Are things really this bad?

kriss_boy

I work for local government so I guess my job is as safe as a job can be during these times. My girlfriend whom i live with works for the NHS so I guess her's is pretty safe too.

We are in our 20s and we bought a 1 bed semi last year. We got it in March 2008 when house prices began to faulter, so we offered below the asking and got a bit of a bargain. We've spent about 5K on the place and I had it valued recently and luckily we were told we would get back more than we paid as it appeals to FTB and elderly couples. Flats in our area (east scotland) have dropped 10% in the last year but luckily our place has a big garden and a drive etc so it remains an appealing alternative to a flats for not much more money.

Last night though I have to admit I began to get a bit panicy about the current economic climate. I began to work out how many months I could survive for if I lost my job etc. How easily would I get another etc.

I've saved up a couple of thousand and I was hoping to spent 6/7K on a car
by putting the remaining 3/4K on an interest free credit card (till dec '09) or by taking out finance.

Now Im not so sure. Two voices in my head scream opposing advice...

"Go on, you need a new car, you've always had older beat up ones... treat yourself...."

and the other screams...

"What are you thinking you idoit!!! SAVE SAVE SAVE!!".

Am I being paranoid or are things really this bad right now?

penguine

If you're in pretty stable jobs, I think the issue is not whether you should be panicking, but if the most sensible thing to do is to pay down your mortgage rather than buying a new car.

Idiophreak

If you're worried, save the cash for a rainy day and put the whole car on finance - that way you have money for a rainy day, a new car and the warm satisfaction that you're spending money and helping the economy to recover

lethal0r

personally I would not spend so much on a car.

3 years ago i bought a 97 honda accord sport for £1.1k.

even with just £2k you could get a lovely car.

kriss_boy

At risk of losing respect around here I love BMWs.

Ive driven an older P reg 3 series for 3 years now but recently the car market has fallen like a tonne of bricks.

You can pick up a 54 plate 2 door diesel 320Cd for only 7 grand... I want one badly!!!

purplelotus

If you don't need a car, you just want one, then keep telling that voice that it's ok, you can get a new car whenever you want... see, the money is there in your bank, you're just waiting a little bit. Whenever you see a shiny new car and wish it was yours, tell yourself that of course you are able to have the car, you've just chosen not to buy it YET.

I'd say save it, you can give in and buy a car at any time. Alternatively if you buy the car now you can't just swap it for food and mortgage payments if you need to!

kriss_boy

I paid a grand for my car and its actually pretty much still worth almost a grand today... although that would be if it would pass its MOT.

MOT ends feb 22nd and theres a few costly electrical faults that will cause it to fail and cost too much to warrant the work being done.

I was looking at 4dr BMs, arround 2002/2003 for only approx 4 grand. Or like I say I can spend a couple of grand more and get one half the age and miles.

Option 3 is a nissan micra!! I used to drive one when I passed my test, an R reg one and I swear on my life for 5 years it didnt fail a single MOT barr the odd tyre or brake pad! Brilliant cars, extremely reliable and cheap as chips to run.

I can get a 2003 new shape micra for only 2.5K....

b0rker

Skoda Fabia 1.4 TDI is your answer.

LilacPixie

why not just fix yours?? I'd rather spend on a car i knew was reliable then spend buying what is basically unknown.

Streeet

Being careful with money doesn't mean going without.
Finances allowing (which it sounds like they are).. as a young fella I think you should go for it. Enjoy yourself a little and don't regret anything. Your only young once.

Your job sounds secure and you seem to be thinking the right thoughts. At the end of the day if things go wrong you sell the car and pay off the remaining finance. £6/7k won't put you into a niche where you cant sell it.

Now is actually a good time to be a buyer.. the market has already dropped and your money will go further.

Most important thing for me would be finding the best financing 'vehicle'. Low rate loan, minimum or no early redemption fee and a monthly repayment you can comfortably meet but exceeds the average depreciation of the vehicle.

Have Fun

Streeet

..and go for the 2 seater sports car (Z4 was the best car I ever owned)
Tell your better half you need to get it out of your system before family commitments restrict you lol