My wife's car recently broke down, and is in need of replacing. My own car is also on its last legs so we intended to purchase something new-ish (2015-2017 model) to get something a little more reliable.
Unfortunate timing has resulted in this happening while my wife is out of work, she therefore counted against me, where I would have had capacity were we not married.
I have a reasonable income (~$65K) and based on our budget could easier afford our living expenses and repayments on a potential $15k loan out of my salary. However when I approached lenders I was informed that I did not have the borrowing capacity for a loan of any amount. I also tried to arrange novated leasing through my employer with similar results.
Several lenders told me this was due to tighter regulations following the Royal Commission into banking. The regulations significantly increased the estimate calculations for cost of living. Some are as much as 3 times my actual expenditure. I have no outstanding loans and have a perfect history of making payments on time.
Clearly I could put the money I would spend on repayments aside for several months until I had enough ready cash to buy a car outright. However, this means surviving for several months with only a single vehicle. I need a vehicle for my commute most days leaving my wife without transport so this is undesirable.
What are my options for obtaining finance for a vehicle in the short term? Failing that, how can I most effectively save to afford a vehicle in the shortest time possible?
Please note, interest rates in Australia are extremely low at the moment and spending more on a newer vehicle will cost less over the next few years then even a single repair on a used vehicle will. Fuel costs are also extremely high so a newer, more fuel efficient vehicle will more than cover the difference in insurance cost.
I have done a full cost breakdown and purchasing something near this price with dealer used car warranty gives us piece of mind and the most practical long term solution without significantly increasing the total cost. Obtaining the up-front payment in the short term is the only issue. Answers solely telling me to not purchase a vehicle are not useful.