How can I finance a $50k car with my partner on maternity leave?

C

CubicHazard

New Member
Buying a car the smart way?

So I’m looking at getting a new family car, around $50k value.

I could pay cash for it, but tbh I’d rather keep that money in my offset account for the mortgage.

I applied through BYD for that 1.88% finance rate but got declined,— apparently because my partner’s on maternity leave, so they count her and my newborn as dependents and a high liability.

Is there another way to use my money wisely, or am I stuck just paying cash for the car?
 
Any lending outside of the EV deals is likely to be higher than your mortgage. Assuming there is no ABN involved, and if that is the case, one option is to pay cash and set up a repayment back into the offset over five years at the rate of your loan, so that you are not apying the car off over the life of your mortgage. Once your servicing is evident, you can always speak to your broker about borrowing more funds against the house as an equity release second loan, so that you know those funds were for the car.
 
If you want to be smart with your money, don’t drop $50k on a new car. Cars lose about 20% of their value each year, so even at 1.88%, that's a cost of $10,940, plus you'll pay more for insurance on a $50k car than a $20k one. Invest in appreciating assets, not depreciating ones.
 
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