Mortgage or MINI?

DawnCBUk

It's a quandry but one I'd like some expert help with. I've got about 20 grand saved up from the result of a messy divorce and penny pinching for the past 2.5 years. I am looking to replace my 7 year old merc with a fun cute little mini. :j So my problem is that I could pay for the whole wack in one go (a new mini could run me 20 grand with all the accessories I want) but that would not leave me the 10 grand to overpay into my mortgage this year (they only allow 10 grand a year overpayments). (5.2% variable)
I could get a used mini but it would not be the new diesel one (lowest car tax out there and great for the environment) I want.
I could get a loan for 1/2 the car and go for car payments or some variation of this but the loan rates at car stealerships are ridiculous!
I could lease the mini (I don't see myself being a mini owner forever) or do a PHP or some such. But it seems a shame to do that when i have the cash saved.

What's a money saver to do???
Thanks in anticipation of your help.

Dawn

nullogik

Mortgage, Mortgage, Mortgage. Think about the long term consequences, yes the will be fun in the short term, but surely securing the roof over your head is surely the priority in ones life.

vansboy

You'll have heard about how 'good' a MINI is at not loosing it's value as fast as other cars, no doubt, so in one way it's slightly better Moneysaving than buying another make!!

BUT... the real fact is, as you mention, you need to spend SOOOOOOOOO much on up specing the car, that you DO loose as much as other makes!!

The current MINI is an improvement over the model it replaces, as quite a few owners are admiting it's not quite as good as the MINI experience, hype!!

& all the doom moaners about house price crash, interest rate rises & so on, would put you off the mortgage idea too!!

Sensibly the MINI will DEFINITE 110% looooooooooose £$£$ & the house, more than probable to MAKE £$£$£, longer term.

Can't you have both - an older car & bigger mortgage!!??

VB

PS You should also be thinking Mx5 anyway & not MINI - now THAT is a GOOD idea!!

balsingh

Your question at the end says it all 'What would a money saver do'?? A saver would try and kill off the mortgage asap!!

However, there are 2 sides to every story. If you are managing the mortgage repayments comfotably, why not go any enjoy a nice car for a bit? Theres also no harm in buying the car, keeping it for few years, then downgrading and paying a chunk off the mortgage then.

I had the same dilemma a few years ago. It was either reduce the mortgage by 30k, or go buy a Ferrari. As I was managing the mortgage OK, I bought the ferrari. Enjoyed it for 18months and then sold it for 27k ... which I duly paid off the mortgage!! Now that aint bad ... 3k + a bit of interest to live the dream!!

I'll probably get slated by people on here for not sounding so moneysaving but we all have lives too which we do want to enjoy!!! We just have to makes sure that we strike the balance right which I think I did!

SemperFi

Devil on your shoulder...get the mini!