Help buying a car

shoe_gal_84

Hi All,

I am 26 and still driving my first car - a T reg Citroen Saxo that I have had for 5 and a half years. It's done me well but is unfortunately getting to the time where I need something newer and more reliable as I drive a lot for work.

I have been tackling my debt for the last few years and estimated that everything will be paid off by July 2011!

I have no savings so not really sure what to do about getting a car. I need something small (Corsa, Clio, Fiesta size) with 5 doors that will be reliable and last me a long time if possible.

I have worked out that I can probably afford up to £200 a month, so saving up for a decent car will take me a long time and I'm not sure my current car will last that long.

I think I would need about £3000 - £3500 to get a decent car. Loan rates for this small amount are quite high - lowest I've seen is 12.9% over 2 years with Sainsburys. I guess the other option would be to get a new car with 0% finance (seen an offer for Kia Picanto which would work out at £200 a month for 3 years)

Just after a bit of advice really.

davidjwest

Seriously consider saving up rather than getting yourself into debt. If you can save £200 a month for a few months, you can afford something around £1,000 that would get you something good enough to last you a year or two during which time you can save up for a better car.

I got myself into debt for a £3,600 car in 1987 and for a variety of reasons I am still in debt - try to avoid finance if you can.

I've seen the light now but it will still be around 4 years until I am debt free.

Inactive

davidjwest wrote: »

Seriously consider saving up rather than getting yourself into debt. If you can save £200 a month for a few months, you can afford something around £1,000 that would get you something good enough to last you a year or two during which time you can save up for a better car.

I got myself into debt for a £3,600 car in 1987 and for a variety of reasons I am still in debt - try to avoid finance if you can.

I've seen the light now but it will still be around 4 years until I am debt free.

Very good advice.;)

Strider590

Finance is for fools or those who were once foolish enough to get into massive debt......

shoe_gal_84

Strider - If you actually read my initial post correctly, you would see that I wasn't suggesting getting a car on finance.

Also, I'm asking for advice so there's no need to be rude.

Inactive

shoe_gal_84 wrote: »

Strider - If you actually read my initial post correctly, you would see that I wasn't suggesting getting a car on finance.

Also, I'm asking for advice so there's no need to be rude.

You were suggesting getting in to debt to buy the car, which amounts to the same thing.

Sorry the advice given isn't what you want to hear, but you did ask.;)

hethmar

Its clear the OP is not frivolous with her money - she has owned her current car for 5 and half years! If it is playing up now, of course she wants something more reliable for work/leisure.

If you are sure that you can afford the outlay then the Kia at 0% finance seems a good buy.

Strider590

shoe_gal_84 wrote: »

Strider - If you actually read my initial post correctly, you would see that I wasn't suggesting getting a car on finance.

Perhaps you've forgotten what you said? let me remind you.

shoe_gal_84 wrote: »

I think I would need about £3000 - £3500 to get a decent car. Loan rates for this small amount are quite high - lowest I've seen is 12.9% over 2 years with Sainsburys. I guess the other option would be to get a new car with 0% finance (seen an offer for Kia Picanto which would work out at £200 a month for 3 years)

There's no difference at all between taking a loan and having finance, both create debt.

I feel VERY strongly about debt, I have a mortgage and that is the full extent of my debt. I don't buy what I can't afford to buy in cash.
Debt is caused by consumerism, materialism and the class system that encourages it. It's a slippery slope and a very difficult habit to break.

shoe_gal_84 wrote: »

no need to be rude.

Im sorry you feel this way, but if I was being rude, you would know about it....

Im trying to show you that creating more debt for yourself is simply not the answer.

davidjwest

The problem with car finance is that as well as paying interest (unless you are lucky enough to get 0% finance) is that the depreciation on the car means it's probably worth less than 50% of what you've paid for it after 3-5 years when you've paid the finance off. So in effect you've "wasted" 50% of your money, plus running costs, repairs, tyres etc.

Cars are money pits and you can get something reliable that is 5 years old or more and therefore avoid a lot of the depreciation.

I'd only buy new if I had a lot of spare money - new cars are nice to have but they don't stay new for long.

shoe_gal_84

Well thanks for your 'help' if that's what you want to call it.
But I'm not stupid, and getting in to more debt is not something I'm desperate to do, believe it or not!
However, my car is unreliable and beginning to become unsafe so I was simply looking into what options I have available to me. If taking out a small loan makes me feel safe and stops me putting myself at risk when driving, then as far as I'm concerned, that's what I will do.

Thanks hethmar for your comments.
Strider590, noted, but please take your opinions elsewhere.

Inactive

hethmar wrote: »

Its clear the OP is not frivolous with her money - she has owned her current car for 5 and half years! If it is playing up now, of course she wants something more reliable for work/leisure.

If you are sure that you can afford the outlay then the Kia at 0% finance seems a good buy.

But how can anybody be " sure " in these uncertain times?.

I don't buy anything that I cannot afford to pay for outright, least of all cars.