How much to spend on a car???
Discussion
I'm wondering how much money I should spend on a car...I am trying to justify spending around 40k buying an Aston Martin DB9 which to me is simply a piece of art.
Here's my situation; I'm 27 I'm from a pretty poor family so I have no support to fall back on if things go wrong however I work for a large industrial business with a safe job of 80k a year. I managed to buy three houses worth around 750k mostly with debt but the rent covers the mortgages by two times so I feel fairly comfortable that its good debt. I personally only spend 500 a month on rent in a flat share and have no debts.
Now what totally boggles my mind is the amount of range rovers, high end mercs, audis and god knows what driving around the place yet I know few people that earn 100k+ or any amount that I would deem justifies such a car.
What do you guys think is reasonable to spend in this case?
Here's my situation; I'm 27 I'm from a pretty poor family so I have no support to fall back on if things go wrong however I work for a large industrial business with a safe job of 80k a year. I managed to buy three houses worth around 750k mostly with debt but the rent covers the mortgages by two times so I feel fairly comfortable that its good debt. I personally only spend 500 a month on rent in a flat share and have no debts.
Now what totally boggles my mind is the amount of range rovers, high end mercs, audis and god knows what driving around the place yet I know few people that earn 100k+ or any amount that I would deem justifies such a car.
What do you guys think is reasonable to spend in this case?
Look at it this way-
You managed to get a well paid job. You managed to get 3 houses almost worth a million quid and you have other people paying the rent. You did all this despite not coming from a wealthy background.
You're a smart chap, figure it out for yourself, don't get a bunch of randomers from a website to help you!
My advice would be to spend 5k on a car and the rest on a magical roadtrip going to various ski resorts in Europe! Clearly from most people's point of view that's a terrible idea.
You managed to get a well paid job. You managed to get 3 houses almost worth a million quid and you have other people paying the rent. You did all this despite not coming from a wealthy background.
You're a smart chap, figure it out for yourself, don't get a bunch of randomers from a website to help you!
My advice would be to spend 5k on a car and the rest on a magical roadtrip going to various ski resorts in Europe! Clearly from most people's point of view that's a terrible idea.
Sounds like you have a good income but few debt-free assets. Do you have any savings? What is the LTV on those houses and what do interest rates have to go up to to make you cash flow negative?
From a purely financial point of view if you're buying the car with cash and can keep your head above water if you have to pay a say 7% interest rate then go for it. Personally though in that position I'd buy a cheaper nice car you don't worry whether you can afford and spend the rest on having fun
From a purely financial point of view if you're buying the car with cash and can keep your head above water if you have to pay a say 7% interest rate then go for it. Personally though in that position I'd buy a cheaper nice car you don't worry whether you can afford and spend the rest on having fun
Once you can afford to buy the car outright in cash you can afford it. IMO.. Given the income you state and outgoings it will be a short wait!
If you don't have the money already and can't see how you could save that much then your income and outgoings are not correct and I wouldn't buy one!
Ironically a few years back I seriously pondered buying a second hand Aston, but decided I couldn't afford it, then spent 80k modifying my existing car that I would have sold to part fund it...
If you don't have the money already and can't see how you could save that much then your income and outgoings are not correct and I wouldn't buy one!
Ironically a few years back I seriously pondered buying a second hand Aston, but decided I couldn't afford it, then spent 80k modifying my existing car that I would have sold to part fund it...
You're clearly a smart chap.
I'm confident you could afford to buy and probably run the car (nice choice btw) if you can manage your money that carefully, however I have some "howevers":
1) If your flat share is a swanky place in London then fair enough, but a DB9 would stick out like a sore thumb in most flats and may give the impression (wrongly, given your other investments IMHO) that you're a pillock with bad priorities. Whether you should be bothered by what conclusions your neighbours jump to is another debate though...
2) How much equity, other investments and liquid cash do you have?
3) Can you afford to drive the DB9 enthusiastically, keep up a full AMSH and lavish it with tyres? Or will you have to pussy foot around afraid of wearing out the brake pads?
4) Will you have enough disposable income left over to comfortably fund socialising, holidays, fillet steaks etc or will stepping out of the DB9 be a rude thump back down to pleb-dom every time? Don't get me wrong, we're not talking about pouring Champagne over your head for a laugh every Tuesday night but you're going to want to maintain a balanced, comfortable lifestyle I'd have thought.
Overall, if you have somewhere nice to park it where it's not going to have the badges prised off and the paintwork keyed, I'd encourage you to go for it providing that owning it won't fleece you. £80k is much more than most have to live off but it doesn't take too many indulgences to deplete the current account every month.
I'm confident you could afford to buy and probably run the car (nice choice btw) if you can manage your money that carefully, however I have some "howevers":
1) If your flat share is a swanky place in London then fair enough, but a DB9 would stick out like a sore thumb in most flats and may give the impression (wrongly, given your other investments IMHO) that you're a pillock with bad priorities. Whether you should be bothered by what conclusions your neighbours jump to is another debate though...
2) How much equity, other investments and liquid cash do you have?
3) Can you afford to drive the DB9 enthusiastically, keep up a full AMSH and lavish it with tyres? Or will you have to pussy foot around afraid of wearing out the brake pads?
4) Will you have enough disposable income left over to comfortably fund socialising, holidays, fillet steaks etc or will stepping out of the DB9 be a rude thump back down to pleb-dom every time? Don't get me wrong, we're not talking about pouring Champagne over your head for a laugh every Tuesday night but you're going to want to maintain a balanced, comfortable lifestyle I'd have thought.
Overall, if you have somewhere nice to park it where it's not going to have the badges prised off and the paintwork keyed, I'd encourage you to go for it providing that owning it won't fleece you. £80k is much more than most have to live off but it doesn't take too many indulgences to deplete the current account every month.
rehab71 said:
Jon321 said:
hadenough! said:
Interesting / odd first post...
+1I think to register for a forum you should have to verify somehow (maybe with a debit / credit card). Not talking about paying to use, but it would keep a lot of weirdos / nobheads out.
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