A fellow employee at our McD’s got knocked in the drive-thru a few weeks ago and finally got paid out

[gamefabrique]

His right hand was damaged and he’s getting a monthly grant from the government cos he can’t work no more. McD’s paid him last week for his injury. Just over R400 000. He wants me to go with him to choose what car to buy. He asked me to recommend what car. I’d like to know what car is a good investment in case he needs to sell it to make money in the future, cos he won’t be able to work again. I’ve seen the new Polo with all the extras for just over R400k.

 

[intricateivory]

@gamefabrique Sounds like a bad idea. Cars are almost never "investments".

Buy a cheap Mk1/Citi golf. They're like R15k, parts are easy to find and they're not so bad on fuel.

Put the rest of the money in savings. Tyme will give him up to 10% interest.

Sounds like he was injured pretty badly. It might be worth him learning a new skill that'll allow him to work in future.

 

[daily7]

@intricateivory Popped in here to say a Car is not an investment. More a liability

 

[gamefabrique]

@intricateivory Thank you for the detailed answer. I will pass on the info.

 

[sek98]

@intricateivory I believe Tyme gives you up to 8% with a limit of R100k per savings pocket.

 

[intricateivory]

@sek98 If you get your salary paid into your account (can be any consistent monthly payment) they'll give you 10%.

 

[sek98]

@intricateivory Ah yes that is correct sir

 

[patrickmoore89]

@intricateivory Yep, if he gets his grant paid to his Tyme account he will get 10% with 10days notice. I’d create 10 accounts with R10k each for emergencies. The R300k balance invest in a TFS. If the car is a must, get a cheap one, preferably a demo.

 

[cff13]

@intricateivory Please correct me if I'm wrong but doesn't tyme and other bank account "investment" accounts contribute to TFSA

 

[mm17162646]

@gamefabrique The answer is simple, don’t buy a car.

If he can’t work anymore why does he need a car? How is he going to pay for the maintenance if he can’t work? How is he going to refuel the car if he can’t work? How is he going to pay the insurance if he can’t work?

See where this is going?

The real question here should be why can’t he ever work again? There are a lot of programs that help disabled people find jobs, that is what your friend should do. He shouldn’t be out car shopping.

 

[gamefabrique]

@mm17162646 Thank you. Those questions were also in my mind, but I never asked him. I was just doing my duty as a friend.

 

[pj1007]

@gamefabrique You're duty as a friend it's to stop your friend from appearing on "I blew it".

 

[masonbrown]

@gamefabrique Bro this is the worst idea ever. If R400k is all, dont buy a car. Invest all of it so he can earn a bit of interest.

If he survived till now without a car and wont really money again dont buy a car.

A car will always lose its value never increase

 

[blueashsky]

@gamefabrique Cars are almost never an investment.

Use the money to upskill and find work.

There is a lot of IT related work you can do with 1 hand, while maybe a little slower but still manageable.

A grant and 400k cash will be in poverty and on the street in 24months. Definitely less if it's blown on a car.

 

[megas01]

@gamefabrique Ask him to watch a few episodes of I Blew It. Hopefully he’ll see that buying a car with all his money is the worst thing he can do. To put it in perspective, R400000 is a young professional’s yearly income so it’s far from enough to set him up for life. He desperately needs to find a new skill and income option.

 

[blueashsky]

@gamefabrique Cars are almost never an investment.

Use the money to upskill and find work.

There is a lot of IT related work you can do with 1 hand, while maybe a little slower but still manageable.

A grant and 400k cash will be in poverty and on the street in 24months. Definitely less if it's blown on a car.

 

[wxgeek71]

@gamefabrique He absolutely should be taking that money and investing in education in a field he can work in. That money is to allow for the reorientation of his life and not for temporary relief. He should go to school.

 

[sdb]

@wxgeek71 Exactly!! And if he wants to buy something .. a new car is the WORST idea

 

[heatherfaith]

@gamefabrique Insurance is going to run him close to r1000 per month, so... Something to bear in mind before he blows the payout.

 

[kaylamorgan]

@gamefabrique How much is the monthly government grant he will receive ?