Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to Anonymous,bruncher,niord,gvonge,Shelford, for Donating to support the site

Sacrificing my pride and joy

Think it, Plan it, Do it
doug2500
Lemon Slice
Posts: 671
Joined: November 4th, 2016, 11:51 am
Has thanked: 300 times
Been thanked: 255 times

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
Lemon Quarter
Posts: 3563
Joined: November 5th, 2016, 8:43 am
Has thanked: 3964 times
Been thanked: 1448 times

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

Eboli
Lemon Slice
Posts: 338
Joined: November 7th, 2016, 9:05 pm
Has thanked: 2 times
Been thanked: 125 times

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

quelquod
Lemon Quarter
Posts: 1051
Joined: November 5th, 2016, 12:26 pm
Has thanked: 226 times
Been thanked: 207 times

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 …

Kantwebefriends
Lemon Slice
Posts: 365
Joined: November 5th, 2016, 4:02 pm
Has thanked: 26 times
Been thanked: 113 times

Re: Sacrificing my pride and joy

#526268

Postby Kantwebefriends » August 29th, 2022, 10:28 pm

Second hand car prices are high. Sell the car. If you still need personal transport buy a motorbike. Spread the profit across an emergency fund and a Lifetime ISA.

When I was in my mid twenties and wanted to save for a mortgage deposit I took a second job. It worked in two ways: (i) extra income, and (ii) less time to spend it in. You're only 22: you should easily have energy enough for a second job.

jaizan
Lemon Slice
Posts: 457
Joined: September 1st, 2018, 10:21 pm
Has thanked: 265 times
Been thanked: 141 times

Re: Sacrificing my pride and joy

#540063

Postby jaizan » October 21st, 2022, 9:33 pm

Stackkk wrote:I am 22 years old I am currently employed full time. My goal is to get a mortgage ASAP. I purchased a golf gti a year ago and spent loads of money on it.


I had a Golf GTi briefly in my 20s. Although mine was bought second hand and with cash. I only once borrowed money to buy a car and that lasted a few months. Every other car has been bought with cash. The current one cost £1650, 5 years ago.
It's a diesel, it does over 50mpg, but still has 20 more hp than the MK1 GTi I bought in my 20s.

I could afford almost any car, but whatever car I do have will spend 99% of the time parked, with no one in it. So I spend the lowest possible amount of money on motoring.

So sell the car.

Charlottesquare
Lemon Quarter
Posts: 1837
Joined: November 4th, 2016, 3:22 pm
Has thanked: 108 times
Been thanked: 582 times

Re: Sacrificing my pride and joy

#648206

Postby Charlottesquare » February 21st, 2024, 12:31 am

My first car was a circa 1971 1300 Mark II Cortina, purchased circa 1980 for £98, sold two years later for £50, with that £50 my dad in 1982 sold me his 1974 Escort 1100, I kept that going until circa 1987 then sold in parts for £80, then no car until 1990 when I married and my other half already had a Fiesta, new Escort in 1990, £9,000, Fiesta traded in, sold for Granada 1999, £5,000 less trade in , then a £900 Carlton that got rammed, £600 Rover 620, a £2,500 1991 Mercedes 300, two more cheap Merc estates, £1,000 and £2,600.

Current is a Mini Cooper 1600 2006 that I bought for £2,900 (And a Countryman AWD bought for £11,000), we also still have a Fiat 500 bought new in 2009 for £6,000 after scrap scheme £2,000 (currently not on road). Also have in store a Reliant SS1 1600 bought years ago for £1,500, will finish sorting it when we move to a house with a garage.

The best thing is all those cheap cars means mortgage paid, decent pension provision and a fair few savings.

Why anyone would blow lots of money on cars is to me a mystery.

bluedonkey
Lemon Quarter
Posts: 1833
Joined: November 13th, 2016, 3:41 pm
Has thanked: 1450 times
Been thanked: 663 times

Re: Sacrificing my pride and joy

#648241

Postby bluedonkey » February 21st, 2024, 8:50 am

I spent quite a lot on a car 21 years ago. It was a secondhand Toyota for £7000. Still have it now, so the depreciation per year is good I suppose.

88V8
Lemon Half
Posts: 5965
Joined: November 4th, 2016, 11:22 am
Has thanked: 4329 times
Been thanked: 2676 times

Re: Sacrificing my pride and joy

#648267

Postby 88V8 » February 21st, 2024, 10:38 am

Revival of a two yo thread with a one-post OP.
If it appeared now we'd think it was AI.
Perhaps it was.

Our current cars cost £400 Pug 205, not a GTI - £1200 Land Rover - £6500 Rambler which is the most I ever spent on a car.
We won't mention the time and money the latter two have absorbed, but it's still way less than the depreciation and insurance on a new car.
And a chap does need hobbies.

V8

Charlottesquare
Lemon Quarter
Posts: 1837
Joined: November 4th, 2016, 3:22 pm
Has thanked: 108 times
Been thanked: 582 times

Re: Sacrificing my pride and joy

#668053

Postby Charlottesquare » June 8th, 2024, 11:54 pm

Charlottesquare wrote:My first car was a circa 1971 1300 Mark II Cortina, purchased circa 1980 for £98, sold two years later for £50, with that £50 my dad in 1982 sold me his 1974 Escort 1100, I kept that going until circa 1987 then sold in parts for £80, then no car until 1990 when I married and my other half already had a Fiesta, new Escort in 1990, £9,000, Fiesta traded in, sold for Granada 1999, £5,000 less trade in , then a £900 Carlton that got rammed, £600 Rover 620, a £2,500 1991 Mercedes 300, two more cheap Merc estates, £1,000 and £2,600.

Current is a Mini Cooper 1600 2006 that I bought for £2,900 (And a Countryman AWD bought for £11,000), we also still have a Fiat 500 bought new in 2009 for £6,000 after scrap scheme £2,000 (currently not on road). Also have in store a Reliant SS1 1600 bought years ago for £1,500, will finish sorting it when we move to a house with a garage.

The best thing is all those cheap cars means mortgage paid, decent pension provision and a fair few savings.

Why anyone would blow lots of money on cars is to me a mystery.


The update- the Countryman has now gone as Edinburgh now have the ULEZ and it was a diesel. Have agreed to buy a 2005 Mercedes 320 CLK from a friend for £2,700 (circa 78k miles, good bodywork, well maintained) though needs a new radio with Dab+ and Satnav, so that will be circa £440 on top (appears to have matching plugs so will be an attempted self fit) Both current cars to be run until they drop, though may need to change Mini for a car which is automatic as other half starting to struggle with her joints.

Sorry to lose the Countryman but happy to be back in the land of cheap Mercs.

doolally
Lemon Slice
Posts: 666
Joined: February 8th, 2021, 10:55 am
Has thanked: 109 times
Been thanked: 540 times

Re: Sacrificing my pride and joy

#668068

Postby doolally » June 9th, 2024, 9:59 am

Charlottesquare wrote:
The update- the Countryman has now gone as Edinburgh now have the ULEZ and it was a diesel. Have agreed to buy a 2005 Mercedes 320 CLK from a friend for £2,700 (circa 78k miles, good bodywork, well maintained) though needs a new radio with Dab+ and Satnav, so that will be circa £440 on top (appears to have matching plugs so will be an attempted self fit) Both current cars to be run until they drop, though may need to change Mini for a car which is automatic as other half starting to struggle with her joints.

Sorry to lose the Countryman but happy to be back in the land of cheap Mercs.

In Edinburgh, it's just a LEZ, not a ULEZ. You might have to get rid of the Merc if it becomes a ULEZ
doolally

jaizan
Lemon Slice
Posts: 457
Joined: September 1st, 2018, 10:21 pm
Has thanked: 265 times
Been thanked: 141 times

Re: Sacrificing my pride and joy

#668098

Postby jaizan » June 9th, 2024, 1:05 pm

I had a Golf GTi when I was about 23, although admittedly it was a second hand model paid for with cash. After the Golf came a Visa GTi. I remember overtaking a Visa diesel, then seeing the same car chug past me when I was refuelling. Eventually, I saw the light and bought a diesel.

Whilst I could afford almost any car, my current car cost £1650, when I purchased it 7 years ago.
The car spends at least 98.5% of it's time parked, without me in it.
I probably spend well over 50% of my time in my house or garden.

I'm another one of those investors who is happy running around in an old car and view money spent on a motoring as mostly wasted.

So my recommendation is to get rid of your Golf GTi and start saving.

Charlottesquare
Lemon Quarter
Posts: 1837
Joined: November 4th, 2016, 3:22 pm
Has thanked: 108 times
Been thanked: 582 times

Re: Sacrificing my pride and joy

#668143

Postby Charlottesquare » June 9th, 2024, 4:14 pm

doolally wrote:
Charlottesquare wrote:
The update- the Countryman has now gone as Edinburgh now have the ULEZ and it was a diesel. Have agreed to buy a 2005 Mercedes 320 CLK from a friend for £2,700 (circa 78k miles, good bodywork, well maintained) though needs a new radio with Dab+ and Satnav, so that will be circa £440 on top (appears to have matching plugs so will be an attempted self fit) Both current cars to be run until they drop, though may need to change Mini for a car which is automatic as other half starting to struggle with her joints.

Sorry to lose the Countryman but happy to be back in the land of cheap Mercs.

In Edinburgh, it's just a LEZ, not a ULEZ. You might have to get rid of the Merc if it becomes a ULEZ
doolally


Had not appreciated the subtle difference- here is hoping. On plus side in 22 months I retire, likely leave the city, and hopefully not an issue in say the Scottish Borders


Return to “Your Tomorrow Starts Today”

Who is online

Users browsing this forum: No registered users and 1 guest