Real Accounts: Hamish Shares His Handy Car-Funding Advice
When it comes to saving, spending and lending, everyone’s got a story to tell. In our new series Real Accounts, we talk to different millennials about their (very) personal finance experiences and some of the key lessons they’ve learned along the way.
This week we chat to Hamish, who paid off his first car loan within a year - despite the extra car costs being a complete shock to the system.
Like many 17-year-olds the need for a first car loan was just a given. The dream of freedom and no longer having to be a slave to the taxi of Mum and Dad was the goal.
I got a car loan, for the flexibility and freedom. It was extremely nerve-wracking walking around with a check for thousands of dollars - I didn’t even know they were still a thing at the time!
I was fully reliant on the advice of friends who had been in a similar situation, but the focus for me was just about getting the money as soon as possible.
Your first car is literally a dream come true. But the ongoing costs were a bit of a shock to the system.
I was fortunate enough to pay my loan off within a year, but I’d always planned to get out of debt as quickly as possible. Within a year I was driving around debt free!
Here are five things I learned:
- Seek your advice from a credible source, not just from mates!
- Don’t just do what everyone else does, there might be a better way
- Think twice before you buy and decide whether it’s something you need right now or whether you can wait
- Check the terms and conditions to make sure there are no hidden costs
- The bank of mum and dad has much better interest rates!