AIBU to spend £20k on our first car?

You have such a strange attitude. Why do people like anything nice? Nice house nice garden nice clothes nice seats at the theatre? They consider it a treat.

not being able to understand that is pretty emotionally immature

You can probably afford it but as a car is a depreciating asset and you aren’t a home owner, I would get something older and Cheaper.

What you’re looking for is reliability - buying the right model is often a safer route to trouble free motoring than age alone.
https://www.whatcar.com/news/reliability-survey-most-reliable-cars-brands/n26159

No it won't. You think ICE cars out of warranty are worthless?

The depreciation on EVs is steep because there's no standard way to measure battery function. But once that's embedded in the used market prices will stabilise. Batteries will last longer than the car, on the whole. You can't say that about engines.

Why is an expensive car a treat. Our combined income is well over OPs but an expensive is a total waste of money. I just assume people that spend lots of money on a car are attention seekers or have deep insecurities.

DH and I spent 20k on our first car but we bought it outright and it was new, it was a good deal actually. We haven’t got a house at that moment and were saving for deposit. We bought a house 5 years later having the same car, no regrets.

Yes, providing you get something fast and fun, not some boring family wagon. Otherwise you may as well just spend £5-10k

Yes I think it’s fine. £20k isn’t an expensive car

i also think I’d hate to earn a good salary and be driving around in the cheapest shit car I could find. What’s the point in the work if not to treat yourself and improve your life?

Yep, absolutely agree. I bought one six months ago and it was £17k at five years old. It's a good size but it's mid range, not a premium brand at all. Used cars are £££ now.

Have people here bought a car recently? The 2nd hand car market has gone bonkers. £20k isn't actually that much for a newish, reliable mid sized car.

I wouldn't take credit to buy one, but if I had the cash, I also wouldn't spend money on a car much more than 3/4 yo.

We've just bought a 2 year old.used car for 20k..it's shocking but that's what they are. We just went for the best we could afford in the hope that we will get trouble free years out of it. We've just got rid of my son's 13 year old first car which cost us an absolute fortune in the 2 years we had it. Really hoping this will be a better experience.
We didnt get finance as luckily had it in savings. It's wiped us out but for me as little finance as possible is best. Your monthly income is amazing. Couldn't you try to pay it off quicker with hight payments?

I agree. Also if OP is thinking about buying property, then they need to consider the impact the cost of £500 a mo th would have on their mortgage application.

That’s a reasonable amount to spend. But not on finance. Either buy it outright, or get something you can afford.

I would and have spent £20k (and more) on a car. I buy them new or almost new and keep them until they start letting me down, usually 10 years +

I wouldn't take credit to buy one.

we bring home more than you and my car cost me £6000 when I bought it 6 years ago! It's still going strong

Will it impact your ability to buy a house?
What will it bring to your life that a smaller, older, cheaper car can't give you ?

I can't believe you actually have to ask but as PPs have said, you'd be mad to go on finance for a £20k car if you bring home £10k pcm, but also, I wouldn't take on unnecessary joint debt with someone I wasn't married to. But that one might just be me.

Depends on the car surely. A three year old EV, out of main warranty with five years left on the battery warranty, will be worthless in five years. A new Kia, will probably be worth 10k in trade after five years. So your 20k car might really cost you 10k. Depending on what you buy.

I’m not averse to car finance like many people are, we have over £600 a month in car payments for 2 cars but the key difference is we are already home owners and this £600 is only around 5% of our monthly take home. Our cars are also worth a lot more than £20,000 so you must be putting down very low deposits or getting a rubbish deal.

No way I’d pay more than about £150 a month (if you have no other choice) if you’re looking to get a mortgage soon, it’s going to impact your affordability. Also if you have less experience driving, it would be better to build a few years no claims.

I wouldn’t be spending £500 a month on a used car.

With your earnings you would be foolish to get a loan which will be around 6% . The cost of your car will be significantly more after interest over the term of the loan.

Instead spend your savings now, and put £1000pm back into your savings pot earning at least 4%.

If you are planning to buy a house in the future, you need to save more than the deposit: costs of moving and any upgrades you want to make to the house in the first year or 2. Your house is an investment and you will be spending most of your life in it, whereas your car is just a cost of a utility and drain on your finances.

Buy a cheap car. You are unlikely to spend £500 a month on repair bills. Use that money you save to get on the property market. Spend as little as possible on a depreciating asset.

We have never spent more that 10k on a car. Cash. Dealers must love you both. My hubby normally goes to a car auction and we do well. Our car is a vauxhall corsa looks good and cheap to run and gets ignored by the yobs surrounding us

£20k isnt that expensive for a decent but not fancy used car these days unfortunately. It choked me to pay £15k for a 3 year old VW Polo a couple of years ago….

Is the finance PCP or a loan? A personal loan will always be cheaper and you’ll own the car, PCP is a mug’s game.

As long as the payments work for you alongside your projected mortgage then do it.

You should probably buy something out of savings. Car finance is £££, a loan will be slightly less ££.

That said, 20k is pretty reasonable for a car. How quickly could you build your savings up again if you bought it out of your own funds?

Personally I wouldn’t tie myself to a £500 monthly payment, if you’re looking to buy a house in the near future this will impact your affordability for a mortgage, even if everything is paid and up to date.

I’d buy a car outright for what you can afford from savings so you’re not paying interests on a monthly payment.