Discussion
I'm 23 , and I'm not sure what to do , my friends have got nice cars and they are younger than me ,
currently drive a 1.6 ford fiesta zetec s ( 2005 ) with 64000 miles on clock i bought this .... with a bank loan of £5000 i also got insurance with that loan too. ... which was £200 a month payback for 3 years. i finished these payments 3 months back.
i can appreciate people saying i should get on the property ladder as asap
ever since iv payed back my bank loan
iv managed to save £400 - £600 a month.
As for investments im currently investing £10-£20 a week into moneybox if that counts as an investment
Pensions - i have the standard work pension which is about £30-40 a month
my mates gran bought him a £5495 1.4 tsi160 gt so all he has to do is pay her back weekly , which is around £50 a week. He has got it remapped to around 200bhp
i currently have around £4000 savings , and im wanting to get a hot hatch with a bit of power but also used for a daily. WOULD YOU pay finance or save up a bit more to afford a good car that is your own and not financed ?
If you was in my position what would you do?
what car would you buy?
what car would you finance or bubble payment?
thank you
currently drive a 1.6 ford fiesta zetec s ( 2005 ) with 64000 miles on clock i bought this .... with a bank loan of £5000 i also got insurance with that loan too. ... which was £200 a month payback for 3 years. i finished these payments 3 months back.
i can appreciate people saying i should get on the property ladder as asap
ever since iv payed back my bank loan
iv managed to save £400 - £600 a month.
As for investments im currently investing £10-£20 a week into moneybox if that counts as an investment
Pensions - i have the standard work pension which is about £30-40 a month
my mates gran bought him a £5495 1.4 tsi160 gt so all he has to do is pay her back weekly , which is around £50 a week. He has got it remapped to around 200bhp
i currently have around £4000 savings , and im wanting to get a hot hatch with a bit of power but also used for a daily. WOULD YOU pay finance or save up a bit more to afford a good car that is your own and not financed ?
If you was in my position what would you do?
what car would you buy?
what car would you finance or bubble payment?
thank you
Edited by MISTADOBALINA on Thursday 18th March 10:04
Edited by MISTADOBALINA on Thursday 18th March 11:31
Edited by MISTADOBALINA on Thursday 18th March 11:45
I'm currently 30 and I would avoid finance, especially at 23. Depending on your situation, I wouldn't recommend spending all your savings on a car or worrying about what your friends are driving.
That said, you might need a car. If you need a car I'd probably get something sensible with a thought of keeping it long term. I've got a couple of Saabs at the moment, but if I was looking to spend more than my usual Saab sheds then I'd be considering a reliable toyota.
That's not to say that I was completely sensible in my early 20s. When I was 22 I bought a ZX9R with ohlins suspension for a couple of grand, so perhaps not the most sensible use of my money then either. Then again, I still have the bike and it hasn't cost me much over the years. I could probably sell it for what I bought it for too but I suspect it will be with me a long time. At the time I wasn't particularly sensible, but if I were to go back knowing what I know now, I'd be thinking about:
1. Having an emergency fund
2. Saving up a proportion for a deposit on a property
3. Making sure pension contributions are sorted/investing a proportion of my income each month.
If you really want a hot hatch then go for it. I'd save up to buy it in cash though personally if you are going for something used.
That said, you might need a car. If you need a car I'd probably get something sensible with a thought of keeping it long term. I've got a couple of Saabs at the moment, but if I was looking to spend more than my usual Saab sheds then I'd be considering a reliable toyota.
That's not to say that I was completely sensible in my early 20s. When I was 22 I bought a ZX9R with ohlins suspension for a couple of grand, so perhaps not the most sensible use of my money then either. Then again, I still have the bike and it hasn't cost me much over the years. I could probably sell it for what I bought it for too but I suspect it will be with me a long time. At the time I wasn't particularly sensible, but if I were to go back knowing what I know now, I'd be thinking about:
1. Having an emergency fund
2. Saving up a proportion for a deposit on a property
3. Making sure pension contributions are sorted/investing a proportion of my income each month.
If you really want a hot hatch then go for it. I'd save up to buy it in cash though personally if you are going for something used.
Edited by bluezedd on Thursday 18th March 10:13
I'd stop comparing yourself to others first. Don't worry whether they have a flashier car than you. Their situation is different and if you can convince your Nan to buy you a car you're probably in a lucky minority.
I don't have an exact recommendation of car, but what I would say is that you can get a lot of decent cars for £2-4k, maybe try to have some money left over for being able to afford to go to places, have experiences, driving tours. Maybe it wont be the most rapid thing on the road, but at least you are able to travel in your car. Have money left to make minor mod's if that's what you're into - more than likely money left for fixing things will be more important.
You can finance yourself up if that's what you want, personally I'd see what you can make work with the money you have.
I don't have an exact recommendation of car, but what I would say is that you can get a lot of decent cars for £2-4k, maybe try to have some money left over for being able to afford to go to places, have experiences, driving tours. Maybe it wont be the most rapid thing on the road, but at least you are able to travel in your car. Have money left to make minor mod's if that's what you're into - more than likely money left for fixing things will be more important.
You can finance yourself up if that's what you want, personally I'd see what you can make work with the money you have.
First of all, whatever car you decide on, do your research. Hot hatches require maintenance, and things go wrong, specially once modifying starts. I know that sounds obvious but you'd be amazed how many people simply can't afford to run a 10 year old car putting 250+ bhp through the front wheels. Wear and tear is very real.
As for your finances the best advice I can offer is this... Examine your monthly expenditure. If you have enough money left at the end of an average month to pay off a monthly payment, then finance is a good bet, otherwise upfront will always be best. Oh, and personal loans usually offer better APR over dealer car finance. Although this is credit rating dependent.
People will be along shortly spouting the you only live once line I'm sure, but savings are important. It could mean you're in a position to buy a house in a few years.
As for your finances the best advice I can offer is this... Examine your monthly expenditure. If you have enough money left at the end of an average month to pay off a monthly payment, then finance is a good bet, otherwise upfront will always be best. Oh, and personal loans usually offer better APR over dealer car finance. Although this is credit rating dependent.
People will be along shortly spouting the you only live once line I'm sure, but savings are important. It could mean you're in a position to buy a house in a few years.
Definitely buy within budget. £4k will get you a decent car with some Kudos and street cred.
You could buy a Golf tsi160 like your mate, but I wouldn't do that.
Get something more interesting.
R53 cooper s
EP3 type r
Clio 182
Want a bit more comfort?
Mondeo ST220
Or if it has to be VAG I'm sure you can get a Mk5 Golf GTi for £4k.
At 23, would insurance be an issue?
If so, you might be better looking at warm stuff like an Astra gtc Sri.
Plenty of choice and no need to finance.
You could buy a Golf tsi160 like your mate, but I wouldn't do that.
Get something more interesting.
R53 cooper s
EP3 type r
Clio 182
Want a bit more comfort?
Mondeo ST220
Or if it has to be VAG I'm sure you can get a Mk5 Golf GTi for £4k.
At 23, would insurance be an issue?
If so, you might be better looking at warm stuff like an Astra gtc Sri.
Plenty of choice and no need to finance.
Get on the property ladder as soon as you can. f
k everything else off until you have a mortgage. Then you can lease something flashy or save to buy an older, slightly less reliable, but probably more fun hot hatch or sports car.
You don’t need 200 bhp to have fun in a car. 130 bhp/ton is plenty to make progress and not hold anyone up. Get something with a good chassis thats fun to chuck into corners, but doesn’t rape you on insurance.
Your friends can make fun of you but you’ll own your own place whilst they’re still renting into their thirties.
k everything else off until you have a mortgage. Then you can lease something flashy or save to buy an older, slightly less reliable, but probably more fun hot hatch or sports car.You don’t need 200 bhp to have fun in a car. 130 bhp/ton is plenty to make progress and not hold anyone up. Get something with a good chassis thats fun to chuck into corners, but doesn’t rape you on insurance.
Your friends can make fun of you but you’ll own your own place whilst they’re still renting into their thirties.
24 here and gone through a bout of owning various priced cars. Had the expensive car on finance which was great but got bored of the payments and the car. Moved onto another car which I paid outright for with most of my savings which was £4k as well at the time. Sold after 10 months as I hated having the cash tied into a car. With various £400 cars in-between. Now driving a £750 Volvo with a D5 lump and getting to build my savings every month. It's the best car I have ever owned and my financial situation is way better because of it. I have friends paying most of their disposable income on financed cars purely for social status.
Just get something cheap and liberating. Friends might turn their nose up but you'll be happy in the long run! Have to throw a shoutout to 'The Joy of Running an Old Shed' topic on here. Volvo S60 D5's are also cheap and quite fast...
Just get something cheap and liberating. Friends might turn their nose up but you'll be happy in the long run! Have to throw a shoutout to 'The Joy of Running an Old Shed' topic on here. Volvo S60 D5's are also cheap and quite fast...
No right answer here, but I know exactly what I'd do.
Financing yourself up at 23 to buy an expensive car now might be tempting, but you're almost certainly better off in the long run not giving in to impatience. The cost of owning a car - not running it but just owning it - is mostly made up by
Depreciation
Dealer margin
Finance costs
If you want a flashy new motor right now, then go ahead and lease a new or nearly new from a dealer. Lots of people do that and are perfectly happy. But if you want to climb the ladder and get something really special in a few years you want to keep those costs to a minimum while you build up your pot. The way to do that is to buy what you can afford now, buy and sell privately, and don't borrow money.
I was in your position at 23, and I went out and bought a modest but fun car with my few thousand of savings. It was an old-ish but still fun MX-5. My friends bought much more expensive nearly new hatchbacks and saloons on finance. All the money they were spending on finance I put in savings, then a year later I sold my car for close to what I paid for it and bought a better one. My friends were still in their financed cars. I kept putting my money in savings, my friends kept making their finance payments. A bit later I sold my car again and used that plus my savings to buy a Vauxhall VX220 (this was a while ago), then a year or so later I bought a Porsche Boxster (can you tell I like 2-seater convertibles? I'm not a hairdresser, I promise). A couple of years later, earning just slightly above an average salary, I sold the Boxster and bought a 10 year old Aston Martin, outright, finance free. My friends were still in their leased and financed VWs, having rolled each finance deal into the next every few years, having burnt thousands over the last 8 years on depreciation, dealer margin and finance costs.
Neither of us was objectively right or wrong, they were happy enough in their nearly new Fords or BMWs with the backing of a main dealer. But I'm confident that I made the right choice for me.
Financing yourself up at 23 to buy an expensive car now might be tempting, but you're almost certainly better off in the long run not giving in to impatience. The cost of owning a car - not running it but just owning it - is mostly made up by
Depreciation
Dealer margin
Finance costs
If you want a flashy new motor right now, then go ahead and lease a new or nearly new from a dealer. Lots of people do that and are perfectly happy. But if you want to climb the ladder and get something really special in a few years you want to keep those costs to a minimum while you build up your pot. The way to do that is to buy what you can afford now, buy and sell privately, and don't borrow money.
I was in your position at 23, and I went out and bought a modest but fun car with my few thousand of savings. It was an old-ish but still fun MX-5. My friends bought much more expensive nearly new hatchbacks and saloons on finance. All the money they were spending on finance I put in savings, then a year later I sold my car for close to what I paid for it and bought a better one. My friends were still in their financed cars. I kept putting my money in savings, my friends kept making their finance payments. A bit later I sold my car again and used that plus my savings to buy a Vauxhall VX220 (this was a while ago), then a year or so later I bought a Porsche Boxster (can you tell I like 2-seater convertibles? I'm not a hairdresser, I promise). A couple of years later, earning just slightly above an average salary, I sold the Boxster and bought a 10 year old Aston Martin, outright, finance free. My friends were still in their leased and financed VWs, having rolled each finance deal into the next every few years, having burnt thousands over the last 8 years on depreciation, dealer margin and finance costs.
Neither of us was objectively right or wrong, they were happy enough in their nearly new Fords or BMWs with the backing of a main dealer. But I'm confident that I made the right choice for me.
P.S. further to my comment above about climbing the ladder. As others have said, don't prioritise this over getting on the housing ladder, as you will probably regret that in the long run. But you can always have some of your savings tied up in the car, as if you do it right it won't be losing much value.
Just to echo what others have said. If you're living very cheaply with parents right now. Save up and get a property, the flashy car can come later. Though flats are a bad investment so aim for a house if you can (ask me how I know). That's a different thread though and just depends on what your goals are in life.
Thank you all for the advice I really do appreciate it.
i think i should've mentioned this in my original post
i currently drive a 1.6 ford fiesta zetec s ( 2005 ) with 64000 miles on clock i bought this .... with a bank loan of £5000 i also got insurance with that loan too. ... which was £200 a month payback for 3 years. i finished these payments 3 months back.
i can appreciate people saying i should get on the property ladder as asap
ever since iv payed back my bank loan
iv managed to save £400 - £600 a month.
that may change people opinions on the subject
thank you all again
i think i should've mentioned this in my original post
i currently drive a 1.6 ford fiesta zetec s ( 2005 ) with 64000 miles on clock i bought this .... with a bank loan of £5000 i also got insurance with that loan too. ... which was £200 a month payback for 3 years. i finished these payments 3 months back.
i can appreciate people saying i should get on the property ladder as asap
ever since iv payed back my bank loan
iv managed to save £400 - £600 a month.
that may change people opinions on the subject
thank you all again
ChrisH72 said:
Definitely buy within budget. £4k will get you a decent car with some Kudos and street cred.
You could buy a Golf tsi160 like your mate, but I wouldn't do that.
Get something more interesting.
R53 cooper s
EP3 type r
Clio 182
Want a bit more comfort?
Mondeo ST220
Or if it has to be VAG I'm sure you can get a Mk5 Golf GTi for £4k.
At 23, would insurance be an issue?
If so, you might be better looking at warm stuff like an Astra gtc Sri.
Plenty of choice and no need to finance.
thanks for the reccomendations , You could buy a Golf tsi160 like your mate, but I wouldn't do that.
Get something more interesting.
R53 cooper s
EP3 type r
Clio 182
Want a bit more comfort?
Mondeo ST220
Or if it has to be VAG I'm sure you can get a Mk5 Golf GTi for £4k.
At 23, would insurance be an issue?
If so, you might be better looking at warm stuff like an Astra gtc Sri.
Plenty of choice and no need to finance.
i really like the EP3 but they are going up in price now dont you think ?
i like the minis too
but what do you mean by VAG?
haha thanks
Yeti97 said:
24 here and gone through a bout of owning various priced cars. Had the expensive car on finance which was great but got bored of the payments and the car. Moved onto another car which I paid outright for with most of my savings which was £4k as well at the time. Sold after 10 months as I hated having the cash tied into a car. With various £400 cars in-between. Now driving a £750 Volvo with a D5 lump and getting to build my savings every month. It's the best car I have ever owned and my financial situation is way better because of it. I have friends paying most of their disposable income on financed cars purely for social status.
Just get something cheap and liberating. Friends might turn their nose up but you'll be happy in the long run! Have to throw a shoutout to 'The Joy of Running an Old Shed' topic on here. Volvo S60 D5's are also cheap and quite fast...
This is a good shout. At 23 I bought a 2001 S60 2.0T - it was excellent. Quite fast and trounced the boy racers in their Corsas etc, very reliable. There's still plenty on the roads which speaks of their build quality. Sometimes you have to go for less obvious choices if you want a bit of power without getting ripped off on insurance.Just get something cheap and liberating. Friends might turn their nose up but you'll be happy in the long run! Have to throw a shoutout to 'The Joy of Running an Old Shed' topic on here. Volvo S60 D5's are also cheap and quite fast...
The OP could also look at a Scirocco 2.0TSI GT in that budget, my favourite car owned but the door sills rusted at 6 years old and it did have a few other niggles but nothing major. Maybe a Celica can be had as well. I'd pay for an RAC inspection for anything remotely sporty or complicated in this budget.
Yes sorry VAG is VW, Audi, Seat, Skoda as lighningblue said. A lot of younger folk seem to get really hung up about buying VW and the like, as if there's nothing else worth considering.
I never had an EP3 type r but really wish I'd tried one. It was close but I ended up with a Celica T sport (another you could look at?) Then moved to the 9th gen Civic which was a little disappointing. £4k will get you a type r but it will have over 100k miles on it. Not necessarily a problem with that engine though and as prices are rising you're unlikely to lose money on one.
I never had an EP3 type r but really wish I'd tried one. It was close but I ended up with a Celica T sport (another you could look at?) Then moved to the 9th gen Civic which was a little disappointing. £4k will get you a type r but it will have over 100k miles on it. Not necessarily a problem with that engine though and as prices are rising you're unlikely to lose money on one.
Stop caring about what your friends drive. Stop seeing "newer" cars as "nicer" cars. Some of my most enjoyable cars have been in the £1000 bracket. "Fit girls" aren't going to date you because you have a "nice car", I'd bet for all of the trollops in the back of Max Power back in the day who said "maybe" to "Would you date an ugly bloke with a nice car", reality is the answer is still no - you're gonna have to get girls on your own merit. Reality is all it is is a pissing contest that you're going to lose because there will always be someone with something nicer.
And I bet a tenner that kid with the remapped VW that he's financed through his gran has paid as little as possible for a dodgy remap and it's gonna be broken before long.
Buy a cheap car, keep your savings. If all you have at 23 is £4k, if you don't own a home yet, don't spend anything on a car. You'll regret it. Promise you.
And I bet a tenner that kid with the remapped VW that he's financed through his gran has paid as little as possible for a dodgy remap and it's gonna be broken before long.
Buy a cheap car, keep your savings. If all you have at 23 is £4k, if you don't own a home yet, don't spend anything on a car. You'll regret it. Promise you.
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