New Car Advice/Reality Check

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Sun 4 Nov 2012 18:50
New Car Advice/Reality Check - XT08

Hi guys. I'm looking for some advice to see if you guys think I am crazy or not!

BACKGROUND INFORMATION

I am a recent graduate currently seeking full-time employment. I am currently working part-time. Currently I earn average £700 per month. I live at home with parents and have the fortune of not having much expenditure (they do not expect rent at this moment!). I also have savings which I can purchase a car and still have some left.

I am 22 years old, have 2 years no claims (used mothers car for commuting 40 miles each way to University 4 days per week for 2 years).

WHY I WANT A CAR

My aspirations: currently I want a car. I will probably get it February 2013 (after my birthday) I am thinking of the I want to see other peoples opinions. If I were to budget £10,000 -- I would still have 60% of my savings left. Which, could be replenished after one year at my current position or in less time if I get a full-time job.

I do not need a car per se, I currently take to bus to work and shop online (groceries, don't really spend much anyway) etc. However the reason why I want to get a car now rather than when I need one i.e. if I require one for full-time employment my reasoning is this: if I get a car now I can drive to places where I want to go, places where I want to see covering large distances i.e. Scotland, Ireland, Cornwall and possibly European road trips to Berlin, Germany (I live near London) with relative freedom as opposed to the standard 9 to 5 routine/ 21 days off etc etc. I would imagine working a proper/full working week I will be absolutely knackered and not bothered too much to do this. At least not in a standard week.

At the worst, I've currently got myself a way to get to interviews/preparation for commute to hopefully a full-time job.

DO YOU THINK THIS IS A BAD IDEA?

I guess my question at this point to you is in my position do you guys find this unreasonable? I don't expect my parents to contribute to the cost of the car, etc. but I won't want them upset if you guys think this is a crazy idea and I should be using my money in another way. I asked them if they would like me to pay rent now I am in part-time job, but they said don't worry about it until you have a full time job. They do know I have - what seems to be in my experience/social group compared to other individuals of my age - alot of savings. Of course I would be paying for the car/insurance and fuel myself.

THE TYPE CAR I AM THINKING OF BUYING

Currently I am thinking on the lines of a 2009 Skoda Octavia 1.9 TDI PD Elegance 5-Dr Hatchback, £8,000 currently the particular model I was thinking of. It has 73,000 miles on the clock which after some reading here and there is a good thing suggesting lots of motorway mileage which is exacly how a car likes to be driven (concerning the DFP filters). This also leaves me £2,000 to spend on insurance (£750) and £1,250 to spend on fuel and/or unforseen circumstances. I am not sure why I picked diesel rather than petrol however this is just an example. This type of car 'compact' or 'C segment' is my preferred style of car for aesthetically speaking and practically - if I am going to drive to Europe or stay over in far away places in the future i.e. big boot, more comfortable than smaller car, can hold 4 adults (if someone wants to tag along haha).

I am content with buying it from an 'approved used' car scheme because I think it's safer because me or my family do not have any mechanical knowledge. Plus I do not want anything to go wrong on my first ever car purchase and would be intimidated by an independent dealer or franchise I think (let alone buying private).

WHAT DO YOU GUYS THINK?

What do you guys think? Does some of my reasoning sound...unreasonable?

Be interested to hear what you guys think and some other suggestions for what type of car I could look into.

Thanks.

TL;DR

I want a car. I don't 'need' a car but I have money should I do it? Which one?

Edited by XT08 on 04/11/2012 at 18:52

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Sun 4 Nov 2012 19:02
New Car Advice/Reality Check - csgmart

From a purely personal perspect you might be best to wait as you have the luxury of not needing a car - you 'want' it but don't 'need' it.

I know from personal expericence that the nice new (to you) shiny car suddenly becomes a burden when other things in life take priority - e.g. renting or possibly owning your own home will at some point in time become more important to you than almost anything else. The money you spent on a depreciating asset suddenly comes back to haunt you.

Seriously though, you are unlikely to act on any advice given here so I would just do want you feel you want to and live with whatever consequences it throws up at you.

All the best with whatever decision you make.

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Sun 4 Nov 2012 19:22
New Car Advice/Reality Check - gordonbennet

Suggest your first car should be a cheapy, as low insurance as you can find.

Get a year or two of insurance under your belt, if you manage to lose an old banger on an icy road so long as you only damage your own car you don't need to claim, if it won't hammer straight scrap it and get another.

You've done well to accumulate a decent amount of savings, only spend on a car what you can afford to chuck away.

My old dads words come back to me as i type...''once you've got a car lad you'll never have any money in your pocket'', he had a point.

Learn how to fix your own cars, it'll save you a fortune over the years even if you only service your own and fix brakes and other things that need ongoing maintenance and let others do the more involved work.

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Sun 4 Nov 2012 20:30
New Car Advice/Reality Check - Engineer Andy

Given your age and that you may not have been (in the eyes of other insurers) able to accumulate a no-claims bonus, then you'll be unlikely (even for a cheap, small car) to get insured for £750, more like £1500 minimum these days.

Speaking from a personal point-of-view, I would not buy a car until you've had a few years of permanent employment behind you (unless the job demands it), use public transport whenever possible and occasionally hire a car for the odd "road trip" holiday where public transport is lacking or you need to take lots of luggage.

If you HAVE to buy a car, get one that:

  • Is reliable and simple. Find a good, reasonably-priced dealer/garage to look after the car that you can get to reasonably easily;
  • Has the least to go wrong, i.e. no fancy engine.gearbox, ICE, A/C, electric windows (more difficult these days) or other gismos with three-lettered acronyms;
  • Has no more than 80bhp or does over 100mph - you'll save on insurance/running costs as they're in low insurance/VED groups and are economical;
  • Hasn't been modded and has basic 13/14 in diameter/70 profile tyres (cheap to replace);
  • Is small and has good visibility all-around - less chance of little prangs in car parks.

I would go for a smaller-engined petrol car, such as a Hyundai i10 (or Kia equivalent) or a Japanese supermini. Quite a good selection of second hand ones around - always go for a reasonable test-drive first before buying, and don't buy any car you've just seen - too much emotion going through your head. Always look at a 3 or 4 different makes/models before choosing - some may still come with "free insurance" deals, but beware that they stuff you with a huge insurance bill the next year (they did with my first car). I wouldn't spend more than £5k for the car (see below) - you can pick up a reasonably reliable small run-around for that.

One of the reasons why I recommended waiting is that even though you have a decent amount of savings for somebody your age, my first priority would be to save for a decent-sized deposit for a first home, so you don't pay through the nose (and get a better rate) for your mortgage.

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