Car finance while on benefits

the_devil_made_me_do_it

Pew_Pew_Pew_Lasers! wrote: »

If you need finance to buy a car you're living beyond your means. Buy one of the afore-mentioned vehicles for a grand, they'll do the same job and will cost much less in the long run.

Many people who don't need finance choose to use the option as some car dealers offer discounts if the buyer purchases a vehicle via finance. I actually know someone who got approx £2000 discount on a new vauxhall just because they choose to pay using finance. However, after 3 months of owning the car, they will be paying the amount owed in full.

Also, how many buyers can afford a car without a loan of some description? This goes for buying any car no matter of price.

Taking on finance also offers the buyer a level of piece of mind. If the car dealer is awkward when it comes to repairs, the finance company assist the buyer in getting jobs done.

Some people who use this forum are very quick to judge the circumstances of others, it's astounding.

anewman

the_devil_made_me_do_it wrote: »

Many people who don't need finance choose to use the option as some car dealers offer discounts if the buyer purchases a vehicle via finance. I actually know someone who got approx £2000 discount on a new vauxhall just because they choose to pay using finance.

But how much would finance ordinarily add on top? Read through these forums and you'll see one instance of a £7k car turning into £14k for the full term of the finance agreement. That's hardly the way to buy a car.

At the end of the day finance isn't something that is given away free of charge - and it isn't pennies from heaven. They're not doing it out of the goodness of their heart. They're taking advantage of people unable to purchase something outright. It's got to be paid back with more on top. In the OP's situation their only options are probably only the high rate lenders or loan sharks, unless someone can provide details of a lender who will lend to someone who is unemployed and charge reasonable interest.

The only time the average person really can't avoid borrowing money is when buying a house - but no doubt OP gets housing benefit so this is not a concern to them. Luckily when buying a car you can get one for £500, which shouldn't really need any lending. The only reason you'd need a "new" car is to show off to the neighbours. And if you *really* can afford a new car, the cheapest way is to put away the money you would pay on finance into a savings account. That way the money works in your favour and not someone else's.

the_devil_made_me_do_it

I wasn't saying finance is given away or the companies do it cause they are nice. I was just saying that sometimes people use finance even when they can easily afford a car in cash.

I agree, the OP should avoid loan sharks & hopefully they have the sense to know that already. However, I still stand by the opinion that many people, working or not, couldn't afford the initial cost of buying a car without the aid of a loan.

harveybobbles

If the OP has already had dealings with logbook loans then there really is no hope in hell that they will get "prime" if any finance. They are the lowest of the low...

Bangernomics is the way forwards I think...!!

Soubrette

elaina79 wrote: »

I am not going to go into this blind and have told hubby that as well. I'm very strict when it comes to our finances. I am hoping that we will be in the situation soon where hubby can think about getting a part time job and get back on his feet as he really hates being ill, and wants to get his life back on track.

Hi elaina - I have no advice on buying a car but I really hope you and your husband can get things back on track.

I have a friend who has bi-polar and even though she only has a crisis every 5 years or so she is finding it very hard to get a job with her medical history.

It's easy for other people to talk about getting jobs but unless they've been in your situation then they have no idea what a serious mental illness can do to people (and how they are perceived by others).

Good luck

Sou

MrsE_2

anewman wrote: »

The only time the average person really can't avoid borrowing money is when buying a house - but no doubt OP gets housing benefit so this is not a concern to them. Luckily when buying a car you can get one for £500, which shouldn't really need any lending. The only reason you'd need a "new" car is to show off to the neighbours. And if you *really* can afford a new car, the cheapest way is to put away the money you would pay on finance into a savings account. That way the money works in your favour and not someone else's.

Got to disagree with you there, I feel far safer in a new car than a banger, every year they make improvements in car safety & the newer your car the better the road handling & crash protection. I certainly wouldn't feel that safe in a banger.

Plus reliability is a major issue, I live in a village, the transport to my place of work is appalling. I need to go out in the morning & have my car start, EVERY morning, my finances would take a major knock if I couldn't get to work.

However I cannot understand how people on benefits can afford to run cars or buy fairly good ones, cars are expensive to run

gilbert_and_sullivan

Elaina, your circumstances are nowt to do with me, but i have reservations that your choice of vehicle (Renault) is particularly wise.

At the price you are looking to pay it will be coming to the point when French cars by their complete unreliability could make a saint swear.

Have you thought of the possibility of a repair bill of many hundreds or possibly thousands of pounds arriving maybe months after purchase?

Not trying to rain on your parade, but i would look at other vehicles to be honest.

Good luck otherwise.

dmg24

MrsE wrote: »

However I cannot understand how people on benefits can afford to run cars or buy fairly good ones, cars are expensive to run

Disability benefits can be more than sufficient to enable someone to have the same standard of living as someone that works.

elaina79, perhaps you could do an SOA to work out how much excess income you have each month? Then you can work out what repayments you can afford. Do you know if your credit file is relatively good? I would say that the first place to start when looking would be your own bank - even if you do not take them up on any offer, it is a good indicator on what you may get elsewhere.

MrsE_2

dmg24 wrote: »

Disability benefits can be more than sufficient to enable someone to have the same standard of living as someone that works.

elaina79, perhaps you could do an SOA to work out how much excess income you have each month? Then you can work out what repayments you can afford. Do you know if your credit file is relatively good? I would say that the first place to start when looking would be your own bank - even if you do not take them up on any offer, it is a good indicator on what you may get elsewhere.

I know that some people get the motability cars with all the expenses covered, but the OP says they don't get this level.

I work & my wage is not too bad & I feel the pinch of running a car. Its a lot more than a car & petrol.

Pew_Pew_Pew_Lasers!

the_devil_made_me_do_it wrote: »

However, I still stand by the opinion that many people, working or not, couldn't afford the initial cost of buying a car without the aid of a loan.

Yes they can. They all can, they just have to learn how to wait.