A Somewhat Philosophical Question about Supercars
Discussion
Good evening gents,
First of all I'd like to get in a disclaimer saying that this thread will wind some folk up and I apologise for that. It is however something I am genuinely looking for advice on.
I'm a 23 year old chap currently on a graduate scheme for a large uk company. Through the hard work of my grandfather and the generosity of my father I will soon be coming in to a fair amount of money. We are not talking millions but we are talking enough to outright purchase a nice flat with some change.
Now, I am truly aware that the smart thing to do would be to get on the property ladder with no worry about a mortgage, at least whilst in flat or small house type accommodation. However, this being PH I am of course a car nut, particularly for Italian exotica. I don't like them because they are flash or because they convey wealth or look good cruising down the Kings Road. I like them because hearing them driven properly makes my hair stand on end. They are automotive art.
I am very lucky to soon be in the position where I could buy something like an F430 and retain enough capital to put a healthy deposit on a house. However, the man thinking with his sound financial head on would think this a ludicrous decision when the chance is there to own property outright. Having said that, the chance to purchase the type of car I have grown up craving may not arise again as one gets older and responsibility for others increases. Additionally, purchasing a less expensive/nice house is not something I can see myself truly regretting but failing to buy the car of my dreams and driving it through the European mountains is something I think I would regret for eternity.
I'm keen to get peoples thoughts on what root to take. I'm 23 with limited experience of life compared to the majority of chaps on here.
Over to you and thanks for reading.
Edited to add: The other major concern I have is that I will not have EARNT the car. I am sure this will negate some of the ownership satisfaction knowing that it was merely given to me and not something I worked tirelessly to achieve.
First of all I'd like to get in a disclaimer saying that this thread will wind some folk up and I apologise for that. It is however something I am genuinely looking for advice on.
I'm a 23 year old chap currently on a graduate scheme for a large uk company. Through the hard work of my grandfather and the generosity of my father I will soon be coming in to a fair amount of money. We are not talking millions but we are talking enough to outright purchase a nice flat with some change.
Now, I am truly aware that the smart thing to do would be to get on the property ladder with no worry about a mortgage, at least whilst in flat or small house type accommodation. However, this being PH I am of course a car nut, particularly for Italian exotica. I don't like them because they are flash or because they convey wealth or look good cruising down the Kings Road. I like them because hearing them driven properly makes my hair stand on end. They are automotive art.
I am very lucky to soon be in the position where I could buy something like an F430 and retain enough capital to put a healthy deposit on a house. However, the man thinking with his sound financial head on would think this a ludicrous decision when the chance is there to own property outright. Having said that, the chance to purchase the type of car I have grown up craving may not arise again as one gets older and responsibility for others increases. Additionally, purchasing a less expensive/nice house is not something I can see myself truly regretting but failing to buy the car of my dreams and driving it through the European mountains is something I think I would regret for eternity.
I'm keen to get peoples thoughts on what root to take. I'm 23 with limited experience of life compared to the majority of chaps on here.
Over to you and thanks for reading.
Edited to add: The other major concern I have is that I will not have EARNT the car. I am sure this will negate some of the ownership satisfaction knowing that it was merely given to me and not something I worked tirelessly to achieve.
Edited by mikearwas on Thursday 20th February 21:28
You might also want to give some thought as to how much of your capital will be eroded running the supercar of your dreams. 
Pay particular attention to the costs of insurance ....
Remember that it's probably easier to turn your investment in property into sufficient excess so as to buy the car you want in a few years than it is to turn a Ferrari 430 into the additional capital required to buy a larger property.
Pay particular attention to the costs of insurance ....
Remember that it's probably easier to turn your investment in property into sufficient excess so as to buy the car you want in a few years than it is to turn a Ferrari 430 into the additional capital required to buy a larger property.
How long would you spend in a decent flat? How long would you spend in a decent car? OK.
Now, are the occasional bragging rights of the latter enough to make you overlook the 24x7 benefits of the former?
Because you already know you can get the feel and sound of a good used supercar for an awful lot less money than a 430.
Now, are the occasional bragging rights of the latter enough to make you overlook the 24x7 benefits of the former?
Because you already know you can get the feel and sound of a good used supercar for an awful lot less money than a 430.
Gaz. said:
Flat/house/your own gaff.
Without mortgage payments or rent you could still have a hell of a nice car to park on your driveway.
This, yeah, you can buy the car outright and then save, but owning a car like that is not a cheap carry on and unless you are earning an excellent wage it will impact your ability to save for a deposit.Without mortgage payments or rent you could still have a hell of a nice car to park on your driveway.
House first.
Olivera said:
Put a large deposit on the house and buy the car. After a year of driving flog it and sink the cash into the mortgage if you so wish.
I would tend toward this. It will probably cost you several thousand to own a supercar for a year but it won't depreciate to zero in that time so you will get most of the purchase price back which can then be sunk into teh mortgage / property improvements.Ben
It sounds like a one off cash windfall.
I would use this once in a lifetime chance to get ahead of the game.
Don't buy any new build crap. Use it as a deposit on a decent house with a fee bed rooms. You can rent the extra rooms out to mates. Before you know it you could have a partner and kids and you will be so glad you aren't stuck in a crap 1 bed new build flat.
I bought a Ferrari when I was 24. It was fun, but it won't benefit you for the rest of your life.
Otherwise, reckon on losing at least £20k on depreciation and running if you keep it a couple of years.
I would use this once in a lifetime chance to get ahead of the game.
Don't buy any new build crap. Use it as a deposit on a decent house with a fee bed rooms. You can rent the extra rooms out to mates. Before you know it you could have a partner and kids and you will be so glad you aren't stuck in a crap 1 bed new build flat.
I bought a Ferrari when I was 24. It was fun, but it won't benefit you for the rest of your life.
Otherwise, reckon on losing at least £20k on depreciation and running if you keep it a couple of years.
IMO too many people are obsessed with having zero debt, especially at an early age. If you look like you have a decent income/earning profile then there's no harm in taking out a manageable mortgage and going for the car. By the time you could afford it again you may not have the opportunity (wife/kids/dog/lost legs doing DIY on your zero-mortgage house etc).
I'd say buy the flat and save for the car, or do both by getting a nice, but not overly expensive car...perhaps a budget of £10-15k.
Apologies in advance for quite how boring this will sound, but another option would be to get an offset mortgage if you are unsure as to where your priorities lie. Basically your savings offset the mortgage, but you still have access to the savings if you want them...so, £200k offset mortgage with £50k of savings means that you just pay mortgage interest on the difference....£150k. Perhaps in your case you could fully offset the mortgage (i.e. you have an offset mortgage but have the same amount in savings so you pay no mortgage and know that 'in effect' you own the house outright). You would still have access to your savings, so you could buy the car you want (and pay mortgage interest whilst you have it), and then sell it and go back to having no mortgage payments. Decide whether it all lives up to expectation. In a couple of years, clear the mortgage and buy the car with the extra money you'll probably have stashed away by then.
Edited to add: I havent factored depreciation into this, but buy carefully and there wont be much!
Apologies in advance for quite how boring this will sound, but another option would be to get an offset mortgage if you are unsure as to where your priorities lie. Basically your savings offset the mortgage, but you still have access to the savings if you want them...so, £200k offset mortgage with £50k of savings means that you just pay mortgage interest on the difference....£150k. Perhaps in your case you could fully offset the mortgage (i.e. you have an offset mortgage but have the same amount in savings so you pay no mortgage and know that 'in effect' you own the house outright). You would still have access to your savings, so you could buy the car you want (and pay mortgage interest whilst you have it), and then sell it and go back to having no mortgage payments. Decide whether it all lives up to expectation. In a couple of years, clear the mortgage and buy the car with the extra money you'll probably have stashed away by then.
Edited to add: I havent factored depreciation into this, but buy carefully and there wont be much!
Edited by johnnyBv8 on Thursday 20th February 22:09
mikearwas said:
The other major concern I have is that I will not have EARNT the car. I am sure this will negate some of the ownership satisfaction knowing that it was merely given to me and not something I worked tirelessly to achieve.
I wouldnt worry about this bit! For some people, owning a nice car isnt much of a dent in their wallet and therefore doesnt directly relate to blood/sweat/tears - doesnt mean they dont still enjoy the car!Gassing Station | General Gassing | Top of Page | What's New | My Stuff