Originally, I was going to write an article entitled “Loans
are for Mugs?”
What is a reasonably priced dream car?
- A car not so expensive you're forever worrying about it.
- A car that already has a load of miles on it, so you're not worrying about putting miles on it.
- A car that doesn't break the bank every time you go for a journey.
- A car that puts a smile on the face.
- A car from a loved marque.
And then I thought of a different title.
Life is a balance.
You might die tomorrow, so if you didn’t take out a loan
to get said dream possession (usually a car), you’d die without having
experienced it.
Then, you might die in 100 years’ time, and a silly loan
you take out now, will affect the wealth and happiness of your future.
Once you have experienced something. Well, you’re not
losing out if you don’t experience the same thing again
A wise man might say:
Sensible it is, to get a loan for an appreciating asset,
that appreciates more that the loan interest (usually a mortgage).
Not sensible it is, to get a loan for a depreciating
asset (usually a car.)
There is some need for balance there.
Myself, I have a personal loan about £3’000 (for a car),
credit card loan about £10’000, and a car loan for about £5’000.
And I like cars. My ownership enjoyment of having some
excellent cars, has been somewhat spolit by money worries. That is: too much borrowing,
and not enough surplus money to really enjoy my cars. So, it is clear I have
got the balance wrong.
I have two great cars now that I should be very happy with.
My plan going forward needs to be:
1) Pay off your personal loan (nearly 10% APR)
2) Pay off your car loan (save money, then pay off in full)
3) Pay off the credit card (it is interest free*)
4) Save up some money (Only with savings can you buy another car, you cannot
get into debt for a car, simply not!)
*I think interest free credit cards are a con. They
encourage you to take up loads of credit (because the interest is free). And
that credit you’ve got to pay back some day.
In my personal situation, realistically, that means I cannot even look at cars until
mid-2021 (I can dream about what car I will get mid-2021?)
1) Personal loan paid off by end of year (2019)
2) Car loan paid off by middle of next year (2020)
3) Credit card paid off by end of next year (2020)
4) Might have some savings by middle of 2021.
I am addicted to car shopping (buying/changing cars). I
admit it. I admit I need to stop. I admit I need help.
Can
computer car driving/racing games help with car shopping-addiction?
Image: Reasonably priced dream car?
What is a reasonably priced dream car?
- A car not so expensive you're forever worrying about it.
- A car that already has a load of miles on it, so you're not worrying about putting miles on it.
- A car that doesn't break the bank every time you go for a journey.
- A car that puts a smile on the face.
- A car from a loved marque.