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  • Property-a-holics

    New car or another BTL!!!

    The dealer finance contribution can mean you are paying less for the car even after paying the finance interest so worth taking.
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    KLR,

    How old are you?

    In 2006 we were still aggressively building our portfolio and piling every penny back in, but an amazing 'flip deal' came up so i bought myself a new 911 for cash, it was a bloody terrible waste of money, I kept it 6yrs and had to sell it because If i drove it a decent distance i wouldnt be able to walk for 2days because my ankle was crippled.

    My parents were really proud when i bought it and 12mths later my dad suddenly passed away. It was the best £50k i have lost in my life and i wish now i hadn't sold it because its worth more now than i sold it for. If i could go back now I would do exactly the same again. Delayed gratification is fine but Its no good delaying it to the point where you are too old to enjoy it.

    Every 6mths or so i go and 'tyrekick' at the Porsche dealers and keep having thoughts about buying another, then my wife tells me not to be stupid and the cycle starts again.

    In short if you are 40 or less but another property, 40-45 is a grey area, 50+, BUY THE BLOODY CAR!

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    Phil Stewardson.

    Stewardson Properties.

    Stewardson Developments Ltd.

    Burson Land Ltd. & Jennings & Gilchreaste Ltd.

    http://www.stewardson.co.uk

    Follow me on twitter - @philstewardson


    As Phil said -

    40-45 is a grey area, 50+, BUY THE BLOODY CAR!
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    I faced the same dilemma (nice to have) 2 years ago. My car was 12 years old and I did need a new one.

    I strayed looking for a neat new model but couldn't find what I wanted. So, yes, I was offered a very good deal and spent £42k!

    Since I stopped getting a company car allowance, I've bought new and kept, and bought new again. I wish I had financed it and kept the cash for something which didn't fall in value.
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    What about investing in another BTL and using the monthly profits to fund a car on PCH/leasing/car loan?

    That way it will buy you a new car for life and you can change it every few years, I wouldn't personally spend 30k on a depreciating liability unless I had it to throw away. 

    If you look 10 years in the future that 30k car will be worth peanuts, whereas your property will be worth more than you bought it for (with any luck) and still be generating income for you, plus it will add to the legacy you leave behind if that is important to you. 

    I have never done PCH but have seen you can get something really nice for £300 a month if you look for a deal and aren't focused on a particular model or brand, but look for say a BMW/Mercedes/Audi/etc.

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    Had as others same dilemma tried amg mercs, BMW’s etc and just couldn’t do it, so bout 2 year old transit connect 9k plus vat bargain lol. Claimed vat back and will probs keep it for min 5 years. Had nice cars and would like another just hard to justify it really
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    I don’t know how you can ask us to comment unless you tell us what the car is? If it’s a Maserati you must buy it. Otherwise it’s debatable...
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    I had this dilemma a couple of years ago as was sick of running older vehicles.

    I bought a knackered house for 20k and spent 10k doing it up and it now throws off 390pcm so use this to lease a new car.

    As you have a decent budget why not buy a cheap house or use as a deposit in a good area and use the income to fund the car?

    Of course if it is a toy follow your heart as everyone needs a hobby!

    The house I bought is now starting to cause some problems so may actually sell it when the lease comes to an end and buy a rare car and benefit from appreciation this way!

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    Thanks for all the responses, I’m going to be 50 and it’s a BMW 5 series about 6 months old, so rather dull compared to anything Italian and quick, however probably cheaper to run. 

    I know the obvious thing to do would be buy another property to fund the car, issue is, currently i’m uncomfortable taking on more debt, I’ve not got involved in the bottom end of the market so would need another £150k mortgage and potentially a £30k pcp. A two year pch might be a better idea, but deals not as good as they once were. I’m in no rush so I’ll take my time and maybe the phase will pass!
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    Not sure I'd spend a lot of money to be hated by all other road-users and never be let out at junctions. + all BMW's seem to suffer with the indicator fault thing.

    Can I make some alternative suggestions? 

    1 - buy a classic car (it's an asset not a liability)

    2 - occasionally hire a nice car (then you get a 'new' car more than once

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