Should I go for a new car

I've had to fork out over 10k in 2 weeks to fix issues on my car. My car is not that new so things are expected to be replaced, if I bought a new car I would be spending the money on repayments anyway.. Moral of the story, a car is not an investment unless a classic you plan to keep locked away.
 
My car has been paid off for years now, even when I have to pay for an expensive service, its a drop in the ocean compared to owning a new car that I'm still paying off. I might buy one cash later in life if/when I save enough through avoiding unnecessary debt.
 
Aqua_lung said:
I've had to fork out over 10k in 2 weeks to fix issues on my car. My car is not that new so things are expected to be replaced, if I bought a new car I would be spending the money on repayments anyway.. Moral of the story, a car is not an investment unless a classic you plan to keep locked away.
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Yeah, and still, in the bigger picture, that R10k is a lot less than you would have to spend on a new car given a period of 5 years (not long)
 
Hamster said:
R16k gross:
- R2200 (tax)
- R700 (cheap health plan, which you will use once your inexperienced ass crashes the car)
- R3000 (for rent of shack once you move out of mommy's home)
- R1000 (for bare minimum groceries)
- R200 (for cellphone to call your homies to come check out your ridiculous purchase)
- R5000 (for overpriced shoe that is really closer to R6k pm with current low interest rates)
- R1800 (for insurance which will rise when your inexperienced ass crashes the car)

Which leaves you with about R2100. Now you still have:
- fuel (to drive shoe around)
- internet (so you can facebook pics of sweet ride...which is actually a very uncomfortable car with that stupidly hard suspension)
- maintenance (the car doesn't come with a maintenance plan standard IIRC, so check that)
- spending money (because you want to go dive around drunk in the ridiculous car to pick up hawt chicks in clubs and stuff)
- save (but who the hell cares at 23 right. Saving is for boring old people, like 25yo's)

The look on your face in 3 months time when you realised you made a MASSIVE mistake: priceless
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Post of the week!!!!!:D
 
IPX-SPX said:
Yeah, and still, in the bigger picture, that R10k is a lot less than you would have to spend on a new car given a period of 5 years (not long)
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Yep bought my car cash, best decision I made and will do so in future as well.
 
dizz16 said:
R1800 for insurance? Do you have your household insurance included in this or is that separate? If you add household and car insurance on the same policy, you might end up paying less for both together.

I bought a Audi A3 1.8T when I was your age 2nd hand for R1100000.00. Was great!

I will not suggest buying a new car for now...or rather R230k...
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Never thought Audi A3 1.8 T can cost R1100000.00.
 
Greggle said:
I sacrificed on a flashy car and ploughed all my money in to my property which I upgraded a couple of years ago. I'm now living in a top area in Cape Town. My friends who bought the flashy cars aren't ... and they have all sold their cars (to upgrade to better ones) at a fraction of what they paid for them.
Moral of the story - a car is a depreciating asset and you only sit in it for a couple of hours every day. A house, you live in!
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But far more people see you in your car than in your house ;) I must say I'm shallow this way and I love a bit of a flash car - although some of you may disagree with what I drive :) Anyway, I try and make the best of both worlds - I have bought 3 cars brand new, but made sure I paid each one off (kept for approx 5 years each), and paid more than required so by the time I got the last one I paid "cash" - i.e. trade in with difference paid from access bond where I had money available from paying in extra.

But the important thing is to not roll your debt forward, but have an asset (even a depreciating one) to put towards next purchase. I also dont see the need to save until you're 60 so you can buy a gold plated wheel chair - got to enjoy your life and I enjoy cars.
 
Actually most of us agree with that - its just that you need to get your priorities right. First you need a place to stay (home loan) then you need to secure your future (retirement annuity and life insurance) and only then can you use what is left on a car (and insurance) which is as flashy as you can afford after the first two priorities have been covered.
 
Rouxenator said:
Actually most of us agree with that - its just that you need to get your priorities right. First you need a place to stay (home loan) then you need to secure your future (retirement annuity and life insurance) and only then can you use what is left on a car (and insurance) which is as flashy as you can afford after the first two priorities have been covered.
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I'm going to disagree with you a wee bit - retirement saving should be your first priority. The earlier the better - the magic of compound interest! Even if its only a small amount.
 
You could do it that way round but then your retirement package should be big enough to pay for rent too.
 
Spunkywunky1 said:
I also dont see the need to save until you're 60 so you can buy a gold plated wheel chair - got to enjoy your life and I enjoy cars.
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Not gold plated wheel chair, but to have to sponge off your kids when they're trying to make their own way can't be fun. It's easier than we think. Hard to predict the value of things that far down the line.
 
IPX-SPX said:
Not gold plated wheel chair, but to have to sponge off your kids when they're trying to make their own way can't be fun. It's easier than we think. Hard to predict the value of things that far down the line.
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Well, one way to be sure is to not have kids!! They are bloody expensive to raise - I rather live vicariously through my sister and her kids :). Look, as with most things in life it's a balancing act - you want to be comfortable in retirement but also live a bit while you are young. Once again, one of the best ways of doing that is to put money away from as early as possible - the difference between saving for 20, 30 or 40 years is staggering. It's your choice.
 
Spunkywunky1 said:
Well, one way to be sure is to not have kids!! They are bloody expensive to raise - I rather live vicariously through my sister and her kids :). Look, as with most things in life it's a balancing act - you want to be comfortable in retirement but also live a bit while you are young. Once again, one of the best ways of doing that is to put money away from as early as possible - the difference between saving for 20, 30 or 40 years is staggering. It's your choice.
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Sure, it's expensive, no doubt! I'd not trade my kids for anything ;)
 
I am in the same boat as you bud,almost... I drive a citi golf 1.41 "Sport":) which i bought it in Feb 2011 with no intentions of ever selling the car. I bought the car while I was in the process of buying a house, so i thought i must get something cheap so that when I finally get the house i will not have money problems for furniture and other stuff..Now early last month I got hijacked and the car was recovered, my mom and everyone says I must sell the car and get another one because its a risk. I dont really have problem driving this car because its treating my pocket fairly well and I have a mountain of things to do with money(like extending the kitchen of the new house, planning to have a baby, going back to school to Finnish my Btech etc). Now Getting a nice newer car will ruin my 'perfect' plans..... I decided to keep it. Will see in about 9 moths if i decide to get another car. I just dont see myself spending R5000 now, my take home is around R19000....DO NOT CHANGE YOUR CAR, SAVE!!! Hell I will just get a second bond if I can...I would love to drive BMW 1 series, but I will wait.. maybe I don need a car change:D
 
I'm currently in the planning phases of getting rid of my car to get something that is cheaper.

I love my car, but the repayments are just not justifiable anymore, and if I can get something cheaper that costs less every month, well then I'll be a happy camper.
 
ToxicBunny said:
I'm currently in the planning phases of getting rid of my car to get something that is cheaper.

I love my car, but the repayments are just not justifiable anymore, and if I can get something cheaper that costs less every month, well then I'll be a happy camper.
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Well tell us what you currently have, what the repayments are and what you're paying for insurance so we can recommend something for ya.
 
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