Your Thoughts Please, on savings

Rob_192

RoxRoxBling wrote: »

No where on this thread have I said that I am buying a NEW car. I too am aware of depreciation..
And I am planning to buy second hand (from a dealer) and run it for years and years (or as long as it'll last)

And in all honesty, I did not start this thread for your opinion on what car I should buy..

Sorry for breathing!!! What exactly did I say to deserve that reaction?

It was meant as genuine advice and you did ask for opinions.

Futhermore, you referred to the retail price, which I think most people would instantly interpret as meaning you meant a new car.

If you want to be like that about it then here's my honest opinion, yes, I think you would be very silly to wipe out your savings on a 'new' car, but hey ho, people do silly things, most people I know go even further and get car loans, lunacy in my opinion, but there you go.

tell_it_how_it_is

At the end of a day it's all about what you feel comfortable with, whatever is suggested.

Only thing I'd say is you don't sound that comfortable with the combined cost of the car and the insurance, so maybe consider a car of similar value with cheaper insurance, or a cheaper car with similar insurance?

RoxRoxBling

Rob_192 wrote: »

Sorry for breathing!!! What exactly did I say to deserve that reaction?

It was meant as genuine advice and you did ask for opinions.

Futhermore, you referred to the retail price, which I think most people would instantly interpret as meaning you meant a new car.

If you want to be like that about it then here's my honest opinion, yes, I think you would be very silly to wipe out your savings on a 'new' car, but hey ho, people do silly things, most people I know go even further and get car loans, lunacy in my opinion, but there you go.

Well you did give me about 6 lines about a brand new car. Ok, I didn't realise that saying Retail Price would sound to some as a new car, but just meant it as It'll be a one-off payment not monthly payments.

And TBH, I did ask about your thoughts so if you think it's a little loony to spend all my savings then that's fine... But would it still be loony if say all my savings where spent on a house or say education fees. (Just trying to get away from the thoughts of spending so much on a car, as some people can't justify it)

Just more thoughts that's all... promise won't snap this time!

Hooloovoo

RoxRoxBling wrote: »

But would it still be loony if say all my savings where spent on a house

House = mostly appreciating.
Car = certainly depreciating.

The fact you would suggest that as an example to support your argument worries me, and demonstrates a lack of financial understanding.

or say education fees.

Depends entirely on the course. If you were spending your life savings on some Mickey-Mouse degree then, yes, I would say it was silly.

Good course = appreciating salary.

Spending your life savings on something that is going up in value or increasing your earning power is, on the whole, good sense. Spending your life savings on something that is going down in value is silly.

RoxRoxBling

Hooloovoo wrote: »

House = mostly appreciating.
Car = certainly depreciating.

The fact you would suggest that as an example to support your argument worries me, and demonstrates a lack of financial understanding.

Depends entirely on the course. If you were spending your life savings on some Mickey-Mouse degree then, yes, I would say it was silly.

I'm not using it as a SUPPORT of my.. hang on I don't have an argument, was just saying..

The very reason that I am here and thinking BEFORE spending on the car, clearly demonstrates that a lot of thought is going into where my money will be spent.

Hooloovoo

RoxRoxBling wrote: »

I'm not using it as a SUPPORT of my.. hang on I don't have an argument, was just saying..

So you agree purchasing a house and a car are different and totally unrelated? Good.

The very reason that I am here and thinking BEFORE spending on the car, clearly demonstrates that a lot of thought is going into where my money will be spent.

So why are you acting so annoyed at people who disagree with your plan? As I said you've clearly already made your decision and just want people to validate it for you.

I believe everyone so far has said it would be silly to spend all your money on a car. How many people will it take to change your mind?

Also, you've ignored a question I asked earlier, the answer to which is most important. You said in post #10 that should an unlikely emergency big pay out be required, you will not be able to afford it.

So if the emergency big pay out is required, what will you do? What are your plans? The answer to this question answers you original question of whether it's silly to buy the car or not.

atush

Rob_192 wrote: »

Sorry for breathing!!! What exactly did I say to deserve that reaction?

It was meant as genuine advice and you did ask for opinions.

Futhermore, you referred to the retail price, which I think most people would instantly interpret as meaning you meant a new car.

If you want to be like that about it then here's my honest opinion, yes, I think you would be very silly to wipe out your savings on a 'new' car, but hey ho, people do silly things, most people I know go even further and get car loans, lunacy in my opinion, but there you go.

RedRoxBling, step back and calmdown. Your vitriol here is unwarrented.

That is how I read your OP (ie you were thinking of possibly buying new). you didn't mean this, but it was easy for us to think so. So stop being Rude to people trying to help you and admit your wording was easy to misinterpret. I certainly did.

Second, either pay your insurance by DD (for an extra montly cost) or make sure you have an empty unused Credit card for emergencies for the year of extra saving to get your cash buffer back in place.

Rob just made the same mistake we all did. Which means perhaps you could have written your OP more clearly.

Hooloovoo

atush wrote: »

Rob, step back and calmdown.

Rob is not the OP.

Ifts

atush wrote: »

Rob, step back and calmdown. Your vitriol here is unwarrented. That is how I read your OP (ie you were thinking of possibly buying new). you didn't mean this, but it was easy for us to think so. So stop being Rude to people trying to help you and admit your wording was easy to misinterpret. I certainly did.

[STRIKE]
Seriously atush the poor guy was genuinely trying to help the OP, you have got this one wrong![/STRIKE]

Fair play to editing your post

PollyOnAMission

If you feel like your savings can take the hit of the car purchase price but not the insurance, and if you will get some money back into your savings when you sell your current car, could you take out a 0% credit card to pay for your insurance and pay it back gradually? That way you wouldn't get stung for the extra cost of paying your insurance by direct debit and your savings will have a buffer until replenished by the sale of your old car.