Most people get this so wrong its painful. What we are going to run through today are the buying decisions you should make when you are thinking of buying a car (supercar) or a bike or superbike. Cars are like all other things, they are expensive but they serve a purpose.
Below are 3 tips I highly recommend when it comes to expensive car buying.
What can you afford?
Realistically this is a question that all people should ask themselves before going into a car dealership. But do they ever do it? F no! They have a ball park figure which is usually blown out of the water when you see something you really want. Instead have 50% of your car in your bank (more on that below) this way you know that if you spend more you can get into real trouble!
Tip: Shop around. This not only helps you get a better price for the same car but you also have a more clear mind when you haven’t been talking to the same sales rep for an hour!
Debt isn’t the same as credit.
So what do I mean by this? Well Debt isn’t the same thing as credit. Most people think that both debt and credit are a bad thing and they couldn’t be more wrong. Debt is bad. Credit is good, credit allows people to buy expensive things by taking additional money from their “future selves.” When this mounts up too high though, people need to reduce their debt before getting more credit, but that’s not exactly how it works usually.
When this comes to car buying the key is to avoid taking out a loan bigger than 50% of the car’s value. This is the easiest and most straight forward way to ensure you never get into any issues with the debtor. This way even if you do have a few tough knocks then you can simply sell the car for around 60% and pay back the entire debt, ensuring no negative connotations.
Lose the Ego
If you are looking to just impress your friends don’t lay out 100,000s on purchasing the brand new Ferrari, instead just hire a Ferrari for a few days, or even better? Don’t be so freckin vain! But if you do decide to go down the rental route then the prices you’ll be looking at are below (image form ferrarihire.co.uk)
As you can see your ego can be a very expensive thing! Instead of this I recommend just biting the bullet and using some of the tips we outlined above when it comes to purchasing decisions. Remember that as soon as you buy a supercar it loses about 25% of its value instantly….. There’s asset depreciation and then there are car sales! Unlike a house this will never go up in value (unless it becomes an antique) and as a result you should always be extremely careful where and how much you pay for any car you buy.
Thanks for reading, have a good one.