New Loan - Am I being sensible?

Magsnoodle

Hi

Sorry for adding my tuppence worth to the debate but the quite forthright Dave Ramsey says you should never spend over half of your salary on a car as in essence it means you cant afford it for the money coming in. Obviously this doesn't take your overtime into account but that is because it is a bonus and should be considered as such and not taken into account when trying to work out your income.

Good luck with your decision but really consider your reasons behind it as others have mentioned on here.

TTFN xx

FireWyrm

Spending half your annual income (that you dont even have) on a car with 100,000 miles on the clock is just barking mad. That is at least half of a typical house deposit, or a nice safety net fund, or 14 times annual premium for comprehensive private health cover.

What happens when and if you lose your job and you cannot service the finance?

No one in their right mind should be spending money they dont have on a luxury item they dont need. If you win the lottery, knock yourself out - until then, you cant afford it.

[Deleted User]

Even at 3.99%, that loan is going to cost you over a grand in interest.

If you saved £400pm, for a year, you would only need ~ £7k, which you could take over 3 years (instead of 4), for less than £440 in interest.

If you could stretch to £303pm, you could take the ~ £7k over 2 years, for less than £300 in interest.

Is it really so important, for you to get the car right now?

[Deleted User]

FireWyrm wrote: »

Spending half your annual income (that you dont even have) on a car with 100,000 miles on the clock is just barking mad.

I agree.

I got a < 75,000 miles Focus (Zetec, Euro 4, Climate - FSH) for less than £5k.

Darklinglion

Bedsit_Bob wrote: »

I agree.

I got a < 75,000 miles Focus (Zetec, Euro 4, Climate - FSH) for less than £5k.

They are...quite boring though I've got to say. Anything with a ford badge on makes me want go to sleep these days. Like I've said... I'm not really in it for a cheap run-around A-B car. I'm in it because I enjoy driving and want a nice car.

I've currently got an MG ZT (in a ridiculous flip colour paint job) which is fully paid for, owned by me. Cheap to run, cheap to insure, loads of toys which despite what a lot of people told me when I bought it has been virtually fault free. I'm more on the thoughts of keeping this car if I can't afford the car I want.

It's all food for thought still and perhaps saving up a bigger proportion and borrowing less might a better way forward.

Perhaps a car forum may have been a better option for this sort of question, it's become clear that a few people on here just wish to live as cheaply as humanly possible which in my opinion isn't really living. Not really have a dig at anyone for wanting to save money (who wants to pay more for a mortgage than they need to??), but everyone needs a release of some sort and a treat for themselves now and again.

enginesuck

The temptation is always there for me as well, I saw a lovely Range a Rover Sport about 6 years old with 110'000 miles on going for 15 k and thought I might treat myself, then realised that tyres are £400 a corner and other maintenance might break me :-( and I earn £60K ! Currently driving a 55 plate Saab 93 turbo! which is comfortable with lots of toys and leather and is worth about 2k. The better sense is to keep the Saab ! Well done for having second thoughts.

enginesuck

You can pick up a decent BMW or Audi saloon for less than 5k out of interest what car was it you were looking at ? I love my cars.

Darklinglion

enginesuck wrote: »

You can pick up a decent BMW or Audi saloon for less than 5k out of interest what car was it you were looking at ? I love my cars.

Jaguar XFS. 3 litre twin turbo V6 oil burner.

FireWyrm

Darklinglion wrote: »

They are...quite boring though I've got to say. Anything with a ford badge on makes me want go to sleep these days. Like I've said... I'm not really in it for a cheap run-around A-B car. I'm in it because I enjoy driving and want a nice car.

Exercise financial common sense now and get a house deposit together. Climb the career ladder, pay off your mortgage and live debt free. When you have a good job or you win the lottery and all else is taken care of including your old age, then you can think about a frivilous waste of money such as you are proposing.

This is going to be your first and probably your most costly financial mistake. Dont do it. Most engines start to require specialist maintenance and repair after around 100,000 miles so you are proposing to drop a huge chunk of change (you dont have) on a car which is by definition already elderly. This is nuts. You could buy a far cheaper brand new car with 23 miles on the clock.

Darklinglion wrote: »

I've currently got an MG ZT (in a ridiculous flip colour paint job) which is fully paid for, owned by me. Cheap to run, cheap to insure, loads of toys which despite what a lot of people told me when I bought it has been virtually fault free. I'm more on the thoughts of keeping this car if I can't afford the car I want.

Do that. Keep the car you have, work hard at your job and climb the ladder quickly. There will be plenty of time later in your life after all else is said and done to indulge this expensive fantasy. Right now, you cant afford it.

Darklinglion wrote: »

Perhaps a car forum may have been a better option for this sort of question, it's become clear that a few people on here just wish to live as cheaply as humanly possible which in my opinion isn't really living. Not really have a dig at anyone for wanting to save money (who wants to pay more for a mortgage than they need to??), but everyone needs a release of some sort and a treat for themselves now and again.

That is 20 odd years of advertisment conditioning talking. You ARE living and frankly far better than 90% of the rest of the world and certainly in unimaginable luxury compared to some places. You have more than enough food to eat, clean running water, clothes to wear and some resources at your disposal to replace what needs replacing as necessary. You have had access to education, medicine and some state assistance should you fall on hard times. You do not toil in servitude or slavery just to get by and there is precious little chance of you ever knowing hunger or thirst in any real sense. You will never watch your children dying of starvation nor your home reduced to rubble by national instability (probably). You can look forward to a lifetime of at least 80+ years and assuming you ever do get sick, you will be treated by the very best medical assistance available in the western world.

This car you want to buy....is greed (want rather than need). At least have the honesty to admit it rather than pretending that it is some sort of human right due to you for simply being alive. Greed is fine, it is human nature, but what I am trying to say is that you already won the lottery of life by simply being born in this country. Most people on this site recognise that this is true and that our society has, over the last 30 odd years, been conditioned by clever advertising to willingly put frivilous greed above provision for survival in the hierarchy of needs and wants. All adverts are designed to separate you from your money as quickly as possible, but what you have to ask yourself is, do you really need it as opposed to just plan 'want' it. If you just want it, then ask yourself what 'needs' could have and should have been satisfied first. For a start, you are robbing your future self of £14K of pension pot.

enginesuck

Darklinglion wrote: »

Jaguar XFS. 3 litre twin turbo V6 oil burner.

Really nice cars my neighbour had one, surprising good fuel economy. If I had 13k to spend on one I might be tempted, I can't see it depreciating too badly from that price point, depending on mileage etc. had a look on autotrader and you should be able to pick up a 2011 model with around 80k on it for about that price. Or save and buy a house !

A mate of mine had an M5 while he was renting, sold it after a year to put towards a deposit, he said he was glad he had it for a year - you only live once.