Buying a Car

kathyd_2

freda wrote:

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.

You're so right, although there is an insurance known as GAP (yes, another insurance!) that you can take out which will cover any shortfall between the insurance company settling and the balance outstanding on finance.

Emms

I took my first car on finance. It was finance for 3 years and then either hand the car back or pay an extortionate lump sum and keep it. It was costing me quite a bit of money, it was only a clio but it was brand new, so we decided to get rid of it. We found out that if you have paid half the finance, ie half the amount the 3 year term was for, then you could get out of the agreement early and just hand the car back so we did. An auction house took it off us on behalf of the finance company and they prob sold it for pennies.


Anyways, I then took out a 7k loan for my next car which I have since changed and still have the same loan. I feel much happier having a loan than car finance. I would much rather deal with my bank any day than a finance company. If I were you I would seriously consider this option instead of finance.

Emma

Knelley

Mmmmm, you have given me a lot to think about guys:)

I am quite wary of getting some sort of loan/finance as I only work part time and have never been committed to such a large amount of money going out before for one item. Saying that, I realise now how important that item is for me! I would sell my body to keep my car!! S'okay, don't all rush at once, I'm not offering just yet;) :rotfl:

I was looking to getting my new car in the summer as I still have a few things I need to pay off before then. When I get them paid off, the money I was using for them I was going to put towards the cost of my car. I am just so new to all this that I thought I had better start taking a look around the now to see exactly what I am dealing with rather than when the time comes, panic,and go with anything!

fatboyonadiet

Might get more help on this sub-board: http://forums.moneysavingexpert.com/forumdisplay.html?f=70 Or one of the mods may move it...

Knelley

I hunted everywhere for a thread like that!!! :rotfl: :rotfl: Wee blighter must have been hiding cause I tried everywhere:p

Thanx for that, maybe a mod could move it over there for me:)