Buying a Car

Knelley

Not sure if this is the correct place but please feel free to move if it isn't:o

I am looking to buy a new, well, new for me:rolleyes: car into the next year. I have my heart set on a Toyota Yaris as I have been informed by my mechanic that they are great runners and have hardly any problems. I have decided to do this due to my present car being in the garage as we speak and due to cost me between £200-£300 to fix! I had an idea it would be this anyway as it has a few things wrong with it and it is a banger!

I am thinking it would be financially more beneficial to get a new car as the amount I am paying out on her is getting more and more as she is getting older.

My question is about finance. My present car I bought for £400 cash so have never had to deal with car dealers and finance etc. Obviously because I am looking at a newer car then finance is going to have to come into it. The cost of the Yaris is about £6000. What advice would you give on getting finance and go abut buying the car?

Hugs
Cazza

kathyd_2

Shop around for finance. You don't have to go with the package the dealer offers. To find out how much the car will cost you in total add up your deposit plus payments you will be making. You will be surprised. I worked in finance, particulary car finance. Let your dealer know you will be shopping around he may include extras as an incentive to take their finance, (they get commission from the finance company) so get the bottom line deal from them first then start comparing with others. Good luck

twinklybev

Hi, Sainsbury's bank do good rates on personal loan & did offer a courier next day cheque delivery service & 3month repayment 'holiday' period b4 u start 2 pay back.

If your car knowledge is limited the aa can come with you 4 about £40 I believe.

I'd advise a HPI check 4 about £30. This checks if stolen, dodgy mileage etc & covers up to £10k (I think) if turns out to be 1 of above.

AVOID CAR CRAFT although many people know of them. Rip off prices, rip off finance & v.pushy. They lent my cousin well more than she could afford knowing that & repossessed her car 6wks later when she inevitably defaulted. Good luck

twinklybev

Hi, Sainsbury's bank do good rates on personal loan & did offer a courier next day cheque delivery service & 3month repayment 'holiday' period b4 u start 2 pay back.

If your car knowledge is limited the aa can come with you 4 about £40 I believe.

I'd advise a HPI check 4 about £30. This checks if stolen, dodgy mileage etc & covers up to £10k (I think) if turns out to be 1 of above.

AVOID CAR CRAFT although many people know of them already. Rip off prices, rip off finance & v.pushy. They lent my cousin well more than she could afford knowing that & repossessed her car 6wks later when she inevitably defaulted. Good luck

Mrs_pbradley936

Just be make sure you can afford the payments there is a young man on here who had the car taken back and still has to pay £22k (Well it was a sports car) back to the finance company. Sometimes a loan from the bank is better than finance via a dealer so shop around. The lowest monthly payment often means you make more payments so it costs you more in the long run. If you are not sure put all the info on here and someone will tell you which is better for you.

kathyd_2

twinklybev wrote:

AVOID CAR CRAFT although many people know of them. Rip off prices, rip off finance & v.pushy. They lent my cousin well more than she could afford knowing that & repossessed her car 6wks later when she inevitably defaulted. Good luck

They were a bit quick off the mark with the repossession order. She could only have missed 1 payment in that time.

Mrs_pbradley936

kathyd wrote:

They were a bit quick off the mark with the repossession order. She could only have missed 1 payment in that time.

I agree but she could have been forced to face up to the fact that she was over extended. We can often afford "one offs" that are a bit pricey but regular high payments are something else. But that's why we are here to offer help to those that have been as silly as we might once have been.

twinklybev

They were 2 big men who came round to hers & she's on her own with 2 kids & she wasn't gonna argue the toss when she's only 19. They probably didn't tell her her rights poor lass.

xzibit

Yeah get a loan from a bank. And get the dealer to pay for the HPI check.

freda

Hmm.

How much research have you done? There are other 'great runners' that will cost less, i.e. japanese makes like Honda etc, if you look for an older reg. I was shown a good website for checking out makes and models - something like https://www.honestjohn.co.uk (do a google for Honest John car reviews if that isn't it).

I wouldn't be convinced that taking out finance is the best way forward, it is dead expensive. Can you not make do with your current car for another 6 months, and save madly over that time to get some cash together? If totally necessary, top it up with a (small) balance on a 0% for 12 months on purchases card, as long as you KNOW you can pay 1/12th of the balance off each month so you never pay interest.

In the future, if you know your car only has 1 or 2 years left in it, start saving £500 (1 year) or £250 (2 years) each month towards a new one (assuming cost will be 6k) - its cheaper!!

Car finance is dangerous - you are in a negative equity situation practically from the outset in that if you can't make the repayments, even if you sell the car you still owe the finance company money. They are expensive, often over a very long term with high APR, and also inflexible in that there are often penalties for overpaying in an effort to reduce the amount of interest you pay. Additionally, unless you get insurance specifically for it, I believe that if you are in an accident and the car is written off, you still owe the money - insurance rarely pays out enough to cover the cost of the car.

kathyd_2

twinklybev wrote:

They were 2 big men who came round to hers & she's on her own with 2 kids & she wasn't gonna argue the toss when she's only 19. They probably didn't tell her her rights poor lass.

Your example is the reason I left finance. Could see problems arising a mile off and didn't want to be part of making peoples lives a misery.