Author Topic: Classmate Stinges for three years to buy a car -.-  (Read 3156 times)

lolzmonster

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Classmate Stinges for three years to buy a car -.-
« on: May 09, 2014, 04:05:23 AM »
I had a massive face palm moment today on facebook when a friend of mine celebrated his buying of a brand new car. This by itself would have been amazing since he saved upward of 20k for it, and paid for it in cash.

However, knowing that his not paying his student debts to save for his car and the fact that his stinged and struggled for three years to save that amount through part time job in university; which is btw pretty amazing in Perth, Its still a pretty sad thought since his 'investment' only depreciates from this point :(

Edit * Also lives 15 minutes by bus away from uni and workplace.
« Last Edit: May 09, 2014, 04:07:05 AM by lolzmonster »

gooki

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Re: Classmate Stinges for three years to buy a car -.-
« Reply #1 on: May 09, 2014, 05:36:36 AM »
We all start somewhere. He'll wise up one day.

HairyUpperLip

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Re: Classmate Stinges for three years to buy a car -.-
« Reply #2 on: May 09, 2014, 06:59:59 AM »
Is it a fun/cool car at least?


Anatidae V

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Re: Classmate Stinges for three years to buy a car -.-
« Reply #3 on: May 09, 2014, 08:29:59 AM »
Aww...
Well, come to the Perth meet up to make some mustachian friends, then.

marty998

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Re: Classmate Stinges for three years to buy a car -.-
« Reply #4 on: May 09, 2014, 05:50:46 PM »
Please don't tell me it was a Suburu.

As long as he keeps the car for 30 years he should come out ahead...

agent_clone

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Re: Classmate Stinges for three years to buy a car -.-
« Reply #5 on: May 09, 2014, 11:02:11 PM »
Hmm, to some extent I would have a different take on this.

1) Assuming he is an Australian citizen and in a CSP place at university and after graduation he earns more than 50k p.a. he will be paying back those loans anyway.  HECS/HELP is one of the cheapest loans (if not the cheapest) you can get in Australia and it may or may not be worth it to pay it as soon as possible.  It is indexed at CPI and is which looking at historical data is between 2-4% p.a.  Although there are benefits to paying off in chunks.  A car loan would certainly have a higher interest rate.

2) The fact that he saved the money, and lived on a smaller amount shows that he can save, and provides some hope for the future.

Personally I would be on the holding off on purchasing a car as long as possible bandwagon as well but, he may have some other use out of it and they do provide some flexibility.  If he keeps the long time, depending on how much he actually spent it wouldn't be the best purchase, but it certainly could be worse.

I also personally hold the belief that if you are purchasing a car around the 20k or lower mark in Australia then it may actually be beneficial to purchase new rather than used if you are planning on keeping it a long time.

Kaminoge

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Re: Classmate Stinges for three years to buy a car -.-
« Reply #6 on: May 09, 2014, 11:13:37 PM »
I'm with agent_clone.

Australians don't really have student debt in the same way Americans do.

I think the fact he saved up for 3 years to get something he wanted is actually quite impressive. It's not the choice I would have made but compared to what many people would do (take a loan) I think he's not back.