AIBU to spend £20k on our first car?

[starksausage]

I’ve never owned a car before. I’m in my late 20s now. Don’t own my own home but have enough for a deposit. Been with DP for 8 years.

We need a car for various reasons now and have found a used one we like for £20k. AIBU to spend this much money? We bring home roughly £10k a month and this would cost about £500 a month

If you make 10k a month why can't you buy it outright?

Good if you want a new car for 2–4 years and plan to hand it back, but I woulnd't get married to the brand, rather look for the lowest interest rate/cheapest deal.
You can comfortably afford the payments + deposit.
Are you self-employed? If you do significant business mileage and proper records it can be a good tax deductable.

I wouldn’t do this. A 5k car will be older and less reliable and cost you more in maintenance.

They earn 10 grand a month. Why on earth would you spend as little as two weeks wages on a car when you can get something much nicer.

Why on Earth are you getting it on finance and then tying yourself in to the same again every three years?! For looks alone surely.

Earning that much a month you can buy outright. A brand new car loses the minute it leaves the forecourt and is not worth it.

My partner and I have a combined income of 5.5k a month. We just bought a three year old car for 15k. He works in the car industry - sports cars, designs and engineers them, drives at international race events, he knows what he is talking about. For us at home he chooses efficient quality.

Don't waste your money.

Depends how much you care about cars. I would personally put as much as possible to the deposit of the house rather than a car which depreciates. We bring home more than £10k combined and we own 40% of our home in London but I couldn’t care less about cars so we bought a used one for £6k and everyone is happy with it 😂

Haha what a humble brag

What do you mean tying yourself in again for 3 years? In 3 years it’ll be paid off and no more payments. It’s not a lease

I don't think it is unreasonable. However, personally would not do it.

I have always bought cars outright, from savings. For me, this helps focus the mind. Is a £20K car really worth that much more to me than a £12K car?

So far, the answer has always been "no" and £12K is the most I have ever spent on a car.

If I was to frame it as £300 per month v £500 per month I might reach a different conclusion - and have deliberately chosen not to frame it that way.

The bottom line on the balance sheet matters more than the cashflow, once you're out of the woods.

Buy on of these - have a bit of change https://www.vertumotors.com/used-cars/?dealershipName=SEAT%20Darlington&mileage=%3A100