saving for a car, how do you do it?

[jimbobsimmonds]

Hoddo said:

Sensible Option -
Buy a house first, then save up 6 months worth of living costs/rainy day money/emergency bills fund, drop that money in a savings account and forget it ever existed.

At this point, as long as you have avoided girls and expensive habitual pitfalls, get yourself a nice motor.

This comment has single handedly led to 6 open tabs on the Autotrader site, 2 watching on Ebay and some bringing up of old st with the gf just to start a row

[laam999]

lol I love the amount of "don't get a lass" comments, fortunatley (?) I have a girlfriend and we have been going well for a good few years. I am at the moment prioritising a house, when I have one then I will seriously start to put money aside for a dream car which is why I have my project, it's something to waste time on that stops me driving, being in pub, going out for meals, spending money on games. So although I spend on the project I like to think it's saving me money. I'm hoping that after I've finished it I can break even or maybe make a little and start a new project, I figured it might be a good way to keep a nice car habit on the go whilst saving.

Thanks for the comments guys.

oh and yes, my living expenses are sweet FA, insurance on a C2 is bugger all, I live at home rent free, free food and no bills, all I have are my phone and car project..... and the girl friend.

[sleep envy]

Opportunity cost and sacrifice.

[Swoxy]

https://www.plansaveget.saffronbs.co.uk/pistonhead...

[christofmccracke]

im 20 and looking to get an f360 in the next few years so my plan is to have bout 25-30k n finance the rest

[TotalControl]

Could you not save up and purchase an alternative as a stop gap for a while? You don't need a flash car. Sort out a roof then once you're comfortable take the plunge.

[frosted]

Don't think you can finance running costs

[Jeffmaniac]

I am in a slightly different situation that I am 29, married, mortgage is not a stupid amount, earn an average salary and have no debts but I can't afford much.

I have a 10 year old Polo Gti and can't imagine the loan I would need to get anything remotely decent. Currently considering a 300 pound a month loan for a new car but its a bit of a mental hurdle.

[Bing o]

christofmccracke said:

im 20 and looking to get an f360 in the next few years so my plan is to have bout 25-30k n finance the rest

Bless.

[Jo Po]

christofmccracke said:

im 20 and looking to get an f360 in the next few years so my plan is to have bout 25-30k n finance the rest

Let us know how that one pans out.

What's Santa getting you Chris?

[BDR529]

adycav said:

terzo said:

Dont have a girlfriend

Or have one that earns a good wage and loves cars as much as you do!

These women creatures.. who like cars.. where do I find them!?

[Mr Scruff]

I regularly look at my peers with their nice motors and I definitely feel a pang of envy.

However... I saved up for the motgage and bought a house instead. Houses cost a lot of money to run, more than cars, but it's nice to know that (eventually) the value of my house will rise, not fall like cars.

Yes, I wish I had a nicer car. Yes, I do get jealous of people in nice shiny motors which work properly and do what they say on the tin. The only bit of smug I get is that I have zero debt (ignoring the mortage), I can save and actually I've found an older, classic motor which I love.

It's tempting to throw it all away, get a £15k loan and blow it on a Boxster but I know I'll be paying for it for 5 years and I'm not sure there's any one car out there that could keep my interest for that long. I don't want to be paying for something after its gone.

Go classic. We don't value our older cars so much in the UK, you can get something cool, something fun and not have to screw yourself up with loans and repayments when you're unsure what the future might hold.

[WeirdNeville]

Only buy what you can afford to run.
That's not just purchase price - that's fuel, maintenance and at your age insurance is a huge concern.

R34 GTR's are full on supercars. They cost a packet to run. On your wage, could you afford 600 for tyres, or a £1,000 repair bill at short notice? There's nothing worse than having a great car on the drive but nit being able to afford the fuel bills to actually run it.

As an AW11 man myself, I have to say they're fantastic value for money - cheap to buy, insure, run and repair, and when properly in order absolutely great to drive. Not fast, mind....

Keep saving - you're in an ideal situation to save a huge amount which can set you up for life. But in five years you might find your priorites have changed. It could be that you're choosing between a shonky GT-R and living at home OR a 370Z and a deposit on a house.

My cars have gone steadily downhill (after a fashion) since I was 25. I'm glad I bought them when I did, but nowadays as much as a petrolhead as I am, other things take precedence like the mortgage and a holiday every now and again. Oh, and room for the dog.

If it's your absolute dream to have an R34, then go for it, just be prepared to sacrifice a lot for it - for starters, right now I'd only be driving the C2 As the MR2 is just a money pit and won't earn you anything. It's worth it in it's own right, but it just might stop you owning your dream car...

Oh, and avoid a loan. It'll cripple you early in life.

[Searider]

laam999 said:

lol I love the amount of "don't get a lass" comments, fortunatley (?) I have a girlfriend and we have been going well for a good few years. I am at the moment prioritising a house, when I have one then I will seriously start to put money aside for a dream car which is why I have my project, it's something to waste time on that stops me driving, being in pub, going out for meals, spending money on games. So although I spend on the project I like to think it's saving me money. I'm hoping that after I've finished it I can break even or maybe make a little and start a new project, I figured it might be a good way to keep a nice car habit on the go whilst saving.

Thanks for the comments guys.

oh and yes, my living expenses are sweet FA, insurance on a C2 is bugger all, I live at home rent free, free food and no bills, all I have are my phone and car project..... and the girl friend.

Like the "project as a savings account". Drip feed money into something then as long as you do it right when you come to sell you have the money all in one place. It will cost more than you can sell for probably but you'll have a couple of £k in the same place at the same time.

So, how did I do it?
Rented a room from a mate and saved £6k over 3 years for house deposit (1998 houses were cheaper then - I know i'm lucky there).
Had a 205GTI which was cheap to buy. Costly to maintain to the standard I wanted though.
Bought house (BTW was on £15k - £18k salary then) and then was skint for a couple of years.
Rented out a room for £300pcm - this was my spending money for the month - everything else went on mortgage and bills.

Joined the RNR and commited to 1 weekend per month and a couple of weeks in the summer. Extra £200 per month, £1200 in the summer and £900 bounty at Easter.
Got a third job driving boats at weekend in the summer. Paid £100 per day - so perhaps another £2000 per year.
Most of the "extra" went into a Building society savings account - the old fashioned one with a book - where you physically have to go to the branch to make a withdrawl. Works wonders for saving!

Bought a cheap boat (£2000) ran it for a year, made some improvements and sold it for £2500. "Project as savings account"

Change of job. Pay rise to about £20k - £25k (This after working for 8 years after graduating). £6k loan and bought Corrado. £160pcm over 3 or 4 years but was able to pay it off after 2.

Bought another boat for £5k shared half with my Brother. Kept it for 4 years and although it cost us a fair ammount in repairs sold it for £6k. "Project as savings account"

Bought a part complete Westfield for £4k. Ended up costing another £5k and 2 years to finish and only managed to sell it for £6k. Not my best purchase. (could have nearly bought a Griffith for £9k back then :-( ) - "Project as savings account?" - well it was a poor investment but it did mean that I had £6k all in one place.

£15k "Home improvement" loan. Bought another boat which we still have. Paid off loan after a year once the previous boat and the Westfield had sold.

Start my own business. Massive leap of faith to leave a job and set up in competition. All works out OK though.

GF and son move in. Good move. She likes the boat. Helps with the bills. I don't need to ever go to Tescos again. Don't need to go out much as plenty of "entertainment" at home ;-)

Makes us move house. Business doing well so can (just) about afford it.
Keep first house and rent it out. Doesn't make a profit but i'm hoping it's better than a pension in the long run.

Baby on the way. Need rear doors. Business doing OK so take £5k dividend and buy S4 with this, £2k savings and proceeds of Corrado.

Baby born. GF now not working. See great deal on RS4. £12k "Loan to Director" from company. Buy RS4. Pay back "Loan" over 18 months. (2% over base rate - so pretty cheap).

So, what went well and how did it work?

The most important thing for me was to have been able to buy my own house. It gave me fantastic security, opportunity to let a room, a garage, space for the boats, "home improvement" loans for toys.
Worked three jobs for 5 years until I set up in business.
A year into the business was when I felt most affluent.
Since then have had less and less money in my pocket but lots of good things:
GF and 2 great kids
House
Spare house
Boat
RS4

I'll be 40 next year. I don't earn lots - but I look after it and make it work hard.

All along i've tried not spending on small things - like holidays, Flat screen TVs, mountain bikes, fancy clothes / shoes etc and saved for "big" things. Its worked for me but key was being able to buy a house.
It's only more recently that i've been able to be "creative" with my money.

I don't know how i'd fare if I was starting now though. Not sure how i'd raise the deposit to buy my first house - based on today's value i'd need about £30k deposit. I've never had £30k in the same place at the same time. I guess i'd buy a house with a mate and share.

Work hard, take your time, don't waste what little money you have, have a hobby that allows "project as savings account".

I hope this gives a little insight into how it can be done without a telephone number salary.

Edited by Searider on Monday 20th December 11:23

Edited by Searider on Monday 20th December 11:24

[Herman Toothrot]

Why not do as most petrol heads on average incomes do and buy perfectly good 10 year old cars that have been discarded by the clueless who think they are about to fall apart. Great cars can be had for very little money, learn about how to service and look after them yourself and you can drive some really nice stuff.

At Goodwood last year I had a sit in an Elise on the Lotus stand, touch over £30K. I sat looking at the same steering wheel, dials, floor, seats, windscreen as my £7600 (back almost two years ago) VX220. My cars every bit as good as that new car but is £23K cheaper. As long as you maintain a car properly they will be perfectly reliable and feel as sharp as when new.

[Diablos-666]

Searider - Nice write-up.

Sounds like good advice, it's obviously worked out for you.

[volvoforlife]

I didn't bother with saving up. I bought all my cars on finance and sold them all within 12 months so I got to enjoy them and not take too much of a financial hit. Basically 'rented' them. I wanted a Porsche Cayman and I had all the usual advice of not bothering. However I wanted one while I was young so I got it at age 25, enjoyed it for 12 months, and moved it on for £1000 less than I bought it for. So £1000 rental fee for 1 year of a Porsche Cayman sounds fine to me.

[limpsfield]

Searider said:

stuff

Excuse me but you seem to have ommitted to tell us what you had for lunch on November 25th, 2003

[STW2010]

volvoforlife said:

I didn't bother with saving up. I bought all my cars on finance and sold them all within 12 months so I got to enjoy them and not take too much of a financial hit. Basically 'rented' them. I wanted a Porsche Cayman and I had all the usual advice of not bothering. However I wanted one while I was young so I got it at age 25, enjoyed it for 12 months, and moved it on for £1000 less than I bought it for. So £1000 rental fee for 1 year of a Porsche Cayman sounds fine to me.

You mean £1000 plus interest, plus petrol, insurance, tax, servicing, consumables (tyres) etc

[limpsfield]

STW2010 said:

volvoforlife said:

I didn't bother with saving up. I bought all my cars on finance and sold them all within 12 months so I got to enjoy them and not take too much of a financial hit. Basically 'rented' them. I wanted a Porsche Cayman and I had all the usual advice of not bothering. However I wanted one while I was young so I got it at age 25, enjoyed it for 12 months, and moved it on for £1000 less than I bought it for. So £1000 rental fee for 1 year of a Porsche Cayman sounds fine to me.

You mean £1000 plus interest, plus petrol, insurance, tax, servicing, consumables (tyres) etc

Is it just Caymans that need petrol, insurance,tax etc. then?

I do hope this isn't going to kick off the regular cash v financing bks.