How do I pay for my new car?

YorkshireBoy

pauletruth wrote: »

you earn less than 35k

Not necessarily. With PAYE it could be as high as circa £44K with a standard personal allowance.

dktreesea

OP, I would use part of the savings of £20k to pay for the car. It's only earning you 3%. And you would only be using £14k of it. So you are not comparing apples with apples when looking at how much the finance costs compared to how much you would lose in interest earned. Even if you buy it outright you will still have £6,000 in this account, chugging away at 3% per annum.

And with the rest of your money, I would suggest to start using an ISA. One where you can access the money when you need to, e.g. to buy the house, but at least, on the portion you can deposit in it each year, you won't have to pay any tax on the interest earned.

dktreesea

stumblingtrout wrote: »

*Sigh*
I like cars, its the one I wanted, and I'm in a position to afford it now and might not be in the future - you only live once!

Well put. I couldn't agree more. What kind of lovely car have you got your sights set on?

I can understand how you feel. I miss my car from a former life. A lot. Not available here, sadly (it was 4.2 litre so not likely to be ever sold here either given the cost of petrol/diesel in Britain).

I spend 10 hours a week in a car, at least, due to work. I buy the best car I can afford.

arbroath_lass

pauletruth wrote: »

you earn less than 35k you have a new mortgage and 40 k in savings. do yourself a favour don't buy it.

pay 20k into the mortgage. just in case you have not noticed were in a recession. blowing that kind of money is just plain dumb.

OP says he has NO mortgage.

Can someone tell me what we are all working for if it is not to have the lifestyle we want?

In the OP's case he actually HAS the money to spend so why shouldn't he?

Acquiring money is not the object of life. There are no pockets in a shroud.

Surely the purpose of MSE is to help us get what we want as cheaply as possible?

eschaton

OP has gone quiet - hopefully he is away to buy his new car

Dovah_diva

opinions4u wrote: »

I did. As did many others.

Eventually. Once the poor guy had been given quite a roasting for daring to want to buy an expensive new car he can clearly afford.

matty17r

What a great thread with really interesting points of view. I am really tight but do treat myself to a new car every 3 years. I know this is not money saving but it something enjoy saving for and we use it every day so have a lot of pleasure out of it. Our trade in cars go to our children so I know they have got a good car out of it as well! Money saving is not always being tight but making sure you are getting the best deal out there. When we buy our new cars we take out the finance even though we have the cash as this saves us about £250.

Enjoy your new car.

Deru

I say, use savings on this occasion.

Bleh, it's killing me, what car is it?! XD

bouncydog1

Range Rover Evoque?

bouncydog1

Lovely to drive but we're a bit worried they might have land rover reliability

Waiting for the new Mercedes SUV to be launched - and I shan't be asking you lot hw to finance t, because I'm busy saving!