Not sure what to do...?

[MilkOnTap]

We need to buy a new car and I'm really confused about the best way to go about it. We have a few options available to us. We have a personal loan t the moment and some credit card debt that we want to get rid of. The bank has approved a loan large enough for one of these options, but we dont know whether we should...

Option 1 --> Use loan for a second-hand car AND to get rid of the credit card debt; OR

Option 2 --> Buy a new car using salary sacrifice (which includes fuel, servicing, tyres, rego & CTP) AND extend our current loan to get rid of the credit card debt

The second option will definitely cost us more each fortnight, but will probably save us $ in the long term... So confused!! Any one out there with sound financial advice to offer ? :detective:

[ashleerose]

I am not an expert on salary sacrificing but I like the sound of option 2.

Good luck with whichever option you chose.

[lavenderpegasus]

Why can't you do a mixture of both of need be...

I like the sound of option number two as long as the loan and credit card debt are at reasonable interest rates...
You could do salary sacrifice for the car and then also refinance the personal loan to absorb the credit card and get a great interest rate... if of course the interest rate on the credt card is lower and there are minimal fees on the personal loan to refinance....

Do you want to get rid of the credit card or just the credit card debt??

[MilkOnTap]

We want to get rid of both the credit card and the debt (evil thing!!)

The salary sacrifice sounds good in theory - I guess I'm just concerned about the amount of our wage that it would eat into.

Does anyone have any salary sacrifice experience?

[trendy1]

Hi,

We have recently begun salary sacrificing and we now have a brand new Subaru Outback which we do it for. We have found it to be quite good so far and because part of it is before tax and part of it is after tax we notice that Dh misses about $370 a fortnight that he used to get, but then we would spend nearly that for fuel, insurance, rego, servicing etc. He is also saving nearly $5000 a year in tax. It is definantly worth looking into. As you would know you don't own the car at the end but if you get the right car you should be able to sell it for more than the residual (that is one reason we got the subaru as they hold there value fairly well) we did look at getting a cheaper car but it was not much different in the long run. Have a look around and narrow down what vehicle you would get and get quotes to have a look at what it costs you etc, we found the hardest part was choosing a car. Good luck and if you have any questions feel free to pm me.

[TyBean]

My parents had a lease car (and we looked into it before we left the mines).... the money is taken out before tax is so you don't really loose a lot. And it also covers rego, services, tyres, fuel etc so you don't have to pay for them every week as in a sense you are all ready paying for them in that amount.

Then once the lease runs out you can either pay it out or trade in for a newer lease car!!!.... :thumbsup: Can't go wrong I reckon..

I would definately go with option b!!....:yes: