Good advice but many young men grow up dreaming about having nice cars and having to wait years and years to buy it . I can see why someone would splash out on a car notwithstanding it’s a depreciating asset unlike a home . Each to their own . You can’t be sensible all the timeMy only advice: spend as much as you can buying a house, spend as little as you can buying a car.
That order makes a lot of sense, though I'd guess very few do it that way! Some may try to juggle the 3 at once. So if you're someone who likes a nice motor, here's a question...It depends on each individual’s circumstances. If someone has maxed out their AVCs, done their 10% mortgage overpayment through Avant, and has an emergency fund, buying a nice car isn’t a heinous crime.
You can't be sensible all the time but two times when it's more important to be sensible is when buying a house or a car. The two largest purchases for most people.Good advice but many young men grow up dreaming about having nice cars and having to wait years and years to buy it . I can see why someone would splash out on a car notwithstanding it’s a depreciating asset unlike a home . Each to their own . You can’t be sensible all the time
The old rule applies to car loans. Always own more of the car than you owe. If possible be your own banker.That order makes a lot of sense, though I'd guess very few do it that way! Some may try to juggle the 3 at once. So if you're someone who likes a nice motor, here's a question...
Assuming new in both scenarios, better to "buy" car on PCP at 3%, to ensure you could maximise funds for pension contributions (returning an average of 6%), or take the hit on the pension for a couple of years, and save up and buy a car outright?
I've never thought car credit to be a good idea, but in those scenarios it does seem (slightly) more so.
in a time of high inflation , buying a car with cash instead of availing of sub 3% finance makes little sense , buying an EV usually means buying new so availing of finance makes sense , Im doing it , I ordered an MG EV in early January , 7 K upfront and 2.9% finance rate over four years , no way was i buying in cash as contrary to popular belief , there is no saving in buying in cash , car companies and banks are hand in glove nowadays , there are no savings for a cash deal on new carsThe old rule applies to car loans. Always own more of the car than you owe. If possible be your own banker.
Would be interested in hearing about your decision to purchase the MG and how the test drive went?in a time of high inflation , buying a car with cash instead of availing of sub 3% finance makes little sense , buying an EV usually means buying new so availing of finance makes sense , Im doing it , I ordered an MG EV in early January , 7 K upfront and 2.9% finance rate over four years , no way was i buying in cash as contrary to popular belief , there is no saving in buying in cash , car companies and banks are hand in glove nowadays , there are no savings for a cash deal on new cars
It is built up over a lifetime by being thrifty and not overpaying for things. Driving a €30k car instead of a €100k car etc. They are then able to maintain this lifestyle well into retirement as they have lots of money and their lifestyle isn't overly expensive. It is not about not having a good life, saving loads of money and dying with millions in the bank.Youd wonder what the point of having all the money was
Congratulations on your new car. My point in being your own banker was not to get a cash discount on the purchase price of a car. It was so that you would never have to owe money every month over the four years. With inflation running at 8% and a car depreciating at 15% it makes no sense to borrow.in a time of high inflation , buying a car with cash instead of availing of sub 3% finance makes little sense , buying an EV usually means buying new so availing of finance makes sense , Im doing it , I ordered an MG EV in early January , 7 K upfront and 2.9% finance rate over four years , no way was i buying in cash as contrary to popular belief , there is no saving in buying in cash , car companies and banks are hand in glove nowadays , there are no savings for a cash deal on new cars
EV,s do not depreciate at anything like the level you listCongratulations on your new car. My point in being your own banker was not to get a cash discount on the purchase price of a car. It was so that you would never have to owe money every month over the four years. With inflation running at 8% and a car depreciating at 15% it makes no sense to borrow.
I have not taken delivery yet , be lucky to have it by September , I was very impressed , interior not in anyway cheap or nasty , I went for the ZS , the 5 is quite bland but a newer one is being released next yearWould be interested in hearing about your decision to purchase the MG and how the test drive went?
Which version did you go for and what's the interior design like?
Each to their own on matters of opinion, and I would be very catious about debt, however high inflation makes borrowing less of an issue rather than more.Congratulations on your new car. My point in being your own banker was not to get a cash discount on the purchase price of a car. It was so that you would never have to owe money every month over the four years. With inflation running at 8% and a car depreciating at 15% it makes no sense to borrow.
In general, perhaps. But Ireland has changed somewhat. For example, there are tens of thousands of people who have share options and bonuses coming from multinationals. Something like PCP might suit those people really well if they already have share options that just haven’t vested yet. Or anyone who has cash coming to them.Each to their own on matters of opinion, and I would be very catious about debt, however high inflation makes borrowing less of an issue rather than more.
Borrowing to buy a depreciating asset well that's to be avoided.
It still has to be put to work somewhere so its not exactly riches, just a means of putting food on the table. In my hypothetical example he'd normally be much better off keeping the land.you could buy an income producing asset with the proceeds or invest it in the stock market , it would not be that difficult to put the money to work and derive an income from a sum like that
Exactly.T - some might just look at the €2m figure and not even think of the small yearly amount of €42-48k p/a until the €2m is gone.then realise they bought or spent a load of nothing.
there is a balance to be struck to be fair, a life time of thrift isnt for everyone.It is built up over a lifetime by being thrifty and not overpaying for things. Driving a €30k car instead of a €100k car etc. They are then able to maintain this lifestyle well into retirement as they have lots of money and their lifestyle isn't overly expensive. It is not about not having a good life, saving loads of money and dying with millions in the bank.
I haven't read the Millionaire Mindset but The Millionaire next door is a very good read.there is a balance to be struck to be fair, a life time of thrift isnt for everyone.
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