Saving for a new (to me) car

Carlos77

I have recently bought a new car for the misses. Its got me thinking that its about time i started thinking about replacing mine some time next year. The car we have just bought is on PCP, but dont really want to get 2 lots of car finance, so gonna save up for it. At the moment i have a trade in worth about £10,000, £6,000 in savings, and a motorbike the i am willing to loose (worth about £3-£4k) so ideally i need to save another £15,000 - £16,000.

Between us we have a pretty good income (about £5,500 pm net) and outgoings of about £2,000 pm. I think i can realistically save £2,000pm towards my goal, which would give me the car around summertime net year. Where is the best place to save/invest this cash.

I realise that its a lot of money to spend on a used car, but i have investments already available for the future, and you only live once (and the prices are pretty stable now, as will be buying one thats already taken the big depreciation hit!)

Beckyy

With such a short timeframe of next Summer I would just put it in the highest rate instant access savings account you can find.

kidmugsy

Beckyy wrote: »

With such a short timeframe of next Summer I would just put it in the highest rate instant access savings account you can find.

You could also look at the regular saver accounts that allow you to draw money out before the year is up.

https://forums.moneysavingexpert.com/discussion/608697

Archi_Bald

Beckyy wrote: »

With such a short timeframe of next Summer I would just put it in the highest rate instant access savings account you can find.

which is, and has been for months now, one or two of the interest-paying current accounts that have been discussed at great length on this forum for several months now.

brewerdave

£36k for a second hand car????
Ferrari or Porsche??:rotfl:

pat_cashmoney

There's a car down my road on sale for £750, I can give you their phone number if you like? Will save you a few grand!

note: I am not a financial adviser.

latecomer

Carlos77 wrote: »

I realise that its a lot of money to spend on a used car, but i have investments already available for the future, and you only live once (and the prices are pretty stable now, as will be buying one thats already taken the big depreciation hit!)

Go for it - especially if you can get one thats not depreciating much. I've always wanted a TVR but never done it as I couldn't stand the depreciation even when I had funds available. And our house has too steep a drive to get a sports car up which helps too

I'd stick the money in the bank for short term saving - best rates are in current accounts.

PS I'd recommend doing it before you have kids if you dont have any yet!