When is it financially acceptable to buy a dream car?

kteara

Hi guys, this forum has opened my eyes to the world of personal finance and I'm learning new ideas etc. I wanted to ask when is it financially acceptable to buy a dream car £50k+ in life? I see Porsches, Nissan GT-R's and Ferraris during my commute to work every now and again and I wonder when is it ok to buy one?

I'm 20 now and one of these cars are my biggest motivator in life. I can't help but think when/if I do have the money for one that It would cost me the opportunity to buy a house. Its like I can only choose one, out of those two options in life, the dream car or a house.

looking_forward

Life is not a rehersal , if you can afford it and it means that much to you buy it . You can always sell it on again if you need to. But it will be extremely rare for it to be an investment !

Archi_Bald

How is "financially acceptable" defined, and by whom? Who will judge it, and who appoints the judges?

If you want opinions: mine is that it's pretty sad if the biggest motivator in your life is a car that costs a lot to buy and keep. But hey, it this turns you on, you can afford it, and you don't deprive any dependants by spending your money on a car, then why not do it. I am sure you can think of the reasons for whatever your decision is yourself.

jimjames

I did it age 43. Insurance for a Porsche 911 was under £300, dread to think what it would have been earlier in life. It's been a lot of fun but not too practical for family life so will be selling soon.

I got the house age 24, best move I ever made and long term has been far more sense than blowing it all on a car. I know people at work that say they can't afford to buy a house yet have brand new cars every couple of years. As you say, for most people it is a choice between them and for your long term security a house makes better option for most people.

But it's a nice motivation to see cars you like and think you can get one at some point. While I love driving the 911 there is a part of me that enjoys the £750 banger just as much for being contrarian.

Gromitt

I know someone who bought their dream car for one simple reason:

"I can afford it now, I will not be able to afford it when I've got a house, a wife and kids"

So they bought the car. It was awesome in the first 3 months, 6 months later it was "OK", a year later they had sold it, bought something cheaper and jumped on the housing ladder.

Only you know when it's financially acceptable to blow money on things you want.

kteara

jimjames wrote: »

I did it age 43. Insurance for a Porsche 911 was under £300, dread to think what it would have been earlier in life. It's been a lot of fun but not too practical for family life so will be selling soon.

I got the house age 24, best move I ever made and long term has been far more sense than blowing it all on a car. I know people at work that say they can't afford to buy a house yet have brand new cars every couple of years. As you say, for most people it is a choice between them and for your long term security a house makes better option for most people.

But it's a nice motivation to see cars you like and think you can get one at some point. While I love driving the 911 there is a part of me that enjoys the £750 banger just as much for being contrarian.

I really appreciate your reply. Can I ask how you managed to buy a house at age 24, hats off to you. Thats really impressive but I can't help but believe that its almost impossible for that to happen today. I would love to get some advice from you though?

kteara

Archi_Bald wrote: »

How is "financially acceptable" defined, and by whom? Who will judge it, and who appoints the judges?

If you want opinions: mine is that it's pretty sad if the biggest motivator in your life is a car that costs a lot to buy and keep. But hey, it this turns you on, you can afford it, and you don't deprive any dependants by spending your money on a car, then why not do it. I am sure you can think of the reasons for whatever your decision is yourself.

I don't really care that you think my biggest motivator is sad. Yes logically it might not make much sense. But supercars are my passion and have been since I was a child. I've been fortunate enough to drive the 458 Italia and I know for certain that it is my biggest motivator in life. Again, it might not be logical but its emotional and I think a lot of guys can relate or agree with me.

YorkshireBoy

kteara wrote: »

Can I ask how you managed to buy a house at age 24, hats off to you.

Can't answer for jimjames, but for me (3 years younger at just gone 21) it was down to...


1. Working all the hours I could (during my apprenticeship) to save for a 10% deposit
2. Driving old cars (and looking after them myself)...particularly relevant to your situation.
3. Waiting until 28 for my first foreign holiday (and until 34 for my second!)
4. Managing without a mobile phone/Sky/Gym membership


And then when I got the house...


1. Putting up with 2nd hand furniture and white goods
2. Watching a B&W TV (see your parents/grandparents for further details!)

I can't help but believe that its almost impossible for that to happen today.

Yes prices have gone up, relative to income, but also because almost everyone these days lives next door to someone called Jones!

Archi_Bald

I bet a car was never the biggest motivator in your life, Yorkshireboy.

sterlingstash

Cracking question Kteara! - I'd vote it question of the week. And you are clearly wise before your time to ask advice from those with with some hindsight.

The motto I worked by in earlier years was never buy anything (that depreciates) on credit - you view a purchase very differently when you realise the slog it takes to save up that amount, and you are a little more careful blowing it all. Credit is basically robbing your future self, the opposite of saving/investing - which I've found the best way to get the extra wedge to buy lifes frivolities.

Second thing is - realise possessions rarely bring you the happiness you hope for when looking through the brochure. Whatever it is (Aston Martin, yacht, dream house) you get bored and start to hanker after the next thing soon enough - for me it is about 2 years (think back to the last thing you had your heart set on and see how important it is to you now). So go into any purchase expecting that you'll be bored of it in that time - (miserable if you went for a 5 year loan!).

If you are a fan of fast cars then get out on the track days or rent one for the weekend/week. The enjoyment you'll get from a short time in the drivers seat will be bigger buzz per buck than having the car sitting on the drive costing you a fortune in depreciation, tax and servicing.

This is from a total motorcycle freak (mid-30s) who manages 1000 miles/yr on my Ducati and probably enjoyed riding and tinkering with my old commuter just as much.

BarleyGB

Sterlingstash's post is spot on.

Buying something that depreciates so much if you cant rely afford it is not a wise investment. Repayment, credit costs and loss of opportunity to invest the money more wisely will cost you more and potentially deprive you of even nicer dreams in the future.

I think priorities should be to get the house you need, be well into paying off the mortgage or having sufficient savings to cover a reasonable chunk. Only then is it financially justifiable to buy the dream car you want, and you should pay for it from savings (never borrow to buy a depreciating asset unless its your only option e.g. A-B vehicle to get to work etc).

Having said all that, we all make choices based on personal factors, im sure many of us have borrowed to buy nice cars when we were younger (myself included). If its what you really want and you can justify it to yourself then do it, but my answer in the paragraph above covers my view on when its financially acceptable.

One last thing to consider, how much is a piece of metal with wheel worth compared to freedom/life. Could that £50k mean you could retire one or two years early, what is that worth.