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Two And A Half Years Ago...

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I had my deposit saved for a property purchase. I had access to about £12k and offered the GF to buy a place together, and she could match the deposit. Not ready she says.

So not being able to have that money burning a hole in my pocket, and being unable to buy a decent sized place alone, I spunked it all on a nice new motor my beloved RS Clio 182 (because someone would ask). And yes, I know about depreciation.

So here I am, nearly 3 years on. The car is paid for. And I have access to about £20k (including resale value of the car). I refuse to buy in the current climate as I feel it can't go on - can it? Top of the market I think (hope).

And I am sorely tempted to spunk it all on a rather nice new Ford Focus ST in diamond white.

Part of me figures that all cars depreciate, my current one has at probably £2k a year. So if I cant do anything with the 17k property wise, I might as well have a nicer car depreciating at £2k a year. After all I can sell it when the market changes can't I.

Do you think my GF wll buy this logic?

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I had my deposit saved for a property purchase. I had access to about £12k and offered the GF to buy a place together, and she could match the deposit. Not ready she says.

So not being able to have that money burning a hole in my pocket, and being unable to buy a decent sized place alone, I spunked it all on a nice new motor my beloved RS Clio 182 (because someone would ask). And yes, I know about depreciation.

So here I am, nearly 3 years on. The car is paid for. And I have access to about £20k (including resale value of the car). I refuse to buy in the current climate as I feel it can't go on - can it? Top of the market I think (hope).

And I am sorely tempted to spunk it all on a rather nice new Ford Focus ST in diamond white.

Part of me figures that all cars depreciate, my current one has at probably £2k a year. So if I cant do anything with the 17k property wise, I might as well have a nicer car depreciating at £2k a year. After all I can sell it when the market changes can't I.

Do you think my GF wll buy this logic?

No. Can`t say I do - sorry. Buying a car has got to be the worst money sink I can think of. If you want a `pukka` car why not buy one used and MOD IT UP??!! Hold onto your money, put it in an ISA, but please don`t blow it on a brand new car - it`s not worth it geezer ;)

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I had my deposit saved for a property purchase. I had access to about £12k and offered the GF to buy a place together, and she could match the deposit. Not ready she says.

So not being able to have that money burning a hole in my pocket, and being unable to buy a decent sized place alone, I spunked it all on a nice new motor my beloved RS Clio 182 (because someone would ask). And yes, I know about depreciation.

So here I am, nearly 3 years on. The car is paid for. And I have access to about £20k (including resale value of the car). I refuse to buy in the current climate as I feel it can't go on - can it? Top of the market I think (hope).

And I am sorely tempted to spunk it all on a rather nice new Ford Focus ST in diamond white.

Part of me figures that all cars depreciate, my current one has at probably £2k a year. So if I cant do anything with the 17k property wise, I might as well have a nicer car depreciating at £2k a year. After all I can sell it when the market changes can't I.

Do you think my GF wll buy this logic?

Get a bike if you haven't already and want a cheaper performance boost amazing what's around for 4 grand you to will be able to top 150+ mph. I know they are dangerous but fun.

Edited by Ipodjunky

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Get a bike if you haven't already and want a cheaper performance boost amazing what's around for 4 grand you to will be able to top 150+ mph. I know they are dangerous but fun.

Always a good call; if you don`t want a speed demon, you could always get something a bit more `low-riderish` :ph34r:

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Tell her that you'll stop buying cars (or wasting money in her eyes) when she' ready to buy a home ;)

Are you a PH'er by any chance. If you have to ask what I mean then you clearly aren't. You could buy a car and watch it depretiate by £2k/year...or you could put £17k in a high interest acount or ISA and watch it increase by about £1k/year and increasing YoY. Depends what your priorities are. I'd rather buy a second hand runaround and a kit car for fun...actually I did ;)

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Do you think my GF wll buy this logic?

In the 1980 you could buy an average house for less than 100oz gold. In 2004 it would cost you 700oz of gold. Today we are back to around 500oz per house. Where do you think gold will go from here? I think you know what you should do...

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Guest muttley
Do you think my GF wll buy this logic?

You don't say how old you are.

My 19yo nephew talks like this. Should I get a flash car or buy a flat? I hope he buys the car.

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You don't say how old you are.

My 19yo nephew talks like this. Should I get a flash car or buy a flat? I hope he buys the car.

Always buy the car as you can live in it.

Seem to remember two of my mates living in cars at one point or another in their

misspent youth.

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Buy the car ... enjoy it ... stop reading HPC.co.uk and stop worrying about house prices... Then when the car's 3 years old and out of warranty there might be a chance that property will be more affordable.

One thing to consider though... if HP's do head south then "desirable" cars could well plummet in value too. They're usually the first thing to get liquidated when the mortgage company come a-knockin'. I'm prepared to take the risk though, and after many years of running second-had sub-£10k cars, very much enjoyed spanking £30k two years ago on a convertible 350z.

Life's for living. Fair play to you for using your savings rather than buying it on the never-never.... Buying a car isn't a logical "investment" - but a decision made with the heart - go bl00dy enjoy the money you've worked hard to save up.

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I had my deposit saved for a property purchase. I had access to about £12k and offered the GF to buy a place together, and she could match the deposit. Not ready she says.

So not being able to have that money burning a hole in my pocket, and being unable to buy a decent sized place alone, I spunked it all on a nice new motor my beloved RS Clio 182 (because someone would ask). And yes, I know about depreciation.

So here I am, nearly 3 years on. The car is paid for. And I have access to about £20k (including resale value of the car). I refuse to buy in the current climate as I feel it can't go on - can it? Top of the market I think (hope).

And I am sorely tempted to spunk it all on a rather nice new Ford Focus ST in diamond white.

Part of me figures that all cars depreciate, my current one has at probably £2k a year. So if I cant do anything with the 17k property wise, I might as well have a nicer car depreciating at £2k a year. After all I can sell it when the market changes can't I.

Do you think my GF wll buy this logic?

If your going to buy a car at least buy a decent one. Chaved up hatchbacks (No Offense, but thats what they are) will have heavy depreciation. If your going to spend £20k buy a proper sports car like an Elise or a S2000. They look far nicer and would be a lot more fun.

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I had my deposit saved for a property purchase. I had access to about £12k and offered the GF to buy a place together, and she could match the deposit. Not ready she says.

So not being able to have that money burning a hole in my pocket, and being unable to buy a decent sized place alone, I spunked it all on a nice new motor my beloved RS Clio 182 (because someone would ask). And yes, I know about depreciation.

So here I am, nearly 3 years on. The car is paid for. And I have access to about £20k (including resale value of the car). I refuse to buy in the current climate as I feel it can't go on - can it? Top of the market I think (hope).

And I am sorely tempted to spunk it all on a rather nice new Ford Focus ST in diamond white.

Part of me figures that all cars depreciate, my current one has at probably £2k a year. So if I cant do anything with the 17k property wise, I might as well have a nicer car depreciating at £2k a year. After all I can sell it when the market changes can't I.

Do you think my GF wll buy this logic?

Well done in paying it off but the fact that you bought a new car in the first place and are considering buying yet another new car just three years later is ample evidence that you need to focus on your financial education and less on your street cred. If there really is any "resale value" I suggest you sell it, buy a cheaper, used car which is where you find real value and get hold of a decent financial adviser to help you invest the remainder of your equity. Losing £2k per year through a depreciating asset just isn't clever.

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In the 1980 you could buy an average house for less than 100oz gold. In 2004 it would cost you 700oz of gold. Today we are back to around 500oz per house. Where do you think gold will go from here? I think you know what you should do...

So where do you think gold will go from here? Nice question but bad advice. Gold's value reflects the market's concern over inflation and the declining dollar. Even the most bullish of gold-bugs will advise you that a balanced investment portfolio is what you need with only 10% invested in the shiney stuff. It's a hedge against inflation and is currently overbought just as is every other asset class. If deflation takes hold? What then?

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...Life's for living. Fair play to you for using your savings rather than buying it on the never-never.... Buying a car isn't a logical "investment" - but a decision made with the heart - go bl00dy enjoy the money you've worked hard to save up.

That is exactly what I did with some of my deposit. Like Bobsta says "life is for living".

If your going to buy a car at least buy a decent one. Chaved up hatchbacks (No Offense, but thats what they are) will have heavy depreciation. If your going to spend £20k buy a proper sports car like an Elise or a S2000. They look far nicer and would be a lot more fun.

I'm afraid I have to agree with this, part of my deposit is now tied up in a series 1 Elise. The great thing is, I bought it a year ago and looked in the parkers guide just the other day, and acording to them, it has depreciated by a whopping £50 from what I paid.

So not all cars are a bad investment.

To convince your GF you could argue that in x years time house prices will be y% lower than they are today hence saving you £000's when you do buy a house which makes your car purchase look insignificant.

Alternatively move in with parents, get a second and third job, sell all cars, work your Bo11ocks off, save like crazy and buy a nice house in a few years.

I'd go for the car and have a bit of fun. (oh, I already did :P )

Stuart

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Frankly - if you have the money to buy a brand new Ford Focus - you would be better to 'invest' some of the cash in education or some sort of vocational training in order to qualify yourself for migration to either Australia, Canada or anywhere else that takes your fancy.

The money left, after your course, should be sufficient for a one way air-ticket & a good deposit on a nice house in your chosen new country.

Thats what I would do in your situation - forget about the car - thing long term.

Good luck.

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You sound quite young (no offence, just jealous) I would only be thinking of buying a house right now, in what I consider to be an overpriced market if I were ready to settle down, sick of waiting, and able to comfortably afford all the expeses involved in home ownership. Otherwise I would save some money regularly, and have a complete blast with the rest while I still could. Get out and have some fun- and there's more to that than buying new cars. Speaking as a woman, flash cars don't give me that warm fuzzy feeling it seems to give my old man. :lol:

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Its up to you if you want to buy a new car & lose a couple k a year.

Im not taking the risk because you never know if your job will go with the approaching doom.

guess it depends on personal situation.

In my opinion if you wanna be tight with ur money get a car thats rare & saught after, that way it might appreciate

or at least hold its value.

Edited by Crashman Begins

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If its gold 'and' a car you want, the Clio Williams is the car for you.

CIMG2477.jpg

I think some people on this board sometimes forget, that while saving is important, if you dont have fun in life, there is no point being alive. I like cars, i race them, its part of my life. So its not 'wasting' money to me. Its as important to me as owning my own home.

As with everything in life there is a balnce to be struck. My girlfrind has just bought a Focus ST, but she still saves as well. We just made sacrifices in other parts of our life, to compensate. We all have things we are interested in. This is important. The rule we follow is that we dont buy what we cant afford, and we save rather than borrow.

And my competition car:

100_2460.jpg

Edited by King Stromba

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So not all cars are a bad investment.

Err, yes they are. I'll conceed that there may be a class of vintage cars which, if properly looked after, will appreciate over a number of years and pay back their owners more than they have spent on their upkeep and more than the cash would get in a savings account. That, by definition, would be a good investment albeit somewhat risky. You could say the same of fine wines or art.

Most cars, including your series 1 Elise, will cost you more in maintenance, insurance and storage over their lifetime than will ever be gained from their resale. That is obviously a bad investment. They may be one of modern life's many necessities but are never a good investment. It's even possible that you could make it pay for itself by delivering pizzas but to your accountant it'll always be a depreciating asset with running expenses.

You can justify buying an Elise on the grounds that it may depreciate less than a RS Clio 182 over a number of years. You can try to quantify the joy of driving it, showing it off to your mates or impressing a better class of lady but the payback is only ever going to be in mental health terms.

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I had my deposit saved for a property purchase. I had access to about £12k and offered the GF to buy a place together, and she could match the deposit. Not ready she says.

So not being able to have that money burning a hole in my pocket, and being unable to buy a decent sized place alone, I spunked it all on a nice new motor my beloved RS Clio 182 (because someone would ask). And yes, I know about depreciation.

So here I am, nearly 3 years on. The car is paid for. And I have access to about £20k (including resale value of the car). I refuse to buy in the current climate as I feel it can't go on - can it? Top of the market I think (hope).

And I am sorely tempted to spunk it all on a rather nice new Ford Focus ST in diamond white.

Part of me figures that all cars depreciate, my current one has at probably £2k a year. So if I cant do anything with the 17k property wise, I might as well have a nicer car depreciating at £2k a year. After all I can sell it when the market changes can't I.

Do you think my GF wll buy this logic?

So you are chosing between a house and a car? Well which is more important to you? I made similar choices, I chose not to waste my cash on booze, holidays, cars, gadgets, mobiles, etc and instead bought a house. With my mortgage coming down quickly and a nice fixed low rate I can now start to think about splashing out on other things. Earn first, spend later. Yeah it meant some of my peers have/did things in their 20s that I didnt, but now I can do a hell of a lot more than they can and have a nice weight off my mind too.

Luckily you dont even need money to enjoy a place like London, with so many free events going on, cheap travel, and so many friends, I dont feel ive really sacrificed at all! Yuo can even rent a room in a beautiful central shared house for a few hundred a month - ideal for a 20 something ready to take life on - it wasnt quite "This Life" but close enough ;)!

But hey, maybe you want a car. Well good luck with that. Just remember, if you cant afford to have it all (like most of us) - you cant have it all, so make your choices and enjoy (endure) the consequences...

Edited by Orbital

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So you are chosing between a house and a car? Well which is more important to you? I made similar choices, I chose not to waste my cash on booze, holidays, cars, gadgets, mobiles, etc and instead bought a house. With my mortgage coming down quickly and a nice fixed low rate I can now start to think about splashing out on other things. Earn first, spend later. Yeah it meant some of my peers have/did things in their 20s that I didnt, but now I can do a hell of a lot more than they can and have a nice weight off my mind too.

Luckily you dont even need money to enjoy a place like London, with so many free events going on, cheap travel, and so many friends, I dont feel ive really sacrificed at all! Yuo can even rent a room in a beautiful central shared house for a few hundred a month - ideal for a 20 something ready to take life on - it wasnt quite "This Life" but close enough ;)!

But hey, maybe you want a car. Well good luck with that. Just remember, if you cant afford to have it all (like most of us) - you cant have it all, so make your choices and enjoy (endure) the consequences...

At the risk of sounding like a bible-thumper, I`d say it`s always best not to give into temptation. By that I mean wait a few days / weeks and see if you still feel the same enthusiasm about the new car / mobile / mp3 player / plasma screen etc....

If you don`t, then save your money! ;)

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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