015, 12:10 AM

save for or forget the car ,and clear your mortgage. we are heading for a bumpy ride economy wise. job security would be the key (don't know your situation) but interest rates will head up soon.

323Turbo · 17-03-2015, 12:12 AM

Quote:

Originally Posted by onetonfun

Does your car not do the job required? Do you own it? If not, then forget about a used XR6 turbo and buy a new car when you can pay without borrowing. Banks love redraws!

which car? i have a 2010 territory & a 2004 honda accord euro, dont owe $ on either.

neither are 'fun' - but they do the job.

I'm not buying another new car, would rather pay 1/2 price for one 2 years old and still get the factory warranty

Saski · 17-03-2015, 12:44 AM

Bank actually love you having less redraw and more loan to pay off. Or should i say they love you having redraw as it shows that you are financially stable so they can then lend you more and more money so you are more indebted.

Trust me on that, I asses and underwrite loans for one of the big 4.

You are sitting at less than 50% of loan to valuation ratio and the fact that you have quite a lot in redraw tells me that you are doing all the right things. Although the bank or any financier would prefer things to be the other way round.

Use some redraw to purchase the car if you want to and then pretend that you had a loan of xxx amount. That theoretical xxx repayment amount could then be paid back into your redraw to build it back up again.

If you end up finacing it, be wary or dealers or finance companys (non banks) who have the ability to load the interest rate by up to 6% above the lenders floor rate....thats why you always see car repayments quoted on a weekly or monthly dollar figure rather than on what the interest rate is as many would fall off their chair...

Whichever way you go - congrats. Not everyone these days has the comfort in knowing that they have more than 50% straight out equity in their home which is a very good buffer in the current economic climate.

323Turbo · 17-03-2015, 12:57 AM

thanks Saski, Iam an old bugger though at 44, i do feel sorry for the gen Y's - seems even harder nowdays.
I also have an investment property I'm negative gearing (old 3x1) on 460m2 in Como wa which is an interest only loan of 580k - so the banks are well & truely keeping me in debt.

come July I will be getting a 12k tax refund again for that, so as I would be putting that into redraw I suppose that would cancel a lot of the redraw for the car.

323Turbo · 17-03-2015, 01:03 AM

this was my first car & loan at age 18 in 1988 - the genuine matching numbers bigport 73 xbgt coupe - the one that I should have kept

323Turbo · 17-03-2015, 02:04 AM

lol really, what about?

CQB-241 · 17-03-2015, 05:43 AM

Quote:

Originally Posted by 323Turbo

this was my first car & loan at age 18 in 1988 - the genuine matching numbers bigport 73 xbgt coupe - the one that I should have kept

Don't weep, I've sold a lot of cars over the years including uber-collectables like an XR GT, 3 Mk 1 Cortinas (2dr GT, 2dr GT rep and Group N logbooked Lotus), XW GT and a pristine big-tank E38. Worst is to miss out as you can't take it with you as there are no pockets in a shroud.

mr_xlr8 · 17-03-2015, 07:56 AM

Quote:

Originally Posted by Yellow_Festiva

You having a dig at me?

No just hit reply to ur post.

Peter B - CV8 · 17-03-2015, 08:07 AM

As others have said, use the home loan redraw & continue to make additional loan payments - assuming car is for personal use & has no business type use.

323Turbo · 17-03-2015, 08:19 AM

i work fifo in the mining industry, so no, car wouldnt be used for work really.
Thanks for all the help everyone

Yellow_Festiva · 17-03-2015, 10:29 AM

Quote:

Originally Posted by mr_xlr8

No just hit reply to ur post.

No worries then.

Dash_XR · 17-03-2015, 10:36 AM

Quote:

Originally Posted by 323Turbo

ok,
thinking of buying a 2013 xr6t, but i hate loan paperwork & I hate taking $ out of home mortgage redraw

should I just pull the 19k out of mortgage redraw (I owe 400k at, I dont know ~5%) & increase my payments or should I go thru the hassell of a loan 7%?

surely taking it ouf redraw is the smart option

or is it?

or i could take $9k out of redraw (i wouldnt miss it) and get a small loan of 11k over 3 years at 7% - interest on that would be stuff all - but I'm not sure if icbf - i hate loan paperwork!!

Buy an 08/09 model for half the price, it's the same car. Putting more years back on your mortgage for something that will loose value rapidly is kinda going backwards on your home loan. I owe 8k on mine on an interest free credit card

323Turbo · 17-03-2015, 10:52 AM

nope, not really an option - i only want to buy one with 5 star safety rating and 6 airbags (curtains for the 2 kids in the back)

95% of the 08/09 models for sale here just have the 4 airbags, also the mark 2 seems to have some good upgrades - reverse camera as standard, better aircon (maybe?), looks better etc. Not to mention the fact its 4/5 years newer & still has a year or so of factory warranty!

its mainly the airbag issue thats pushed me towards a mark 2 though - also they are not half the price here. looking at 18k for a mark 1 with curtain aibags - there are 2 for sale here for that price one red/burgundy & the other green, red I could maybe handle, but not green!

getting the factory warranty though is a big plus imo.

cheers

Dash_XR · 17-03-2015, 11:05 AM

Fair enough, you play you pay then. There's no way around it, you will loose 30-40k (depreciation/interest) over the life of the car. EDIT: I mean regardless of how you finance it, it will just be either closer to the 30 or the 40 depending on the lender.

Where are airbag 5-6 cause mine has curtains?

323Turbo · 17-03-2015, 11:19 AM

the car has allready lost 50% so the other 50 will take twice as long to halve in value - i can deal with that.

what do you mean by your last comment? i dont understand it
cheers

Dash_XR · 17-03-2015, 11:21 AM

Front two airbags, side two airbags where are the last two? Rear curtain/front knee?

Yeah I was thinking you were talking brand new for some reason, my bad.

kaniSS · 17-03-2015, 11:29 AM

I would be smashing your 400k loan first before a new car.

NTF6 · 17-03-2015, 01:01 PM

Quote:

Originally Posted by 323Turbo

why would i want to save a cash deposit when all my spare cash goes into redraw (currently at $80k-not heaps but the house is worth 900)

anyway, the 2013xr6t is 26k - nearly halved in value in 2 years, i have 8k to put towards it (cash sale of my 2nd car), so i need to find 18k

thanks Ross, you hit the nail on the head, just need to work out what to increase my mortgage payments by to cover it (bit I'm not sure on)

see, i told you i was a financial idiot

If you have 80k in redraw why are you considering a loan?

Use your redraw for the full purchase price of the car and put the equivalent of what the theoretical loan repayments would have been back into your redraw account and I hope that redraw account is linked to an offset account to save you interest?

dragons90 · 17-03-2015, 01:27 PM

This is what your after. https://www.commbank.com.au/personal...alculator.html
It works out at $19000 over 5 years at 5% interest is $359 a month I normally aim for 3 years which works out at $570 a month
Thanks Gerard

323Turbo · 17-03-2015, 02:58 PM

Quote:

Originally Posted by Dash_XR

Front two airbags, side two airbags where are the last two? Rear curtain/front knee?

Yeah I was thinking you were talking brand new for some reason, my bad.

the other 2 (to make 6 total) are the curtain airbags that come down over front & back side windows (where the occupants are most exposed in a crash)
cheers

323Turbo · 17-03-2015, 03:05 PM

Quote:

Originally Posted by NTF6

If you have 80k in redraw why are you considering a loan?

Use your redraw for the full purchase price of the car and put the equivalent of what the theoretical loan repayments would have been back into your redraw account and I hope that redraw account is linked to an offset account to save you interest?

i know it sounds stupid, but i really wanted to get to that 100k mark, i think what I will do is just take 10 from redraw, save 9 (or just get that too lol) & sell my 2nd car for 7.
take me a year to pay back the 19.
cheers

Smoke Pursuit · 17-03-2015, 03:06 PM

Yes alot of the Mark 1's dont have curtains. I think they were made standard in 06/2010.

323Turbo · 17-03-2015, 03:10 PM

i dont think they were made standard until the mark2 - dec 2011
apparently it was only a $300 option before that

323Turbo · 17-03-2015, 03:12 PM

my dec 2009 sy2 TX terri 7 seater has them as standard though - so does my 2004 honda, i wouldnt buy a car without them.

NTF6 · 17-03-2015, 03:21 PM

Quote:

Originally Posted by 323Turbo

i know it sounds stupid, but i really wanted to get to that 100k mark, i think what I will do is just take 10 from redraw, save 9 (or just get that too lol) & sell my 2nd car for 7.
take me a year to pay back the 19.
cheers

It's all about paying as little interest as you can to the banks/lenders. I stuck by this theory for many years and managed to pay my house completely off in 14 years and I didn't have to bust a nut working heaps of overtime or second jobs to do it.

I had about 90k in the bank about 4 months ago and while it's nice to sit there and look at it, it's nice to look at my payed off home and now I'm already back up to 15k in savings again.

Dash_XR · 17-03-2015, 03:21 PM

Good advice, now you own your house AND have a 2014 F6.

Quote:

Originally Posted by 323Turbo

i dont think they were made standard until the mark2 - dec 2011
apparently it was only a $300 option before that

I think they were in G6E up and an option in everything else. So the mk1 has two curtain airbags and the mk2 has 4?

NTF6 · 17-03-2015, 03:37 PM

Quote:

Originally Posted by Dash_XR

Good advice, now you own your house AND have a 2014 F6.

Yep.

I despise paying interest, as young bloke growing up I reckon I wasted so much money paying interest on things I didn't really have too. About 20 years ago I stopped paying interest on my credit cards and always payed off the closing balance in full, I still spend a heap per month on my card, I just pay it all off come the due date that's all. And now I reckon that has saved me heaps of interest.