Everyone seems to be buying luxury cars - how?

[kabab]

If you use it for work to some degree you can really get a well structured lease which makes it quiet affordable.

SPDRCR can help you or drop me PM i'll give you the cost break down on my Z4...

[Fatboy]

I really want a brand new LS3 Clubsport at the moment, but can't justify the 65 to 70k asking price. Sure, to me they are a nice car but i'd be lucky to get 30k trade in max, and wouldn't dream of borrowing money for a car...

So effectively i'd be giving up an immaculate low km VZ SS + 40k cash for a car that will be worth maybe 40k tops in a few years. Hmmmm, no thanks...

I guess being a tightarse (well, until the house is paid off) makes me not as cool as some. Like my best mate. 380k mortgage and just bought a new GT Falcon on credit - borrowed pretty much all of it. And he's on 80k a year...

[kabab]

Just wait a year or two and buy a 2nd hand one which has done most of its depreciation...

[Stang]

I guess being a tightarse (well, until the house is paid off) makes me not as cool as some. Like my best mate. 380k mortgage and just bought a new GT Falcon on credit - borrowed pretty much all of it. And he's on 80k a year...

I really don't get that...do some people absolutely have to have the newest and best toy? Why you wouldn't get a 2 year old XR8 for half the price I don't know...

[[ryan]]

Just wait a year or two and buy a 2nd hand one which has done most of its depreciation...

^^^^^^^^^^^^^^^^^^

[itsnotagsr]

I guess being a tightarse (well, until the house is paid off) makes me not as cool as some. Like my best mate. 380k mortgage and just bought a new GT Falcon on credit - borrowed pretty much all of it. And he's on 80k a year...

FB - its people like this that I'm wondering about. Is there something that they know that we don't? The benefits of leasing?

[fly510]

FB - its people like this that I'm wondering about. Is there something that they know that we don't? The benefits of leasing?

no there is not. It is predominately image driven and these are the same people who will still have a mortgage at 65 and be complaining that the pension is not sufficient.

Based on our current projections we should have our place paid off by the time we are 40 then its game on with cars - daily's and race cars :D

[matt b]

Another trend I have noticed is the people in their late 20's to mid 30's who sat back and watched the housing boom and have now decided houses are too dear so they spend all their money on cars, tv's, holidays etc "because they can never afford a house".

[Fatboy]

Just wait a year or two and buy a 2nd hand one which has done most of its depreciation...

Yeah, that's the plan...

My current SS is a prime example. New 53k. I bought it with 13,000kms at 10 months old - for 33k. Until the arse fell out of the V8 market two years later i'd have still got close to 30k for it...

I really don't get that...do some people absolutely have to have the newest and best toy? Why you wouldn't get a 2 year old XR8 for half the price I don't know...

Exactly. See above...

FB - its people like this that I'm wondering about. Is there something that they know that we don't? The benefits of leasing?

Maybe mate, i don't know. For my mate, it's always been a dick pulling competition, all about image. I live in an old fibro place, he has a <10 year old brick mini mansion. His place is worth maybe 50k more than mine, yet he's always telling me how "lucky" i am because my mortgage is a third of what his is...

Yet when i was driving around in shitheaps and delivering pizzas at night to pay the bills and meet my first mortgage he was driving around in a new (financed) Beemer...

Another trend I have noticed is the people in their late 20's to mid 30's who sat back and watched the housing boom and have now decided houses are too dear so they spend all their money on cars, tv's, holidays etc "because they can never afford a house".

My brother and his missus are in that exact category. Can't borrow 200k (over 25 years) to buy a cheap unit to get into the property market but can borrow 60k (over 5 years) to buy two new cars...

[cracka]

Another trend I have noticed is the people in their late 20's to mid 30's who sat back and watched the housing boom and have now decided houses are too dear so they spend all their money on cars, tv's, holidays etc "because they can never afford a house".

Yup.

The housing market looks fucking daunting from the outside at the moment. I cant see myself in the next 5 years having a mortgage. That said I spend my money on things much much more stupider than cars and houses

[Lexar]

Plenty of posers out there and people who think they have money but won't in the long term.

[tim510]

. That said I spend my money on things much much more stupider than cars and houses

yourself?

[da9jeff]

boom-tish

[Smashed S15 Bloke]

No apparently about it, all the cashed up miners go in to buy the latest and greatest HSV's...

yep and they want it in THAT colour and they want it with THOSE options and they WANT IT NOW!

apparently nouveau riche can be difficult customers

[Aaron]

Don't forget that if you get a couple with say a $150K joint income (not that hard in many areas) that's at least $8K clear a month. Chuck in $4K/month for a decent sized mortgage and $2K for food and fun tickets and that leaves $2K sitting around for cars - do it as a Salary Sacrifice and you've got a $60K+ car no sweat.

As for housing costs - it depends if you're in an income trap (as we are) with one income fixed by being a pension or underskilled against a glass ceiling then suddenly your borrowing power goes to shit. As interest rates are about 3-5% higher than they were for first time borrowers that's affecting lending criteria a lot.

Our borrowing power has slipped from about $500K back in 2006 (when I had a $50K lease car as well) to about $350K now on the back of borrowing criteria despite having less debt overall. Fuck that I'm sick of having to sacrifice my wifes safety and comfort for money for the McMansion, quality of life is more important to us (given her health) that buying a bank a house that it's unlikley she'd live long enough to own outright.

A. (Looking at shiney new things once more)