Might as well hang on to your car ... it ain't worth mouch except to you.

[KiwiTT]

NZ Used Car market crashes (http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10392494) and here (http://www.nzherald.co.nz/category/story.cfm?c_id=500847&objectid=10392484)

Example from the actual paper was "A new Ford Falcon XT $42,000 new in 2005. Sale price today $20,000 a fall in value of 55% in just one year."

[Rossco Type-S]

Yep. There are a lot of dealers on the verge of going under. Apparenetly Christchurch in particular is hardest hit.

New car sales are still high, but a lot of the big stuff is virtually being given away.

Just look how long some cars are staying on trademe for.

[bradc]

http://www.trademe.co.nz/Trade-Me-Motors/Cars/BMW/auction-60601352.htm large car in christchurch - I wonder how much they will take?

[Robotnik123]

Hmmm, my dream car has always been a Commodore SS. I suppose I'd better get one now! :)

[Robotnik123]

http://www.trademe.co.nz/Trade-Me-Motors/Cars/BMW/auction-60601352.htm large car in christchurch - I wonder how much they will take?

Those car's are so nice. The V12 is the smoothest engine you can possibly imagine!

[Rossco Type-S]

Hmmm, my dream car has always been a Commodore SS. I suppose I'd better get one now! :)

Apparently u can save really big money on a new VZ, especially with the VE coming out next month.

[Lucas]

I was thinking about selling and upgrading to a VR4 or EVO of some sort once I had paid off most of my loan. Sad thing is it's depreciating faster than I'm paying it off... GO FIGURE! /Grrr

[bradc]

Robotnik, you're not allowed to get one if you have to sell the VR-4 :) I really do want a V12 car at some point, I think it is better to do it now rather than when petrol is $5 a litre :)

Lucas, on the bright side VR-4's are depreciating faster than ST's. On that note is yours a manual or auto, and it is 4wd isn't it?

[Lucas]

4wd?? hell yeah! and its got the tiptronic auto box. BTW when do you get your car back?

As for the VR4s deprecating faster than the 25ST's, just goes to show how slack I am at paying off my loan... oops!

[Lucas]

There was supposed to be something on TV (Campbell live I think) which was supposed to talk about whether buying or leasing a car was best... did anyone catch this show? If so what was supposed to be the better option?

[Rossco Type-S]

There was supposed to be something on TV (Campbell live I think) which was supposed to talk about whether buying or leasing a car was best... did anyone catch this show? If so what was supposed to be the better option?

I didn't watch it, but workmates said leasing by about $3,000. Apparently the show wasn't very accurate, didn't really consider the implications of GST.

As I work as a tax consultant, I have done comparisons for clients before and it usually turns out even (although these are carrying out a business so get deductibilty for various things). In each circumstance our advice has been to consider wider things than the cash outlay.

[Lucas]

Hmm...... In that case I'd rather be the sole owner of the vehicle. I didn't think that there could be too much difference as otherwise it would probably be a widely known thing. $3000 sounds like quite a bit but I'll take your word for it (never been too clued up on tax etc.) :thinking:

[bradc]

Yeah it was a little bit differant, but not too much. I'd still prefer to own the car if it was fairly close anyway.

Lucas - pity it is a tip box, otherwise I'd put it on my wanted list :)

[Rossco Type-S]

Hmm...... In that case I'd rather be the sole owner of the vehicle. I didn't think that there could be too much difference as otherwise it would probably be a widely known thing. $3000 sounds like quite a bit but I'll take your word for it (never been too clued up on tax etc.) :thinking:

I don't think there is that much in it...like I said, my workmate (an experienced tax accountant) said that he thought the show had some flaws. At the end of the day, it depends ont he deal you can negotiate.

Of course a huge advantage of leases is that you can give it back at the end of the term and buy a new car, or negotiate to buy the car. You wouldn't want to be trying to sell a car at the moment.

The best overall cash result would be if you have the cash to buy the car outright as you can save thousands, as soon as you have to borrow, it will cost you thousands more in interest.

You really need to get a quote for both buying and leasing and then crunch the numbers. For example Ford are advertising XR6s for $37,995 or leased for $499.95 +GST ($562.44) for 36mths & 45,000km. 36 * $562.44 = $20,247. But and the end of the 3 years if you have leased you have nothing, but if you brought the car you have a car worth say $20,000 to 25,000. Clearly you would be better off buying if you have the cash. If you had to borrow $38,000 you would be looking at around $6,000 to $8000 in interest. Taking into account interest, it would be pretty neutral, probably slightly in the favour of leasing. Now you have to look at the non-cash items, firstly will you do more than 15,000km per year. Will you want to upgrade your car in the next couple of years etc.

[bradc]

I'm of the opinion that you should never get a loan on a car if at all possible, they just depreciate so fast! I'd rather still have my 1991 Famila than have my Legnums with a $15k loan.

[KiwiTT]

Good sense Brad. Never go into debt for a depreciating asset. This also why residential property is nearly a risk too for investors as it will not be too long before house prices fall (within 2-3 years)

As to leasing vs buying. The car companies are trying to find anyway to move stock, so a plug on Live TV (CampbellLive) is only helping their cause. And $562 would go a long way to paying of an existing mortgage.

As to maintenance. I spend (See Service History) (http://www.clubvr4.com/forum/vbpicgallery.php?do=view&g=34) $2,000-$3,000 a year keeping my car on the road and reliable and I believe my car is still better than many new cars, I would compare it to. Therefore, If you find the right car you want, it is better to look after it well, rather than give money to these dealers

[OSiRiS]

Someone has approached me with a straight swap for an Evo 6.

I know the entire history of the Evo 6, as I am good mates with the owner who wants to swap with me. Has all receipts, all history on paper. New gearbox by Ralliart, 107kms, cambelt, tensioners, bearings, seals etc. all done.

What do you guys think? Straight swap.

[KiwiTT]

VR4 vs EVO 6 = Executive vs Boy-Racer - Which are you ? The choice is yours ?

[OSiRiS]

Well I already got a Lancer RS.

I don't know, I just got a thing for the 4G63. I used to have a 4G63 Galant VR4.

What's the market value for Legnum vs. Evo 6? Same kms, same maintenance history etc.

[bradc]

The EVO is definately worth a lot more on the open market, look on trademe, they will be $20k plus.

Does that include the seats? I would swap you with my recaro's plus cash if you're interested

[OSiRiS]

The EVO is definately worth a lot more on the open market, look on trademe, they will be $20k plus.

Does that include the seats? I would swap you with my recaro's plus cash if you're interested

Yea as the car is now. I don't mind tho, as they are Evo 6.5 seats in the Legnum, and Evo 6 has it's standard Evo 6 seats... Which are the same as mine, but instead of red, in blue...

Something to think about. Hmmm.

[bradc]

I'd be after your red ones of course :)

[OSiRiS]

I'd be after your red ones of course :)

I know what you're trying to say but I think you missed my point which was they are going to stay with the car because that is what makes my car, my car... I guess.

:inquisiti

Either way. Hmmm. Dad just bought a VY SS Ute for 22g. Only 7,000km on the clock. Shows how much prices drop huh.

[Lucas]

OK thanks Rossco, I guess I'll just stick to my loan and pay that off for now but that's something to think about for my next car. Who knows they may even be able to fly once my loans paid off :happy:

[Xeroid]

Good sense Brad. Never go into debt for a depreciating asset. This also why residential property is nearly a risk too for investors as it will not be too long before house prices fall (within 2-3 years)



Property will always be a good investment long term, It has averaged about 3% per annum for the last 200 years. Short term, anything is a risk, too many speculators are what screw it up for the real people.

Despite the cost I still don't regret getting my Legnum, even if I lost about $20k on the Subie when I traded it in. Had to happen sooner or later. What price is life .... ?? :pimp2: :2thumbsup

[Lucas]

Lucas - pity it is a tip box, otherwise I'd put it on my wanted list :)

Wanted list for what... people to beat in a race? (cos that wont be hard :happy: ) or you looking out for a manual box?

[Rossco Type-S]

Property will always be a good investment long term, It has averaged about 3% per annum for the last 200 years. Short term, anything is a risk, too many speculators are what screw it up for the real people.

Despite the cost I still don't regret getting my Legnum, even if I lost about $20k on the Subie when I traded it in. Had to happen sooner or later. What price is life .... ?? :pimp2: :2thumbsup

I agree over time you will make money by owning property, unless you pay a super inflated price for it. Short term also often creates taxation issues.

The whole residential property rental bandwagon is gonna get a lot of people in trouble, a lot that got on the bandwagon a couple of years ago are laready exiting. To make it work, you really need to be quite wealthy, all of the middle income people are in over their heads.

With cars you just have to face the fact that you are going to lose money. If you want to lose less by a $500 mid 80s Carolla that fails its warrant and will almost certainly kill you if you have an accident.

Only exception is buying a classic at the right time. I was going to by an Impala or Camaro a few years back, would have been about $8,000. Now you a Camaro is $15,000 to $20,000 and an Impala is $20,000 plus.

[bradc]

Lucas - I'm considering buying a manual v6 4wd to replace the 626 as a second car thats all.

In regards to Property, I think there isn't going to be a perfect time to buy anytime soon, but it is still going to go up in the future, so it is always a good investment.