Life lesson [dont bite off more than you can chew]

cammyammy5335

So just over two years ago I bought a low mileage, fairly new and highly specced Ford Fiesta for around £9,000. I did so because I got myself a job that was paying me the most I'd ever earned and I 'justified' it to myself because I was spending a good 90 minutes in it daily commuting. The loan I took out for the car was with Nationwide and basically ran at £230pm for five years.

Two years later I'm bored of the car, my lifes changed and its now getting used once a week [if that] to go for day trips and so on and I also feel my £230pm could be better spent, like on the ongoing renovation of my first property. I decide to put it on the market and quickly realise that its only worth about £4,500, a reduction of 50% in 2 years!. At this time the balance on the loan was sitting at £6,900 so yep, thats a lot of negative equity, a lot of debt.

I eventually sell the car for about £4750 leaving me with an outstanding balance of £2,150 for a car I no longer own. This meanwhile leaving me with the realisation that I'll be paying off the car for a further 9 months (if I keep the payments the same). Given - less the cost of my flat - I only bring in £800pm it leaves a very sour tasted in my mouth and is really quite depressing. I'll be the first to admit I was young and naive and definitely overstretched myself. Never again [he says].

Im just writing about my experience so if anyone out there is thinking of doing something similar, just don't! Its not worth it and much misery will come of it! Don't get carried away!

Andrew_Ryan_89

Well, duh.....

BrassicWoman

Andrew_Ryan_89 wrote: »

Well, duh.....

Dude. I would take that comment from you if every story you told us was the work of a genius. It isn't. No need to be rude.

Thrugelmir

At least you've learnt from the experience. Many people don't. Simply repeating the same mistake over and over again.

Money_maker

Exactly. Sometimes no matter how many times someone tells us something, the only way to really learn about it is to experience it. Once you've been there one would hope you take measures to ensure you never go back.

sourcrates

Cars depreciate faster than almost any other asset, unless its a classic Ferrari or similar.

Now you know how the car companies make such hugh profits !!

Life lesson indeed...........

Missus_Hyde

Andrew_Ryan_89 wrote: »

Well, duh.....

Rather an unkind and unnecessary remark (people in glass houses etc. )

Actually, OP, I find your post very refreshing; it makes a pleasant change to hear from someone who isn’t playing the eternal victim and is taking responsibility for their previous actions. As the others have said, you’ve hopefully realised your mistake and won’t keep repeating it in a sort of “groundhog day” scenario.

Good luck to you.

Robisere

I hope this lesson is learned by some regulars here, but the continuing appearance of sad stories from other Newbies is proof that there is a reason for the massive amount of personal debt in the UK.

Don't take on more credit than you can afford, don't let your outgoings exceed your incomings. And try to look into the future a little, to envisage the worst that can happen: decreased earnings/lost job, lost house, divorce, illness, injury. Of those last factors, only one did not apply to me in the past. It took me many, many years to claw my way back to solvency. I understand your bitter lesson OP, but it can be much, much worse for others.

oldhand

Can only say it was a hard lesson but in years to come it will stand to your benefit when any other type of expensive purchase comes up.Wish you the best in the future..

Dobbibill

Well done OP - you have learned a life lesson here.

You've also been kind enough to share your experience with others to hopefully helping others considering the same type of thing.

System

Congratulations on learning the lesson now. Could be worse, you could have been like a lot of the mugs who get a car on PCP and then you're trapped for many years and you'd be paying far more to end up with nothing than you have with this Fiesta where at least you walked away with £4500 even though you still have £2k odd outstanding. Had it been a PCP deal you'd not even have that.