What to do...

MrsTinks

Well fellow DFW's I have a question this time

I have a little sporty number of a car (£3000 when I bought it and oddly it's not lost a penny in value as it's a rare model etc etc etc - not that I knew that when I bought it nor did the guy selling it ) and OH has a Hyundai Coupe on HP. This is a thorn in my side as it's not practical! We have a dog, we have people who visit and the back seat in this car only accomodate midgets Also the finance is in his ex's name GAH!!!! Anyway we need to get rid as a V6 engine drinks a lot of petrol with the amount of miles he does even if he can claim a lot of them back. Wehave pretty much decided we want to stay with a Hyundai and have found a very good value Santa Fe (Brand new but the old model so it comes with 5 years warrenty and trust me this is worth everypenny!).

Now I know that OH can get the loan on his own BUT I will get a better rate than him so the decision I've made is to put it in my name. OH will be paying me £50 a month towards it and I will stop paying towards the house hold bills (was paying £250).

Now before you all remind me how daft this is then OH has to have a certain standard car because of his job and he gets a car allowance each month to ensure this. Roughly about £300 pm I think it is. SO are there any pit falls I have missed?

Yes there will be risks like say if he lost his job (doubtful but you never know) or if we split (again doubtful but hey).
As I said he CAN get the finance himself BUT he'd never get the rate I can...
However my debt free date would go from 12 months ish to YEARS!!!! :eek:

MrsTinks

Don't all rush in at once :rotfl:

rog2

I think that you are doing the right thing, but would advise caution on rushing into the finance agreement - please check:
Is it a regulated agreement (Loan under £25K)?
What get-out clauses do you have?
£300 pm may not sound a lot (my monthly payment was £500, which I thought was manageable) until you have a bad month.
Does the car have a guaranteed value - if you want to change after 3 yrs?
It does look like you have thought it through, and whilst HYUNDAI may not be to everybody's taste, the Santa Fe is a nice looking car.
I hope that the finance company is a better one than I used (BH).

CLAPTON

you are asking on the DFW the best way of financing a new 20,000 ish car?
i would suggest buying a 3/4 year old car at around 8k at most then interest cost wouldn't matter so much

MrsTinks

Well... I'm actually contemplating going the loan route I hate the thought of car finance companies... hatehatehate At least with a loan I'm on familiar ground and in my so to speak element

We've decided on the Santa Fe diesel partially because of the cheaper running cost compared to his Coupe V6 :eeek: and because we now have a dog, 2 cats and in a few years we will probably be looking at starting a family It will be cheaper to run, the monthly payment is covered by OH's work and so seperate from the rest of the budgets, and we are getting a pretty good deal on the old model although brand new becase the new shape has just been released. Did I mention cheaper car tax and insurnace too?

Is there any particular reason to go with a finance company rather than down the unsecured loan route I was preferring?

lynzpower

Do you have to buy thier "finance" to get the extended warranty? Could you not get a joint loan? Just in case....? you can still arrange the payments how you agreed, but this would make you feel less burdened.

MrsTinks

CLAPTON wrote:

you are asking on the DFW the best way of financing a new 20,000 ish car?
i would suggest buying a 3/4 year old car at around 8k at most then interest cost wouldn't matter so much

A it's not £20k it's actually £13k... told you we were offered a good deal
B OH HAS to have a certain standard car because of his job - he gets an allowance specifically for this
C I'd prefer a second hand car too, but in this case the depreciation of the car wil be minimal compared to the 5 year warrenty (we've had a whole new engine in the Coupe under it's warrenty so we know it's a good'un)

rog2

tine wrote:

Well... I'm actually contemplating going the loan route I hate the thought of car finance companies... hatehatehate At least with a loan I'm on familiar ground and in my so to speak element

We've decided on the Santa Fe diesel partially because of the cheaper running cost compared to his Coupe V6 :eeek: and because we now have a dog, 2 cats and in a few years we will probably be looking at starting a family It will be cheaper to run, the monthly payment is covered by OH's work and so seperate from the rest of the budgets, and we are getting a pretty good deal on the old model although brand new becase the new shape has just been released. Did I mention cheaper car tax and insurnace too?

Is there any particular reason to go with a finance company rather than down the unsecured loan route I was preferring?

None whatsoever. Motor Dealers can try to make their finance deals sound the best, often because they get commission from Finance Companies.
Equally, even if you are offered 'interest-free' make sure you check the SMALL PRINT. With some 'Deals' if you miss a payment, then the interest rate can go from 0% to 30+%.
I have certainly learnt my lesson - If I need to finance a car in the future it will be from a loan that is not linked in any way to the car.

MrsTinks

lynzpower wrote:

Do you have to buy thier "finance" to get the extended warranty? Could you not get a joint loan? Just in case....? you can still arrange the payments how you agreed, but this would make you feel less burdened.

No we don't need to buy their finance at all Lynz I'm just wondering if there is a reason for doing finance over loan? My guts tell me "loan" and as Martin says "debt isn't bad - Bad debt is bad" we can afford this in our budget as we already pay this on his current car so the monthly outgoings would drop. (Don't worry any savings will be put towards paying the loan off quicker I AM a DFW nerd afterall!)

MrsTinks

I guess to put into persective then this will increase our debt by £6k at the most of that makes sense? That is including getting out of his current finance plan for his car and upgrading to the new Santa Fe.

rog2

tine wrote:

I guess to put into persective then this will increase our debt by £6k at the most of that makes sense? That is including getting out of his current finance plan for his car and upgrading to the new Santa Fe.

Sounds like you have given this matter a lot of thought - I would go for it!