Money for car that's a year away.
Discussion
So I have ordered a car, cost £33k, but it won't be with me for a year, maybe a little less. I have the money now and am happy to pay cash but I will check the PCP deals when/if available.
Currently the money sits in an offset Mortgage account saving me £40/month off the mortgage payments. Could I be doing something better with it?
Currently the money sits in an offset Mortgage account saving me £40/month off the mortgage payments. Could I be doing something better with it?
croyde said:
So I have ordered a car, cost £33k, but it won't be with me for a year, maybe a little less. I have the money now and am happy to pay cash but I will check the PCP deals when/if available.
Currently the money sits in an offset Mortgage account saving me £40/month off the mortgage payments. Could I be doing something better with it?
Unlikely!Currently the money sits in an offset Mortgage account saving me £40/month off the mortgage payments. Could I be doing something better with it?
Maths isn't my strong point, but I think is 1.45% (£480) over the year in the off set. No tax to pay on that, so not terrible, but not not stunning. You might be able to squeeze an extra couple of quid out of it elsewhere depending on your tax bracket. Having said that, the work done / time spent to get those extra few pennies might not be worth it. I have an offset on a very low interest rate mortgage, and I reckoned I could improve on it with a few Santander 123 accounts. I did, but it was a faff. I'm back to using the offset account.
No debts you'd like to pay off? If you did, you could clear them now, save on the debt interest that you would've paid, and start a savings plan that'll bring you right beach up to the 33k for when you need it next year.
Happy to have my logic corrected. I'm an amateur at this.
No debts you'd like to pay off? If you did, you could clear them now, save on the debt interest that you would've paid, and start a savings plan that'll bring you right beach up to the 33k for when you need it next year.
Happy to have my logic corrected. I'm an amateur at this.
£30k in a one year ISA or if you have a small appetite for risk £30k in one of these (or two)
http://www.telegraph.co.uk/finance/personalfinance...
You may lose the lot or make enough for a supercharger - its a risk.
http://www.telegraph.co.uk/finance/personalfinance...
You may lose the lot or make enough for a supercharger - its a risk.
DSLiverpool said:
£30k in a one year ISA or if you have a small appetite for risk £30k in one of these (or two)
http://www.telegraph.co.uk/finance/personalfinance...
You may lose the lot or make enough for a supercharger - its a risk.
1) maximum investment into an ISA is £15k p.a.http://www.telegraph.co.uk/finance/personalfinance...
You may lose the lot or make enough for a supercharger - its a risk.
2) anyone considering a £33k car should probably already have used their ISA allowance for the year
3) anyone with a one year or less time horizon and like be mad to consider the volatility (and downside risk) of equities.
Apart from that, great advice...
sidicks said:
DSLiverpool said:
£30k in a one year ISA or if you have a small appetite for risk £30k in one of these (or two)
http://www.telegraph.co.uk/finance/personalfinance...
You may lose the lot or make enough for a supercharger - its a risk.
1) maximum investment into an ISA is £15k p.a.http://www.telegraph.co.uk/finance/personalfinance...
You may lose the lot or make enough for a supercharger - its a risk.
2) anyone considering a £33k car should probably already have used their ISA allowance for the year
3) anyone with a one year or less time horizon and like be mad to consider the volatility (and downside risk) of equities.
Apart from that, great advice...
2) Nope "Currently the money sits in an offset Mortgage account saving me £40/month off the mortgage payments. Could I be doing something better with it?"
3) Not saying its risk free but Woodford made me 10% and more if I would have stayed in, dogs of the ftse made me 5.7% plus my response was semi light hearted as I am never very serious as lifes too short ;o)
DSLiverpool said:
1) Now and next month
Fair enough!DSLiverpool said:
2) Nope "Currently the money sits in an offset Mortgage account saving me £40/month off the mortgage payments. Could I be doing something better with it?"
DSLiverpool said:
3) Not saying its risk free but Woodford made me 10% and more if I would have stayed in, dogs of the ftse made me 5.7%
It sounds like you don't really understand the nature of equity risk if you think your anecdotal experience is relevant or useful!DSLiverpool said:
plus my response was semi light hearted as I am never very serious as lifes too short ;o)
I'm guessing the OP was after some genuine, useful ideas...,croyde said:
Woodford seems to have a very good track record and I do have this year's allowance left to use.
In all honesty and being a no nothing dullard (who made more this year myself and my FA did the last 2 after charges) I pulled out of Woodford last week but after the election I am going back in as my thought process is the market is high, it might go higher but I think it will drop as the election may be messy and once the dust has settled I may be able to buy back in cheaper than I cashed out at - seems sensible to me but my FA tells me its not the way to do it.Gassing Station | Finance | Top of Page | What's New | My Stuff