You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
I currently have a 4 yr old BMW 330e sat on the drive doing not very much as I now work from home most of the time, but it might do 50 miles a week taking Jnr FD to football or the occasional run to the office.
The aim is to buy a Porsche Boxter but I need to save a little for this. Is it worth selling the BM and getting a 5k ish car (using savings) and then saving the £350 pm from the BM loan towards the deposit of the Boxter?
Will a 5k car depreciate massively in 6-12 months?
The aim is to buy a Porsche Boxter
Sell both and bike everywhere.
Good for you - good for planet Earth. 🙂
Good for you – good for planet Earth
No thanks I want 3.4 ltrs of flat 6 glory before they are banned 😢
The answer probably depends on how much if any equity you have in the BMW and if there are any early repayment/cancellation fees
Ie if you’ve just got the BMW you maybe in negative equity. As the £350 won’t cover the first few months depreciation.
A 5k car bought from the trade will probably lose At least £1000 over the next 16/12 months to account for the dealers profit margin. For a private sale it will be less. But the exact amount will depend on the cars depreciation curve (ie a newer small hatch back may lose more than an older originally more expensive car that’s reaching the end of its curve)
But depending on your boxer you may find that in 6 months the car your looking at is dearer as you will be looking to buy a soft top at the beginning of Spring.
Current BM on personal loan with a bit of equity in it. MOT due Oct, but that’s free, I just thought better to sell when just MOT’d + 1 yr service package still on it
Boxter - could buy any time 3-9 months. So far their prices have remained constant and I haven’t seen any autumn dipping away of price.
Maybe this is simplistic thinking, but surely a 5k car won't depreciate that much over 6-12 months. Would have thought the extra equity in the BM minus your £320pm would be much greater than depreciation on an older car.
Obviously I've worded that like a shit GCSE maths question though. So you're paying £3840 on the BM over 12 months. Estimate what return you'll get now on the BM vs in 12 months time. Deduct the difference. Compare that to estimated depreciation on a £5k car. Surely you'd be bettor off in the older vehicle. Personally I'd be factoring in the risk of millions of people thinking like you over the coming months, thus cheaper cars holding value better.
Porsche Boxter
If you can't spell it correctly you're not allowed one!
Can't help with your question but the Boxster is a great car.
For 50 miles a week I'd go full bangernomics and save the cash,5K outlay for a car that does so little mileage seems pointless to me.
Put 4K towards the Boxster and spend a grand on a 1.6 petrol Focus. Standard STW answer.
Where are you buying the 5k car from and where will you sell it? If private for both no worries but if garages are involved you'll lose out when you sell.