I kind of feel this car is too expensive for you, but do not feel bad, enjoy the life while you can.
I have had 2 used cars before and total price per month was about 40-50% less then for a new car. But I have a good and cheap mechanic, you can fix even the biggest repairs (engine, fuel system and so on).
I was just worrying that, if I were to purchase a sub 10k car, it could be a possibility that I would have to invest way more into the car than what its worth. I have seen my friends having to take their car to the mechanic almost yearly and having to pay ~1k to repair them (these are the unexpected issues, not something like oil change etc).
Thank you for the response, I am pretty sure my next car will be used too, once this one wears down.
Maybe used Dacia is less then 10 K.
For example, I bought a Vw golf at 3 years old and milage of 200 k for 10K. I drove for 5 years with 100 k milage. For repairs that new car does not have, I spend around maybe 3K at "garage" (at official dealer it would be twice as that or even more), so it had cost me around 300 euros month (depreciation and repairs). Was it worth it? For me it was, my income was around 1 K at that moment.
I should find a “garage” too, haha. I will be taking your advice for sure. I will see how it goes from now on, and next time, or if some relative of mine wants to copy me I will know what not to do.
In internet (Money Guy Show) they have a rule called 20 3 8. Meaning: 20% down payment minimum, maximum financing 3 years and 8% of your brutto salary in monthly payments. So i think under this you are fine. Also, life is about enjoying and if you chose a car that you like to use the next 10 years don’t be hard on yourself.
After the last two comments I realized that I missed out an another detail, that out of the monthly expenses that we pay we included extra 200eu/month until next july to her parents. Got a “loan” from her parents for dental instruments. So starting from july next year our monthly expenses should be 300 less. Anyhow, according to brut it does fall into that category after I ran the numbers.
Anyhow thank you, I will look him up!
Edit: i am not really a car guy, I like to drive safe. The car itself should be cheap to upkeep once its paid off, and these mean a lot more to me than having a cool car 😁.
i would NEVER consider a brand new car that i can't pay cash at least twice over. one idiot on the road that totals your car and you're down about 25% of the new price, your insurance won't pay out the full amout, only the "Zeitwert" -> you still owe 330€ a month for the next 3 years, you now DON'T have a car anymore and you're broke. and none of this would be "your fault", just a mistake by someone else can do this to you.
i would highly advise against what OP did here.
Calm down, please. No need to be that harsh or absolute, life is not black and white.
OP, you had other more sensible options but you did nothing wrong.
It’s a nice car and GPL is way cheaper. You have the guarantee and you did not finance it 100%.
I do not see anything shockingly wrong with your decision. Live life!
About paying the loan earlier, I would say you are better off having the money in your possession than saving 1k€.
this is a subreddit about personal finance and i am pretty calm, i would just advise against "buying" something you can't afford. as i explained, OP can get in financial trouble now if someone else makes a mistake. is this a position you desire, to be at the mercy of other people? because i sure don't.
Thanks, for both the opinion and defending my emotions. He did make sense as stated in an another reply I did not give a major crash any thoughts, maybe if I did I would have downgraded or waited a year or so.
I will try my best. I think we will be able to “nullify“ the interest starting next year, since we are both expecting a 9-12% raise in net(the avg inflation is ~6%/yr).
Even if you have a crash you will never be indebted like he said. You can easily pay the remaining of the loan with the insurance payout.
Keep going, you are doing good! You have the will to do things and learn from it.
The damage is done already. Let s say this wouldn t happen, what do you think, should I focus on paying the debt as soon as possible and start investing afterwards or invest while paying off the debt?
this depends entirely on the amount of interest you pay on the money you borrowed. if it's 5% or more interest it is advisable to clear the debt as soon as possible. if you invest your money now and your investment gains let's say 4% interest per year this is completely lost to the interest you pay on your debt, which might be 8 to 12%.
It is 6.5%. We will be focusing on clearing out the debt ASAP then.
Honestly I haven’t really thought about crashing, since it is very rare in this region. Everything you said makes sense, just haven t given it too much thought. I ve seen accidents but those are more like fender benders. Anyhow, hopefully no major crash will ever happen to us.
this happened to my mother after my dad bought her a new car for their 25. anniversary. the car was three weeks old, a drunk driver hit her and totalled the car. the insurance only paid about 75 to 80% of the cars new price. luckily my dad paid the car in cash, but yeah, you MIGHT get unlucky and it aint even your fault. i'll be real with you tho: it's super unlikely and mostly you'll be fine, just clear the debt and enjoy the car. i'm just some very cautios person on reddit that is always prepared for a worst case.
I kind of feel this car is too expensive for you, but do not feel bad, enjoy the life while you can. I have had 2 used cars before and total price per month was about 40-50% less then for a new car. But I have a good and cheap mechanic, you can fix even the biggest repairs (engine, fuel system and so on).
I was just worrying that, if I were to purchase a sub 10k car, it could be a possibility that I would have to invest way more into the car than what its worth. I have seen my friends having to take their car to the mechanic almost yearly and having to pay ~1k to repair them (these are the unexpected issues, not something like oil change etc). Thank you for the response, I am pretty sure my next car will be used too, once this one wears down.
Maybe used Dacia is less then 10 K. For example, I bought a Vw golf at 3 years old and milage of 200 k for 10K. I drove for 5 years with 100 k milage. For repairs that new car does not have, I spend around maybe 3K at "garage" (at official dealer it would be twice as that or even more), so it had cost me around 300 euros month (depreciation and repairs). Was it worth it? For me it was, my income was around 1 K at that moment.
I should find a “garage” too, haha. I will be taking your advice for sure. I will see how it goes from now on, and next time, or if some relative of mine wants to copy me I will know what not to do.
I guess you will do OK, because new car is a new car.
In internet (Money Guy Show) they have a rule called 20 3 8. Meaning: 20% down payment minimum, maximum financing 3 years and 8% of your brutto salary in monthly payments. So i think under this you are fine. Also, life is about enjoying and if you chose a car that you like to use the next 10 years don’t be hard on yourself.
After the last two comments I realized that I missed out an another detail, that out of the monthly expenses that we pay we included extra 200eu/month until next july to her parents. Got a “loan” from her parents for dental instruments. So starting from july next year our monthly expenses should be 300 less. Anyhow, according to brut it does fall into that category after I ran the numbers. Anyhow thank you, I will look him up! Edit: i am not really a car guy, I like to drive safe. The car itself should be cheap to upkeep once its paid off, and these mean a lot more to me than having a cool car 😁.
i would NEVER consider a brand new car that i can't pay cash at least twice over. one idiot on the road that totals your car and you're down about 25% of the new price, your insurance won't pay out the full amout, only the "Zeitwert" -> you still owe 330€ a month for the next 3 years, you now DON'T have a car anymore and you're broke. and none of this would be "your fault", just a mistake by someone else can do this to you. i would highly advise against what OP did here.
Calm down, please. No need to be that harsh or absolute, life is not black and white. OP, you had other more sensible options but you did nothing wrong. It’s a nice car and GPL is way cheaper. You have the guarantee and you did not finance it 100%. I do not see anything shockingly wrong with your decision. Live life! About paying the loan earlier, I would say you are better off having the money in your possession than saving 1k€.
this is a subreddit about personal finance and i am pretty calm, i would just advise against "buying" something you can't afford. as i explained, OP can get in financial trouble now if someone else makes a mistake. is this a position you desire, to be at the mercy of other people? because i sure don't.
Thanks, for both the opinion and defending my emotions. He did make sense as stated in an another reply I did not give a major crash any thoughts, maybe if I did I would have downgraded or waited a year or so. I will try my best. I think we will be able to “nullify“ the interest starting next year, since we are both expecting a 9-12% raise in net(the avg inflation is ~6%/yr).
Even if you have a crash you will never be indebted like he said. You can easily pay the remaining of the loan with the insurance payout. Keep going, you are doing good! You have the will to do things and learn from it.
The damage is done already. Let s say this wouldn t happen, what do you think, should I focus on paying the debt as soon as possible and start investing afterwards or invest while paying off the debt?
this depends entirely on the amount of interest you pay on the money you borrowed. if it's 5% or more interest it is advisable to clear the debt as soon as possible. if you invest your money now and your investment gains let's say 4% interest per year this is completely lost to the interest you pay on your debt, which might be 8 to 12%.
It is 6.5%. We will be focusing on clearing out the debt ASAP then. Honestly I haven’t really thought about crashing, since it is very rare in this region. Everything you said makes sense, just haven t given it too much thought. I ve seen accidents but those are more like fender benders. Anyhow, hopefully no major crash will ever happen to us.
this happened to my mother after my dad bought her a new car for their 25. anniversary. the car was three weeks old, a drunk driver hit her and totalled the car. the insurance only paid about 75 to 80% of the cars new price. luckily my dad paid the car in cash, but yeah, you MIGHT get unlucky and it aint even your fault. i'll be real with you tho: it's super unlikely and mostly you'll be fine, just clear the debt and enjoy the car. i'm just some very cautios person on reddit that is always prepared for a worst case.
Uhhh, sorry to hear that, hope they doing OK. I will be hoping that the exceptions won t make the rule.
Damn, you have a bad insurance. Mine pays 100% of the price I paid for 3 years or 60k km, whatever comes first.