Stick or twist...?

[Lurkalot]

I’d appreciate the Forum’s views on this conundrum. Having never posted but read avidly I know you’ll have opinions and be happy to share… ?

I ordered a CT4 in Nov 21. Vehicle was built late summer and is sat in a German parking lot awaiting the mythical 12V battery, ETA unknown. Dealer comms have been appalling – nothing different to what other forum-dwellers have experienced.

Here’s the hard part: since ordering, things have changed at my end and I’m going to be parting ways (amicably) with my employer next Spring (consequence of the downturn as has been frequently predicted on this forum). However, the settlement I’ll receive is generous enough for me to take some time out (prob 12mths) before I’ll need to get back into the game (and I intend / need to take this time). It’s nothing dodgy – simply I’ve worked incredibly hard for a long time, and the company is looking after me as a consequence. Probably rare, but thankfully true.

During that year I’ll be relying on settlement plus savings with no other income. There’s enough to have a decent (not decadent) year and still leave a safety net for when I finish my ‘sabbatical’. Not meaning to be arrogant but I’ve reason to be confident about getting back into the second half of my career when I’m ready (assuming I don’t have a mid-life epiphany and wake up wanting to sell beaded jewellery in Goa).

Some additional context: will be buying on (standard dealer-provided) finance with a modest deposit, plus trade-in (my pref for items like this). All in, excluding the initial capital I'll put in, I reckon the annual cost of owning the CT4 v’s my current ICE will be about 30% more (the CT4 is just a more expensive car, despite savings on fuel, tax, servicing etc).

My question is this: facts tell me I can still afford to take delivery. So should I listen to my heart that says ‘you’ve waited a year for this, the chance might not come again, JFDI’; or my head (and prob my wife) which is saying ‘you’re nuts to do this given it’ll be (almost) your largest single financial commitment when you’ve no money coming in’?

And the practicals: i still don't know when the car will actually turn up. Could be tomorrow, could be next year. If I back out now, can I still get my deposit back? Or would I have to take it, then sell it straight back to the dealer? And if I decide I don’t want to get back on the ladder in a year (or my employability confidence is misplaced!), will I be stuck with something I can’t get out of? Have I missed any outgoings or financial considerations you’d be thinking about in my position?

If you’re reading this forum you probably know what I *want* the answer to be – but let me have it from your POV. Please don’t hold back.

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[kempez]

Personally although I absolutely love my cars, I would cancel. Buy something a lot cheaper that gives you 80% of the enjoyment. Then when you’re back secure and working, order a new one. And probably enjoy a lot shorter wait. You de-risk your year off and give yourself a bit more cash to enjoy/experience the important things in life.

I triple-checked that the deposit was 100% refundable with my dealer, in case a saw another car I wanted in the meantime

 

[simcity]

My take - given (a) the uncertainty of the marketplace, (b) you won’t have a guarantee of an income, immediately once you’re sabbatical comes to an end (c) you might decide to try or do something radically different - cancel, get your deposit back and put the whole thing on ice.

Reassess when your sabbatical is near up and you know where you are headed financially and otherwise.

Best of luck!

 

[DoctorLife]

I think you “know” the answer already, don’t you? The answer is what your head (and your wife) know, that buying an expensive car at this time is an extravagant luxury when a Kia Picanto will get you from A to B just the same (sort of) as the Taycan…….oh my, though….you have a heart and I know exactly what that organ will say especially when you look through your window at your beautiful new Taycan and swoon.

Unfortunately, as I said, head rules (for now), you know it, don’t you?

 

[Archimedes]

I wouldn’t take the car, but I’m uber conservative when it comes to money.

My rule has always been that the total value of all my toys (fun cars, motos, boats, etc.) combined can never exceed five percent of my total net worth. It was 10 percent when I was younger.

 

[JDNEPA]

I have zero idea on your situation so I think all our advice here is likely going to be people taking their personal circumstances and filling in the blanks to apply to your situation.....

1. Depending on the package and you treat like income, if you could afford payments, etc and factor it in and it covers your lifestyle with the car, then theoretically "facts" say you can do it. Then this is all do you bank money or spend money and this lies with what level of risk you want to take beyond 1 year and finding a new job. 30% more - not sure on what that matters and only you can answer this....

2. If you are dipping into savings and/or risk savings, then this becomes an expenditure. You didn't say what your "sabbatical" is going to be spent doing - 1 year retirement, or some sort of life experience you're planning (RV across the country, Taycan roadtrip to all 50 states, motorcycle trip, studying in Europe, traveling the world, sailboat around the world...etc etc). If it's option #2 and the spend is worth it then you should do it assuming you can afford it.

3. If it's a luxury item that doesn't factor in, and you have a doubt or more importantly, your wife has doubts, then you have to factor that in. In this case, I'm with the camp of can you do something with 90% of the joy and have your cake and eat it too? ...probably could find a Cayman, Boxster, something used like a vette, or a host of other options....

My advice if wife ain't happy with it, no one is and I'd probably adjust the plan to land at something fun but not go to the hilt. I'm happily married so that's me. Others may not agree with this strategy and to each their own.... Bottom line - depending on sabbatical, more money aimed at the opportunity of a lifetime isn't a bad thing (if that money isn't aimed at a Porsche or in a Porsche then it may be better spent elsewhere on those things).

4. If it all doesn't matter. You've got money where it really in the scheme of things doesn't change the landscape at all then really I'd not lead with your heart. You want it, get it. If you sleep better or feel this is an opportunity to pivot for now and buy time (1 year) to figure it out then I say go with your gut......

There are no wrong answers here and congrats on the opportunity! Make the most of it!

 

[RAHRCR]

I’d appreciate the Forum’s views on this conundrum. Having never posted but read avidly I know you’ll have opinions and be happy to share… ?

I ordered a CT4 in Nov 21. Vehicle was built late summer and is sat in a German parking lot awaiting the mythical 12V battery, ETA unknown. Dealer comms have been appalling – nothing different to what other forum-dwellers have experienced.

Here’s the hard part: since ordering, things have changed at my end and I’m going to be parting ways (amicably) with my employer next Spring (consequence of the downturn as has been frequently predicted on this forum). However, the settlement I’ll receive is generous enough for me to take some time out (prob 12mths) before I’ll need to get back into the game (and I intend / need to take this time). It’s nothing dodgy – simply I’ve worked incredibly hard for a long time, and the company is looking after me as a consequence. Probably rare, but thankfully true.

During that year I’ll be relying on settlement plus savings with no other income. There’s enough to have a decent (not decadent) year and still leave a safety net for when I finish my ‘sabbatical’. Not meaning to be arrogant but I’ve reason to be confident about getting back into the second half of my career when I’m ready (assuming I don’t have a mid-life epiphany and wake up wanting to sell beaded jewellery in Goa).

Some additional context: will be buying on (standard dealer-provided) finance with a modest deposit, plus trade-in (my pref for items like this). All in, excluding the initial capital I'll put in, I reckon the annual cost of owning the CT4 v’s my current ICE will be about 30% more (the CT4 is just a more expensive car, despite savings on fuel, tax, servicing etc).

My question is this: facts tell me I can still afford to take delivery. So should I listen to my heart that says ‘you’ve waited a year for this, the chance might not come again, JFDI’; or my head (and prob my wife) which is saying ‘you’re nuts to do this given it’ll be (almost) your largest single financial commitment when you’ve no money coming in’?

And the practicals: i still don't know when the car will actually turn up. Could be tomorrow, could be next year. If I back out now, can I still get my deposit back? Or would I have to take it, then sell it straight back to the dealer? And if I decide I don’t want to get back on the ladder in a year (or my employability confidence is misplaced!), will I be stuck with something I can’t get out of? Have I missed any outgoings or financial considerations you’d be thinking about in my position?

If you’re reading this forum you probably know what I *want* the answer to be – but let me have it from your POV. Please don’t hold back.

I am cash and carry for all of the toys I buy. I put Taycan in that category. I would not enjoy something that would put my financial future in question.

 

[raharris]

Too many factors here, what does it look like if you have to exit ownership? You take the car, things don’t go as expected and you need to exit - what does that look like?

Personally my outlook is you only live once (and we don’t know how many tomorrows we have) and I make decisions based around that, but never to the point of being reckless (well not completely).

 

[Tighlines]

Would your sabbatical be that much more enjoyable with the extra cash on hand or the nice ride in the garage...? It sounds like the sabbatical has the priority here. If that's true, I would prefer to have the cash stock pile to enjoy that time off even more. If you spring back into your professional career with no hitches, then you may be able to upgrade your original taycan. Especially if the original is a MY2022 not due to arrive anytime soon...
It's a close call. If my taycan was on schedule, I'd probably buy it. If it was in perpetual limbo, I'd let it go.
I hope things work out for you.

 

[Redhot2474]

You will always enjoy a car a bit less if deep down you really feel it wasn’t the best decision. Used Taycan market will only get better, there will always will be one to buy in future

 

[AlexR]

1. Why cancel now if you do not even have an allocation? You can defer the decision until the dealer tells you it's going to lock etc. Things may have changed by that point.

2. As has been said above - listen to the wife at all times!

3. Will you make use of it for the next 12 months or want to travel etc? I remember during lockdown looking out of the window at the Panamera and suddenly the £1000 a month felt like A LOT of money. Taycan I use every day so somehow £35 a day seems cheap! As has been said a month, if you keep the car, plan a pan-European road trip extravaganza and then you will have no regrets!

 

[McgR]

Don’t buy it if you can get your deposit back. Who knows what will happen next year.

You mentioned there might not be another chance. Next year there will be another perfect EV, and over two years it will even be better.

Keep your money and have a good night rest during a year.

 

[Lurkalot]

Thanks - this is fascinating, and honestly not the advice I thought I'd get! Which goes to show how hard it is to make objective decisions when, TBH, there's a good chunk of emotion in all this. Thank you.

Just clarifying the car is built and may turn up at the dealers any day. So I suspect I should act quickly if I'm stepping back! If I'd only just placed the order I'd find it easy to bail out, I think - it's the fact I've waited so long, and the thing is so damn close, that is clouding my judgement.

And this hive mind is getting close to what really matters, too - the year ahead. Travel should be a big part of it, a good chunk of which the CT would be excellent for, but there's a strong chance it'll be on the drive and unused for a good few months, a la Covid - albeit I won't even be able to see the bloody thing if we're off jollying somewhere else. That's a v helpful perspective.

Ultimately, it sounds like all this can be simplified as trading off the YOLO factor with the views of the wife!

Thanks again.

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