Buying a car - what's the cheapest option likely to be?

[BigRed]

We are just a month away from arriving in Auckland now and it is clear that we will have to live on quite a tight budget for the first two months until my regular pay starts to kick in.

So if we needed a car, what's the cheapest option likely to be? Do dealers offer instalment plans or loans on second hand cars?

[ralf-nz]

So if we needed a car, what's the cheapest option likely to be? Do dealers offer instalment plans or loans on second hand cars?

Not sure what the cheapest is. However such plans to finance second hand cars are offered. Not for the cheaper cars though in my experience though.

[shelscrape]

You will probably also have problems getting finance deals in your first couple of months here too. You should really make sure you have a couple of thousand dollars earmarked to buy a car when you arrive. have a look on the trade me website to get an idea how much they will cost.

[Duncan74]

Depends, I went onto a lot one morning, and drove it off 2 hours later about 3 weeks after arriving. Depends on your income, where you work, and being absolutely honest / blunt then in many cases it will be where your emigrating from. Don't expect a great deal on the finance though...

A basic car to get you round and no more, no bells / frills can be had from about $2500NZD up. Assume at least a $2000 deposit if you are wanting something a bit better, say in the $6-10,000 region.

[victoria24]

when we first arrived we bought decent cars for 6-7k per vehicle. if you have PR then finance should be fine but expect around 15% for car finance. best to have a decent deposit to ensure you don't go "upside down" on the value/amount outstandingin the future. you could negotiate a long term hire car?

[thedans]

but expect around 15% for car finance.

YEESH!! thanks for bringing that up, because if i would have went to a dealer and he said 15% i think i would have had a heart attack! ... im too used to the 0% offered here. time to prep myself for the more costly lifestyle!

[edw123]

I've been in NZ for 3 weeks and spent most of my time looking at cars, both on Trade me and on lots - and came over from the UK.

In my short time, I've found:-

-Buy private for a cheap car. There are bargains to be had. No bargains at dealers - once place in Hamilton which claimed to be cheap offered me a 1994 BMW 325i for 4K NZD - it was rusty, filthy inside, had done 300,000k - it was, in short, a £50 car in the UK!

-Look Japanese and don't worry too much about engine sizes. Sadly virtually every car is an auto which means a 2 litre 4 cylinder barely uses less fuel than a 3 litre v6. Especially on the hills when you have to work the 4 cylinder.

-I quickly realised that the Subaru Legacy, Mitsubishi Legnum and Mitsubishi Diamante were the best bet. Bullet proof mechanicals, decent spec (climate control etc.) and don't look too old (the Subaru Legacy basically has the same body from 1992 through to 2004).

-Don't worry too much about mileage if the cambelt has been done every 90,000 or so Km and it has been regularly serviced (ask for this - most private cars I saw had it, the ones which don't, walk away)

-Doing this, I got a 1997 Subaru Legacy Brighton (sadly the non turbo 2.0 petrol, it's not TOO slow) for 2000NZD. A bargain, has done 200,000k but 2 cambelt changes, recent service, 6 months WOF and 3 months Registration. Very cheap.

-If unsure on how registration etc. works on cars, just go to the Post Office - they are very helpful.

I have been offered finance at dealerships, most have started at around 14% on cars between 16-20K. Problem is, car quality is very mixed - I'm sure many of the cars I've seen are accident damaged or clocked, and they can sell them with finance still outstanding.

Since I saw some cars in Auckland earlier in the week that had clearly been clocked and/or been in accidents (one 2006 BMW had different seats from passenger to driver, garage owner declined to tell me why!), I've decided to go main dealer when I get a car!!

[edw123]

And to the likes of Duncan who advised me to get a Japanese car for cheap when I first raised this....yes, you were right...

[skywatcher]

What a minefield! I was shocked at the price of 2nd hand cars when I looked at them on my recce trip to NZ earlier this year given their condition. New cars cost the earth too compared with the UK.

This led me to seriously consider shipping my own vehicle across when we move out. Even though it is now 9 years old at least I know it's full history. It's probably worth around £1500 but cleaning, shipping and NZ inspection/registration will cost in the region of £3500. With current exchange rates ($2NZ to £1) that means it would only be worthwhile taking out if I can't get a similar or better car for $10,000NZ or less.

What sort of car can be had for that budget? Would prefer an estate or SUV type vehicle.

[ralf-nz]

You got to consider that the resale price of cars here, fourth or further hand, might be higher than what you are used to. So the loss per annum is probably (a lot) less what you were used to.