Your Thoughts Please, on savings

Rob_192

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.

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.

atush

You've got me confussed...I am not the OP

Were your comments aimed at the OP (RoxRoxBling)?

I was mearly responding to what I thought was a fairly curt response from the OP to what I considered to be genuine advice, based on the fact that we were all assuming they originally meant a new car - I have never heard the term 'retail price' used in the context of a 2nd hand car.

R

lippy1923

OP, what is your current living situation? Someone has previously asked but you have not answered.

If you are single, no kids, living with parents etc then go ahead and buy it.
If you are married/kids/family you support, then don't as it could be a really selfish situation you put them in if an emergency happened.

I personally would not give up all of my emergency fund ever.

atush

Sorry Rob, yes my comments were for the OP.

I see this here all the time, when you try to help people, and even point out errors in their thinking and judgment (or just understanding) then they attack you. When all you are doing os trying to help.

some just ask, thinking everyone will agree and pat them on the back and they can't stand it when they don't.

Have edited my post to reflect what I meant lol.

jimjames

I noticed you said that you do have other savings that are locked in so you can't immediately access so I assume that the purchase isn't taking 99% of your total savings.

One item I would question is the value of Gap insurance. When I last bought a car it just seemed like another policy designed to cost you money for the benefit of the dealer. They tried to explain it to me and failed. Yes I know that the insurance won't pay out the value you paid for the car (If you write it off) but by then you can buy the same car cheaper anyway with the money paid out. If you are paying cash and not a loan then not taking gap cover could be used towards your insurance instead.

Skinto_7

jimjames wrote: »

I noticed you said that you do have other savings that are locked in so you can't immediately access so I assume that the purchase isn't taking 99% of your total savings.

One item I would question is the value of Gap insurance. When I last bought a car it just seemed like another policy designed to cost you money for the benefit of the dealer. They tried to explain it to me and failed. Yes I know that the insurance won't pay out the value you paid for the car (If you write it off) but by then you can buy the same car cheaper anyway with the money paid out. If you are paying cash and not a loan then not taking gap cover could be used towards your insurance instead.

James,

The gap insurance/top up insurance is only a policy that costs you money and benifits the dealer if you dont need it.

As an expert in writing off cars i have used it twice and it has been the best £300 i have spent each time, in my expierance once you have got past the hassle of dealing with your normal car insurance company the gap insurance is one phone call no questions send copy of your settlement cheque and original invoice and 1 week later you get a cheque for the balance. Has definetly been a good product for me!!

innovate

aamkeri wrote: »

Be mindful of your spending. Take your cash and any left over $ from recurring bills that you do not want to or can not eliminate and open a savings account. Money market accounts are good as they can be liquidated without penalty at any time. Leave only the money you do not mind spending (however much that may be) in easily accessible accounts (checking) or in cash.

This forum is a UK forum - - we don't do $ or checking.

Looking at your other posts, you are a spammer, anyway, so please go away.

jimjames

Skinto_7 wrote: »

James,

The gap insurance/top up insurance is only a policy that costs you money and benifits the dealer if you dont need it.

As an expert in writing off cars i have used it twice and it has been the best £300 i have spent each time, in my expierance once you have got past the hassle of dealing with your normal car insurance company the gap insurance is one phone call no questions send copy of your settlement cheque and original invoice and 1 week later you get a cheque for the balance. Has definetly been a good product for me!!

I guess as I've never had a new car that I've not seen the benefit. I just don't understand how it works really. If I buy a car and don't write it off then I need to have money to replace it at some point in the future. If I write it off then I use that money to replace it at that point instead?

Hooloovoo

jimjames wrote: »

I just don't understand how it works really.

I believe the point is if you write-off your three year old car your gap insurance gives you the difference up to the invoice price, which gives you enough money to go and buy another brand new car rather than buying an equivalent three year old car that is now second hand. You get it for "free" rather than having to make up the difference with your own money.

I've never had gap insurance myself, I'd rather just take the risk. The likelihood is that I wont need it.

If I did have the gap insurance, I have to say the temptation to accidentally write-off my new car every three years would be very tempting. I'm sure the pay out from the gap insurance would more than cover the increased insurance premium following one claim every three years. Surely gap insurance fraud must be pretty rife considering how easy it would be.

jimjames

Hooloovoo wrote: »

I've never had gap insurance myself, I'd rather just take the risk. The likelihood is that I wont need it.

That is exactly why I've not had it. Even if the chance of having an accident is high I think the chance of then writing off a car is low especially if it is new or nearly new. I've written off two cars in 20 years of driving but both had over 160,000 miles on the clock so writing them off was very easy as even a new bumper or panel would do it.

Hooloovoo

jimjames wrote: »

That is exactly why I've not had it. Even if the chance of having an accident is high I think the chance of then writing off a car is low especially if it is new or nearly new. I've written off two cars in 20 years of driving but both had over 160,000 miles on the clock so writing them off was very easy as even a new bumper or panel would do it.

On the other hand, if my car was three years old and I fancied a new one for free, it would be unfortunate for the handbrake to fail while it was parked on a boat slipway or near the edge of a cliff ...