The Financial Plunge

  • Thread starter Thread starter LoudMusic
  • 9 comments
  • 328 views

Blow the cash? Save for a car?

  • Save for that sports coupe dude!

    Votes: 5 71.4%

  • Toys toys toys!

    Votes: 1 14.3%

  • I have no budget skills, therefor my opinion is useless.

    Votes: 1 14.3%
  • Total voters
    7
LoudMusic

LoudMusic

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Lets say, hypothetically, you have actually taken the time to save up some pretty serious cash. You have right around $3,000 (USD) in your checking acount, and probably double that in your savings.

Now then, do you go out and blow a couple thousand on expensive toys - like digital camera, new computer hardware, car audio, video games ... - or do you continue to save for a brand new car?
 
Personally, and this is just me.... 3 grand.... nice deposit on a sporty little motor put the rest out on a loan?

6 would get you a TVR S3, if you were quick and lucky.... 3 grand over 3 years would be about 100 a month, you could earn that working in Maccy D's part time.

The risk is minimal, can't afford the payments. Not a big deal sell the motor settle the loan.


Now i know I'm talking UK figures and a Brit car but it would, i think, be comperable.


[edit] ohhh, you want a new, new car.... strike my suggestion, spend baby spend![end edit]
 
I personally would go for the toys. But then when I bought it, my computer cost six times what my car cost. I own a remote controlled car that was more expensive than the car I was driving at the time.

My camera cost more than my car.

But then my car is fairly poor, since I have issues with insurance on nice cars. Excluding fuel, my wife and I have spent less than £3,000 on motoring in the last three years. Cheap cars rule.
 
Giles...does that 3,000 include the [edit] rental car in the States? ;)

But seriously, LoudMusic, $3,000 goes a long way towards a down payment on something large, like a house. and the 6K adds up nicely. Invest in something that you'll get a major use out of. Pick out a commuter car and a cheap computer, save for something your dad would use.

Make sure to blow a few bucks on a special lady. Or a Rolex...

But seriously, pick out one nice thing you'd enjoy, and continue to save.

I didn't see the "Other" catergory in the poll.

AO
 
Originally posted by Der Alta
Giles...does that 3,000 include the [edit] rental car in the States? ;)
Click to expand...

Yes, and the £12 tank of gas. Which would have cost £35 in the UK!
 
Buy land! I'm not too sure what the market is like there, but undoubtedly, it will only appreciate in value. When you have it paid off, or when you can sell it at a substantial profit, buy another chunk of land, and then buy your toys with your additional profit. I wish I would have done that ten years ago. I was busy buying vgames, stereo's, musical gear, recording equipment, cars, trucks, ect.. I would be much better off today if I would have invested my resources better back in the day. Think bigger than just the sport's coupe. Think longer term than just "now", heck...think longer term than just two years from now. :D

Generally speaking, electronics and automobiles are not your best investment choices. Both catigories generally have the worst resale value of non-consumables. They are an expense and will always be an expense. If your lucky, you can own a car that becomes a classic, and in 30 years of keeping it in mint condition, you "might" be able to get your money out of it or even maybe at a little profit.

:cheers:

Ah, live for today, because tomorrow may never come... ;)
 
I'll second what Der Alta said. If you spend a little money, but spend it wisely, you'll find that you will enjoy what you buy all the more.

Case in point - over the summer I was having a little trouble with my wife's car. At the same time I ran across a pristine red BMW 325i convertible (98 m/y with about 30,000 miles on it. If I could have specified the car I'd like to buy my wife, this would be it.

I had 20% to put down and could have paid the rest off in 3 years at about $375 a month. But the more I thought about it, the more I liked having the cash on hand, and that $375 staying in the bank and not going out.

So we spent about two car payments getting the old car fixed and partly repainted, and now we're happy again - and banking the 34 extra car payments for later.

So like AO said, I heartily recommend that you buy a toy or two, but save the majority of the cash, and keep saving it. Imagine buying a house while all your friends are getting apartments...
 
I think I like the idea of just spending a little now, and continuing to save. I could get a fun digital camera, and upgrade my computer a bit, and still have phat cash on hand.

I could also put a little money into my current car (`93 Accord, that I like very much) and hang on to it for a few more years.

Anybody else have an opinion?
 

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