How to buy a Car??

jackrory

Hi All,

First time poster, useless with money so looking for some advice on best way to buy a car. The car in question is £19405 on the road, I have a loan out on my current car and £8500 is outstanding, however I think the dealer will only offer me 6.5k or 7k at most for it. I can put £1000 to the cost of the new car. What is the best way to approach buying this car, I can afford it on my salary easily but I'd like to keep monthly payments as low as possible - £250-£325 per month max. Any experts out there offer me any advice

Thanks in advance

FATBALLZ

I took a bank loan out for my car, much cheaper than finance from the dealership. Although I would suggest getting a quote from both before going ahead with anything.

eschaton

jackrory wrote: »

Hi All,

First time poster, useless with money so looking for some advice on best way to buy a car. The car in question is £19405 on the road, I have a loan out on my current car and £8500 is outstanding, however I think the dealer will only offer me 6.5k or 7k at most for it. I can put £1000 to the cost of the new car. What is the best way to approach buying this car, I can afford it on my salary easily but I'd like to keep monthly payments as low as possible - £250-£325 per month max. Any experts out there offer me any advice

Thanks in advance

For a minute I thought the username was jackanory.

But back on topic, putting £1,000 into a deal where your existing car is in negative equity really says that you can't afford this £20k car.

Negative equity - £1,000 + £19,405 and £250 a month means you are looking for an interest free loan for about 7 years.

Try and stop being someone you aren't and get a car more at your own level.

jackrory

Wow thanks for your reply - the reason I came on here was for some advice, and reading your advise was really useful and made sense until your unnecessary last comment. What exactly am I not? Your comment makes you sound like an idiot.

FIN

ViolaLass

jackrory wrote: »

Your comment makes you sound like an idiot.

I disagree entirely. The advice is very sensible and you would do well to think it through. It doesn't look like you can afford this car and it's FAR better to realise this now rather than later.

kleapatra

This is very similar to my situation - I pick up my shiny new car tomorrow!
The dealer (who you want to buy the car from) will give you a part ex figure and most likely they will want to settle the finance themselves (so they know its been done). So the car is £19405, less the part ex value (estimate) of £7000 equals £12405, plus the finance on the old car of £8500 equals £20905 you need to finance. If you already have £1000 cash you will need to finance in total £19905. You could finance this with an M&S car loan over 60 months with repayments of £339.64 a month with a balloon payment of £5971 at the end of the 60 months. You could also ask the dealership to quote you for a PCP which works in a similar way but depends on the age of the car.

Hope this helps!

jackrory

ViolaLass wrote: »

I disagree entirely. The advice is very sensible and you would do well to think it through. It doesn't look like you can afford this car and it's FAR better to realise this now rather than later.

Yes I'm saying I agree with his advice - I've said that!! But it's his last comment that was unnecessary, but reading through his other post it appears to be his style.

I always get loans out for cars as I don't like using my savings for them - it not a matter of not been able to afford the car, it's that It looks not to be possible at the figures I had in mind

jackrory

kleapatra wrote: »

This is very similar to my situation - I pick up my shiny new car tomorrow!
The dealer (who you want to buy the car from) will give you a part ex figure and most likely they will want to settle the finance themselves (so they know its been done). So the car is £19405, less the part ex value (estimate) of £7000 equals £12405, plus the finance on the old car of £8500 equals £20905 you need to finance. If you already have £1000 cash you will need to finance in total £19905. You could finance this with an M&S car loan over 60 months with repayments of £339.64 a month with a balloon payment of £5971 at the end of the 60 months. You could also ask the dealership to quote you for a PCP which works in a similar way but depends on the age of the car.

Hope this helps!

Thank you - this was the type of info I was after, I have many talents but math is not one of them - luckily I don't need it in my job.

eschaton

jackrory wrote: »

Yes I'm saying I agree with his advice - I've said that!! But it's his last comment that was unnecessary, but reading through his other post it appears to be his style.

I always get loans out for cars as I don't like using my savings for them - it not a matter of not been able to afford the car, it's that It looks not to be possible at the figures I had in mind

Unless your savings interest rates are higher than finance interest rates then your logic is completely flawed.

Your initial post didn't sound like you had any savings when you could only put £1,000 into a negative equity car.

I can only post with the information given initially.

Lucy1010

Hey, you are getting some valuable advice here.

Please bear in mind that nothing is guaranteed and that includes your income. It may sound great and affordable that you can spread so much over 60 months to get the car you want but you just don't know what is around the corner.

You only have to read the stories in the debt free wannabee forum to understand how people that used to be in your position are now struggling to make ends meet

Sorry to butt in but I've been there and it's pretty grim trying to get out

lawrie28

Why do you want to spend £20k on a car???

Lease it!!

Buy one six months old.

Buy one 12 months old.

A £20k car will depreciate very quickly and you will quickly be in negative equity again.