Every March and September we play the number plate game. It helps with long journeys.
Rules are simple:
The first one to spot a new plate gets:
1 point for car
10 points for an emergency vehicle
5 points for a motorbike
Flip this game on its head though. Every new car – 0 to 4 years old – you see, don’t look at it with jealousy. Immediately think what are your repayments on that! The truth is probably a crazy amount. No it’s fine they are tiny – the lump sum at the end isn’t. Plus what’s tiny; £200 per month? That’s £2000 in 10 months. Just save your cash and get a cheap car. Cars are depreciating rapidly in value every month, week, day and minute you drive them.
Imagine no car payment. The only winners of car payments are the folk selling them. Go buy with cash and everyone’s a winner.
The likelihood is the person driving the car does not earn the £28,973 – UK average new car price 2012. The UK average wage (in 2014) was £27,271.
How do they own it? How do they afford their mortgage/rent? Food? Fuel? Insurances? All their needed outgoings? Not to mention the tax and national insurance deductions? Plus the car cost?
Debt. Simple. Credit. Loans. How someone selling the car can’t see the maths not adding up I don’t know – wait a minute: commission.
If that new car breaks down – great it’s under warranty – but the amount of value lost since driving home that first day. That is a seriously expensive warranty. Think about it. Drive an old car and save your monthly repayment instead. Don’t be jealous of the a colleague driving that shiny new car. It’s not actually theirs – well the laws of averages means it’s unlikely.
It’s not something to be jealous of.