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Sacrificing my pride and joy

Think it, Plan it, Do it
doug2500
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Re: Sacrificing my pride and joy

#491205

Postby doug2500 » April 3rd, 2022, 11:27 am

Congratulations for even thinking about it and realising it's maybe not the best use of your money.

It's a decision only you can make, you'll have to balance the two desires in your life and only you will know when the balance has swung in the other direction.

There may be a middle ground....pay off the car (assuming finance) in due course, stop spending more money on it (modifying etc not repairs), keep it until it's rusty and falls apart (maybe 15 years) and in the mean time put everything else towards a house. And if you decide your discretionary spend will be better spent on evenings out, beer, latest iphone etc then the car needs to go.

While I have a lot of sympathy with the view of enjoying your youth, don't let it go on too long and remember that ultimately the sooner you start saving the more likely you are to have the last laugh over your financed mates with flash cars they can't afford. It's the blessing and curse of youth not to think too far ahead.

Rich dad, poor dad does a good job of making you think of everything being an asset or liability, once you get in the habit of this and saving money it can be a hard habit to break!

stevensfo
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Re: Sacrificing my pride and joy

#493262

Postby stevensfo » April 10th, 2022, 10:29 am

GrahamPlatt wrote:I’d suggest you read Rich Dad, Poor Dad. It’s badly written, but full of good sense and highlights the difference between assets and liabilities. The car is in the latter category.


Another one is 'The Millionaire next door'. It illustrates, as others have said, how as you increase your wealth, the urge to buy flashy cars seems to decrease. I love looking at expensive cars and can admire and appreciate the design and beauty, but then they morph into long strings of data - like in the film 'Matrix' - and I see all the costs laid bare. Quite eye-opening when you start to add everything together: capital, depreciation, insurance, tax, maintenance, unforeseen repairs, MOT, new wheels, nodding dogs etc. ;) Think I'd rather drive a Micra and put the money saved towards buying an apartment abroad! 8-)

Steve

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Re: Sacrificing my pride and joy

#497049

Postby Eboli » April 27th, 2022, 7:45 pm

Essentially this is question of the value of present consumption and future consumption. In this case it assumes

- that the car will always depreciate (probably still true, though we live in strange times where more older vehicles are increasing in value), and

- that the property will always appreciate (which may be historically true but may not prove to be the certainty it once was).

We all have different ways to judge present v future values and there really is no right answer. Often, those that end off very comfortable may have lived too much of their life in the future. For example, I think one major regret I have is delaying my retirement from about the age of 42 to the age of 52 - that 10 years of what proved to be excellent health would have allowed me to do so much more and it wasn't until after I retired I realised that I could have retired comfortably on a much smaller pot than I had assumed and as a result much earlier. So I see the merits of the car and enjoying it to the full in the present. The balance between how our own serotonin rewards us for present consumption over future consumption is very difficult to alter by act of will.

I could be wrong on my assumptions behind the OP's original questions. It may be that the desire to get on the property ladder is to have a home - in which case more power to your elbow.

Best wishes whatever you eventually decide.

Eb

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Re: Sacrificing my pride and joy

#497598

Postby quelquod » April 29th, 2022, 10:14 pm

There was a thread a while ago (to do with a millennial grumbling about boomers’ good fortune IIRC) when I made a comment that in my young years I drove bangers while I (we) saved for our house but it’s commonplace now to see youngsters driving quite pricey cars obtainable on PCP etc. finance. The rebuttal was along the lines that the OP was able to afford the PCP and why shouldn’t he? I left it at that hoping that the penny would drop that you can only spend your £1 once and you need to choose wisely. Plus ca change …


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