So after all the car saga or should I say cars, we had to bite the bullet and buy a new one (2017, 44,000kms) not something I wanted to do after paying all our debt off and 3 weeks after buying a New House.
Unfortunately we didn’t have a lot of options as we need it to be able to get to work so we can pay our mortgage and we had very little in Savings after moving.
My biggest suggestion for everyone out there, when buying a house don’t worry about new furniture and other things if you only have a small amount of excess cash, because believe me things will go wrong and you will need money.
Also I really wish I’d been able to save a little first or put off buying the car and get a slightly older one paid for in cash.
Our main reason for getting into more debt with this car was reliability for work. We learnt some hard lessons along the way and I’m pretty sure we got slightly ripped off in the process.
Did you all know that if you buy a new or almost new car from a dealer and you happen to have an accident that same week or close to it, the car company bills you for the full 5 years interest!!! Even though your insurance will pay out the cost of the car within days or weeks.
But if you manage to come into some money in that same time frame and pay off the car early you only pay the interest accrued up until that day and possibly an early exit fee (ours is $700).
So in other words we would have to pay around $6700 in interest if we crashed but only $1000 approx if we paid it off.
I am still astonished at how they can do this, also you have to pay 2 different insurance premiums, one for the car and one for the gap, as the car is never worth the total you owe the lender.
Ours for example
The car was $20,600
It ended up being $24,500, (we are only covered for $23,000 on our insurance) which included gap insurance, the car yard fee for getting us the money and the lenders fee for getting us that SAME money, which by the way, the car yard charged double what the lender did, still gobsmacked.
So ongoing costs are $120 week car payment, $23 week insurance plus rego, maintenance and fuel. Not happy Jan.
Lucky for us my husband has a pension discount for the stamp duty otherwise we would owe another $560 for that. And that’s before you even consider comprehensive insurance, registration, maintenance and fuel.
It’s nice having a newish car but I really wish I’d stopped and thought about it properly and did all the sums, I know I wouldn’t have done it then.
But anyway it’s done now, we will be looking at refinancing in the next 6 months for lower interest and may even decide to sell in next 12 months whilst still under new car warranty.
Anyway enough about the nasty ins and outs and here’s our new car, well an advertising pic as I don’t have any pics of it yet lol.
Until next time