Not Sure If I Should Buy This Car?
Discussion
Afternoon,
Im in a bit of a pickle. Im looking to get a new car in March, hopefully an Audi S1. Im looking to get a 3 year old one for about £17500 to £18500 with insurance coming in at £1900ish (expensive i know but im only in my second year of driving so thats damn cheap for that type of car & performance). However, i worked out how much it would cost to pay for the car on hire purchase and to run it for a month (fuel, MOT, saving for insurance, tax, etc) and it would come in at about £700 to £750 maximum (remember, this is the cosr for EVERYTHING to do with the car).
This would ultimately only leave me with about £450 - £500 left for the month to spend on myself (£450 - £500 disposable income after ive deducted all my other essential outgoings).
Should I do it? I cant decide. My heart has been set on the car for 6 months now and ive been waiting patiently, however im usually very sensible financially so im looking for outside opinions.
Cheers
Im in a bit of a pickle. Im looking to get a new car in March, hopefully an Audi S1. Im looking to get a 3 year old one for about £17500 to £18500 with insurance coming in at £1900ish (expensive i know but im only in my second year of driving so thats damn cheap for that type of car & performance). However, i worked out how much it would cost to pay for the car on hire purchase and to run it for a month (fuel, MOT, saving for insurance, tax, etc) and it would come in at about £700 to £750 maximum (remember, this is the cosr for EVERYTHING to do with the car).
This would ultimately only leave me with about £450 - £500 left for the month to spend on myself (£450 - £500 disposable income after ive deducted all my other essential outgoings).
Should I do it? I cant decide. My heart has been set on the car for 6 months now and ive been waiting patiently, however im usually very sensible financially so im looking for outside opinions.
Cheers
Have you thought about taking out a personal loan instead of going through the HP route? Interest rates tend to be a lower.
There also different ways in which you could lower insurance premiums such as adding a named driver or two and getting quotes after midnight (one mate saved £200 and another who save £700).
There also different ways in which you could lower insurance premiums such as adding a named driver or two and getting quotes after midnight (one mate saved £200 and another who save £700).
Sorrg i wasnt too clear. Those numbers are based upon a lower interest rate bank loan. Also, ive done a lot of research into insurance and if i was to have two years no claim (i fiddled with the values in gocompare) then the cost isnt that different.
I was thinking of putting a bigger deposit down and lowering the monthly cost that way, or just going through the PCP route instead.
I drive a Kia Rio 2 atm
I was thinking of putting a bigger deposit down and lowering the monthly cost that way, or just going through the PCP route instead.
I drive a Kia Rio 2 atm
If driving is a passion and you can afford it, do it. Be careful with a car like that with such little experience (with the greatest of respect).
You can class it as a luxury, rather than a white goods necessity, so it's no so bad only having 450 a month personal spends after everything else is paid for inc car, fuel, insurance, rent, food etc...
I'd do it if I was in your position. Will certainly be a great car.
Shouldn't lose too much on it if you plan to sell in a few years and keep it clean and serviced etc.
You can class it as a luxury, rather than a white goods necessity, so it's no so bad only having 450 a month personal spends after everything else is paid for inc car, fuel, insurance, rent, food etc...
I'd do it if I was in your position. Will certainly be a great car.
Shouldn't lose too much on it if you plan to sell in a few years and keep it clean and serviced etc.
JustYourAverageCarGuy said:
This would ultimately only leave me with about £450 - £500 left for the month to spend on myself (£450 - £500 disposable income after ive deducted all my other essential outgoings).
After all your essential outgoings?Do you have an emergency fund?
Do you rent or own a property?
Are you putting anything aside for a pension?
Sorry to be Mr Sensible but that sounds like a big chunk of your disposable income to shell out on a car.
This seems to be a question of priorities and overall budgeting to an extent, OP? I've spent a fair few quid on cars over the years, but if I were to advise my younger self I would pick out a couple of mistakes and a few things I did right.
I would always recommend NOT looking at finances in monthly terms. I know it's how most people (including me) are paid, but this masks the true cost of things. Once I started to do this, I made very different financial decisions - especially for cars.
If you do fund a car through a loan, make sure you look at the total amount payable. It's exceptionally unlikely that a PCP will cost less than a bank loan for a used car, even if the monthly payments are higher.
Do the sums on how much this is going to cost you for, say, 3 years (all running costs, cost at start, p/x at end etc). If you are looking at a reasonably new car, then you may find it's "cheaper" over the 3 year period to lease or PCP a brand new car... However, you will also find that - if bought outright, rather than PCP'd - a used car will have a value at the end, which also needs to be accounted for.
In hindsight, there was a lovely Audi A3 2.0T quattro that I bought back in 2009 that I should have kept right up until now rather than chopping and changing so often. If you like it and know that you will keep it for a long time, then that will be a lot cheaper than changing again and again.
Alongside various cars (and finance methods), I also started regular monthly savings into equities about 11 years ago - plus a pension. I've maintained this since that time and reflect that it's good to have compounding interest working for you rather than against you. If you aren't already doing these two things, then do consider it before buying an expensive car.
I would always recommend NOT looking at finances in monthly terms. I know it's how most people (including me) are paid, but this masks the true cost of things. Once I started to do this, I made very different financial decisions - especially for cars.
If you do fund a car through a loan, make sure you look at the total amount payable. It's exceptionally unlikely that a PCP will cost less than a bank loan for a used car, even if the monthly payments are higher.
Do the sums on how much this is going to cost you for, say, 3 years (all running costs, cost at start, p/x at end etc). If you are looking at a reasonably new car, then you may find it's "cheaper" over the 3 year period to lease or PCP a brand new car... However, you will also find that - if bought outright, rather than PCP'd - a used car will have a value at the end, which also needs to be accounted for.
In hindsight, there was a lovely Audi A3 2.0T quattro that I bought back in 2009 that I should have kept right up until now rather than chopping and changing so often. If you like it and know that you will keep it for a long time, then that will be a lot cheaper than changing again and again.
Alongside various cars (and finance methods), I also started regular monthly savings into equities about 11 years ago - plus a pension. I've maintained this since that time and reflect that it's good to have compounding interest working for you rather than against you. If you aren't already doing these two things, then do consider it before buying an expensive car.
Two years in, saving for a flat..... probably not the answer you want but if I were you I wouldnt be spending £18k on a little car that's still got a lot of depreciating to do. Depending on your timing, your HP commitments may also affect your ability to buy the home you want. It's not fun feeling over-stretched and personally I don't think £500 of disposable gives you much leeway.
I'm an old fart but even my younger self would realise it's not the best idea especially if you are saving for a deposit.
Why can't young people be more patient?
Even if you spend half that amount you could still buy a decent quick car that's does most that the S1 does.
Start another thread and ask for suggestions, £9k budget, small quick hot hatch that's not expensive to run and insure.
But you'll probably buy it anyway because you want it and you think can afford it.
Why can't young people be more patient?
Even if you spend half that amount you could still buy a decent quick car that's does most that the S1 does.
Start another thread and ask for suggestions, £9k budget, small quick hot hatch that's not expensive to run and insure.
But you'll probably buy it anyway because you want it and you think can afford it.
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