Need to get a car - help!

hzdr6q

As a money saving convert I am currently trying hard to reduce the balances on my CCards and persoanl loan (currently around £7.5k).

A major way to help me do this was to look for a new job and put any additional salary straight to my outstanding debt...then go and start saving for a house deposit.

I currently have a company car and don't have to worry about servicing or maintenance, but obviously pay higher tax.

The good news is that I think I may have found the new job, the bad news is that it comes with a car allowance rather than a company car (£500pm before Tax and NI).

My question is...how should i fund a car for the new job? I have very little capital as a deposit and i would be on a 3 month probation period with the new job. I have been looking at loans for used cars as well as PCP deals but my head is now spinning.

PCP seems to work best to fit my budget, but I know some people think this is throwing money away..but what if i do not pass the probabtion period (unlikely but a possibility) i would then be stuck with a car, whereas a loan would just increase my overall debt but I could sell if things did not work out.

I don't have any rules on the age/make/model of car i have to use..just must look 'respectable'.

Any advice much appreciated

forgotmyname

Financial suicide if the job does not work out, Or within half the loan or contracts term.
You will owe far more than the cars true value.

Buy something older but tidy condition, Choose a car thats been made for a while, Focus 1998 - 2004
Buy a 1998 model in good condition and spend £80 on a private non age related plate. Mondeo 2000 - 2007 or
something similar thats been made for several years. Hard to tell how old it is, Unless your a car nut.

Kilty_2

£80 for a private plate? Transfer costs that alone

How many miles will you need to do and what type of driving, OP?

hzdr6q

It's hard to judge being a new job, but i'm going to estimate 15 - 20K to be on the safe side, mainly motorways.

Kilty_2

FYI as for PCP leaving you "stuck with a car" - it's a loan just like HP but with different payment terms. It is not leasing and you can sell the car to pay the finance off any time you like. Only thing is with the smaller deposit you'd be less likely to be able to do this.

hzdr6q

That's an interesting point, I know that with PCP's the earliest you can 'hand the keys back' is mid way through the term, but i had never thought of selling the car and repaying the finance. I suppose I run the risk of the capital from the car not covering the outstanding finance, or being hit with early repayment penalties..i'm sure they must be in the small print.

Kilty_2

........... I don't think you can hand the keys back mid way through a PCP.

hzdr6q

The consumer credit act has a provision that provided you have paid more than 50% of the total value of the contract you can simply return the item purchased. This applies if you bought the car on HP or PCP.