The car ladder?

adamjpl

AdrianC said:

£4k down plus £10,500 over 2yrs = £14,500 for 16k miles = 90p/mile or £605/month, £20/day. Before insurance, fuel, etc etc.

So what is your point? If you read my OP this is something I enjoy doing and enjoy spending my money on at the moment.

AdrianC

Great, I'm very happy for you.

So long as you're fully aware of the true cost, and happy to spend it, why on earth would you take umbrage at my comment?

adamjpl

AdrianC said:

Great, I'm very happy for you.

So long as you're fully aware of the true cost, and happy to spend it, why on earth would you take umbrage at my comment?

Again if you read my OP I've been doing it for the past 4 years I see how much I pay for my cars all in "why on earth would you" think I don't know that? Furthermore I asked for advice on the cheapest way to do it not for advice on if I'm doing the right thing with my money long term thanks.

AdrianC

There is no blanket "cheapest".

Look at the pricing for the individual options. Do the maths. Different options will be cheaper in different circumstances, and with different preferences.

Goudy

I think your own comment about growing up is pretty relevant and I don't want to patronise you, but maybe you should think about following your own advise.

A lot of people enjoy their toys and seek the same sort of thrills but usually realise you don't have to throw all your money at it or it take over so much of their financial life.

Most realised the public road isn't always the place to fully enjoy those toys and pastimes to the full or like you, want them but aren't prepared to except the massive depreciation most of these toys suffer.

I've friends that have joined performance/classic car clubs or have track day cars and bikes yet drive vans everyday.

Some have even invested in classic performance cars to enjoy on the weekends, I myself tend to like to get dirty on a motorbike at the weekends, I've virtually given up riding on the road, you just can't enjoy the full effect of a 190mph bike on the A40!

For fractions of money you're spending on a car you could do any of these, even if you did fancy splashing out, why not do it on something "for the weekend" and won't hemorrhage the same sort of cash like a classic performance car.

The most fun I had in a car was in a 1991 Delta Intergrale Evo, I bought it for £12,000 and I sold it for just shy of £20,000, today it would be worth at least double that.

Or what about a Porsche 993, last of the air cooled Porkers, their prices just rise and rise.

Jonesya

Advice?

Forget this idea of a 'car ladder' because there's no such thing!  There's a housing ladder because housing normally holds onto or increases it's value, so the more you put into buying a house and paying off the mortgage then the more it builds up, helping you if you want to move up to something bigger and better.

Car buying isn't a ladder, it's a slide. The value of your investment is constantly falling and the only way you hold your position is scrambling, throwing more money in to stay in something reasonably new, or work even harder to keep yourself in something better. 

Ultimately it's a choice, you spend your money on what you want, downside with cars is they don't leave you much to show for all your money. 

Martin_the_Unjust

OP how many miles do you do a year and how often do you get to drive your car?

adamjpl

Martin_the_Unjust said:

OP how many miles do you do a year and how often do you get to drive your car?

I do anywhere between 8-10k a year depending on where I work. 

Herzlos

Goudy said:

For fractions of money you're spending on a car you could do any of these, even if you did fancy splashing out, why not do it on something "for the weekend" and won't hemorrhage the same sort of cash like a classic performance car.

Yeah, that kind of money could get you a boring commuter car and something like a Caterham for the weekends. Or something for a track.

MinuteNoodles

adamjpl said:

Leasing
Deposit 9 x 459.00 =  4131
23 months x 459 = 10557
Total cost of lease = 14688 over 2 years 16k miles
Saving for new car = 187.50 per month 
Total towards cars per month (Lease + Savings) = 646.50
Buying car outright
Deposit = 4131 (Cash) + 46344 (Loan over 6 years with 0% interest which happens never)
Monthly outgoing on car = 643.67 assuming 0% interest. 

Therefore in this instance and with the contract I am actually on it is cheaper in the long run to lease this vehicle than finance it. That removes the ambiguity I was seeing above.  

You're wrong with your maths. Your lease cost is not £459 a month. If you divide the £14688 total lease cost over 2 years it is actually £612 a month.

Buying is £30 a month more but you own the car and not only that you're not limited to just 8,000 miles a year.

You say you love driving these cars but if that's the case then why would you be looking at a lease that allows just 8,000 miles a year or just 153 miles a week or just over 21 miles a day? Commute to work 15 miles each way and go do the shopping on a Saturday and you've used that 8,000 mile allowance. Hell you could use the entire week's allowance on a ride out on a Sunday.

I love my fast cars too. Because I owned mine and it wasn't on a lease or PCP deal when I decided to jump in it one Monday and do a 2000 mile 3 day round trip to see the Millau Viaduct in France I wasn't sat there having to decide whether or not I could go in my fun car because that one 3 day trip would use a quarter of the annual mileage allowance.