Stop me from buying a 535D!
Discussion
Hi guys,
So I've been working hard to save money over the last couple of years, since having graduated from university I have been working in IT for two years as well as keeping my part time weekend job at Sainsbury's since college days.
Anyways after graduating from University I purchased a BMW 530D LCI M Sport and have had it for three years now and absolutely love it even to date! It has cost me a lot on repairs (over 4k, luckily I had warranty that covered most of this). So I think it is now time to sell it as it is getting old and mileage getting higher, do not want it to start costing as well as not having warranty on it anymore.
Over the last couple years I have saved up a decent 30k and considering cashing a property and renting it out for extra income on the side (I work 7 days, so do not have time for any other way of income really).
But now that I have the money in my account I am very tempted to buy a new car, as some of you may have already experienced, it's hard downgrading after owning such a great car! The car that really has caught my eye is the F10 535D, read many reviews on it and found it to be THE CAR to have, economy, power and driving appeal it just ticks all the boxes!
Here is the link to it: http://www.autotrader.co.uk/classified/advert/2017...
Obviously it will be covered under BMW warranty and will probably renew it for the second year, I am considering keeping it for 2 years or maybe 3. It is fully loaded and has all the extras I could dream of as well as the awesome looking interior.
I am 25 and could do with some advise on whether I am being stupid in even considering it and that I should use my money else where.
Cheers!
So I've been working hard to save money over the last couple of years, since having graduated from university I have been working in IT for two years as well as keeping my part time weekend job at Sainsbury's since college days.
Anyways after graduating from University I purchased a BMW 530D LCI M Sport and have had it for three years now and absolutely love it even to date! It has cost me a lot on repairs (over 4k, luckily I had warranty that covered most of this). So I think it is now time to sell it as it is getting old and mileage getting higher, do not want it to start costing as well as not having warranty on it anymore.
Over the last couple years I have saved up a decent 30k and considering cashing a property and renting it out for extra income on the side (I work 7 days, so do not have time for any other way of income really).
But now that I have the money in my account I am very tempted to buy a new car, as some of you may have already experienced, it's hard downgrading after owning such a great car! The car that really has caught my eye is the F10 535D, read many reviews on it and found it to be THE CAR to have, economy, power and driving appeal it just ticks all the boxes!
Here is the link to it: http://www.autotrader.co.uk/classified/advert/2017...
Obviously it will be covered under BMW warranty and will probably renew it for the second year, I am considering keeping it for 2 years or maybe 3. It is fully loaded and has all the extras I could dream of as well as the awesome looking interior.
I am 25 and could do with some advise on whether I am being stupid in even considering it and that I should use my money else where.
Cheers!
Iddz said:
Hi guys,
So I've been working hard to save money over the last couple of years, since having graduated from university I have been working in IT for two years as well as keeping my part time weekend job at Sainsbury's since college days.
Anyways after graduating from University I purchased a BMW 530D LCI M Sport and have had it for three years now and absolutely love it even to date! It has cost me a lot on repairs (over 4k, luckily I had warranty that covered most of this). So I think it is now time to sell it as it is getting old and mileage getting higher, do not want it to start costing as well as not having warranty on it anymore.
Over the last couple years I have saved up a decent 30k and considering cashing a property and renting it out for extra income on the side (I work 7 days, so do not have time for any other way of income really).
But now that I have the money in my account I am very tempted to buy a new car, as some of you may have already experienced, it's hard downgrading after owning such a great car! The car that really has caught my eye is the F10 535D, read many reviews on it and found it to be THE CAR to have, economy, power and driving appeal it just ticks all the boxes!
Here is the link to it: http://www.autotrader.co.uk/classified/advert/2017...
Obviously it will be covered under BMW warranty and will probably renew it for the second year, I am considering keeping it for 2 years or maybe 3. It is fully loaded and has all the extras I could dream of as well as the awesome looking interior.
I am 25 and could do with some advise on whether I am being stupid in even considering it and that I should use my money else where.
Cheers!
Good effort on the saving, you're putting yourself in a good position for the future. DON'T SPUNK IT ON THAT CAR. Enough said I think.So I've been working hard to save money over the last couple of years, since having graduated from university I have been working in IT for two years as well as keeping my part time weekend job at Sainsbury's since college days.
Anyways after graduating from University I purchased a BMW 530D LCI M Sport and have had it for three years now and absolutely love it even to date! It has cost me a lot on repairs (over 4k, luckily I had warranty that covered most of this). So I think it is now time to sell it as it is getting old and mileage getting higher, do not want it to start costing as well as not having warranty on it anymore.
Over the last couple years I have saved up a decent 30k and considering cashing a property and renting it out for extra income on the side (I work 7 days, so do not have time for any other way of income really).
But now that I have the money in my account I am very tempted to buy a new car, as some of you may have already experienced, it's hard downgrading after owning such a great car! The car that really has caught my eye is the F10 535D, read many reviews on it and found it to be THE CAR to have, economy, power and driving appeal it just ticks all the boxes!
Here is the link to it: http://www.autotrader.co.uk/classified/advert/2017...
Obviously it will be covered under BMW warranty and will probably renew it for the second year, I am considering keeping it for 2 years or maybe 3. It is fully loaded and has all the extras I could dream of as well as the awesome looking interior.
I am 25 and could do with some advise on whether I am being stupid in even considering it and that I should use my money else where.
Cheers!
The sensible answer here is of course not to put your money into a depreciating asset. A diesel exec saloon is about the worst car to pick with that in mind. Spend it on the house deposit as mentioned above.
Having said that, this is ph, and in your position I would be very tempted to go crazy bat s
t bananas, and find an early f10 m5. I'm fairly sure you could pick one up for about 25k, run for a couple of years, and get the a decent chunk of your cash back?.
Having said that, this is ph, and in your position I would be very tempted to go crazy bat s
t bananas, and find an early f10 m5. I'm fairly sure you could pick one up for about 25k, run for a couple of years, and get the a decent chunk of your cash back?.
Sinking that amount into a car at 25 is not what I would consider 'prudent'.E36GUY said:
You've done well to save up £30k. Use it wisely and buy a property.
This^.It's not like you're looking to buy some fancy, rare-as-hens-teeth, sports car or anything.
Investing the money properly will see far greater returns, even in the short-term, than buying a diesel BMW, and just in case you weren't sure, say it slowly out loud to yourself; "a...DIESEL...BMW".
I've got to admire the work ethic, well done.
Now think about the future.
With your work ethic, when you get to 35 you could be driving around in whatever the equivalent of the Ferrari 488 is, and own a flat outright.
Or, you could retire at 50 with a portfolio of paid off properties providing you with a great income.
Many things could happen, but emptying your bank account into a rapidly depreciating asset won't help, it will prolong the above examples, perhaps by 5 years.
Everyone will have a different take, but for me, I'd plough it into either a business of your own, or a mortgage.
If you're thinking about starting your own firm in a couple of years, perhaps consider maxing an ISA now, and in a few days time when the allowance re-starts, so you have some money to live on when starting your own firm. Then stick the rest into a modest property to live in.
Now think about the future.
With your work ethic, when you get to 35 you could be driving around in whatever the equivalent of the Ferrari 488 is, and own a flat outright.
Or, you could retire at 50 with a portfolio of paid off properties providing you with a great income.
Many things could happen, but emptying your bank account into a rapidly depreciating asset won't help, it will prolong the above examples, perhaps by 5 years.
Everyone will have a different take, but for me, I'd plough it into either a business of your own, or a mortgage.
If you're thinking about starting your own firm in a couple of years, perhaps consider maxing an ISA now, and in a few days time when the allowance re-starts, so you have some money to live on when starting your own firm. Then stick the rest into a modest property to live in.
There's a few F10 550s on autotrader. Get one of those instead and add the 15k savings to your property portfolio.
For example:
http://www.autotrader.co.uk/classified/advert/2016...
For example:
http://www.autotrader.co.uk/classified/advert/2016...
TonyRPH said:
Buy yourself a good (with emphasis on the good) E39 52xi (probably not a v8) and emphatically not a diesel.
With the money you saved, invest the rest in a property.
I reckon this is the best bit of advice on the thread so far.With the money you saved, invest the rest in a property.
You get to drive around in a swanky BMW (the late-model E39 530i Sport is a particularly nice car), AND invest the remaining £28k in property.
Total win.
How much is your current car worth as you won't be spending the full 30k.
Lets say for argument sake its worth £10k - you will only be using £12k to buy that car shown.
Personally I don't think property is the way to go - and hear me out as to why I think this.
Every year you have a £11K CGT allowance. This is one reason why I think shares are the way to go but be wise. You can sell shares, make profit and this is tax free (up to £11k).
Government right now hates landlords (nearly as much as diesel cars!). If you have a mortgage on a property the mortgage interest tax relief is slowly being withdrawn - sounds to me like you could be a higher rate tax payer soon.
Any rent you earn you will pay 20/40% tax. If you need cash at any point its difficult with property.
Dividends for now have £5k tax free (going down to 2k tax free) and pay tax at 7.5%, 32.5% if higher rate.
For me I would be looking at the stock market - or stocks and shares isa (where CGT doesn't apply and no tax paid on dividends.)
I would also buy your car you want - lifes too short - I'm currently saving for a v8 before they die. Although after seeing that 550i - makes me wonder!
Only you know what to do with your money, I wouldn't touch AIM shares, probably stick to FTSE 100/250 shares.
Lets say for argument sake its worth £10k - you will only be using £12k to buy that car shown.
Personally I don't think property is the way to go - and hear me out as to why I think this.
Every year you have a £11K CGT allowance. This is one reason why I think shares are the way to go but be wise. You can sell shares, make profit and this is tax free (up to £11k).
Government right now hates landlords (nearly as much as diesel cars!). If you have a mortgage on a property the mortgage interest tax relief is slowly being withdrawn - sounds to me like you could be a higher rate tax payer soon.
Any rent you earn you will pay 20/40% tax. If you need cash at any point its difficult with property.
Dividends for now have £5k tax free (going down to 2k tax free) and pay tax at 7.5%, 32.5% if higher rate.
For me I would be looking at the stock market - or stocks and shares isa (where CGT doesn't apply and no tax paid on dividends.)
I would also buy your car you want - lifes too short - I'm currently saving for a v8 before they die. Although after seeing that 550i - makes me wonder!
Only you know what to do with your money, I wouldn't touch AIM shares, probably stick to FTSE 100/250 shares.
Congrats for saving so hard.
As tempting as it is to buy a new car, I'd say buy a house.
With £40k I invested in a London flat 2 years ago, renovated in 3 weeks with the help of family, now worth £140k more - remortgaged and bought a house.
With the profits made from the right property purchase you can make serious cash, and by renting it out having a tidy income to fund cars and holidays for life.
I have an agreement with the wife that the profit from one of the flats is now my car/fun fund to do with what I want.
Set yourself up for life, not just a few years of depreciation.
Also - if your current car is now "fixed" properly with the £4K or repairs, run it knowing that things are sorted.
As tempting as it is to buy a new car, I'd say buy a house.
With £40k I invested in a London flat 2 years ago, renovated in 3 weeks with the help of family, now worth £140k more - remortgaged and bought a house.
With the profits made from the right property purchase you can make serious cash, and by renting it out having a tidy income to fund cars and holidays for life.
I have an agreement with the wife that the profit from one of the flats is now my car/fun fund to do with what I want.
Set yourself up for life, not just a few years of depreciation.
Also - if your current car is now "fixed" properly with the £4K or repairs, run it knowing that things are sorted.
Thanks for everyone's replies ! All make sense, being 25 and the youth living by YOLO - You Only Live Once I think it is what's tempting me so much!
But you are right I did not consider the new diesel laws, I have had a drive in a 535D and was totally blinded by the power/torque as well as the economy it was returning!
Coming from real Petrol Heads I will take these advises and keep stacking up, aim is to save up more and invest! May keep my 5 series for now as it still is an awesome car to me!
And one day I will end up with a M5! Hopefully!
But you are right I did not consider the new diesel laws, I have had a drive in a 535D and was totally blinded by the power/torque as well as the economy it was returning!
Coming from real Petrol Heads I will take these advises and keep stacking up
, aim is to save up more and invest! May keep my 5 series for now as it still is an awesome car to me!And one day I will end up with a M5! Hopefully!
YOLO get yourself a good M5/6 for around 20k & live a little, I've spent a fair chunk of change on performance cars & although they all have the ability to throw out a big bill every now & then they also have the ability to put a great big smile on your face.
M5
http://www.autotrader.co.uk/classified/advert/2017...
http://www.autotrader.co.uk/classified/advert/2017...
M6
http://www.autotrader.co.uk/classified/advert/2017...
http://www.autotrader.co.uk/classified/advert/2017...
M5
http://www.autotrader.co.uk/classified/advert/2017...
http://www.autotrader.co.uk/classified/advert/2017...
M6
http://www.autotrader.co.uk/classified/advert/2017...
http://www.autotrader.co.uk/classified/advert/2017...
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