Advice on new car purchase

Jonesya

barros81 wrote: »

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...

How much could you save by buying a pre-registered one, or same model at 2 or 3 years old? What's that first 1-3 years going to cost you?

I've owned a car from brand new and stating the obvious but it was just the same at 3 years old, as it was when brand new, only a heck of a lot cheaper.

lopsyfa

I will pay the 32k off the mortgage and buy the car on finance (or better still buy a pre-registered car). This means most of your debt will be un-secure and you can use your normal mortgage payments to over-pay the car finance.

Also, there are pre-registered cars that are few months old, in other words as good as new.

lewishardwick

What about buying 'nearly new' should still have the new car smell and save a nice chunk for other toys. Most will still have the remaining manufacturers warranty which you could extend with the saving....

Robisere

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?

You are in a good position financially and well able to treat yourself, buying the car you want, at the price you want to pay. I think you are worried because you have put yourself into a prudent financial position by being careful for a long time. So the question is not, 'Should I spend £32K on this car' but 'Will I be comfortable in my mind later, after treating myself by spending it?'

I wouldn't take much notice of those who are trying to put you off: some of that may be jealousy. But I would seriously think about whether the spend will prey on your mind later, or whether you can just enjoy the car and not give the money a single thought while you are enjoying it. I would go for the latter, but it's your life and your money.

System

barros81 wrote: »

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

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

Personally I'd buy one 6-12 months old in your position. It'll be almost like new, will only have a few thousand miles on and have manufacturer warranty but is likely to have dropped a third in value compared to new.

ComicGeek

Tarambor wrote: »

Personally I'd buy one 6-12 months old in your position. It'll be almost like new, will only have a few thousand miles on and have manufacturer warranty but is likely to have dropped a third in value compared to new.

I'm always a bit cynical about why someone would be selling a car only 6-12 months old, having been burnt in the past with this - very, very unlikely to have dropped a third in value, unless you're really bad at negotiating to start with!

Ex-demo cars might be an option, depending on whether they are actually an ex demo or just the director's wife's car, but depends on whether colour is an important issue for you - when I was looking at ex-demos earlier this month there was no movement at all on the prices, whereas I was able to negotiate a brand new car down to only £1k difference. I would definitely prefer spending that £1k extra for peace of mind and colour choice.

ComicGeek

lopsyfa wrote: »

I will pay the 32k off the mortgage and buy the car on finance (or better still buy a pre-registered car). This means most of your debt will be un-secure and you can use your normal mortgage payments to over-pay the car finance.

Also, there are pre-registered cars that are few months old, in other words as good as new.

Surely that depends on the relative interest rates. No sense paying off the mortgage on a low interest rate and then paying the car finance on a high interest rate.

Mobeer

Tarambor wrote: »

Personally I'd buy one 6-12 months old in your position. It'll be almost like new, will only have a few thousand miles on and have manufacturer warranty but is likely to have dropped a third in value compared to new.

Maybe a third in value but not a third in price. With the extent of discounts, incentives and subsidised APR on new cars the nearly new cars seem to work out just as expensive.

neilmcl

lopsyfa wrote: »

I will pay the 32k off the mortgage and buy the car on finance (or better still buy a pre-registered car). This means most of your debt will be un-secure and you can use your normal mortgage payments to over-pay the car finance.

Also, there are pre-registered cars that are few months old, in other words as good as new.

You can quite often find a new car on a dealer's finance deal can work out cheaper than a pre-reg. Better discounts/contributions available and much lower APR.

neilmcl

ComicGeek wrote: »

I'm always a bit cynical about why someone would be selling a car only 6-12 months old, having been burnt in the past with this - very, very unlikely to have dropped a third in value, unless you're really bad at negotiating to start with!

Ex-demo cars might be an option, depending on whether they are actually an ex demo or just the director's wife's car, but depends on whether colour is an important issue for you - when I was looking at ex-demos earlier this month there was no movement at all on the prices, whereas I was able to negotiate a brand new car down to only £1k difference. I would definitely prefer spending that £1k extra for peace of mind and colour choice.

Most demonstrators are taken home and driven on a daily basis by allocated sales staff and possibly family members.