New Car Advice Please

notanewuser

Newyorkdreams wrote: »

Thanks Trajal. Please let me explain my logic because there is some in there...honestly!! I understand that buying a new car is more expensive in the longer term. However, the point I was trying to make was that the £7.5K we would make from the sale of our current car would cover our payments for the first 2 years and therefore we would not be required to pay anything out and therefore it would be cheaper because our tax and insurance would be lower and we would achieve more mpg for no further cost. By this 2 year point, we would have paid off all of our debt (DFD planned for Sept 2015 taking into account one wage coming in) and therefore we could then afford to make the payments at this point. We would need to be focused on using this money to pay it back. The other thing is that we will be increasing our mileage from 100 miles a week to 250 miles a week which creates pressure on older cars.

Can you see my logic or am I missing something quite important?

NYD

The potential for your one income to disappear?

Newyorkdreams

notanewuser wrote: »

The potential for your one income to disappear?

That won't happen in the next 2 years and is unlikely to happen at all after that

NYD

moohound

I assumed the university course was a funded by employer thing, and you would still get paid, some of my colleagues have done this on secondment, to train up to do key roles, like nurse endoscopy and surgical assistant, I did not realise you would be sacrificing a salary.

Have you taken into account fees/textbooks etc.

closed

52k is a lot of debt to get rid of in 2 years

do you own this car outright? Is 7500 a realistic value? have you worked out the extra cost of fuel?

Poppy9

Couple of questions:

1. Will you realistically get £7500 for your car?
2. If your OH goes to Uni how will this impact on your income for the next 3 years?

Agree with others. You need to be downsizing not trading up to new car.

Newyorkdreams

Hi Moohound - I would still be in full time employment on approx £50K per year, my OH will hopefully be on a FT course studying radiotherapy, fees paid for by the NHS. Believe it or not, students are entitled to a percentage of a grant even when their husband/wife/parents are earning a good salary. I have factored in diesel, textbooks, general spending etc

Thanks

NYD

Newyorkdreams

closed wrote: »

52k is a lot of debt to get rid of in 2 years

do you own this car outright? Is 7500 a realistic value? have you worked out the extra cost of fuel?

It certainly is! But I have a well developed plan in place and I believe it is doable as long as we stick to it and continue to make wise decisions.

Yes we own the car outright, bought and paid for. I have increased our fuel costs in our budget to £50 per week as opposed to £15 that we spend at the moment from Sept 14. This is all assuming that my OH gets the place at uni!

NYD

moohound

That's not as bad then if he's getting an NHS bursary.

It's still a lot to try and pay off in a short time, we earn 70k between and could no way do it in that time.

Newyorkdreams

Poppy9 wrote: »

Couple of questions:

1. Will you realistically get £7500 for your car?
2. If your OH goes to Uni how will this impact on your income for the next 3 years?

Agree with others. You need to be downsizing not trading up to new car.

Hi Poppy - I don't know if we will but that is the current market value (roughly). Our car is in good nick and has been well looked after, the inside of the car looks as good as new, the outside has a few imperfections. It has low mileage and a full service history and has added features we paid for at the time such as bluetooth techonology. I believe we would get that but it's only worth what a buyer is willing to pay I guess.

Our income would drop to one salary (mine and I earn £50K so I am the main earner) between Sept 13 to June 16 but I my OH can work during the summer recess which will help boost the income. Money will be tight but will be doable.

NYD

Newyorkdreams

moohound wrote: »

That's not as bad then if he's getting an NHS bursary.

It's still a lot to try and pay off in a short time, we earn 70k between and could no way do it in that time.

Hi - Our current income is roughly the same as yours and our DFD is September 2015 which is 2 years 5 months from now all being well. We don't have kids and our mortgage is fairly low. Our projected pay back amounts are:

2013 - £19,000
2014 - £21, 000
2015 - £19, 000

That also includes saving £8000 and takes into account my OH going to UNi from Sept 14 and earning £1000 per month June/July and August.

I have also calculated we would get roughly £350 per month in bursary.

NYD