help me
Author
Discussion

jamie128

Original Poster:

1,604 posts

200 months

Sunday 1st September 2013
quotequote all
Ive got a huge craving to use 3,000 out of my savings and use my cars sale value to buy a better car.

The problem i have is im on the firstbuy scheme and im interest free on the loan for another 4 years, what im trying to do is save up some money to pay off as much of the loan as i can in 5 years time, so buying a better car would mean ill have less when the time comes.

Another thing is - is that i know the history of my car, its a simple 1.2 petrol easy to fix, the cars im looking at are diesel warm hatches and if they go wrong theres more money wiped out my savings as they will cost more to fix.

Help me reduce the craving for a new car so i can get on with my life haha, im trying to do the sensible thing but i feel i should just get a car i want while im younger.

Shaw Tarse

31,900 posts

233 months

Sunday 1st September 2013
quotequote all
Are you still after a diesel?

jamie128

Original Poster:

1,604 posts

200 months

Sunday 1st September 2013
quotequote all
Shaw Tarse said:
Are you still after a diesel?
yes i know diesels are the devil but i prefer them and prefer the way you can usually have more smiles per gallon.

maxdb

1,547 posts

187 months

Sunday 1st September 2013
quotequote all
I would keep the car you have until it runs out of life..

jamie128

Original Poster:

1,604 posts

200 months

Sunday 1st September 2013
quotequote all
maxdb said:
I would keep the car you have until it runs out of life..
how do i fight the craving lool

Burrito

1,705 posts

250 months

Sunday 1st September 2013
quotequote all
Have a look at the increased insurance and servicing costs along with the future depreciation of the new car, that should stem the craving for a while.

Or just go out and buy it (not a diesel warm hatch though). You only live once.

Hope that helps biggrin

Council Baby

19,746 posts

220 months

Sunday 1st September 2013
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You only live once, do your entire savings and car on your dream car. Sell it in 5 years to pay off the loan and divorce settlement thumbup

AGK

1,605 posts

185 months

Sunday 1st September 2013
quotequote all
Don't do it. Roof over your head beats all.

Riknos

4,701 posts

234 months

Monday 2nd September 2013
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I can understand the "get the car you want whilst still young" thing - I did it. Several times.

But, don't do it with a sensible 'diesil warm hatch' at least get something remotely fun and un-practical, jesus...

davepoth

29,395 posts

229 months

Monday 2nd September 2013
quotequote all
Yup. Putting yourself into a slightly iffy financial situation to buy a humdrum car is a silly idea. If you really want to have some fun, buy a £500 MX-5 as a weekend toy.

jamie128

Original Poster:

1,604 posts

200 months

Monday 2nd September 2013
quotequote all
davepoth said:
Yup. Putting yourself into a slightly iffy financial situation to buy a humdrum car is a silly idea. If you really want to have some fun, buy a £500 MX-5 as a weekend toy.
its a car i want i dont like petrol cars

Pferdestarke

7,192 posts

217 months

Monday 2nd September 2013
quotequote all
Don't bother. Simple.

funkyrobot

18,789 posts

258 months

Monday 2nd September 2013
quotequote all
jamie128 said:
Ive got a huge craving to use 3,000 out of my savings and use my cars sale value to buy a better car.

The problem i have is im on the firstbuy scheme and im interest free on the loan for another 4 years, what im trying to do is save up some money to pay off as much of the loan as i can in 5 years time, so buying a better car would mean ill have less when the time comes.

Another thing is - is that i know the history of my car, its a simple 1.2 petrol easy to fix, the cars im looking at are diesel warm hatches and if they go wrong theres more money wiped out my savings as they will cost more to fix.

Help me reduce the craving for a new car so i can get on with my life haha, im trying to do the sensible thing but i feel i should just get a car i want while im younger.
At least you are debating this before splashing out.

However, this is one of the reasons why I have no confidence in the latest government home buying schemes.

Ari

19,826 posts

245 months

Monday 2nd September 2013
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Is that how these schemes work? 5 years interest free? Where's he logic to that? If you can't afford the Interest in the first five years how are you supposed to afford it in the following, what, twenty?

They're even more desperate to keep the bubble inflated than I thought if this is their answer.

funkyrobot

18,789 posts

258 months

Monday 2nd September 2013
quotequote all
Ari said:
Is that how these schemes work? 5 years interest free? Where's he logic to that? If you can't afford the Interest in the first five years how are you supposed to afford it in the following, what, twenty?

They're even more desperate to keep the bubble inflated than I thought if this is their answer.
There are other schemes now.

Basically, the one referenced above is like you say. If I recall correctly, the builder and the government provide a loan for your deposit. This is interest free for a period of time. However, you still pay off a mortgage.

Once the period is over though, you start paying interest on the loan as well as paying everything else for the mortgage. So, if you do not save up over the time period and pay off the loan part, you will be stuck paying off a loan with interest, plus the mortgage.

If you can't manage money, it's not a good thing really. In four years time, I wonder how many people will struggle with their payments.

Funny thing is, this injection of schemes to artificially float the bubble and get the market going for a few more years has had a knock-on effect on me. I'm in the process of buying a property that overlooks fields. The ability to buy this has come from me saving like crazy and my fiancee selling her own home and adding the funds to mine. By doing this, we've raised a good deposit.

However, we recently found out that 'due to the lack of new homes' in the area a developer is building an estate on the field behind our new home. Most of these will be cheap, affordable and low-budget dwellings. So, in an area of established, 1930's properties, we'll have an estate. rolleyes

We have accepted this and am still buying the house (because it's lovely). Also, we aren't snobs and what will be will be. However, it seems like the powers that be are really, really desperate to let people buy a property without having to save. The main problem is house prices (as they are far too high), but until someone admits that we'll be lambasted with these debt inducing schemes.

Simpo Two

92,955 posts

295 months

Monday 2nd September 2013
quotequote all
'Neither a borrower nor lender me'. 'Live within your means'.

Two other general facts:

It costs more to borrow money than to save it.

Houses (generally) go up. Cars always go down. The more expensive the car, the more you will lose.


Therefore you will be poorer, and IIRC you already felt poor. You have many years and decades ahead of you to buy nice cars smile