Opinions/Advice Needed!

[Jackk_18]

Hi all

Wondering if any advice/opinions can be provided to help me make my mind up.

I'm paying around ~£400 all in at the moment for an Audi S3 8V per month, which i can afford, however im looking to move out in the near future (24 living at home still). Furthermore, my job has changed and i now commute via train to work 5 days a week, meaning my average daily miles is now around 7. Im wondering if i should sell the car, pay off the finance and get something used, much cheaper as it'd allow me to save and also, is there any point paying out so much and hardly driving?

Anyone in/been in similar scenarios or willing to throw their 2 pence in just so i can gauge opinions?

Thanks!

[anonymous-user]

If you can jump off the PCP bandwagon for a while, do it. Buy a shed and pocket the £400 a month towards a house deposit.

[RTB]

Work out your per mile costs. Currently you're probably averaging 3 or 4 quid a mile if you're doing ~2000 miles a year. It'd be cheaper to get a taxi

I'd get a moderately decent 2nd hand car (~£3-4k) and have a back up plan to get to the station (bike). My commute is 9 miles each way, I drive an old fiesta and have worked out that my monthly cost over the last 3 years (maintenance and depreciation) is around 60 quid a month.

400 quid a month will do more good in a property than paying to rent a car you hardly use. In 10 years time when all your mates are still renting houses you'll be sat in a (hopefully) appreciating asset with thousands of pounds worth of equity.

[Howard-]

If you used it for a "proper" commute during the week and/or got plenty of enjoyment out of it at the weekend then I would say keep it and enjoy it. But in this instance it just sounds like a bit of a waste of money.

[rxe]

The challenge is finding a decent, cheap, reliable shed that won't break at some inconvenient time and land you with a big bill. If you can find a suitable shed, then definitely do it and save the money. You may be driving something unfashionable, but £400 a month is real money, and if you're hardly using the car, it is a waste.

Best place look for sheds is family and friends - elderly people giving up driving is a goldmine for low mileage, well maintained sheds that are worth almost nothing. There are loads about, I got a £275 shed that is currently doing 25,000 miles a year.

[lyonspride]

I'd echo the above, breaking free of the aforementioned "pcp bandwagon" will give you so much more freedom.

[Jackk_18]

Thanks for all the input, seems like I have the same thought which is to get off the PCP band wagon.

I do enjoy my cars though so id have to get something fairly enjoyable to drive, im thinking Type R EP3 however coming across one which hasn't been ragged by 5+ previous owners is hard to come by...the £500 yearly tax is also off putting!

[James_33]

I would also agree with the people above, £400 a month is a lot of money, only thing i would say is don't necessarily do what i did if your a car enthusiast, little different circumstances as i had to buy a different car and cheaper because of a young family but i went and bought a 1.4 astra and whilst it was a decent enough car for what i needed, I always had that feeling in me of wanting something back that i had an actual interest in but family life and job insecurity through medical reasons meant i couldn't afford it.

By all means sell the Audi, but buy something that you have a little interest in rather than something your not bothered about.

[Douglas Quaid]

My advice is to get yourself something like a Toyota carina or Nissan primera. Unkillable, cheap, very reliable. Ok not cool but when you can pick one up for hundreds who cares? When you have more money in the future then get yourself something better but if you’re trying to save there’re a good bet. In fact there’s a primera gt on eBay at the minute. You can thrash around in something like that without worrying about it.

[Jackk_18]

Owned an Audi S3 8V for 19 months, it cost me £24K + 9.9%apr, £4k deposit and £278 a month...I'm 24 and looking to move out in the next 18 months or so and now dawned on me that it was a potentially rash decision to pay so much for a car that I only do around 7 miles a day in with commuting to work via train.

Can you guys give me any advice I regards to 1) Should I cut ties now and sell private? 2) What should I get instead? (I'm thinking bank loan of up to £10K for something somewhat enjoyable)

Also would welcome to some financial advice at my age as at the moment, I see a car I want, splash out and then the novelty wears off and I want rid of my debts!

[DeolTheBeast]

Coming up to 2 years ownership, you'd like to think the equity position with the car isn't too bad - S3's hold value well enough for that type of car

Given the commute is on the train, selling privately and cutting losses ASAP is probably a reasonable way to move forward

Cheaper car for the foreseeable future should allow you to save up for other necessities i.e house deposit etc etc

[CooperS]

Strap in for the responses but you're making the right financial move.

The first point of call is VW finance (presuming you bought it through a main dealer) to see what balance is left.

From there you can work out how to clear it be that through private sale, sell back to Audi or contract termination.

[PF62]

Jackk_18 said:

I only do around 7 miles a day in with commuting to work via train.

So it is costing you upwards of £1.50 a mile!

Jackk_18 said:

2) What should I get instead?

A bike - 3 miles each way to the station. Seriously, why would you even think about driving.

[Bumblebee7]

Right advice re finding out how much left to pay on the finance, that way you know the minimum you need to sell for in order to clear the debt.

As to what to buy next, if you want something fun for £10k or less then I'd be looking at a GT86.

[Jackk_18]

DeolTheBeast said:

Coming up to 2 years ownership, you'd like to think the equity position with the car isn't too bad - S3's hold value well enough for that type of car

Given the commute is on the train, selling privately and cutting losses ASAP is probably a reasonable way to move forward

Cheaper car for the foreseeable future should allow you to save up for other necessities i.e house deposit etc etc

It’s a 3 door hatch and based on Autotrader I reckon I could get ~£19K as it’s only done around 20k mileage so far

[Jackk_18]

CooperS said:

Strap in for the responses but you're making the right financial move.

The first point of call is VW finance (presuming you bought it through a main dealer) to see what balance is left.

From there you can work out how to clear it be that through private sale, sell back to Audi or contract termination.

Settlement is just shy of £17K at the moment so hopefully will get a bit of cash back but when I put in to perspective what it’s cost for 2 years running, can’t help but think stupid mistake!

[Jackk_18]

PF62 said:

A bike - 3 miles each way to the station. Seriously, why would you even think about driving.

Do more weekend miles of course but really not cost effective in terms of a 5 day working week!

[bluezedd]

Jackk_18 said:

Owned an Audi S3 8V for 19 months, it cost me £24K + 9.9%apr, £4k deposit and £278 a month...I'm 24 and looking to move out in the next 18 months or so and now dawned on me that it was a potentially rash decision to pay so much for a car that I only do around 7 miles a day in with commuting to work via train.

Definitely sounds like you should get rid of the S3 and get something simple, preferably owned outright, and with cheap running costs.

Jackk_18 said:

Can you guys give me any advice I regards to 1) Should I cut ties now and sell private? 2) What should I get instead? (I'm thinking bank loan of up to £10K for something somewhat enjoyable)

£10k loan to do 7 miles a day seems a bit overkill, especially if you're wanting to move out soon.

Jackk_18 said:

Also would welcome to some financial advice at my age as at the moment, I see a car I want, splash out and then the novelty wears off and I want rid of my debts!

General financial advice:

1. absolutely do not opt out for your employer's pension scheme. If they offer matched contributions, aim to maximise these contributions. It's free money.

2. Don't finance depreciating assets. (there may be 'in theory' contradictions to this. e.g. if you pay 3% interest, but can return 6% with your investments. I'm not the biggest fan of this sort of justification though as it can be misleading and promote poor choices)

3. save up an emergency fund of 3 to 6 months expenses and keep in cash.

4. if you're looking to buy a house, open a Lifetime ISA and contribute up to £4000 per year. The govt. tops it up to £5k so it's more free money.

5. Invest regularly in a diversified fund, and don't try and time the market.

6. Enjoy life and cars, but perhaps keep cars to a small part of your financial picture. Whether that small part is £500 or £500,000 doesn't matter. Find a balance that you're happy with, and consider the opportunity cost of any purchases.

Edited by bluezedd on Wednesday 26th June 15:40

[Jackk_18]

Bumblebee7 said:

Right advice re finding out how much left to pay on the finance, that way you know the minimum you need to sell for in order to clear the debt.

As to what to buy next, if you want something fun for £10k or less then I'd be looking at a GT86.

About £17k left to pay off the debt...cheers for the recommendation

[Chrismawa]

I had similar situation at your age. I binned off my Focus ST i was paying monthly for and bought an R53 Cooper S cash and saved as much as possible for house deposit. Bonus was i preferred the Cooper S to the ST!