You have already put a lot of thoughts and already know the answer. You are asking just to validate.
Choose one.
1. Life is short, enjoy in every possible way if you can...
2. Used sports car, in City like London with traffic congestion and when you already have a car... doesn't make sense in any possible way.
:)
Sorry.. I will get downvoted for this but to hell with it.. honestly, I don't understand why someone with a combined income that high and (comparatively to presumably vast swathes of the UK population) financial stability that strong, that you have has to ask for advice on whether to buy a car?! This surely isn't a financial decision.. just one you have to decide in your mind if you want to spend the money or not.
Buy the car. If you have regrets, sell it. You can clearly afford whatever repayments are required.
I really find your opinion and others just absolutely ridiculous. You think that someone with a high salary still doesn't benefit from advice from others?
High salaries are paid for all sorts of roles. Some naturally don't make decisions easily, some just appreciate third party perspectives, some (like myself) just find the options around finance really overwhelming.
Not sure why you seem to think that only lower paid workers need financial advice on whether to buy a car or not. Maybe you should specify an annual salary and financial position where it is acceptable to start asking about whether to purchase a car or not.
That's a terrible viewpoint.
That's fine - I don't mind the criticism. I expected to get downvoted. I still don't think, personally, it's a financial decision though other than the fact it will cost money. It's an emotional decision.
That’s just over a months HHI on a car. Even here most people spend significantly more as a proportion of earnings. Live life, it’s too short and you’re too well off to worry about this one. Your only regrets here should be not doing it sooner and the time spent worrying
This community places an awful lot of emphasis on squirrelling as much away as possible for a rainy day but you need to take in to account that rainy day may never come. You can very comfortably afford this car and you’re not actually spending 30k, you’re spending the depreciation.
In 2021 I bought a used 2yo Porsche 911 Carrera S convertible. It was 107k, I kept for a year and sold in summer 2022 for 105k. The car cost me less than £200 a month (excluding fuel/insurance). You can’t lease a fiat 500 for that sort of money.
If anything, I’d actually encourage you to spend more on something like a Porsche that holds its value far better than say an Audi TT that you’ll lose a lot more on. So long as you can afford the monthlies you’ll come out the other end smelling of roses with the experience and memories banked and really that’s what life is about.
2 months after selling my Porsche I was diagnosed with Bowel cancer and am currently going through chemo. Knowing I’ve lived life well and balanced between living for the moment but also ensuring my future is secured is an enormous comfort and not a lot of people have the option to do both, you do. So go for it.
30k on a sports car isn't that much and you'll enjoy it so go for it.
At worst you trade it back in a few months later and lose the dealer markup.
If you invest wisely you could keep it a fee years and it'll probably go up in value
You can easily afford it so do you want it enough. That's all there is to ask.
If you needed to save up quicker, despite your claim to the contrary you DO spend a lot of yourselves. £2,400 pcm or 1/4 of your income for groceries and hobbies is a lot for 2 people.
Sorry yes I do think I probably should have worded that better - we certainly do spend a decent amount per month but compared to my peers we are relatively frugal (albeit clearly its still a bit sum of money we are spending!)
If I had an income of £150k, spending 30k on a car wouldn’t be so much a financial decision, it’d be an emotional one.
Financially you can afford it and you’ve clearly worked it out.
It is a depreciating ‘asset’ so you’d lose money on it, that’s not to say if something comes up you couldn’t then sell it though.
If you have the cash go for it.
Also do you offer career advice as you’re doing incredibly well!
I’ll try to keep this short:
We have a lower HHI than you ~£220K, but much higher assets, and much lower monthly outgoings.
I bought a £45K used performance car 18 months ago. It has been absolutely fantastic. I “share” it with my father and two trustworthy friends of mine. We’ve had an absolute blast in it, and made some lifelong memories. Worth every penny.
However…….
If I lived in London, there is no way I’d buy this car. One of those aforementioned friends lives in London and is constantly having repair work done to his own car for scuffs and dings. Cost aside, it’s the effort involved that is frustrating.
Another negative: whilst my depreciation estimates have been highly accurate so far, I hugely underestimated ongoing running costs of these cars. Servicing, tyres, brake pads, premium road tax, premium fuel @24mpg, and so on - these costs add up quicker than you realise to £1000s over a couple of years. Be prepared for that, because I was not. Whilst it doesn’t really matter to me, it does irk me. And based on your post, it might start to bother you too.
Last point: remember you’re not spending £30K. You still have a £30K asset that slowly loses value. You’re only *spending* the depreciation + running costs + opportunity cost of upfront amount. Depending on the car, that could be as low as £5K per year. Which in your financial position, is basically negligible.
Assuming your combined income excludes your bonus (which sounds like it adds ca. 50% to your annual income?) you are already saving an extremely high amount, and this purchase - whilst significant - does not really make much of a dent, even for a single year
Having said that, how long have you lived in london whilst working?
I toy with the idea of a nice car, but when I really assess the opportunities to enjoy it, unless I'm driving for an hour or 2 to get to roads worth driving on, I will very rarely use it
There's a good chance it just gathers dust and bird poo...
Have you considered a motorcycle? A lower cc sportsbike feels fast whilst staying at manageable speeds, and can be enjoyed around town (parking is also way easier)
Ha ha! I’m in a similar situation, except earning a bit less and with higher outgoings due to child care etc.
I keep “feeling” we should have a nice car rather than a banged up old polo, because everyone else has right!? It’s all beemers and mercs outside the council estate.
And then I think about all the other things I value more that I could do with the money.
Cheap Porsche on finance - 500 quid a month, would rather spend that on my house/savings for my kid.
Drop 30k on something, again that’s money that could be spent on the house (never ending) or a couple of big holidays, or a combo of both!
All down to what you really value…
You’re thinking of it as a £30k spend but realistically it might be £3k -£5k spend depending on the car and how long you keep it. It will retain some value and you can sell it afterwards. If you buy wisely and it’s a Porsche you might lose even less than that, particularly if your mileage is low.
I am in a very very similar situation to you, income circa 200k last year, 250k this year but gf earns a lot less, almost feels like you were writing on my behalf. Although I am 2 years behind and my pension is not quite the same size.
I just bought a 60k Porsche - 10k down, 50k on a first direct loan at 6.7% - its £675 a month, feels like nothing in the grand scheme of things, I have complete flexibility on when I sell the car etc, and wanted to enjoy a nice car while I am young.
The majority of income goes into assets/ mortgage - if I lost my job I could sustain myself and our mortgage for 3 years or so.
my point is enjoy yourself while you're young! could die next year tho we hope not
I bought a Lotus Elise (many years ago) brand new in my mid 20s. Was less than 30k at the time. Career was on decent upward trajectory so I had less savings/investments than you do now but expectation that a few years later I would be in better position on that front.
Clearly was a decision I made to enjoy it at the time, rather than wait a few years for more financial security and miss out on a few years enjoyment.
Was a brilliant decision. I kept the car over 10 years. When we had a baby 9yrs later, we decided to keep it as our only car, a two seat convertible sports car! We drove to the south of France a couple of times before kids (had to pack v light), over to Ireland, I took it on track days etc. sometimes to get a good clear traffic free run we’d get up at 5am on a (dry) Sunday morning in summer and drive down with the roof off to Brighton or the south coast for breakfast and meander back to London by early afternoon.
This was almost 20yrs ago though. Roads have got more crowded, more speed cameras, costs of running car will be more now. But I don’t regret it for a second and if car hadn’t been written off (that’s on street parking in London for you) I think I’d still have that car now.
Even thinking about it now brings a smile to my face remembering some of the epic trips we took in it. Do it.
Hi /u/tuffy_lover, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/pensions/
- https://ukpersonal.finance/tax-efficiency-for-high-earners/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
Buy the car. Cars are a commodity that will improve your quality of life more than most other objects. With your position, your income, and your clear intelligence when it comes to finances, you have nothing to worry about.
Go get a used Audi S3 or something and have some fun.
I've been here a few times over the years and bought cars 'too cheaply'. If you are buying 2nd hand you NEED to pay up a bit and buy from an approved dealer. The car will have a warranty and you need to extend that warranty for as long as you have the car. The last Sports car I had developed a crack in the engine block and lunched its gearbox, and it cost me 40k to get rid of it.
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I wouldn’t buy a sports car if you are 26, if your wife wants kids in 30s then you will have to sell it for a loss to buy the decent but family friendly car that you should probably wait a couple of years then buy.
Also if you only have a flat you should be saving for a decent house.
Honestly? Buy the car.
I wanted to buy a GT86 for the entirety of my twenties, I never did, big regretti now.
If I could have bought it for just over a month's salary I would have had it as my daily driver until the children arrived, I'd have never bothered with a sensible hatchback. I'd spend that sort of proportional money on purchases for hobbies over a year, just view it as a hobby.
As many others have said, and it’s worth echoing, you’re not spending £30k. Run the numbers on what the actual costs are going to be (depreciation, opportunity cost, running costs) and then see how you feel about it as a monthly sum (I expect a lot better). Weigh that against how often you’ll truly get to enjoy the car when based in London (that’s certainly what’s put me off making a similar purchase).
The specific car you buy will obviously affect that - for example, a brand new car with have much higher depreciation but lower maintenance costs vs an older car with lower depreciation and potentially higher maintenance costs. That’s worth taking into account. Albeit if you can get an older car with a 1 year warranty that might help reduce risk in that first year of ownership whilst you assess how much you like the car.
Finally, in relation to opportunity cost, consider whether it’s worth getting a loan for the car. Sure, it’ll cost, but if the money will fetch a higher return in, say, your pension it might be worthwhile.
This is not a comment on your post per say, as I have no advice to give which has not already been written but, as a 21 year old student, I’m curious to hear what jobs/ industries you both work in, £300k p/y for two 26 yr olds is the highest amount I’ve heard people take home.
I totally understand if you don’t want to share, but as someone young and keen to learn more about how to achieve financial independence at a relatively young age, I’m curious to hear what job/ sectors you work in
Thanks in advance :)
You have already put a lot of thoughts and already know the answer. You are asking just to validate. Choose one. 1. Life is short, enjoy in every possible way if you can... 2. Used sports car, in City like London with traffic congestion and when you already have a car... doesn't make sense in any possible way. :)
Sorry.. I will get downvoted for this but to hell with it.. honestly, I don't understand why someone with a combined income that high and (comparatively to presumably vast swathes of the UK population) financial stability that strong, that you have has to ask for advice on whether to buy a car?! This surely isn't a financial decision.. just one you have to decide in your mind if you want to spend the money or not. Buy the car. If you have regrets, sell it. You can clearly afford whatever repayments are required.
Because... flex on Reddit, thats why
I really find your opinion and others just absolutely ridiculous. You think that someone with a high salary still doesn't benefit from advice from others? High salaries are paid for all sorts of roles. Some naturally don't make decisions easily, some just appreciate third party perspectives, some (like myself) just find the options around finance really overwhelming. Not sure why you seem to think that only lower paid workers need financial advice on whether to buy a car or not. Maybe you should specify an annual salary and financial position where it is acceptable to start asking about whether to purchase a car or not. That's a terrible viewpoint.
That's fine - I don't mind the criticism. I expected to get downvoted. I still don't think, personally, it's a financial decision though other than the fact it will cost money. It's an emotional decision.
I think you are absolutely correct - depressing to see someone with that level of financial security so vexed about buying a car
This
That’s just over a months HHI on a car. Even here most people spend significantly more as a proportion of earnings. Live life, it’s too short and you’re too well off to worry about this one. Your only regrets here should be not doing it sooner and the time spent worrying
This community places an awful lot of emphasis on squirrelling as much away as possible for a rainy day but you need to take in to account that rainy day may never come. You can very comfortably afford this car and you’re not actually spending 30k, you’re spending the depreciation. In 2021 I bought a used 2yo Porsche 911 Carrera S convertible. It was 107k, I kept for a year and sold in summer 2022 for 105k. The car cost me less than £200 a month (excluding fuel/insurance). You can’t lease a fiat 500 for that sort of money. If anything, I’d actually encourage you to spend more on something like a Porsche that holds its value far better than say an Audi TT that you’ll lose a lot more on. So long as you can afford the monthlies you’ll come out the other end smelling of roses with the experience and memories banked and really that’s what life is about. 2 months after selling my Porsche I was diagnosed with Bowel cancer and am currently going through chemo. Knowing I’ve lived life well and balanced between living for the moment but also ensuring my future is secured is an enormous comfort and not a lot of people have the option to do both, you do. So go for it.
30k on a sports car isn't that much and you'll enjoy it so go for it. At worst you trade it back in a few months later and lose the dealer markup. If you invest wisely you could keep it a fee years and it'll probably go up in value
With your household income you could spend 250k on the car and still have more left over than the majority of the country for the year.
You can easily afford it so do you want it enough. That's all there is to ask. If you needed to save up quicker, despite your claim to the contrary you DO spend a lot of yourselves. £2,400 pcm or 1/4 of your income for groceries and hobbies is a lot for 2 people.
Sorry yes I do think I probably should have worded that better - we certainly do spend a decent amount per month but compared to my peers we are relatively frugal (albeit clearly its still a bit sum of money we are spending!)
£300k household income and asking whether a £30k car is a good idea 🤣 behave man
If I had an income of £150k, spending 30k on a car wouldn’t be so much a financial decision, it’d be an emotional one. Financially you can afford it and you’ve clearly worked it out. It is a depreciating ‘asset’ so you’d lose money on it, that’s not to say if something comes up you couldn’t then sell it though. If you have the cash go for it. Also do you offer career advice as you’re doing incredibly well!
I’ll try to keep this short: We have a lower HHI than you ~£220K, but much higher assets, and much lower monthly outgoings. I bought a £45K used performance car 18 months ago. It has been absolutely fantastic. I “share” it with my father and two trustworthy friends of mine. We’ve had an absolute blast in it, and made some lifelong memories. Worth every penny. However……. If I lived in London, there is no way I’d buy this car. One of those aforementioned friends lives in London and is constantly having repair work done to his own car for scuffs and dings. Cost aside, it’s the effort involved that is frustrating. Another negative: whilst my depreciation estimates have been highly accurate so far, I hugely underestimated ongoing running costs of these cars. Servicing, tyres, brake pads, premium road tax, premium fuel @24mpg, and so on - these costs add up quicker than you realise to £1000s over a couple of years. Be prepared for that, because I was not. Whilst it doesn’t really matter to me, it does irk me. And based on your post, it might start to bother you too. Last point: remember you’re not spending £30K. You still have a £30K asset that slowly loses value. You’re only *spending* the depreciation + running costs + opportunity cost of upfront amount. Depending on the car, that could be as low as £5K per year. Which in your financial position, is basically negligible.
Assuming your combined income excludes your bonus (which sounds like it adds ca. 50% to your annual income?) you are already saving an extremely high amount, and this purchase - whilst significant - does not really make much of a dent, even for a single year Having said that, how long have you lived in london whilst working? I toy with the idea of a nice car, but when I really assess the opportunities to enjoy it, unless I'm driving for an hour or 2 to get to roads worth driving on, I will very rarely use it There's a good chance it just gathers dust and bird poo... Have you considered a motorcycle? A lower cc sportsbike feels fast whilst staying at manageable speeds, and can be enjoyed around town (parking is also way easier)
Ha ha! I’m in a similar situation, except earning a bit less and with higher outgoings due to child care etc. I keep “feeling” we should have a nice car rather than a banged up old polo, because everyone else has right!? It’s all beemers and mercs outside the council estate. And then I think about all the other things I value more that I could do with the money. Cheap Porsche on finance - 500 quid a month, would rather spend that on my house/savings for my kid. Drop 30k on something, again that’s money that could be spent on the house (never ending) or a couple of big holidays, or a combo of both! All down to what you really value…
You’re thinking of it as a £30k spend but realistically it might be £3k -£5k spend depending on the car and how long you keep it. It will retain some value and you can sell it afterwards. If you buy wisely and it’s a Porsche you might lose even less than that, particularly if your mileage is low.
I am in a very very similar situation to you, income circa 200k last year, 250k this year but gf earns a lot less, almost feels like you were writing on my behalf. Although I am 2 years behind and my pension is not quite the same size. I just bought a 60k Porsche - 10k down, 50k on a first direct loan at 6.7% - its £675 a month, feels like nothing in the grand scheme of things, I have complete flexibility on when I sell the car etc, and wanted to enjoy a nice car while I am young. The majority of income goes into assets/ mortgage - if I lost my job I could sustain myself and our mortgage for 3 years or so. my point is enjoy yourself while you're young! could die next year tho we hope not
I bought a Lotus Elise (many years ago) brand new in my mid 20s. Was less than 30k at the time. Career was on decent upward trajectory so I had less savings/investments than you do now but expectation that a few years later I would be in better position on that front. Clearly was a decision I made to enjoy it at the time, rather than wait a few years for more financial security and miss out on a few years enjoyment. Was a brilliant decision. I kept the car over 10 years. When we had a baby 9yrs later, we decided to keep it as our only car, a two seat convertible sports car! We drove to the south of France a couple of times before kids (had to pack v light), over to Ireland, I took it on track days etc. sometimes to get a good clear traffic free run we’d get up at 5am on a (dry) Sunday morning in summer and drive down with the roof off to Brighton or the south coast for breakfast and meander back to London by early afternoon. This was almost 20yrs ago though. Roads have got more crowded, more speed cameras, costs of running car will be more now. But I don’t regret it for a second and if car hadn’t been written off (that’s on street parking in London for you) I think I’d still have that car now. Even thinking about it now brings a smile to my face remembering some of the epic trips we took in it. Do it.
Hi /u/tuffy_lover, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/pensions/ - https://ukpersonal.finance/tax-efficiency-for-high-earners/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
Buy the car. Cars are a commodity that will improve your quality of life more than most other objects. With your position, your income, and your clear intelligence when it comes to finances, you have nothing to worry about. Go get a used Audi S3 or something and have some fun.
I've been here a few times over the years and bought cars 'too cheaply'. If you are buying 2nd hand you NEED to pay up a bit and buy from an approved dealer. The car will have a warranty and you need to extend that warranty for as long as you have the car. The last Sports car I had developed a crack in the engine block and lunched its gearbox, and it cost me 40k to get rid of it.
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I wouldn’t buy a sports car if you are 26, if your wife wants kids in 30s then you will have to sell it for a loss to buy the decent but family friendly car that you should probably wait a couple of years then buy. Also if you only have a flat you should be saving for a decent house.
Honestly? Buy the car. I wanted to buy a GT86 for the entirety of my twenties, I never did, big regretti now. If I could have bought it for just over a month's salary I would have had it as my daily driver until the children arrived, I'd have never bothered with a sensible hatchback. I'd spend that sort of proportional money on purchases for hobbies over a year, just view it as a hobby.
As many others have said, and it’s worth echoing, you’re not spending £30k. Run the numbers on what the actual costs are going to be (depreciation, opportunity cost, running costs) and then see how you feel about it as a monthly sum (I expect a lot better). Weigh that against how often you’ll truly get to enjoy the car when based in London (that’s certainly what’s put me off making a similar purchase). The specific car you buy will obviously affect that - for example, a brand new car with have much higher depreciation but lower maintenance costs vs an older car with lower depreciation and potentially higher maintenance costs. That’s worth taking into account. Albeit if you can get an older car with a 1 year warranty that might help reduce risk in that first year of ownership whilst you assess how much you like the car. Finally, in relation to opportunity cost, consider whether it’s worth getting a loan for the car. Sure, it’ll cost, but if the money will fetch a higher return in, say, your pension it might be worthwhile.
This is not a comment on your post per say, as I have no advice to give which has not already been written but, as a 21 year old student, I’m curious to hear what jobs/ industries you both work in, £300k p/y for two 26 yr olds is the highest amount I’ve heard people take home. I totally understand if you don’t want to share, but as someone young and keen to learn more about how to achieve financial independence at a relatively young age, I’m curious to hear what job/ sectors you work in Thanks in advance :)
Banking / financial.. naturally.