So your career is off to a good start, and you want to buy a car. However, before you apply for car loans in Brisbane, you should think carefully about the kind of car you want to buy. Remember that entering into a car loan agreement is a fairly long-term commitment, so it is important that you make a wise choice.
Here are five types of car purchases that you should avoid early in your career.
1. Luxury Cars Beyond Your Means
Although it might be tempting to seek finance for a high-end vehicle, know that luxury cars come with higher loan payments, high insurance costs and big maintenance expenses.
Just because you can afford the loan does not mean that it is a wise move to get something so fancy. It is smarter to focus on establishing financial stability when you are young instead of stretching your budget to its maximum for a premium car.
2. Brand-New Cars With Heavy Depreciation
When you buy a new car, it depreciates quickly. New cars can lose up to 15% of their value within the first year. If you are financing it, you might end up owing more than the car is worth, which is called negative equity.
Buying a nearly new or certified pre-owned vehicle may offer you much better value while still being reliable.
3. High-Performance Sports Cars
Although a high-performance sports car could be an exciting option, these kinds of cars typically come with higher loan rates, expensive insurance and costly fuel bills.
Generally speaking, a sports car is an unnecessary financial burden, especially when you are starting out. It is best to avoid it unless your job requires it, which is exceedingly rare.
4. Oversized Or Impractical Vehicles
Again, it is best to avoid buying a car that your job does not require. Most jobs do not require you to have an SUV with off-road capability. Often, a smaller, fuel-efficient car is a better choice.
5. Unreliable Used Cars With Hidden Costs
Although financing a cheap, high-mileage car can seem like a smart option, it is important to vet the car properly before making a decision, as frequent repairs and breakdowns can quickly outweigh any savings you make.
If you want to buy a used car, make sure that you choose a certified pre-owned vehicle with a warranty so that you can avoid surprise expenses down the line.
If you are looking for affordable car loans in Brisbane, speak to us at iCREDIT today or apply online now!