An Australian father has warned young people against purchasing a brand-new car, describing it as one of the worst financial decisions he has ever made.
Eric Ho Pham, from Reservoir in Melbourne’s north, claimed buying a new ute was the ‘dumbest’ decision he made, despite loving the car.
Mr Pham said he purchased the ute after he finished his apprenticeship and became a qualified electrician.
‘When I was an electrical apprentice, I pretty much did my whole apprenticeship on a motorbike,’ Mr Pham explained.
‘I’d carry my tools on my back and tie it all funny to my bike and I’d kind of make it work.
‘As soon as I got qualified and I started making big money, I just thought I can afford a car now.’
Mr Pham explained he went to a Mazda dealership and saw a shiny BT-50 in the lot.
Eric Ho Pham (pictured) claimed buying his Mazda BT-50 was the ‘dumbest’ decision he has ever made and warned young Aussies not to get into debt by buying a new car
‘Me being naive and young and not ever buying a car before in my life, got sucked in by the slimy salesman and signed my life away on this $70,000 car,’ Mr Pham said.
Mr Pham said taking out a loan to pay for the car did not concern him at the time because he believed he could afford the repayments on his new salary.
However, he said he quickly learned that having a debt meant he was completely reliant on his job.
‘I was tied to the job and that’s when working didn’t become fun anymore,’ Mr Pham said.
‘It was like I was on a hamster wheel working to pay off this debt.’
Mr Pham, who now works designing clothes through his business Cruzado, urged young motorists to save their money and be debt-free instead of buying a new car.
‘If you’re young, just drive the cheapest, most reliable car that you can afford and save your money,’ Mr Pham said.
‘It’s that simple. Don’t care about what people think about what you drive because, at the end of the day, they don’t.’
Social media users agreed with Mr Pham, with many claiming their car debt made them feel stuck financially.
‘A lot of people need to hear this. I just got qualified myself, so I know the temptation. Nothing wrong with driving s**tboxes and being debt-free,’ one said.
‘Car debt can weigh you down. Save, plan, and buy smart to stay financially free,’ a second added.
‘I agree – we are about to purchase a brand new car 15 years into being married and I’m panicking about being tied to my job to pay it off. Seriously reconsidering it,’ a third said.
Mr Pham said he was ‘young and naive’ and was sucked into buying the vehicle for $70,000 (pictured). He urged young Aussies to be debt free by saving their money and driving an affordable car
Around 12 per cent of Australians – about 2.5million people – had a car loan in July 2024, according to Finder’s Consumer Sentiment Tracker.
Australian Bureau of Statistics data revealed that total new vehicle lending was at $1.5billion as of July 2024 – increasing from $1.3billion from the previous year.
Aussie motorists set a new record for vehicle purchases in 2024, with 1,237,287 new vehicles delivered. This represents a 1.7 per cent increase compared to 2023, when a previous record of 1,216,780 new registrations was recorded.
TOP SELLING NEW VEHICLES IN 2024
1. Toyota RAV4: 58,718
2. Ford Ranger: 57,960
3. Toyota HiLux: 45,839
4. Mitsubishi Outlander: 27,613
5. Ford Everest: 26,494
6. Isuzu D-Max: 24,031
7. Toyota Corolla: 24,027
8. Mazda CX-5: 22,835
9. MG ZS: 22,629
10. Kia Sportage: 22,210
Source: Federal Chamber of Automotive Industries
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