Buying a car...

owitemisermusa

Hi guys,

Need to pick your brains on this one. Want to buy a car. Less than a year old, German marque, about 14-15K on the clock.

Deposit (including p/x, cash from various sources {cc bal transfer, cc payment}) - about £4k

Amount to finance/pay - £15K approx (asked dealer to strip out GAP insurance, paint and tyre protection - a whopping ~£1000!)

Still trying to work out how to haggle for a lower sale price - need advice on this.

How to tackle the £15k amount - personal loan of about 8.8% over 5 yrs or dealer finance (PCP deal over 3 or 4 yrs at 10.9%). Both monthly payments are within my comfort zone.

Loan comes to about £300/mth then add £50/mth for cc min payment.

PCP about £340/mth over 3 yrs (after stripping out dealer's extras; don't have the 4yrs' figure).

I plan to get the GAP insurance independently via ala or click4gap.

Have I covered all the bases? Anything else I can do to i mprove this? Should I aim to put more of my own money in and reduce the amount taken on loan or the PCP? Which is better, the PCP or the loan?

Very many thanks.

eschaton

owitemisermusa wrote: »

Hi guys,

Need to pick your brains on this one. Want to buy a car. Less than a year old, German marque, about 14-15K on the clock.

Deposit (including p/x, cash from various sources {cc bal transfer, cc payment}) - about £4k

Amount to finance/pay - £15K approx (asked dealer to strip out GAP insurance, paint and tyre protection - a whopping ~£1000!)

Still trying to work out how to haggle for a lower sale price - need advice on this.

How to tackle the £15k amount - personal loan of about 8.8% over 5 yrs or dealer finance (PCP deal over 3 or 4 yrs at 10.9%). Both monthly payments are within my comfort zone.

Loan comes to about £300/mth then add £50/mth for cc min payment.

PCP about £340/mth over 3 yrs (after stripping out dealer's extras; don't have the 4yrs' figure).

I plan to get the GAP insurance independently via ala or click4gap.

Have I covered all the bases? Anything else I can do to i mprove this? Should I aim to put more of my own money in and reduce the amount taken on loan or the PCP? Which is better, the PCP or the loan?

Very many thanks.

I think it is obvious that you are trying to buy a car that you cannot realistically afford.

barrymung

Without analizing the figures I'd say look for a Skoda of somesort!!

Wifey has bought a Fabia...VW Polo floorpan...VW Engine...lots of other parts stamped "Made in Germany" or "Volkswagen Audi Group"...

owitemisermusa

eschaton wrote: »

I think it is obvious that you are trying to buy a car that you cannot realistically afford.

Erm, why would you say that? I said already that I'm comfortable with the figures above.
Just need advice on getting a better deal. Do you have any?

Thanks.

Hintza

owitemisermusa wrote: »

Deposit (including p/x, cash from various sources {cc bal transfer, cc payment}) - about £4k

Hardly suggests you are comfortable paying that amount. Although car loans are in many cases a necessity nowdays if you are topping up a deposit via credit cards that is a very expensive way of buying a car.

In the current economic climate your disposable income is probably going to to go down over the next few years.

The choice of course is yours, but at least think twice before overspending.

maninthestreet

Buy a cheaper car.

Strider590

eschaton wrote: »

I think it is obvious that you are trying to buy a car that you cannot realistically afford.

I agree with this comment....

Why are you buying a car you can't afford? seriously... think about it.
Deep down, most people are simply trying to impress other people, does this apply to you?

owitemisermusa

Hintza wrote: »

Hardly suggests you are comfortable paying that amount. Although car loans are in many cases a necessity nowdays if you are topping up a deposit via credit cards that is a very expensive way of buying a car.

In the current economic climate your disposable income is probably going to to go down over the next few years.

The choice of course is yours, but at least think twice before overspending.

Hmm.. I thought that a 0% credit card was a good way to get the deposit up and the amount to finance down.

Hmm... only reason I'm using a cc is to keep my savings intact. I hope I've not got things back to front!

I have no-one to impress, my friends and family are not that sort. I've test driven lots of cars and decided it was time to get something comfy. Before I pack up! :rotfl:
Kept my current car for 5 years, so this next one is likely to stay that long.


Have I got all the bases covered?

owitemisermusa

Bumpity bump!

All advice received with thanks!

OMM

pimento

I had this dilemma a couple of weeks ago. I bought a new car for £8000 (one year old Hyundai i30 with 3500 miles on the clock). I called my bank for a loan and they quoted me 11.9%. How they can justify this is another story altogether...

I used some of my savings as they are currently earning considerably less than 11.9%.

I'd suggest you do the same.

pimento

Oh, I then sold my old Ka privately.