Thread: How much do you spend buying a vehicle?

So I've never spent more than $4500 on buying a new (to me) vehicle before, everything has been 15+ years old but generally still in good nick.
But lately I've been contemplating buying something much newer as I can afford it, and why not have a bit of luxury or at least not 20 year old suspension and interiors.

I've heard that the general rule used to be spend the equivalent of you years salary, but have also heard 50% of your salary.
Also seen some 20/4/10 rule, or similar.

Not wanting to go into whether modern vehicles are better/more reliable, or if it's a good investment or not, just interested to hear if there is a general rule people use.

Dont over think it, buy what you know you can afford, knowing that pretty much whatever you buy you'll lose at least half its value when you come to sell it, depending on how long you keep it of course. Assuming you're buying something at a higher price than you have in the past, which were already at there lowest value point.

It also comes down to are you happy to have that amount of money tied up in a vehicle, or could you put that money to better use else where. Everyones situation is different.

Have only had older vehicles, was in a position where i could afford a new triton and went for it. Was it worth it...? Probably would i do it again...? No i'd look for a petrol 2-4 years old

I've only ever spent between 10-20k on most vehicles I've had but I've always paid cash never had one on tick and probably never will

If you are not scared of running a modern car out of warranty, look at a 6 - 8 year old car as they have lost the bulk of their value and are still in good nick.
They also won’t lose too much more.
If you can drive them for 5 years you can then regard them as owing you nothing and whatever you get then is a bonus.

I like Euros (VWs) for this reason as NZers as a rule are terrified of them, this means we pick up 6-8 year old cars for around 10 - 15% of their new price.
Plenty will bash them but you cannot beat that for value.

Jap cars tend to hold their value a bit better so are more expensive to buy but then you get the benefit of a bit more back down the track.
As a rule of thumb this will definitely get you the best valueless for money from a later model car.




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Brought a new ute every 3 years for the last 20 years, worth it yes, if you can live with loosing 5 grand a year. Have gone the other way now and buy 5 grand hunting vehicles and replace the family vehicle every 3 years with a new one.

Reason for asking this is I've looked at the price of new car/4x4/ute/SUVs and on my salary I could afford something pretty reasonable, but to me it doesn't seem to makes sense financially as my current vehicle will do 99% of what a brand new one would do.

But clearly lots of folk are out there buying new vehicles, just wondering who that kind of person is.

Originally Posted by tetawa

Brought a new ute every 3 years for the last 20 years, worth it yes, if you can live with loosing 5 grand a year. Have gone the other way now and buy 5 grand hunting vehicles and replace the family vehicle every 3 years with a new one.

I take it you used them as work vehicles? Or do you just like having something new that (probably) wont cause you any issues?

Originally Posted by Beetroot

Reason for asking this is I've looked at the price of new car/4x4/ute/SUVs and on my salary I could afford something pretty reasonable, but to me it doesn't seem to makes sense financially as my current vehicle will do 99% of what a brand new one would do.

But clearly lots of folk are out there buying new vehicles, just wondering who that kind of person is.

Do you mean you can afford one as in rock up and pay cash and drive away, or you can afford one as in put it on tick and pay it off? Those low interest rates sure look good until you realise what you're losing in depreciation (unless it's a business vehicle) along with the extra paid in interest and fees etc

Originally Posted by Beetroot

I take it you used them as work vehicles? Or do you just like having something new that (probably) wont cause you any issues?

The original one was while I was self employed and got the tax breaks with it. After that they were for hunting plus had a large boat that needed the 3.5 tonne towing capabilities. The boat has gone so don't need the towing so went the other way with old vehicle for hunting and the family vehicle gets replaced but is still ok for towing a 5 metre alloy boat. Plus the "better half" didn't like the grubby, smelly utes when we went away.

well the wife and I have put up with cheap cars all our married life....never paid more than 8k for a vechile yet. we traded UP to a terrano which we paid off over 2 years. sold our $500 car and bought one a year younger that is actually really nice to drive for a grand.
yeah a 2000ish falcon would be nice to own but we have all we need. the terrano tows the camper and the dingy goes on behind wee corrola and we away up lake for weekend happy as a pig in poop.
a more expensive/newer wagon wouldnt do what we ask of current vechiles any better.

Cars are the best way to flush money down a shitter I know. I’ve had a company car basically since I was 23. Saved me a lot of money over my life! I bought a Cosworth in my 40s, replaced with a 60k Cosworth a couple of year later, sold it for 30k 7 yrs later and invested in land, much better deal!! But boring to drive!!
Says me who just spent 45k on a new car for my wife, first new car she’s ever owned and at my age who gives a shit!
There are far better investments than cars, but you only live once, old rich people are only enjoyed by their beneficiaries!

Originally Posted by Beetroot

Reason for asking this is I've looked at the price of new car/4x4/ute/SUVs and on my salary I could afford something pretty reasonable, but to me it doesn't seem to makes sense financially as my current vehicle will do 99% of what a brand new one would do.

But clearly lots of folk are out there buying new vehicles, just wondering who that kind of person is.

Keep your old vehicle and put the money saved into time off work to do whatever you want ie unpaid leave to go away hunting or fishing

I always had a thing about a new ute, just once in my life I was going to buy a new ute
So before I was dead I did.

Originally Posted by Maca49

Cars are the best way to flush money down a shitter I know. I’ve had a company car basically since I was 23. Saved me a lot of money over my life! I bought a Cosworth in my 40s, replaced with a 60k Cosworth a couple of year later, sold it for 30k 7 yrs later and invested in land, much better deal!! But boring to drive!!
Says me who just spent 45k on a new car for my wife, first new car she’s ever owned and at my age who gives a shit!
There are far better investments than cars, but you only live once, old rich people are only enjoyed by their beneficiaries!

You can't take it with you, better to enjoy it than let the beneficiaries waste it.