what it is is increasing levels of consumption & increasing debt levels
the secondary part only requires man keeps wanting more . the first part is the same , but with the problem of us living in a finite world
wrong2,
Feb 4, 6:59am
not really
the banks held the debt which passed a danger level of "not servicable"
governments then gave public money so the players could keep on playing
this was done to avoid the players bring down the entire monetary system
wrong2,
Feb 4, 7:03am
applied for finance recently !
gunhand,
Feb 4, 7:26am
Well I use finance on a few things. I know about depreciationbut even if you pay cash for a new 40k car it still depreciates regardless if financed or not. I work it all out, can I make repayments with out any other part of my life suffering! well why the hell not then. Example, I had a Hayabusa, paid 11k for it and a couple years later got offered the same for a trade on a new Zx14 at 20k. Did the sums and could easy make payments without other sacrafice so to hell with it i did it. A year later I got got laid off so i did the sensable thing and sold it off and now have a bike I own as my new job (then) paid bugger all and other things would have suffered if i tried to maintain the debt. NOW, if I had to try and save 9k to buy the 14 it would never have happened as money seems to sucked up into other things. And the Busa would have been worth even less as trade if I tried saving. I lost bugger all on the 14 and as i said came out withbike I own. I see it as a kind of compulsary savings but with the interest, But not much in life is free. And I may well do it again one day. Why drive a clunker if you dont have to, or would it look good on your grave stone or something. Here lies JOE never enjoyed anything brand new or nice in life but at least he owned some old shitters. I do not agree with people who finance outside there ability and live on 4 credit cards though.
mileyfan73,
Feb 4, 7:55am
Learned my lesson couple of years back.Bought an 88 v3000 from a yard for $3800 on finance over two years.Interest rate 19.5%.Had cost me $7125 by the time I had paid it off!Sold it for $1000 few months later as the gearbox shat itself.What a waste of money.I now drive a 95 Honda Accord that cost me $1000 and low and behold it does the same job,if not better!Except it doesn't cost me $60 bucks a week in repayments!Will only ever buy cars with cash from now on.
tgray,
Feb 4, 8:23am
Good on you. Just remember, those cars cambelts are due every 80K's. a car you paid $1000 for, I would assume the previous owner did not pay half that on changing the belt any time recently. If it breaks, it's probably goodbye to your $1000 car.
nick_o_teen,
Feb 4, 8:35am
we do $1 deposit an low repayments, i think it temps people lol and it makes them think they can afford it ;-p
mileyfan73,
Feb 4, 8:52am
Umm every 100.000 kms on those,and it has a sticker stating it was changed at 201000 kms.It's now up to 298000 kms so yes it's due soon,and no previous owner didn't offer to pay half.People put too much emphasis on cambelts.Have owned heapsof cheap cars that were upto 160-180000 kms and still on their original factory belts!Yes you're driving on borrowed time but I personally don't think you need to change them bang on 100.000 kms etc.
tgray,
Feb 4, 7:25pm
unlike most japanese cars, most Hondas are due at 80K's and they are interferance engines. If it has been done as you say it has, (due 17,000k ago) it is on borrowed time .
curlcrown,
Feb 4, 7:39pm
There are many instances where it actualy make sence finacialy to finance a car.
johnf_456,
Feb 4, 8:18pm
The problem with financing is most people finance beyond there needs like say a 20 or 30k when a 8k or even 5k car would be fine for there needs. Then they pay off huge interest to a finance company when if you are going to borrow money get it off a bank loan. They generally are much better.
curlcrown,
Feb 4, 8:20pm
not true these days. Many times I have seen better deals from finance companies than banks.
johnf_456,
Feb 4, 8:22pm
Hence the keyword "generally".
richynuts,
Feb 4, 10:07pm
What was the make ofcar that was costing $400-$700 every warrant! Where were you getting your warrants, local friendly garage! Sounds like bs to me unless you were doing stupid things like if you failed a wof on one tyre you replaced all 4!.
johnf_456,
Feb 4, 10:10pm
The fact is some cars do go through bad patches mainly due to lack of maintenance in terms of the average kiwi. Sometimes you have to put money in to make a car cost less. Has often if you bought another car you often sometimes have to start all over again getting that one to the way you like it. You would think everyone keep there cars up to date and serviced but the don't. Then wonder why they break, like oh its always done this.
franc123,
Feb 4, 10:31pm
Yep for sure, many of the finance co's are keen to do sharper deals for the far less amount of new customers floating around at the moment, especially if you have a good credit rating and/or you've financed vehicles before sucessfully.
sd8888,
Feb 4, 10:45pm
I'm 25 i hate debt I ahve 2 cars one ive had for 3 years in sept a1997 subaru gtb legacy i bought off an ex for $3000 worth alot more then what i paid for it and a 1994 mazda lantis i paid $850 for 4 months ago that was a real steal. You don't have to spend a fortune to get a decent car you just have to shop around.I see people my age ticking up $15000 cars and say to them your an idiot think of the interest you will be paying over the 5 years. Everyone has this image they want to have the best of everything. I have nice things but i shop around im not stupid :)
electro2000,
Feb 5, 5:38am
Horse's for courses really Finance is not all bad
I financed a 4wd 8 years ago paid 12999it had done 135000 km Ive still got it I have now done 312000 km in it it has cost me about $2000 in major maintenanceabout 80000 km ago I started using it for work work pays me 70 cents a km out of that 32 cents is profit after running costs to date they have paid out a little over 54000 km that's about 17200 profit in my pocket so my financed vehicle has basically cost me nothing as Ive got my money back and if I run it for another 2 years and get say another 40000 km charged back to work Ill be happy
why did I fiance!I wanted to spend more then what i had saved to get a vehicleas I wanted to basically drive it to it's death and get a decent amount of running from it . I guess if you are buying financed vehicles all the time every couple of years your always at a loss A vehicle may be a depreciating asset but if it gets you to work each day and there is no other way to get there then surly it's working for you
lovemore_mbigi,
Feb 5, 7:36pm
One would have to be an absolute mog to get in hock to buy a car.Excellent value cash-buys abound in the second hand car market that can give you a good ride with very low depreciation, zero interest cost and even the chance of getting your money back when you sell it.
Incidently, government borrowing and expenditure does not grow the economy, only private sector activities can do that.[If it were otherwise, Cuba would be an economic superpower.]
trogedon,
Feb 6, 1:46am
Government borrowing and funding projects can grow the economy, ie without the big dams of the 70s we wouldn??
richms,
Feb 6, 5:16pm
Try turning up for an interview or something in a $500 car.
A decentish looking car is essential to not looking like a useless bum.
johnf_456,
Feb 6, 6:00pm
Lol bollocks, if you are that paranoid walk.
ginga4lyfe,
Feb 6, 6:51pm
yet many people are able to easily and successfully navigate using a bus, and that does not look shoddy to an employer
lovemore_mbigi,
Feb 6, 6:57pm
Muldoon's Think Big Projects!Oh yes - they bankrupted the country and put inflation into double digits.Smart move.
Lesson: either a project is economically viable on its own merits or it is a borrow-and-hope exercise - just like getting a second hand car on a finance plan.
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