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Lets have some fun..Forum..What car do you drive

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Super Contributor
You have to be careful of kidding yourself. You could have borrowed that money and bought a growth asset with a dividend. Ultimately, it could have financed itself. Your car will drop to a fraction of its value - no matter what you do. You will pay elevated insurance etc. and you are paying interest for this privilege. The danger lies in believing the load of crock we sell ourselves in order to work ourselves up to the point where we write that cheque/sign that finance agreement. We all do it.
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Frequent Contributor
Mazda3sport -2007.... Learnt about buyer's remorse right after leaving the car dealer. Use to wish that they could write it off, but now that I am left with about 5months to finish paying, I would cry!!! Never planning to sell it, if i am forced to then a 2nd hand Polo Vivo would do less that 95k
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Not applicable
Honda Civic Sedan 2006 - Lovely car and hassle free! (touch wood)
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Not applicable
You could have borrowed that money to purchase a growth asset with a dividend. That was my whole point. If I paid cash for a car - and then borrowed money to buy a stock - then why not just borrow money to buy the car - and use my cash to purchase a stock?
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jo_soap
Contributor
Citroen C3 2007. Love the car but wont again buy one of these cars where all the parts are importes - R500 to change the windscreen wippers! Agree that your car is your worst investment!
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Regular Contributor
after 7 good years of the corsa utility (for the dogs and surfboard), spoilt myself to a Demo 2010 VW Amarok double cab (low carbon emissions) - but a great vehicle.
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Super Contributor
If you had to borrow money to buy the car - so be it! The extra money you spent on the car however (above a satisfactory car) is wasted. So - you borrow as little as you have to for the car since it is junk. As for preserving capital to invest/trade while borrowing for a car? You can't sell the car as easily as a quality share (at a fair price.) You can borrow money cheaper through CFD's. You use up your available credit for a rubbish asset instead of having it available for a real opportunity.
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Super Contributor
Used to be in the motor industry for many years. Got to drive the best but standouts are the Audi S3 Quattro, VW Scirocco and of course the venerable GTi. Man, were they exhilirating. Hit those passes,right foot pressure, left foot dancing on the brake and DSG gearbox in manual mode, doing the rest. Dynamic. Since running my own business have to be more conservative. Still own a 6 year old 1.8 Golf and wife a 1 year old Hyundai i20 which I don't like driving. Solid and dependable, but uh so uninspiring. The Golfie, well thats a different story. Maintained to the T's and a performer of note especially around the twisty bits in heaven country, the Western Cape.
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Not applicable
Nh boet - you are missing the entire thread of my argument. If you pay cash for a car - you have a lost opportunity for investment, since your cash is tied up in a car. And seriously - you think CFD financing is cheaper than car finance? Seriously?
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Super Contributor
But most importantly - borowing implies spending more than you have. If you borrow for an asset that supports itself - all is well. If you borrow for an asset that will grow- clever boy; ... but to borrow to show off... When you borrow for a car - you buy up - fact of capitalism.
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Super Contributor
Nah boet - you are talking nonsense. You are chosing to say "I allocate my funds to X - and not to Y" FACT IS - you borrowed money. You did this to buy a car. You also did this using a car as collateral. Had you not bought the car - you would not have needed the money! That is traditionally a very expensive and poor financial move. AS EXPLAINED above.
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Super Contributor
CFD finance is WAY !!! cheaper than car finance!!!
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Not applicable
But I already told you I had the cash to buy the car - but don't want my capital tied up in a depreciating asset that cannot be used as security.
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Super Contributor
You are missing the point here! Your capital IS tied up! Unless you intend to walk away from the debt! Your car WILL depreciate!
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Super Contributor
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Super Contributor
A car can be used as security. That is how you borrowed the money AGAINST it in the first place!
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Super Contributor
You have done 2 things here - No. 1 - You bought a car. - No. 2 You entered into an onerous loan obligation. How you choose to see it is irrelevant. That is how it sits in your finanacial records; and those are the facts!
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Super Contributor
The results that will flow from these 2 transactions are as follws: 1) You wull suffer capitel errosion (less a tax benefit) you will pay etoll, petrol, insurance, maintenance and garaging (2) you will pay interest, admin fees, loss of creditworthiness to apply to alternatives.
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Highlighted
Super Contributor
I think whether you finance it or not its still costs you the interest. If you buy a car "cash" you don't save the interest you tie up capital that could be working elsewhere potentially giving greater return than what you are saving on the interest. Cars are a waste of money period a good rule of thumb is buy the best 18 month old car you can cash or finance makes no differenc. The secret is to pick a car that isn't special no special tires, ceramic pads ect so bascally a generic car a Toyota Auris a good example. Then you service it as directed and drive it until the car dies and cannot be restored. This takes longer than most imagine a modern car will last 15years easily before it gives trouble( read buy Japanese), mileage isn't a factor unless you do 100k a year. ps the value of the car should not exceed 35% of your annual income preferably 20% but that isnt always possible
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