Winston1990
Senior Member
Looking for some guidance from financial savvy individuals:
Long story short:
I purchased my company Polo Vivo in 2016 at R72,000 with 108,000km on it. Drove it for just over a year and sold it for R90,000 after getting a good deal from VW on a trade in and a new 2017 Polo TSI. After discount and trade in of the Vivo, the new polo cost me R205,000 which I financed. I settled the car early after 3.5 years which was in Sep 2020. Ever since then I have been saving the installment amount each month.
I still drive the Polo which now has just over 80,000km on it and is in immaculate condition. I pay cash for services and maintenance on the vehicle and so far it has been cheap considering I save the installment and use that savings to cover the costs. I am also not concerned if anything goes on the car as I have a savings pool to cover such expenses and car parts are affordable on this vehicle - what I am trying to say is the fact that this car has no service, maintenance or warranty plan in place does not bother me.
At this point in time, including the saving on installments, I am saving around 28% of my take home salary every month. This is great as it helps to quickly build up savings and enables me to do other things - paid my lawyers fees on a second property I recently purchased, renovations on the property, serves as an emergency fund, and in general just provides peace of mind as I can save up quite quickly to either just save, or do / buy things I want to.
Here is where I am now:
Around 6 months ago I received a promotion at work. My job requires travelling around 50% of the time and sometimes it is long trips. I am an outdoor enthusiast who loves mountain biking and my partner and I do enjoy bush breakaways. The Polo has done the job so far as I had a towbar installed to drive around my mountain bike, but we have been limited with our weekend breakaways in the bush. The terrain usually dictates where we go. The Polo has also not felt like one of the safest vehicles in the sense of it being a high risk vehicle (The car itself and how it drives is not an issue).
I got offered a great deal to trade in my Polo on a new T-Cross - After trade in and discount I can get a new Comfortline T-Cross at R197,000 which I will need to finance. If I do decide to purchase the vehicle, I am considering a repayment period of 48 months. (Please note I am not looking for vehicle suggestions, If I am going to purchase a new vehicle it will be a T-Cross).
Pro's of getting a new T-Cross
Con's of getting a new T-Cross
I am okay with driving the Polo for another 5 years as it is light on fuel and maintenance costs. I would obviously like a new T-Cross, but will it be the right decision hence me seeking guidance? Considering my line of work, lifestyle and current savings, is it worth getting the new vehicle or keeping my paid off vehicle and enduring the limitations of bush breakaways, driving a high risk vehicle etc. as it has worked for the last 5 years? Eventually I will probably need to replace the Polo....Might be in a year or could be 5 years. At this point in time there is a good offer on the table both for trading in the Polo and discount on the new T-Cross. In a year or 5 a new T-Cross or whatever I decide on then might cost a lot more and I will get a lot less for the Polo.
Please knock some sense into my mind!
Long story short:
I purchased my company Polo Vivo in 2016 at R72,000 with 108,000km on it. Drove it for just over a year and sold it for R90,000 after getting a good deal from VW on a trade in and a new 2017 Polo TSI. After discount and trade in of the Vivo, the new polo cost me R205,000 which I financed. I settled the car early after 3.5 years which was in Sep 2020. Ever since then I have been saving the installment amount each month.
I still drive the Polo which now has just over 80,000km on it and is in immaculate condition. I pay cash for services and maintenance on the vehicle and so far it has been cheap considering I save the installment and use that savings to cover the costs. I am also not concerned if anything goes on the car as I have a savings pool to cover such expenses and car parts are affordable on this vehicle - what I am trying to say is the fact that this car has no service, maintenance or warranty plan in place does not bother me.
At this point in time, including the saving on installments, I am saving around 28% of my take home salary every month. This is great as it helps to quickly build up savings and enables me to do other things - paid my lawyers fees on a second property I recently purchased, renovations on the property, serves as an emergency fund, and in general just provides peace of mind as I can save up quite quickly to either just save, or do / buy things I want to.
Here is where I am now:
Around 6 months ago I received a promotion at work. My job requires travelling around 50% of the time and sometimes it is long trips. I am an outdoor enthusiast who loves mountain biking and my partner and I do enjoy bush breakaways. The Polo has done the job so far as I had a towbar installed to drive around my mountain bike, but we have been limited with our weekend breakaways in the bush. The terrain usually dictates where we go. The Polo has also not felt like one of the safest vehicles in the sense of it being a high risk vehicle (The car itself and how it drives is not an issue).
I got offered a great deal to trade in my Polo on a new T-Cross - After trade in and discount I can get a new Comfortline T-Cross at R197,000 which I will need to finance. If I do decide to purchase the vehicle, I am considering a repayment period of 48 months. (Please note I am not looking for vehicle suggestions, If I am going to purchase a new vehicle it will be a T-Cross).
Pro's of getting a new T-Cross
- Higher ground clearance with bigger wheels which will help with our bush breakaways
- Bigger vehicle which will feel better on the road
- The usual benefits of a new / more modern vehicle like cruise control, parking sensors, android auto etc. which my car currently does not have
- Less of a high risk vehicle than a Polo
Con's of getting a new T-Cross
- I will have a vehicle installment again for 4 years which diminishes my savings to 13% of my take home salary
- Everything else which goes with saving less in a month
I am okay with driving the Polo for another 5 years as it is light on fuel and maintenance costs. I would obviously like a new T-Cross, but will it be the right decision hence me seeking guidance? Considering my line of work, lifestyle and current savings, is it worth getting the new vehicle or keeping my paid off vehicle and enduring the limitations of bush breakaways, driving a high risk vehicle etc. as it has worked for the last 5 years? Eventually I will probably need to replace the Polo....Might be in a year or could be 5 years. At this point in time there is a good offer on the table both for trading in the Polo and discount on the new T-Cross. In a year or 5 a new T-Cross or whatever I decide on then might cost a lot more and I will get a lot less for the Polo.
Please knock some sense into my mind!