Finance options for 13 year old banger
Comments
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Both parts are just not true. We're straying away from cars here but there have been drops over the last few years but recovered again very quickly. It's also untrue that a lot of funds never make anything. Can you provide any evidence or links for your claim?
Of course there will be, that's the nature of investing. That doesn't mean you'll lose money - just that the value might be lower at certain points. Even with a massive crash like 2008/9 the markets had recovered within 2 years
And indeed that’s why it’s a better idea to buy when there’s been a dive rather than the reasonably steady rise since (apart from brexit vote). Failing funds close quite often. I’m sure some of you remember a prizewinning investor pharmacist who launched a fund some years back. It’s recently shut down after several years of heavy losses - in a rising market.
Anyway, the idea of using a log book loan to invest on the stock market is a test failure that will never get into gear.“What means that trump?” Timon of Athens by William Shakespeare0 -
Qwertyuiop - waiting for a crash is generally not recommended as we've been waiting for a crash for years, by which time when it does crash it will probably be at a higher price than today. Market timing has a bad record, even computers can't do it
The funds you mention closing sound actively managed, I can't see how an index fund would close as they're liquid, unleveraged, and the fund itself doesnt care about performance as long as its tracking error is low
I accept that it'd be very difficult to find an acceptable car loan for this purpose, just an idea0 -
qwert_yuiop wrote: »Anyway, the idea of using a log book loan to invest on the stock market is a test failure that will never get into gear.
I certainly agree with that bit. But maybe another way of looking at it is that you run an older car rather than spending all your money on brand new PCP and can invest the difference insteadMatthewAinsworth wrote: »I accept that it'd be very difficult to find an acceptable car loan for this purpose, just an idea
Let's face it £200 one off from a banger is neither here nor there. But if you put the £250 per month that you might other wise spend on a PCP new car then that would make a very significant sum over time. Even £50 per month increasing by inflation will give you £46k with compounded growth over 20 years. The whole £250 per month for 20 years would give over £232k. Some difference compared to having no car at the end of 20 years because you paid PCP the whole time.Remember the saying: if it looks too good to be true it almost certainly is.0 -
I may be wrong but ...
On the one hand, the OP is displaying some (apparently) quite sophisticated knowledge of stock market investments etc.
On the other, he drives a £500 banger and is asking frankly dumb questions about bottom-of-the-market loans.
It doesn't quite add up.0 -
Car54 - I see bangers as the smart choice financially because:
1- they don't depreciate anywhere near as much, no more than their £500 value in a year
2 - they don't have anywhere near as much "opportunity cost" - the profit you would make had you invested the money that is tied up in a car - even if all you did was pay down the mortgage or a savings account, you can see that an appreciating asset is better than a depreciating one
3 - the repair costs if a banger will never be above its value unless you decide to do a big job that'll last a few years
4- you won't be paranoid about someone damaging the pile of cash you have sitting out there that you can't really protect (and that insurance won't pay you fairly for)
5 - if it breaks down the short time I'd use busses and taxis won't be hugely significant compared to the costs of a newer car
To me buying an expensive car is like buying a jewel encrusted screwdriver - it's a tool, I don't highly regard people's decision to buy new cars, but I'm grateful that they do to keep the supply of 2nd hand cars going, and because car dealerships and manufacturers are surely somewhere in my investment
You'll find a lot of people who do well investing find it hard to ever learn to spend because they're so used to a miserly life0 -
worried_jim wrote: »Isn't it 51% of all successful applications have to get this rate?
hmm maybe they give that rate out to the smaller loans for tiny amounts.0 -
Has anyone mentioned selling the parts of the cat you dont need?
Do you need those rear seats and door trims? Stick them on ebay
I could prove some of your 1 - 5 theories wrong.
Only depreciates £500 yes but what about repairs? I bought a British Classic for £800 then spent another £1600 and then another £400 or so + MOT and servicing and then traded it in for a proper car worth £1000 ish.
Dont buy old British Classics. Well not if you dont want to make yet another shopping list of what went wrong on this journey Censorship Reigns Supreme in Troll City...0 -
forgotmyname wrote: »Has anyone mentioned selling the parts of the cat you dont need?
Which bits do you think Tiddles can live without
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Forgotmyname - if the repair was that expensive, unless you expected the repairs to give you 4 years extra driving they didn't make sense, that's when you scrap and buy another banger0
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Mercdriver wrote: »Which bits do you think Tiddles can live without
My neighbour’s Manx cat seems healthy.“What means that trump?” Timon of Athens by William Shakespeare0
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