When is it financially acceptable to buy a dream car?

latecomer

vacheron wrote: »

or a mid 1980's BMW 635CSI.

Nice

My best friend would absolutely love a MK1 VW polo like he used to own when he was younger, or a mint condition, original MK2 Ford Fiesta.

Less so

:rotfl:

racing_blue

Your original question was to do with deciding if it is financially acceptable to buy more car.

You could work out what it would cost you to own this car for one year*. Add up everything and don't forget depreciation (the price you pay for it today, minus the price you expect to sell it for on 14th May 2015).

Then work out what it would cost you to keep your current car for a year.

Then figure out how much spending money you currently have. So disposable cash which is not earmarked for anything else & you are happy to burn through this year.

If your spare cash is more than the difference between cars, knock yourself out. It would be "financially acceptable" to blow it on the car, on marshmallow sculptures of Wayne Rooney, or on anything else you choose.

* For example, I worked out our family's car costs for 2013 here: https://forums.moneysavingexpert.com/discussion/4862413 . We spent far too much, I would rather spend it on other things like bikes, travel, holidays and interesting beer.

InsideInsurance

vacheron wrote: »

I will dare to challenge you if can afford a 75K car and you haven't put your hand in your pocket and bought her one yet!

I've said she can have one but that she'll have to learn to maintain it herself which is the sticking point.

Her friend's boyfriend offered her a 1970s one for a reasonable price but she wants it to be as reliable/ trouble/ maintenance free as a brand new car but the chap obv corrected her on that.

kteara

My aim was to own one by 30 (another 10 years time). It will be worth around 100k including insurance etc. at that point.

droopsnoot

InsideInsurance wrote: »

Her friend's boyfriend offered her a 1970s one for a reasonable price but she wants it to be as reliable/ trouble/ maintenance free as a brand new car but the chap obv corrected her on that.

Swings and roundabouts - less to go wrong generally, but do need more regular fettling to head things off at the pass. The handbook for my car talks about things to check every week - I would think most modern vehicle drivers take umbrage when they have to have it looked over every year.

I would say an old Mini might be easier to resurrect on the roadside than most modern cars, but only if you are (or find) someone who knows how. Calling a breakdown service might drop on the one chap still working there that can get it going, or might send the chap who wonders where to plug the laptop in.

droopsnoot

kteara wrote: »

My aim was to own one by 30 (another 10 years time). It will be worth around 100k including insurance etc. at that point.

It's a useful goal, though, even if by the time you get to that point, you actually want to spend the money on something else. However much you want the car now, you might not by then, for all sorts of reasons, but if it's helped you save the money up rather than just splurging in on nothing and leaving you wondering where it all went, then that has to be a good thing.

kteara

droopsnoot wrote: »

It's a useful goal, though, even if by the time you get to that point, you actually want to spend the money on something else. However much you want the car now, you might not by then, for all sorts of reasons, but if it's helped you save the money up rather than just splurging in on nothing and leaving you wondering where it all went, then that has to be a good thing.

Whenever I struggle at work or I'm in doubt over doing overtime, I think about the time I got to drive one and it gives me an insane amount of energy and motivation. It also helped me budget so I'm saving 75-80% of my total income. I understand I may never be able to own one and that's reality. However, It's my biggest motivator and pushes me to save as much as I can towards that aspiration.

N1AK

kteara wrote: »

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.

There isn't a right answer. Finance is all about weighing up priorities. Would you be happy working a couple of years longer in order to spend £50k owning an expensive car for 4-5 years?

I'll always recommend that the first step in any decision is putting a plan together that you can manipulate based on decisions like this. Without a plan that covers whether you will buy a house, how much rent will be in retirement if you don't, how much pension you'll have etc you can't weigh up the car against the alternative and make an informed choice.

Compound interest on an investment (assuming 4% above inflation) would turn £50k at 25 into the equivalent of £130,000 at 50 or £240,000 at 65. If you had to borrow to get the £50k then the cost is even higher.

SliAbhaile

Interestingly diverse range of answers.

Funnily enough I was reading a post on sportsmaserati.com yesterday where someone was asking whether he should get a Ghibli and one wise reply suggested that asking on a Maserati forum meant his mind was already made up, if he wanted advice against buying it he should have asked on MSE.

BillJones

jimjames wrote: »

The 911 is more noisy on the motorway and would be more tiring for a very long journey plus require more fillup stops too.

When I first got a 911 (GTS 4 Cab...) I tried to view the wind noise as a positive, keeping my speed down on the long trips. In the end, though, I just got annoyed, and drove something else.

I've a C63 now, but, of course, miss the top-down motoring and steering response on a summer morning out of town.

Also miss my RS4, SLK55, Elises...

Basically, I can't find any one car that does all I want. Even 2 is hard.