alt Hacker NewsYou're fortunate on what you've spent so far. The problem is that the moment something does go wrong it can be brutal.
Personally I think cars can't be considered an "investment" because they just suck up money.
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I do get this view and in many ways I agree - for me a car in an investment in flexibility.
I could hire a car/van as an when I need one, and send my kids to school by taxi and do my local shopping by bike (which I already do other than the 'big' shop that my wife does).
But investing £3k 10 years ago on a 10 year old car (now 20 years old) has proven a great investment. In a bad year it has cost £500 pa in maintenance, but in an average year I pay more in VED(tax) than I do on a service and mot.
I could have bought £3k of ftse 100 stock and have used the dividends and growth for transport, but I think that has turned out better for me. But I'll be honest, I've not done all the maths, but I don't think investing £3k would cover my costs and I would have eaten into the principle long ago. At best I have a £250 (scrap value) asset now, but realistically if I continue to spend £200-500 a year on looking after my investment, I'll get flexible transport.
Of course it’s not an investment on its own. They’re a consumable. But without the car it limits your options - my kids can’t do after school clubs unless I can transport them as we live too far from the nearest school and the bus doesn’t cover after school clubs. So the car is an investment in their future.
Unless you’re doing higher than average mileage though a cheap car with 12 months MOT is going to last several years, enough that the cost of tax and insurance is going to dwarf the cost of the car.