10-26-2012, 10:29 PM
Here's the thing User, that is a great deal. I have not seen that interest rate here in Oz. Usually they are around 8 or 9% for a car loan, and then there is set up charges and monthly $10 fee. Loan insurance. Car insurance.
If I was looking at a higher end deal and that was an option available I may look at that as an option. However, I have not seen that here. Also, I have noticed that cars cost more here than there in the US. We have an option at work, where you can pay a car off (has to cost a over a certain amount). You can pay it off through your salary and you don't pay tax on it.
I guess I was talking generally about people who take out these car loans. That is why we see so many repossessions. In the case of my sister, she had equity on her house. Instead of selling her house and taking the money and running. She borrowed on the equity. She now is in debt up to her eyeballs. She looks as though she is better off than me. However, just last week she was charging her organic milk on the credit card. She cannot make money fast enough as it is all going on interest. I am talking about consumerism and lack of common sense.
Sounds like you have a good deal and that financially you have a good head on your shoulders to manage your finances sensibly. The only problem might be for someone who gets that 42k loan and doesn't have money in the bank (eg making 5% interest in another account). Then they are losing money even if it is a little.
If I was looking at a higher end deal and that was an option available I may look at that as an option. However, I have not seen that here. Also, I have noticed that cars cost more here than there in the US. We have an option at work, where you can pay a car off (has to cost a over a certain amount). You can pay it off through your salary and you don't pay tax on it.
I guess I was talking generally about people who take out these car loans. That is why we see so many repossessions. In the case of my sister, she had equity on her house. Instead of selling her house and taking the money and running. She borrowed on the equity. She now is in debt up to her eyeballs. She looks as though she is better off than me. However, just last week she was charging her organic milk on the credit card. She cannot make money fast enough as it is all going on interest. I am talking about consumerism and lack of common sense.
Sounds like you have a good deal and that financially you have a good head on your shoulders to manage your finances sensibly. The only problem might be for someone who gets that 42k loan and doesn't have money in the bank (eg making 5% interest in another account). Then they are losing money even if it is a little.