Should I buy a car or apartment?

[strongarm5791]

@lovebug3 An old paid up car often comes with high maintenance costs and isn’t necessarily cheap to run.

 

[pottershands]

@strongarm5791 There is no way an old paid up car is going to cost 7500 per month to run, which is what they'll be paying for the new car.

 

[strongarm5791]

@pottershands R7500 annualised can easily be charged if a major component like the gearbox goes, or even the cylinder head gasket goes, or an oil ring goes, necessitating an engine rebuild.

Driving an old car is high risk and high stress.

 

[pottershands]

@strongarm5791 There's no way it's costing R90k annually to run an R80k car. Don't be ridiculous. You could literally just buy a whole new 80k car if something catastrophic happens to the engine. We're not talking about a 1980s engine here. A 80k car has plenty life in it.

 

[strongarm5791]

@pottershands Fair enough. Let me put it another way: the risk is of losing the car altogether due to having to write it off, having to finance another worn out car and his wife left being vulnerable and stuck on the side of the road.

 

[lovebug3]

@strongarm5791 Then buy a 100k car.
My car has 350000kms on. I either pay a couple of grand a month on average for upkeep or 7500 rand a month.
I go to a premature mechanic who has looked after the car for 11 years now.

 

[pottershands]

@lovebug3 You spent R100k on a car with 350k kms on it? That sounds like an absolute rip off. 100k can get you a pretty decent car. What did you buy, a BMW?

 

[lovebug3]

@pottershands No. I bought the car second hand with 150kms on. Now have done another 200k Kms. Total spent probably 100k over 12 years..
Going to spend another 100k soon doing a whole bunch of stuff.
Because... You know. 100k beats 500k on a new car..
I want to dine this car to at least 500k

 

[saidagha]

@lovebug3

Drive the shitbox

As long as it's not unreliable and costing you stress. Your time and energy is very valuable.

 

[lovebug3]

@saidagha So is your hard earned money

 

[strongarm5791]

@32983 Sometimes there are other things to consider other than the pure finances.

Having your wife drive a car that is high risk of breaking down on the road is a security threat and for that reason alone you should get rid of the shit box.

Happy wife, happy life.

 

[resjudicata]

@strongarm5791 The car has just been fully fixed. That is highly unlikely to happen and just as likely to happen in brand new cars. Just in case you think I'm wrong, more than 20+years as a master mechanic and garage owner.

Just fix the old one. Resist the urge to buy a new car unless its an EV. But not until you own the house.

 

[srebro]

@32983 A 400k car will cost you around 90k per year to pay off. All the while losing value.

The shitbox will never cost you that much. Not even close. If the car is paid off then it'll be cheaper to run than any car that you finance.

Also how many kms do you drive a month? What car is it and in what condition, how many kms on the clock, etc?

Generally a car is a horrible way to spend money unless you don't care about the money (i.e. buying it doesn't affect your financial position at all).

The property is a whole other story. Why buy the flat when you can rent? Is the idea to have it as an investment property in future? Because guaranteed you will get sick of the flat life within a few years. As an investment property, those Durbanville flats don't generate the best returns - you'd be better off investing in some unit trust funds where you can pull your cash out any time you want. Also buying a property has a lot of up front fees that just send money down the tubes.

I'd assume you are still relatively young so now is the time to build your estate, the way to do that is to save as much of your income as you possibly can and invest in higher return, liquid investment funds - as that will allow you to withdraw cash when you need it for emergencies.

If I was you I would rent a flat, keep the shitbox, save all your disposable income and invest it all into unit trusts.

 

[32983]

This is the quick 1-minute planned budget.

To explain:

SAVING 10% - I have done since my first paycheck. Took it from Poor Dad Rich Dad.

ETC - Anything that doesn't have a category in the budget. Mostly entertainment.

FREEDOM BUDGET- My wife and I each get R1500 a month to spend on whatever we like. Things for your own hobbies etc.

The car loan and C2 Insurance is what it would be if I do the car.

Entire budget (including car loan) is over estimated for safety barrier.

 

[noeljack]

@32983 Nothing wrong with that budget. And you have money left over.

 

[lailoved]

@32983 Property. It's the way to go.

 

[resjudicata]

@32983 Buy a home.

Just repair the one you have. Its cheaper.go to a garage that has Motorite repair insurance.

50 k? Thats roughly 2000 k a month. After having done all that work, the car is likely to cost a lot less now. Just put away R2500 a month and rather Buy a House.

Its a buyers market and car prices , used cars are dropping in price so wait a while.

After a large bill like that the next two will be a lot cheaper especially if you change the oil and filters every 7 to 10 k. What model car is it and what mileage is it at?

 

[annelisethomas]

@32983 I like any ideas that involve buying a more reliable car first, assuming it's a means of maintaining your current income

 

[mikejduk]

@32983 House first. Leave the car. Try and get into market as soon as possible or you'll be priced out. Cape Towns property prices are soaring.

 

[danfirelight]

@32983 What is the current vehicle? You might have gone past the major repairs already and will have extended the life with only normal ongoing maintenance now... If it's a VAG with a dry clutch DSG etc you'll have issues.