Dilemma

Anonomous91

Hi, i'm in a bit of a dilemma.

Im 19 and my car insurance is around £2500 a year.

Option 1:
Buy a new car with £2000 I have saved up (car will be 01/02reg with around 80k miles)
Pay insurance off monthly which will work out at around £250 a month.

Option 2:
Get a £4000 loan and buy a car (car will be 05/06 reg with around 40-50k miles)
Pay off insurance in full with the £2000 saved up
Pay back the loan at £200 a month for 2 years.
Next year pay the insurance off in full again with work bonus

Really stuck on which option to go for, any advice will be great

iamana1ias

Anonomous91 wrote: »

Hi, i'm in a bit of a dilemma.

Im 19 and my car insurance is around £2500 a year.

I have around £2000 to buy a new car which will be around 01/02 reg with around 80k miles.

Anonomous91 wrote: »

With that I wouldnt have to pay anything monthly for the car but would have to pay around £250 a month.

:huh::huh::huh::huh::huh:

Anonomous91 wrote: »

I have worked out if i get a £4000 loan it would be under £200 a month to pay back and I could pay the insurance out full with the money I have saved to buy the car.

:huh::huh::huh::huh::huh:

Anonomous91 wrote: »

So with that I will have a 05/06 reg car with around 50k miles and will be paying £180-200 a month to pay the loan off.

:huh::huh::huh::huh::huh: What 05/06 car? You only mentioned an 01/02 car

Anonomous91 wrote: »

And next year when the insurance is due again i'll have the money (bonus from work) to pay off the insurance fully again.

Really stuck on which option to go for, any advice will be great

If you made the above make sense it would help! :rotfl:

Sandoval

For what it's worth I didn't understand what the hell that post was about either...

Anonomous91

Sorry, hope that is clearer now.

Sandoval

As long as you can find a good car that's been well looked after and regularly serviced I'd probably go for option one.

iamana1ias

Anonomous91 wrote: »

Hi, i'm in a bit of a dilemma.

Im 19 and my car insurance is around £2500 a year.

Option 1:
Buy a new car with £2000 I have saved up (car will be 01/02reg with around 80k miles)
Pay insurance off monthly which will work out at around £250 a month.

Option 2:
Get a £4000 loan and buy a car (car will be 05/06 reg with around 40-50k miles)
Pay off insurance in full with the £2000 saved up
Pay back the loan at £200 a month for 2 years.
Next year pay the insurance off in full again with work bonus

Really stuck on which option to go for, any advice will be great

Hang on. Your insurance is £2500, so your £2000 cash won't cover it.

Anonomous91

iamana1ias wrote: »

Hang on. Your insurance is £2500, so your £2000 cash won't cover it.

Its around £2500 paying monthly, might be just over £2000 to pay it outright. Have a bit more then £2000 that was just a rough figure

Anonomous91

Sandoval wrote: »

As long as you can find a good car that's been well looked after and regularly serviced I'd probably go for option one.

The high mileage often puts me off, don't you think it might be best off to pay more for a car with half the mileage? Really confusing all this!

iamana1ias

Lower mileage does not equal better.

optimus_primera

Anonomous91 wrote: »

Hi, i'm in a bit of a dilemma.

Im 19 and my car insurance is around £2500 a year.

Option 1:
Buy a new car with £2000 I have saved up (car will be 01/02reg with around 80k miles)
Pay insurance off monthly which will work out at around £250 a month.

Option 2:
Get a £4000 loan and buy a car (car will be 05/06 reg with around 40-50k miles)
Pay off insurance in full with the £2000 saved up
Pay back the loan at £200 a month for 2 years.
Next year pay the insurance off in full again with work bonus

Really stuck on which option to go for, any advice will be great

Eh ??? bit confused here, you have a car already ?

does your insurance not depend on what car you are going to get??

theoretica

Also consider option 1a) Which is as option 1 but see if you can get a 1 year loan for the insurance which works out cheaper over the year than paying the insurance monthly. The APRs on insurance can be astronomical.