If there’s one money mistake I could go back and undo, it’s cars on finance. I fell for it hard, and it cost me years of payments, stress, and a pile of debt that could have been avoided.
My first car was an Alfa Romeo Mito. To me, it felt like freedom and a bit of flash — I was young, earning well and wanted something that looked the part. The finance deal? Around £250 a month for 5 years. At the time, it didn’t feel too bad. Everyone seemed to be doing it, and I thought: “If I can afford the monthly payments, it’s fine.”
But life had other plans.
Just six months in, I wrote the car off in an accident. The insurance paid out what they said the car was worth, but it wasn’t enough to clear the finance. I was left with over £2,000 still to pay — for a car I no longer even had.
And here’s where I really messed up: I didn’t learn my lesson. Within a week, I had another car on finance. This time the payments were £350 a month over 5 years, and I rolled the leftover debt from the first car into the new deal. Essentially, I was paying for two cars — one that didn’t exist anymore.
It sounds mad now, but at the time I just thought that was “normal.” Everyone around me had cars on finance, and I didn’t want to feel like I was falling behind. The reality? I was digging myself into a deeper hole and making future Jack’s life a lot harder.
What I’d Do Differently Now
If I could go back, here’s what I’d tell myself:
- Forget the flash — buy what you can actually afford. A car is just a way of getting from A to B. It doesn’t matter how nice it looks if it’s draining your bank account every month.
- Insurance never pays what you think. You only find this out the hard way. If you’re on finance and something happens, you’ll nearly always be left owing more than the car is worth.
- Cash is king. Even if it meant driving an older, less exciting car, having it paid for outright would have saved me thousands. No stress, no rolling debt into the next “deal.”
- Think long-term, not monthly. Let’s break it down:
- First car: £250/month × 6 months = £1,500 paid before the crash
- Leftover debt from first car: £2,000
- Second car: £350/month × 5 years = £21,000
- Total cost: £1,500 + £2,000 + £21,000 = £24,500 spent on cars over roughly 5 years — and that’s before interest, insurance, fuel, and maintenance.
Now imagine if just half of that money had gone into an ISA or investments. It would likely have grown significantly by now. That’s the real opportunity cost — and the lesson I’ll never forget.
The Takeaway
Cars are one of the easiest ways to sink your money without even realising it. I don’t judge anyone who’s using finance — I’ve been there, I know the temptation — but if you really want to get ahead financially, cutting out car finance is one of the biggest wins you can have.
These days, I’d rather drive something boring but owned outright than something shiny that’s actually the bank’s. I learned that lesson the hard way, but hopefully my story might save someone else from making the same mistake.
Jack’s Money Journey 
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