Is a really nice motor worth £500 a month?
Discussion
So I have had a good year and paid off the loan on my '09 Freelander2 HSE (was £220 pm).
So now it costs me nothing except depreciation, warranty, servicing and consumables. Since I frequent these pages I now have incredibly itchy feet and I am obsessing on a Range Rover Sport, has to be the last of the previous model though (2012) with 8 speed box, power tailgate etc. I have used man maths to work out that I can probably do this for £500 per month on 5 years HP (plus all of above of course). I can "afford" this as I am self employed and it is my company car etc. but........its undeniable that £500 per month could be usefully employed elsewhere. I know the running costs will all be higher on the RRS than the FL2 but not significantly so as I only do about £10k miles a year. Is it worth it then?: £0 per month - very capable luxurious 4x4, or £500 - newer, lower mileage and really luxurious (bigger) 4x4?
So now it costs me nothing except depreciation, warranty, servicing and consumables. Since I frequent these pages I now have incredibly itchy feet and I am obsessing on a Range Rover Sport, has to be the last of the previous model though (2012) with 8 speed box, power tailgate etc. I have used man maths to work out that I can probably do this for £500 per month on 5 years HP (plus all of above of course). I can "afford" this as I am self employed and it is my company car etc. but........its undeniable that £500 per month could be usefully employed elsewhere. I know the running costs will all be higher on the RRS than the FL2 but not significantly so as I only do about £10k miles a year. Is it worth it then?: £0 per month - very capable luxurious 4x4, or £500 - newer, lower mileage and really luxurious (bigger) 4x4?
As above, if it's affordable and 'sensible' (for a given value of sense - let's not get too boring).
For me, in my situation - could I afford it? Erm, maybe by sacrificing other stuff throughout the month; could I justify it? No, straight up no - if I could I'd already be in an 5l XKR.
Money (even with credit) is a finite resource - you allocate it to the things that are most important to you. If you can, say, forego nights out for a couple of years because you'd prefer a posh car, go for it; if you would have to cut down to two meals a day to get it (and meals with meat as a once-a-month treat), it's probably not within reach just yet.
For me, in my situation - could I afford it? Erm, maybe by sacrificing other stuff throughout the month; could I justify it? No, straight up no - if I could I'd already be in an 5l XKR.
Money (even with credit) is a finite resource - you allocate it to the things that are most important to you. If you can, say, forego nights out for a couple of years because you'd prefer a posh car, go for it; if you would have to cut down to two meals a day to get it (and meals with meat as a once-a-month treat), it's probably not within reach just yet.
I know the voice of reason is rare on here you will get those that suggest plunging into £30k of debt at a moments notice is the right thing to do but why not take a year ?
Save £500pm over the next 12 months and see if it impacts your lifestyle greatly, you can run your Freelander for peanuts over the next 12 mths probably cheaper than the albeit newer RR, so will give you a good idea is you can afford or even really want to spend £500pm on one. If you do decide to take the plunge you'll only have to borrow £24k
Save £500pm over the next 12 months and see if it impacts your lifestyle greatly, you can run your Freelander for peanuts over the next 12 mths probably cheaper than the albeit newer RR, so will give you a good idea is you can afford or even really want to spend £500pm on one. If you do decide to take the plunge you'll only have to borrow £24k
To me its only worth it if the £500pcm means you own it at the end rather than lease it.
I was paying out £415pcm for my Mustang a few years back, though thats because I wanted to pay it off quicker and with saving alongside I acutually paid it off six months early, Though I owned the car at the end of the loan repayment and still have it and intend to keep it so to me it was well worth it.
But for a lease I am not so sure.
I was paying out £415pcm for my Mustang a few years back, though thats because I wanted to pay it off quicker and with saving alongside I acutually paid it off six months early, Though I owned the car at the end of the loan repayment and still have it and intend to keep it so to me it was well worth it.
But for a lease I am not so sure.
liner33 said:
Save £500pm over the next 12 months and see if it impacts your lifestyle greatly, you can run your Freelander for peanuts over the next 12 mths probably cheaper than the albeit newer RR, so will give you a good idea is you can afford or even really want to spend £500pm on one. If you do decide to take the plunge you'll only have to borrow £24k
This is a really good test to see if it's possible, with the savings bonus as stated.
liner33 said:
I know the voice of reason is rare on here you will get those that suggest plunging into £30k of debt at a moments notice is the right thing to do but why not take a year ?
Save £500pm over the next 12 months and see if it impacts your lifestyle greatly, you can run your Freelander for peanuts over the next 12 mths probably cheaper than the albeit newer RR, so will give you a good idea is you can afford or even really want to spend £500pm on one. If you do decide to take the plunge you'll only have to borrow £24k
This is undoubtedly good advice, thank you. Other replies are also well balanced and so perhaps I should just be grateful for what I've got (includes a BMW M Roadster for weekends). I have a superb LR warranty until March and even I can wait until that expires before leaping into something else. It's then that the man maths says don't pay out another £700 to extend that if you intend chopping it in....and I was easily paying £220 per month, so its not so much more (?) and it would be HP not a PCP so there will be something in it if it has to be sold for some reason. (my user name refers to a 993 that came and went too quickly because business fluctuated so I am a serial offender).Save £500pm over the next 12 months and see if it impacts your lifestyle greatly, you can run your Freelander for peanuts over the next 12 mths probably cheaper than the albeit newer RR, so will give you a good idea is you can afford or even really want to spend £500pm on one. If you do decide to take the plunge you'll only have to borrow £24k
Personally I'd do as suggested above and start saving the money. Firstly so you can find out if you can afford it without it being too burdensome and secondly because in the time that you're saving the far, far superior new model might come into your price range.
I totally and completely understand the urge to buy it now and I think most of us who are on PH know that itch, but 5 years is a long time to commit to being stuck with a car and in that time (if you're anything like me) it'll pain you to see the far superior new RRS driving around. I've been trying really hard the last couple of years to grow up a bit and not change my car every time I'm a bit bored of it, as after the new car "wooo" factor wears off I normally wish I'd kept my money for something else. The novelty seems to wear off pretty quickly most of the time.
That said interest rates are so low at the moment on savings and loans that if you can comfortably afford it, you're as certain as one can be that your income and circumstances won't change for the negative in the next 5 years and you are sure you'll be happy with it for 5 years then it's not unreasonable to borrow to buy rather than save.
I totally and completely understand the urge to buy it now and I think most of us who are on PH know that itch, but 5 years is a long time to commit to being stuck with a car and in that time (if you're anything like me) it'll pain you to see the far superior new RRS driving around. I've been trying really hard the last couple of years to grow up a bit and not change my car every time I'm a bit bored of it, as after the new car "wooo" factor wears off I normally wish I'd kept my money for something else. The novelty seems to wear off pretty quickly most of the time.
That said interest rates are so low at the moment on savings and loans that if you can comfortably afford it, you're as certain as one can be that your income and circumstances won't change for the negative in the next 5 years and you are sure you'll be happy with it for 5 years then it's not unreasonable to borrow to buy rather than save.
As someone above said - if it's money that is paying off capital then yes, go for it. But, I wouldn't throw away that much money to have no asset at the end.
I asked a similar question about a finance rate a few weeks ago, and along with helpful responses which answered the question there was a lot of life advice on how I shouldn't be wasting my money on finance.
It comes down to personal situation. For me, the repayment was affordable and I have a nice lump sum at the end. Personally, I would feel different without the asset. If I didn't sink the money in to a car i'd probably just waste it on other cr*p anyway!
I asked a similar question about a finance rate a few weeks ago, and along with helpful responses which answered the question there was a lot of life advice on how I shouldn't be wasting my money on finance.
It comes down to personal situation. For me, the repayment was affordable and I have a nice lump sum at the end. Personally, I would feel different without the asset. If I didn't sink the money in to a car i'd probably just waste it on other cr*p anyway!
Yes the idea of borrowing does not phase me really. I have a good credit history so can get 4.4% apr from bank at moment. If I borrow £25k I pay back something like £27.5k over 5 years. That doesn't seem too bad at all especially as a business expense that I can set against my tax liability.
I think I will save £500 a month until March and then see how the land lies. Now I just have to stop myself looking at the classifieds!
I think I will save £500 a month until March and then see how the land lies. Now I just have to stop myself looking at the classifieds!
Easy_Targa said:
Yes the idea of borrowing does not phase me really. I have a good credit history so can get 4.4% apr from bank at moment. If I borrow £25k I pay back something like £27.5k over 5 years. That doesn't seem too bad at all especially as a business expense that I can set against my tax liability.
I think I will save £500 a month until March and then see how the land lies. Now I just have to stop myself looking at the classifieds!
I went with finance from the manufacturer which came out at 1.9% apr. Better than any other finance company or bank. Might be able to get similar from a RR dealership for a second hand motor.I think I will save £500 a month until March and then see how the land lies. Now I just have to stop myself looking at the classifieds!
I think I know what the OP is on about.
I would very much like a GT86. The repayments would be in the ball park of 10-15% of my take home. I can comfortably 'afford' said car.
However, my 04 plate Celica is reliable, economical, comfortable and with the rear seats down can take two people, a week away worth of luggage and a bike.
With that in mind I cannot help thinking the £300 a month could be better used elsewhere.
I would very much like a GT86. The repayments would be in the ball park of 10-15% of my take home. I can comfortably 'afford' said car.
However, my 04 plate Celica is reliable, economical, comfortable and with the rear seats down can take two people, a week away worth of luggage and a bike.
With that in mind I cannot help thinking the £300 a month could be better used elsewhere.
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