Advice Needed...

BREMBO

Hello, more a less straight to the point on this one, going to look into everything to give me plenty of time.

I’m looking at getting a second hand car next year with the value of about £16,000 may be slightly less than this. I may have a small amount to put towards this perhaps £3-5k.

So I will need to look at borrowing £10 to 11,000.

I’m looking for advice on how best to do this.

I figured out that I could pay at maximum around £350 a month back, but would be better if it was a bit less. I have the advantage of my partner being a university student if this can help in anyway, e.g. student loans etc.

I have a clean finance history, never been in debt all bills paid but have never taken out a finance agreement before. I don’t have a mortgage but rent I’m in full time work and I’m 21 years old no criminal record(s), points on license etc. Nothing that I believe will affect me?

If someone could let me know the best ways around this then please share your thoughts.

Hugely appreciated,

Ben

BenL

You need the cheap loan article
http://www.moneysavingexpert.com/loans/cheap-personal-loans

and the car buying article

http://www.moneysavingexpert.com/shopping/cheapest-new-cars

If you tell the car salesman you have a £350 a month budget he will sell you a car at that monthly budget and probably rack up the apr and the term.

If the car salesman quotes you an interest rate it will probably be flat rate so double it and add a bit more to get the apr.

Read everything and get the sales person to bring you lots of drinks and lunch if you can swing it.

Anything you sign on site in the heat of a sale is binding.

£350 is a lot of money for a long period, life changes so think carefully.

I bought a car with finance 3 years 1 month ago at 25, I have since been through long term relationship breakups, house sales, house buys, rental apartments, more girls, 3 different areas, 2 jobs to where I am now.

That amount of monthly repayment seriously dents the mortgage affordability calculators.

Insurance, tax, fuel blah blah blah

mad_bad_spender

Hi there,

you say never been in debt/all bills paid. just to add if you really have not been in ANY debt before ie: credit card, loan etc you may actually find it difficult to get £10-11K on finance.

A friend of mine was in exactly this position and had enough funds to cover loan but was refused as no debt history to satisy lenders, she had to go get credit card and spend on it and pay it off before allowed to borrow..

BREMBO

Thanks very much people.

I could do more than £350pm but I have calculated that I have some away just for that reason for things changing. BenL I notice you refering to the car salesman surely taking a car out on finance via a garage will be wayyy more expensive than taking a credit card/loan out. Thats something I was hoping to avoid.

Im sure there is ways of doing it via a credit card or loan but need to find out how.

jog

Hi Brembo,

You can apply for a personal loan which is then paid into your bank account, so that in effect as far as the car showroom are concerned you are a cash buyer to them.
As someone else has already said, read the article on loans. If you are intending to pay it off over a few years then a credit card would be very expensive.

Jog

plane_boy2000

Have you considered leasing? £350 a month would get you a lot of car, or alternativley use the £5K to cover 2 years payments and save the £350.

Other advantages with lease are that its brand new, so full warranty for the period, most include road tax, and you know exactly what your motoring costs will be for the period. Disadvantages are that you dont own it, so have no asset at the end, but IMO its not sensible to borrow money to buy a depreciating asset as you are in negative equity from day one.

What car are you looking at?

BenL

Sometimes the finance deals can stack up if they are on special offer. The dealer also gets a kick back from the finance company so there maybe more discount.

I got extra deposits from vauxhall and 0% finance, plus extra part ex when i got my latest car.

It all takes a bit of calculating thats all to see what is the best deal for you and your circumstances.

I had a car with 2 weeks left on the MOT, (bought the car 10 months earlier for £600), it would not pass the MOT without lots of work, dealer gave me £2000 part ex and then another £1000 or so from vauxhall as a finance based deposit. This was after haggling.

On other cars when bought I have taken my own loan out either with a loan company or the bank i worked for a preferential rates.

I could not beat the last deal by using non dealer finance.

Hintza

You don't seem to give any clue as to what you need the car for? The next question is why at your age would you want to spend that much on a car?

I might be being a little dull here but at your age I could think of better ways to blow that sort of money a month. The really boring being to save up for a house and the not so boring some decent travelling experiences or similar.

My last point would be that relatively speaking borrowing is currently an expensive rip off to inflate banks capital............but that is really dull of me.

BREMBO

plane_boy2000 wrote: »

Have you considered leasing? £350 a month would get you a lot of car, or alternativley use the £5K to cover 2 years payments and save the £350.

Other advantages with lease are that its brand new, so full warranty for the period, most include road tax, and you know exactly what your motoring costs will be for the period. Disadvantages are that you dont own it, so have no asset at the end, but IMO its not sensible to borrow money to buy a depreciating asset as you are in negative equity from day one.

What car are you looking at?

Do you not need your own company if you going for a lease ?

The car im after is a Clio V6

Hintza wrote: »

You don't seem to give any clue as to what you need the car for? The next question is why at your age would you want to spend that much on a car?

I might be being a little dull here but at your age I could think of better ways to blow that sort of money a month. The really boring being to save up for a house and the not so boring some decent travelling experiences or similar.

My last point would be that relatively speaking borrowing is currently an expensive rip off to inflate banks capital............but that is really dull of me.

The reason im wanting to spend that money on a car is because im a petrol head and have waited untill im 21 to try and acheieve this, if I was into travelling I could spend my money on this, but im not.

Hintza

BREMBO wrote: »

The reason im wanting to spend that money on a car is because im a petrol head and have waited untill im 21 to try and acheieve this, if I was into travelling I could spend my money on this, but im not.

Ah OK then that is fair enough but what about looking for something a bit more classical?

V8 Cobra anyone....;)

Not a cobra bit quite amusing:- http://www.youtube.com/watch?v=J6T2AjBtDMQ&feature=related

plane_boy2000

No, you dont ned to own a company to lease. I work for someone else, but my car is leased (true lease, not a PCP).

Dont think you will get a V6 clio on lease anyway, as I cant see that they still make them - no mention of them on the renault website, just the renaultsport clio cup which is 4 cylinder