Buying an expensive car quesion
- Thread starter smokedog
- Start date
Soldato
Matt82 said:
If that was at me I'm not car is only costing 19k of the loan the rest has consloidated some C Cards so all in all I am quids in.
Bit of an odd quiestion though as that is like saying why you spending 270k on a mortgage when the hous is worth 200k? When you borrow money for something you cannot afford you pay extra for the privilage of not having to wait and save for something.
Soldato
Bigsy said:
Agreed that is a bit steep and the deprtiation on the car will outstrip the payments on the loan.
get an 01-02 for 14k over a shorter period of time
Fab car though
Man of Honour
Personally i love the S2000 but i wouldn't borrow money for any car.
The most expensive cars i have had have been nothing but stress.
I like old bangers that me and my ruff tuff staffy dog can monster. I like leaving my car wherever it stops and i like ruff motors.
It would be totally different if i had a few hundred grand in the bank and could use an expensive car as i use the ones i have now but i don't.
I can really enjoy my old bangers and don't give a flying **** about them. They are used as tools and nothing else.
Having said that i do attack chavs with Hammers if they try to steal them.
The most expensive cars i have had have been nothing but stress.
I like old bangers that me and my ruff tuff staffy dog can monster. I like leaving my car wherever it stops and i like ruff motors.
It would be totally different if i had a few hundred grand in the bank and could use an expensive car as i use the ones i have now but i don't.
I can really enjoy my old bangers and don't give a flying **** about them. They are used as tools and nothing else.
Having said that i do attack chavs with Hammers if they try to steal them.
haha a 270k house is a different matter to a 20k car. we need a house at some point or another, a 2k car will pretty much do the same duty as a 20k car.
just IMO, but im avidly against borrowing money, cannot stand the thought of spending money thats not my own. i just would not be able to sleep at night lol. when it comes to a mortgage tho, that clearly is a different matter, but thats besides the point.
it just suprises me how society now seems almost eager to spend well beyond its means etc. like has been mentioned, what happens when the car depreciates and youre in negitive equity?
maybe i just worry too much. i just prefer to own my belongings lol
just IMO, but im avidly against borrowing money, cannot stand the thought of spending money thats not my own. i just would not be able to sleep at night lol. when it comes to a mortgage tho, that clearly is a different matter, but thats besides the point.
it just suprises me how society now seems almost eager to spend well beyond its means etc. like has been mentioned, what happens when the car depreciates and youre in negitive equity?
maybe i just worry too much. i just prefer to own my belongings lol
Caporegime
besides a house will appreciate (hopefully) as opposed to depreciate. thus taking out a large loan for a house works (most of the time) whereas for a car its just dead money?
Soldato
Buying a car for me is about my passion as well as transport, I don't really care too much about resale values (this time is the first time I have really considered it due to the amount)
As I have explained you need to buy the right car on a large loan otherwise it is a foolhardy thing to do.
To me a rented house does the same job as a bought house, and I have no real inrest in buying anywhere in th near future as they are not "worth" what they are charging for them these days. Everyone trying to make a quick buck from housing from agents, mortgage companies and multiple home owners have inflated house price to stupid levels.
You could also say that a cheap mall house in a poor area does the same job as a bigger one in a better area so why pay 50k more?
Both Home and car are essential to most people but we buy the ones that we want, some people funnel all their cash into bricks and morter while others divert some of it into inrests that bring enjoyment to their life.
We are all different at the end of the day with different priorities.
I make sure all my bills are paid and have a roof over my head but without my pleasures life would be dull and pointless.
If I won 10 million for example I would have a modest 2-3 bed house with a 10 car garage full of amazing cars. I couldn't think of anything worse to own than a big house! I just don't need or like all hat space.
Each to their own at the end of the day
As I have explained you need to buy the right car on a large loan otherwise it is a foolhardy thing to do.
To me a rented house does the same job as a bought house, and I have no real inrest in buying anywhere in th near future as they are not "worth" what they are charging for them these days. Everyone trying to make a quick buck from housing from agents, mortgage companies and multiple home owners have inflated house price to stupid levels.
You could also say that a cheap mall house in a poor area does the same job as a bigger one in a better area so why pay 50k more?
Both Home and car are essential to most people but we buy the ones that we want, some people funnel all their cash into bricks and morter while others divert some of it into inrests that bring enjoyment to their life.
We are all different at the end of the day with different priorities.
I make sure all my bills are paid and have a roof over my head but without my pleasures life would be dull and pointless.
If I won 10 million for example I would have a modest 2-3 bed house with a 10 car garage full of amazing cars. I couldn't think of anything worse to own than a big house! I just don't need or like all hat space.
Each to their own at the end of the day
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Steve said:
It'll depreciate at a startlingly low rate, thats what'll happen.
You can buy a brand new ST220 for £18k. A 52 plate one in decent condition is about £10k.
Thats £2k depreciation a year, funny, thats about what you are expecting to lose on your M3 you said yesterday.
I'm with the 'If you cant raise a £2k deposit you cant afford to buy a £20k car' crowd. Why not live within your means and buying somthing you can comfortably afford. The only times I can see myself using some form of finance is when I can use a 50% deposit and have it all paid off in a year, perhaps two tops.
Maz said:
Really? Its years since I got car finance but they always used to want 10%. I guess its all part of the 'allow people to get into as much debt as possible no matter what they can actually afford to repay' mentality of Finance Houses, and the endless number of people these days all too willing to take them up on the offer because they dont have the discipline or patience to save up.
At £20K + interest you're only going to paying off the depreciation for the first couple of years.
Last edited:
Man of Honour
There's nothing wrong with buying a car on finance IMO. Certainly if you're able to pay for the majority of it upfront. The rest of it you can pay off in installments over a year or maybe 2? My mx5 was bought by paying 70% of the cost. I couldn't afford to buy it outright, but I paid the rest of it off in 8 months which I could afford to do. I paid a little bit of interest on it, but it meant that I was able to own outright the car I wanted.
I would agree however that I wouldn't pay 10% of the car and then the rest on a loan/finance. I'd only go for finance if I can afford to pay the majority of the price of the car.
£20k for an S2000 is far too much however.
I would agree however that I wouldn't pay 10% of the car and then the rest on a loan/finance. I'd only go for finance if I can afford to pay the majority of the price of the car.
£20k for an S2000 is far too much however.
Absolutely, finance on a car is fine, but your situation is a world away from the OP who doesnt even have the basic 10%. IMO if you cant save £2k you cant afford to run a car that could well cost £500+ per service, plus expensive insurance, tyres etc etc.
Its all about running a car within your means.
I could comfortably afford the repayments on a brand new M3 or even M5, based on a 10% deposit and repayments over 5 years, but I wouldnt sleep well at night knowing I had that sort of financial comitment for that length of time for something which is depreciating faster than I'm paying it off.
Its all about running a car within your means.
I could comfortably afford the repayments on a brand new M3 or even M5, based on a 10% deposit and repayments over 5 years, but I wouldnt sleep well at night knowing I had that sort of financial comitment for that length of time for something which is depreciating faster than I'm paying it off.
Soldato
Steve said:
This attitude will ensure you never have any money.
How can you possibly be 'quids in' if you owe the bank 23k and only have a 19k car thats probably going to depreciate.
Personally i consider i'm quids in when i add a nice big positive number to my bank account,
You end up paying 3 to 4 grand interest on a car thats going to be with very little in six years. ie the car will be worth 10k and you've paid 27k ie net loss of 17k, you can hide the loss by selling it and getting another but that just loses you even more.
Oh and how can taking out a lone give you a good credit record um it just means you're committed to x a mount so you wont be able to borrow much more, please, people who take out big car loans are just chucking money away and storing up trouble for the future.
Man of Honour
Sagalout said:
Yup totally agree with that. I'd be feeling the same.
Soldato
I have a company car - pretty much always have had, but about 4 years ago I was introduced to short-term leasing for a second car.
If you only run small mileages - say 10,000 miles per year you can lease some pretty exotic machinery for very little money.
I've had 2 Porsche 2.7 Boxsters from Lex Vehicle Leasing on 12 month, 10K per annum fully serviced leases. The first one was £411 per month, the second one was £379 per month. LVL also organised the insurance for me at another £58/month on top. I've just got a Lotus Elise 111R for £512/month including the insurance and servicing. These were all off their special offers page on the day I wanted/needed to change. The cars have been ordered by some other unlucky beggar who has pulled out for some reason, so some of the specs can be a bit wierd, but generally I've been really happy with these cars.
No, I'll never own the car - some people would say it was dead money, but I don't smoke and I drink very little, so I don't see the harm in having a nice toy in the garage. If you want an S2000 - look into leasing it. You could well be surprised how cheap it is. And compared to the depreciation on my computers - car depreciation is nothing!
If you only run small mileages - say 10,000 miles per year you can lease some pretty exotic machinery for very little money.
I've had 2 Porsche 2.7 Boxsters from Lex Vehicle Leasing on 12 month, 10K per annum fully serviced leases. The first one was £411 per month, the second one was £379 per month. LVL also organised the insurance for me at another £58/month on top. I've just got a Lotus Elise 111R for £512/month including the insurance and servicing. These were all off their special offers page on the day I wanted/needed to change. The cars have been ordered by some other unlucky beggar who has pulled out for some reason, so some of the specs can be a bit wierd, but generally I've been really happy with these cars.
No, I'll never own the car - some people would say it was dead money, but I don't smoke and I drink very little, so I don't see the harm in having a nice toy in the garage. If you want an S2000 - look into leasing it. You could well be surprised how cheap it is. And compared to the depreciation on my computers - car depreciation is nothing!
On the flip side of that, over 3 years you've spent around £15K on cars with nothing to show for it. If you'd run a cheap runabout for the same time you'd have had about £14K to go out and buy an Elise and owned it outright, with no future monthly payments.
Soldato
But I have an essentially FREE runabout that automagically gets replaced every 2 years or 90,000 miles depending on which comes first. I don't need another car, I want a sports car to love and make me feel special.
And why buy the Elise? They're not the depreciation-proof things they used to be. Then the tyres are mentally expensive. It's quite economical on petrol, but that's about it. Everything else about it is like ripping up £5 notes in the shower. No, leasing it is the only sensible way to go with a Lotus.
And yes, I've spent 15K on 'experiences' but they didn't damage my lungs like cigarettes or trash my liver like an excess of booze, and I know loads of people who spend £5K per year (and more) on going out, cigarettes, alcohol, drugs, prostitutes, DVDs etc. My cars are just a different way to enjoy myself.
And why buy the Elise? They're not the depreciation-proof things they used to be. Then the tyres are mentally expensive. It's quite economical on petrol, but that's about it. Everything else about it is like ripping up £5 notes in the shower. No, leasing it is the only sensible way to go with a Lotus.
And yes, I've spent 15K on 'experiences' but they didn't damage my lungs like cigarettes or trash my liver like an excess of booze, and I know loads of people who spend £5K per year (and more) on going out, cigarettes, alcohol, drugs, prostitutes, DVDs etc. My cars are just a different way to enjoy myself.
Caporegime
Steve said:
I'm not convinced about something like an M5, BMW Car Magazine have one "long term" as part of there fleet, its cost them a small fortune to keep on the road thus far (last month over £3k iirc)
As I've found with my e38 that cost £35k+ when new, despite me buying if for £5k, it still has £35k+ running costs, especially at a main dealers!!!
£85 to fill the tank can get irritating also.
I could have had a loan for £10k but, I did'nt.
Think very carefully, before you take the plunge mate.
