Buying a car...

owitemisermusa

Thanks pimento. The thought of selling my car privately is tiresome.
Did you pay the entire amount for the car from your savings? Or did you put down a lot of cash to reduce the amount you financed (assuming you financed the purchase?)

pimento

Nope. I'm not paying some bank robber 12% to borrow money. I paid the lot from my savings.

Of course, I couldn't have done that had the car been £15,000. My Hyundai is a shiny as a German car though and came with a five year warranty.

bb69

pimento wrote: »

Nope. I'm not paying some bank robber 12% to borrow money. I paid the lot from my savings.

Of course, I couldn't have done that had the car been £15,000. My Hyundai is a shiny as a German car though and came with a five year warranty.

Are you enjoying your new wheels pimento?

bb69

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.

Hi there

How interested have you been in this car? What I mean is would you be happy to walk away if you didnt get a reduction?

I have recently bought a car and was offered different interest rates at dealerships. One was 8% another offered me 5% flat rate (well so they said) etc

What is the total amount you would need to pay back over the 5 and 3/4 years, bearing in mind you either give back or pay the lump sum.

Do some research if you havent already. Look on autotrader and compare cars like for like (spec, colour etc) though and see if you can find cheaper. It worked for me. compare dealers though not private

You can then either go back and say you have seen cheaper elsewhere which is a good bargaining tool. Start from there and see what they say.

They may also come back with a different PCP loan price. Do ask to see the total APR and know exactly what you will pay back. They have a habit of just giving details of monthly figures, which isnt helpful (well wasnt to me anyway)

Where have you had your P/x price valued? Them or elsewhere. Have a look on webuyanycar.com and other valuations like glass to compare whether the deal is good.

Hope this helps

pimento

bb69 wrote: »

Are you enjoying your new wheels pimento?

I certainly am. I'm taking it to be serviced (condition of the warranty) tomorrow.

harveybobbles

bb69 wrote: »

One was 8% another offered me 5% flat rate

APR was 8% at one dealer but 5% flat rate at another? - the 5% is the flat rate of interest, not the APR...

bb69

harveybobbles wrote: »

APR was 8% at one dealer but 5% flat rate at another? - the 5% is the flat rate of interest, not the APR...

My error - thanks for pointing out

interest rates for both -

eschaton

OP - sorry that you do not agree with me but you seem to be borrowing a large part of the actual purchase price which lead to the conclusion.

If you have savings then use them, I'm sure you won't be making great interest compared to a loan cost.

I recently got a car over 4 years borrowing just over £14k of the £25,500 cost. That's at 0% or I wouldn't have borrowed a penny.

buglawton

I used to have a lot of respect for German car builders so drove Vauxhall Carltons and Vectras for many years. Comparing notes with work colleagues I noticed how I was having fewer and less expensive issues with my (German build) Vauxhalls compared to a VW Passat owner - especially in the parts prices dept.

Experience with the last Vectra - complex engine layout, not so easy to access anything, huge bill if I wanted the aircon fixed - and BIG tax disc costs for recent used Vectras nowadays - has also moved me over to a Hyundai with a 5 year warranty. If like OP I were really determined to throw a lot of money at 4 wheels I'd go for a diesel Volvo s60.

owitemisermusa

eschaton wrote: »

OP - sorry that you do not agree with me but you seem to be borrowing a large part of the actual purchase price which lead to the conclusion.

If you have savings then use them, I'm sure you won't be making great interest compared to a loan cost.

I recently got a car over 4 years borrowing just over £14k of the £25,500 cost. That's at 0% or I wouldn't have borrowed a penny.

Thanks eschaton. I didn't make myself clear from the start.

Savings are fixed, so cannot release them without loss. Hence the thought of using 0% cc (only paying the balance transfer fee).

Please tell, how on earth did you get a 0% finance deal? The personal loan rate I'm eyeing is 8.8% APR as against the dealer's PCP rate of 10.9% APR.
If I could get a 0% deal, I would grab it! PS: what car did you get if you don't mind?

Thanks all. The discussion helps me make a good, informed choice and all comments are welcome.

Thanks.