3 weeks ago my mate flew to Sydney, just to buy a car. The particular make and model of the car costs anywhere from $41-45K in Melbourne. He found a dealer in Sydney that was selling it cheaper (with 3yrs warranty), so he flew up to have a look. The dealer picked him up from the airport (30min drive from dealer) and opened the dealership on a Sunday (when they are normally closed). The dealer was advertising for $34K, and my mate ended up buying it for $32K and driving it back to Melbourne. Then the very next day he gets it insured by RACV for the value of $42K. He could ride it off today and make a $10K profit (minus airfares to Sydney and fuel on drive home) not that he'd do that, he loves the car.
I guess times are tougher in Sydney than they are down here.
It's pretty common in Tas for people to fly to Melbourne or sometime further away to buy used cars too. The saving is only modest once you include the cost of flying there and driving / boat back home but you do get an effectively free interstate holiday out of it.3 weeks ago my mate flew to Sydney, just to buy a car. The particular make and model of the car costs anywhere from $41-45K in Melbourne. He found a dealer in Sydney that was selling it cheaper (with 3yrs warranty), so he flew up to have a look. The dealer picked him up from the airport (30min drive from dealer) and opened the dealership on a Sunday (when they are normally closed). The dealer was advertising for $34K, and my mate ended up buying it for $32K and driving it back to Melbourne. Then the very next day he gets it insured by RACV for the value of $42K. He could ride it off today and make a $10K profit (minus airfares to Sydney and fuel on drive home) not that he'd do that, he loves the car.
I guess times are tougher in Sydney than they are down here.
Totally agreed there. For me at least, it's security that brings happiness rather than having the latest gadgets.MOXJO and Nomore4s: don't be intimidated into changing what feels right for you by friends with a shorter term approach.
Well I do have a plasma, but only because I needed to buy a new TV anyway and they were considerably cheaper than LCD.I've never seen the point of following the crowd. I don't have a plasma TV either!
That hasn't been my experience, juw. Thinking back to the 80's when (at least in NZ and I think it wasn't isolated to that country) inflation was rampant, I was paying 22% on IP mortgage but the capital gain was astonishing. Also rents rose exponentially. Given negative gearing and high personal tax rate, it was actually a very rewarding time.People taking advantage of the low interest rates will get a nasty surprise when it shoots upwards and home values plunge. Historically, low interest rates correlates with high prices and high interest rates correlating with low prices.
Hmm good point, perhaps the correlation isn't as strong as I had imagined.
3 weeks ago my mate flew to Sydney, just to buy a car. The particular make and model of the car costs anywhere from $41-45K in Melbourne. He found a dealer in Sydney that was selling it cheaper (with 3yrs warranty), so he flew up to have a look. The dealer picked him up from the airport (30min drive from dealer) and opened the dealership on a Sunday (when they are normally closed). The dealer was advertising for $34K, and my mate ended up buying it for $32K and driving it back to Melbourne. Then the very next day he gets it insured by RACV for the value of $42K. He could ride it off today and make a $10K profit (minus airfares to Sydney and fuel on drive home) not that he'd do that, he loves the car.
I guess times are tougher in Sydney than they are down here.
If you look back to the 2003 to 2008 period where interest rates touched 9% you'll also notice a spike in House prices.
The 80s scenerio while it looks impossible now wont in my view look so impossible in 4 or so years.
This I believe is a once in a life time opportunity to.
(1) Low gearing to managable levels.
(2) Soon lock in for as long as you can any debt you have at the lowest rate you can find.
(3) If your cashed and can keep gearing low.Get more property in the medium price belt (In Adelaide the sub $350k range) close to the beach or some other sought after --- even if its not now--- area.
My view I'm sure others will disagree--Im used to that.
Will banks allow borrowers to lock in the present low interest rates for a long time? Wouldn't this be against their interests in the same way as they won't offer any longer period term deposits at the currently highest rates?.
How did your mate get around the registration issue? I imagine the dealer would have registered the car in NSW.
Would be interested to know what car that was Gav as I will be in the market to buy a new car soon in that price range.
I have no idea. I'll ask next time I see him. Even if he had to re-register, he saved nearly $10k
People should keep splashing cash like crazy. Weyhey!
The RuddBank will keep the luvverly moolah flowing to the hoi poloi through Cash Bonanza's III (my tip $30 Billion) & IV (my tip $50 Billion) later this year, in order to boost Sep & Dec '09 quarterly results and make the gummint look good.
It's a motzah!
So let's spend in a frenzy of self-gratification while it lasts.
Dunno wot appens when the RuddBank runs dry next year tho.
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