At what salary point would you replace your car

namzsteve

namzsteve

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You're 20 hey, probably debt-free. Stay debt free man. Keep that car, save as much as possible.
 
A

Ancalagon

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I'm pretty happy that my car is paid off now. I plan to keep it for a few more years.

I thought about upgrading to a fun car, like a Mazda MX5 (used of course). But the thought of paying another R100k or more into my car just grates my nerves. I just put R30k into my homeloan - no way I would have been able to do that if I upgraded my car. I'd rather keep my car (it really is not bad in any case) and pay off my flat sooner.

OP - I heard a good saying about cars. Drive the worst car your ego will allow you to. If your ego only allows you to drive a BMW M5, well, look at your ego.
 
Kosmik

Kosmik

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Ancalagon said:
OP - I heard a good saying about cars. Drive the worst car your ego will allow you to. If your ego only allows you to drive a BMW M5, well, look at your ego.
Click to expand...

:crylaugh: Nice quote, think I'll steal that.
 
PPLdude

PPLdude

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Ancalagon said:
I'm pretty happy that my car is paid off now. I plan to keep it for a few more years.

I thought about upgrading to a fun car, like a Mazda MX5 (used of course). But the thought of paying another R100k or more into my car just grates my nerves. I just put R30k into my homeloan - no way I would have been able to do that if I upgraded my car. I'd rather keep my car (it really is not bad in any case) and pay off my flat sooner.

OP - I heard a good saying about cars. Drive the worst car your ego will allow you to. If your ego only allows you to drive a BMW M5, well, look at your ego.
Click to expand...

Me buying a car is not about ego at all. It's about having a lot of fun in it
 
Cius

Cius

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Nice cars are fine if you are buying them cash. If you are buying on credit then you are borrowing from tomorrow to party today. Interest is a killer if you are paying it.

Too many people in SA make short term fun decisions like that and make the problem future me's problem. The problem is tomorrow you are future me and are left wondering why past me was such an A-hole. At the same time you can't have zero fun and just be a tight fisted saver as that will also probably not lead to a happier future me. There is a balance in there.

So set some reasonable financial goals, stick to them, have fun and live life with the rest.
 
S

Sly21C

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Cius said:
Nice cars are fine if you are buying them cash. If you are buying on credit then you are borrowing from tomorrow to party today. Interest is a killer if you are paying it.

Too many people in SA make short term fun decisions like that and make the problem future me's problem. The problem is tomorrow you are future me and are left wondering why past me was such an A-hole. At the same time you can't have zero fun and just be a tight fisted saver as that will also probably not lead to a happier future me. There is a balance in there.

So set some reasonable financial goals, stick to them, have fun and live life with the rest.
Click to expand...

Let me challenge you on the "you can't have zero fun and just be a tight fisted saver as that will also probably not lead to a happier future me" statement. Although my initial reaction is to agree with you, I also think it's not a bad idea to live like a poor homeless person while accumulating wealth or money. I say this based on a family in Amsterdam that sold almost everything so they can use the funds to buy bitcoin and therefore achieve financial freedom (hopefully). You know what they say, if you do what normal people do, you'll end up being normal, i.e. looking rich and successful but highly indebted.
 
rorz0r

rorz0r

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static_sa said:
Even though i'm certain ill be getting paid a lot more in about 5-6 years
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Hey that's what I thought when I was 20 (and 25). Sadly when I chart my salary vs inflation it's not all that amazing now. Others I've spoken to have found similar.

Your *disposable* income certainly is the highest when you just start working. After that plenty of other things creep in like better car, property to live, insurance, life insurance, medical aid, investments, kids, etc.

But on a thumbsuck I would say you should aim to not spend more than 10% of your net salary on your car, including repayments, maintenance, fuel and insurance. Being young, try keep it under 20% :D
 
PPLdude

PPLdude

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The whole company I work for was retrenched today.

Glad I don't have a car payment that I need to make :crylaugh:
 
Mike Hoxbig

Mike Hoxbig

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static_sa said:
The whole company I work for was retrenched today.

Glad I don't have a car payment that I need to make :crylaugh:
Click to expand...
Not good to hear, but at least life sent you the message that you needed to hear. Far more important things to worry about than car payments..
 
V

^^vampire^^

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You buy a car either when:

a) yours is broken at it is no longer viable to fix (constant beakdowns, unrealiable, too expensive to fix)
b) you have enough to buy he car cash

If you treat your car well it should last AT LEAST until 20 years old. Buying a new car because you want to look cool or successful if a fools game. I always put it this way to people when they have "bought" a new car and laugh at my old one: "if you lose your job tomorrow, who is going to pay for that car? If I lose my job I have a paid off car and enough cash in the bank to sustain me for months. All you have is a borrowed car and a mountain of debt."
 
konfab

konfab

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I wouldn't replace my current car unless if it became uneconomical to run.
 
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