Advice on new car purchase

barros81

Hi all,


I am about to complete on a deal for a brand new car which is costing me 32k. A while back I made a nice profit on a house sale and would be in a position to pay cash for this car rather than financing it.


I'm at a cross roads with wanting the new car but also regretting spending all that money on a car!


With the money made from my house sale I have invested 70k into reducing our current mortgage to just 50k, paying off all credit cards and putting 15k in the bank as savings. I make a good living 45k a year and am able to save 1k a month. I'm 35 years old.


Given the above, do you think I'm silly to spend the money on the car given my financial stability?

ComicGeek

Personally I like new cars and am happy to waste money on them - I don't waste money money on other things, have good savings and pensions, and life is too short to be miserable. For a lot of people a brand new car is a complete waste of money, so I'm sure you'll get a lot of that on this forum.

I would make sure that you're getting the best deal you can on the new car. We picked up the wife's new car yesterday - we used CarWow to get an additional £4k off the local dealership's 'best price', so well worth looking into that before you sign anything. We also ended up getting reductions off insurance products as well, which ended up cheaper than buying outside of the dealership.

While we are a cash buyer, we have taken their PCP finance to get the additional £1k manufacturer's contribution - we've cancelling this now within the 14 days period to keep the contribution and not pay any interest/charges. Again worth you looking into this - well worth it for a little paperwork and hassle.

barros81

Thanks, yes I originally got this model costed on CarWow and the dealer matched the quote plus a full tank of fuel.


I guess my real concern is whether I'm going to instantly regret spending the money once I've paid for it - buyers remorse! decisions, decisions...

neilmcl

barros81 wrote: »

Thanks, yes I originally got this model costed on CarWow and the dealer matched the quote plus a full tank of fuel.


I guess my real concern is whether I'm going to instantly regret spending the money once I've paid for it - buyers remorse! decisions, decisions...

Only you can decide what's more important to you but why not look at what sort of further discount/contributions you can get for taking out finance then pay it off with cash once you've taken delivery.

GunJack

barros81 wrote: »

Hi all,


I am about to complete on a deal for a brand new car which is costing me 32k. A while back I made a nice profit on a house sale and would be in a position to pay cash for this car rather than financing it.


I'm at a cross roads with wanting the new car but also regretting spending all that money on a car!


With the money made from my house sale I have invested 70k into reducing our current mortgage to just 50k, paying off all credit cards and putting 15k in the bank as savings. I make a good living 45k a year and am able to save 1k a month. I'm 35 years old.


Given the above, do you think I'm silly to spend the money on the car given my financial stability?

so you'd rather spend £32k on a lump of metal that moves you from a to b and will only ever lose value, rather than extra off the mortgage and have a paid-for house in a year/18 months??

you can have said lump of metal for 1% of what you're planning on spending, and with no mortgage you have somewhere to live that doesn't cost you and no-one (under normal circumstances) can turf you out of.... no-brainer in my book

zooks

As Neil said, only you know what's important to you but its not as if you are just chucking the money away.
A brand new car is not money saving but you are being sensible in using the online discounters to reduce as much as the initial depreciation as possible. You would take a hit if you had to sell it later but not that much more than buying a late used model.
This is the argument I had with myself recently before I ordered mine :-)

50Twuncle

Bear in mind - that the second that you drive it away from the dealers - you will have lost at least £5k - that's a lot of curley wurleys ...
And within the first year - you WILL lose around £10k - that's even more penny chews !

Herzlos

Enjoy the new car!

Mercdriver

GunJack wrote: »

so you'd rather spend £32k on a lump of metal that moves you from a to b and will only ever lose value, rather than extra off the mortgage and have a paid-for house in a year/18 months??

you can have said lump of metal for 1% of what you're planning on spending, and with no mortgage you have somewhere to live that doesn't cost you and no-one (under normal circumstances) can turf you out of.... no-brainer in my book

So people should only do what you think they should?

Not everyone does what you preach which is to play Russian Roulette with £300 bangers.

GunJack

Mercdriver wrote: »

So people should only do what you think they should?

Not everyone does what you preach which is to play Russian Roulette with £300 bangers.

not preaching, just putting an alternative POV...the OP asked for opinions, he got a different one...this is a money-saving forum.

Money_maker

I agree with GunJack, to spend that sort of money on a lump of metal is nuts IMHO particularly when you have a mortgage. See how you feel the first time you stop in a supermarket car park and someone takes a chunk out of your door.