Hire Purchase -What to do for the best!

bigstevex

17% is absurd!! You'll regret it in 12 months when you get a yearly statement and still see that you owe about 9000!

AdrianHi

harveybobbles wrote: »

Unless i'm being thick, but you want to save money by getting a car that does 50MPg, buy you're signing a ten grand deal at 17%APR...

Exactly what I am thinking.
I have a 2005 320d touring (new shape) and I can get 50mpg+ out of it on a long run in warm temperatures, in winter consumption will increase by 10% and as soon as you get into start stop driving it comes down too. Long term avergage is 44-45mpg for me, in the wrong conditions (winter and town driving) it can get down to 36-38mpg.

17% APR is insane and not money saving even at 50mpg and a 320d though brilliant is never worth paying a 17% APR loan for.
What car have you got now?
engine?
how old?
how much cash could you put up for another car purchase?
how many miles do you do?

It might take me a couple of days but I can work out with reasonable accuracy what your best bet for money saving on a car in the long run is for your mileage. Got a spreadsheet I use for doing it. Sometimes a newer car can be money saving.

Pull out of the current deal and you will probably loose the £300 deposit, better that than go ahead with it though.

bethuk1

Thanks for all your advice, all taken on board and a lesson learnt there. Thanks Beth

nomoneytoday

£10,000 plus 17% interest buys a lot of fuel...

AdrianHi

nomoneytoday wrote: »

£10,000 plus 17% interest buys a lot of fuel...

Absolutely, just worked it out.
£10,000 load paid over 36 months is £123.80 a month or £4456.79 in total interest charges alone. You need the car to be with nearly free to fuel for this to make sense.