What percent of your savings did you use to purchase a daily
Discussion
What I usually do for my cars is for example my lexus cost 6300 three years ago I had the cash in savings I borrowed 12000 from my local credit union using my savings as collateral . Bought the car and lodged the remaining 5700 into my savings account. Two years later the loan was repaid and I have a healthy savings balance and credit rating and still have the car
Bdevo3 said:
What I usually do for my cars is for example my lexus cost 6300 three years ago I had the cash in savings I borrowed 12000 from my local credit union using my savings as collateral . Bought the car and lodged the remaining 5700 into my savings account. Two years later the loan was repaid and I have a healthy savings balance and credit rating and still have the car
I kind of get your point but you pay interest on that loan so your paying to save money? Wouldent it make more sense to buy the car outright if you have the cash?The way I see it is my initial savings are collateral on the loan until it is paid back. The 5700 I lodged back in from the loan is now earning dividends which more or less cancel out the interest on the loan. I have the car I wanted and still have a 5700 rainy day fund and when the loan was repaid I had close on 15k when my collateral was released by just saving what I could when I could. I find it hard to save regularly but always repay the loan
Pulled the trigger on a brand new FULL FAT RR for £120k, about 0.2767347% of my savings.....
...I've also got to come out of the company car scheme this year and will probably spend about 2-3k on a car as really don't want to use much of my savings or take out a loan. can't justify spending a lot of money on a daily to sit in traffic on a boring journey, especially when £2-3k gets you something pretty decent these days
...I've also got to come out of the company car scheme this year and will probably spend about 2-3k on a car as really don't want to use much of my savings or take out a loan. can't justify spending a lot of money on a daily to sit in traffic on a boring journey, especially when £2-3k gets you something pretty decent these days
MorganP104 said:
This. All day long.
Spend a bag of sand(ish) on a car with a long MoT to suit your needs, run it until the MoT expires, then bin it or get a fresh MoT, depending on how the year has gone.
I cant see this shed philosophy.Spend a bag of sand(ish) on a car with a long MoT to suit your needs, run it until the MoT expires, then bin it or get a fresh MoT, depending on how the year has gone.
Lets say you either buy:
A 12 grand relatively new/reliable car to last 5 years.
Or 3 sheds over 5 years priced at 2,000 each.
The newer car will throw maybe one big bill at you in that time and generally just need consumables.
The 3 sheds will all likely need something repaired at m.o.t time every year due to the age they are likely to be, they will likely be on the whole unreliable, again due to the age and mileage, and over 5 years, even being lucky you could rack up to 12,000 in costs yet be driving old cars around all the time.
I cant see the appeal
dieseluser07 said:
I cant see this shed philosophy.
Lets say you either buy:
A 12 grand relatively new/reliable car to last 5 years.
Or 3 sheds over 5 years priced at 2,000 each.
The newer car will throw maybe one big bill at you in that time and generally just need consumables.
The 3 sheds will all likely need something repaired at m.o.t time every year due to the age they are likely to be, they will likely be on the whole unreliable, again due to the age and mileage, and over 5 years, even being lucky you could rack up to 12,000 in costs yet be driving old cars around all the time.
I cant see the appeal
Or alternatively - buy a shed for under 1K - run it for 2 years, £100 to get it through an MOT, sell it for £750, rinse and repeat. Lets say you either buy:
A 12 grand relatively new/reliable car to last 5 years.
Or 3 sheds over 5 years priced at 2,000 each.
The newer car will throw maybe one big bill at you in that time and generally just need consumables.
The 3 sheds will all likely need something repaired at m.o.t time every year due to the age they are likely to be, they will likely be on the whole unreliable, again due to the age and mileage, and over 5 years, even being lucky you could rack up to 12,000 in costs yet be driving old cars around all the time.
I cant see the appeal
I've had a few that get sold for the same / more than I paid for them.
The total cost of running a shed can be less than your 1 big bill if you choose wisely.
Why would anyone spend 12K on a depreciating asset - I can't see the appeal
fat80b said:
Or alternatively - buy a shed for under 1K - run it for 2 years, £100 to get it through an MOT, sell it for £750, rinse and repeat.
I've had a few that get sold for the same / more than I paid for them.
The total cost of running a shed can be less than your 1 big bill if you choose wisely.
Why would anyone spend 12K on a depreciating asset - I can't see the appeal
This. All day long.I've had a few that get sold for the same / more than I paid for them.
The total cost of running a shed can be less than your 1 big bill if you choose wisely.
Why would anyone spend 12K on a depreciating asset - I can't see the appeal
Comfy shed for hacking to and from work, silly plastic car for the high days.
dieseluser07 said:
MorganP104 said:
This. All day long.
Spend a bag of sand(ish) on a car with a long MoT to suit your needs, run it until the MoT expires, then bin it or get a fresh MoT, depending on how the year has gone.
I cant see this shed philosophy.Spend a bag of sand(ish) on a car with a long MoT to suit your needs, run it until the MoT expires, then bin it or get a fresh MoT, depending on how the year has gone.
Lets say you either buy:
A 12 grand relatively new/reliable car to last 5 years.
Or 3 sheds over 5 years priced at 2,000 each.
The newer car will throw maybe one big bill at you in that time and generally just need consumables.
The 3 sheds will all likely need something repaired at m.o.t time every year due to the age they are likely to be, they will likely be on the whole unreliable, again due to the age and mileage, and over 5 years, even being lucky you could rack up to 12,000 in costs yet be driving old cars around all the time.
I cant see the appeal
I've spent a lot of money (relative to my situation) on cars and I've spent shed-money on cars.. and I see the appeal for both options, depending on intended use.
e.g: If I want something to cart my dogs to & from the beach/vets, take garden rubbish to the tip and throw my boilersuit/boots/spare wheels and tyres for a trackday in; then a cheap van/estate car is perfectly adequate.
I've had my Transit Connect for the past 3 years-ish and it's cost me about a grand in repairs and MOT costs, including a clutch/alternator replacement which were a large percentage of that figure. Despite this, I still wonder why I would spend 10k/12k/15k+ on a new van/estate/SUV to do exactly the same job? Sure it'd be faster, more comfortable, newer.. but it'd just be one issue away from costing me the same or more than what my van has in repairs, that's before you look at potential servicing (to maintain the FSH and so it's value) and running costs.
It's a bit like leasing, it's not for everyone.. but for some it's the perfect solution.
Cheers,
Grant
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