Spend savings on brand new car

fwor

As above, the context of the quote is critical.

One further factor to bear in mind: things can change quite fast, and a conversation like that can rapidly get out of date.

I've been looking at buying a secondhand car and one thing I've noticed is that prices have been dropping fast in the last few weeks (a car that was priced at £28k three weeks ago is now priced - at the same dealer - at under £24k).

So it looks as though the odd situation regarding the initial depreciation (or appreciation) of new cars may be in the process of reverting to what was previously normal...

Brie

I suspect the conversation was something like this:

FA - Oh you have a nice lot of savings!  Did you have any plans for this wodge of money?
Friend - Not sure, might get a new car at some point.
FA - Well prices for new cars do keep going up so there might be an advantage on getting one now when you're not desperate and have the cash.  Not like it's earning anything much in the bank.

Bigwheels1111

Why waste your money now, cars are priced on a supply and demand basis. Very high prices now.

In say 2024 when there is a glut of cars again then I might buy a new car, Mine is 6 year old with 17.5k miles on the clock.

I will decide what to do in 3.5 years, as will need a timing belt and water pump etc, Large bill.

baser999

Interesting to read peoples thought on future car prices. I’m living just outside ULEZ which is likely to be expanded to include our address next August, meaning I’d have to get shot of a perfectly good 63 plate diesel, regularly serviced etc etc. or pay every day the car moves. Meanwhile neighbours in their filthy old petrol continue on. 

Should we look to trade in sooner by dipping into savings, rather than later, when p/ex would obviously be far less. 

Hopefully we’ll have moved within the next year so this may come to nothing

jimexbox

Personally I'm a big believer in, if you have a good car that's mechanically sound and you've looked after it, keep it. But... If you love cars, it's a hobby and its your passion. Spend your money on whatever you like.

Qyburn

sevenhills said:

If you were to buy a new vehicle in 2024, the price could be 20% higher
Will your money in the bank increase by 20%

Surely the question is what a two year old car will cost in 2024?

thegentleway

baser999 said:

Interesting to read peoples thought on future car prices. I’m living just outside ULEZ which is likely to be expanded to include our address next August, meaning I’d have to get shot of a perfectly good 63 plate diesel, regularly serviced etc etc. or pay every day the car moves. Meanwhile neighbours in their filthy old petrol continue on. 

Should we look to trade in sooner by dipping into savings, rather than later, when p/ex would obviously be far less. 

Hopefully we’ll have moved within the next year so this may come to nothing

Diesel is more filthy than petrol. Diesel has lower CO2 but higher NOx and particles.

sevenhills

Qyburn said:

Surely the question is what a two year old car will cost in 2024?

I know this is a money saving forum, but it's good to spend it too.
My earnings are modest so I have never owned a new car. What is the point in being wealthy if you don't spend it?

cricidmuslibale

sevenhills said:

Qyburn said:

Surely the question is what a two year old car will cost in 2024?

I know this is a money saving forum, but it's good to spend it too.
My earnings are modest so I have never owned a new car. What is the point in being wealthy if you don't spend it?

A good question to ask any modern day Scrooge that you may know, preferably just before Christmas! 🎄

Nebulous2

sevenhills said:

Qyburn said:

Surely the question is what a two year old car will cost in 2024?

I know this is a money saving forum, but it's good to spend it too.
My earnings are modest so I have never owned a new car. What is the point in being wealthy if you don't spend it?

A question I ponder without being wealthy. Early retired with a gap between my occupational pension and state pension. Savings in place to draw on in that gap. Working one day a week. 

Yet I'm curiously reluctant to draw on that money. 

Research shows that people spend less in retirement than they had planned. Many increase their savings rather than depleting them. 

That transfer from accumulation to decumulation may be more difficult than you anticipate!