Car loan,finance or card

Cozmo

Hi
I am trying to get some advice on a possible car purchase. I am hopoing to be starting a new job shortly which is transport specific. Im unsure of what amount of money to spend on a reliable car and have considered getting one on finance as my savings are basically zero (hence the new job) If I were to spend about 3k on a used car, what would be the best way to go about funding this? I am not very clued up with money management and would really welcome some good advice. As far as I understand it I have the option of finance through the car dealer, a bank loan, or credit card option? What would be the best way to do this?

Many thanks in advance guys

Cozmo

MrsTinks

I'd be very careful about spending £3k... you will still be in your trial period for 3 or 6 months (look at your contract) and in that time they can let you go for very little reason if they find you don't fit in...
Get the cheapest run around you can in my view or even a moped if practical... once you are permanent and out of your trial period you're best off shopping round depending on your credit file...

Cozmo

Hi
Thanks for the post, your advice is definitely something for me to think about. However, I am still trying to find out what kind of payment deal would be best for me and how to go about actually doing it?

[Deleted User]

if you can get a cc with a long period of free credit for purchases then many dealers now accept cc`s although they may charge a small fee
if you can only get a short period interest free on purchases then after that period get another cc that offers(upto)20 months free on BTs
in theory you could get 26 months interest free this way,or just over £100 a month on a £3k purchase
obviously this depends on your credit history/income

blacksta

Get a 500 pound ford fiesta or ka - believe me you cant go wrong with these cars- spares easily available and everybody can fix it if it goes wrong. Once you settle down in your work and have saved up a bit more u can then go for whatever you like

DarnIt_3

Or if you are in a job where what you drive makes a difference then you could do a short term lease? That way you have a reliable car and you will be able to establish yourself within your employment? It's not ideal but 3 months of paying around £250 which includes insurance tax and the maintenance could be more cost effective than buying a car for 500£ which may not last very long.

blacksta

DarnIt wrote: »

Or if you are in a job where what you drive makes a difference then you could do a short term lease? That way you have a reliable car and you will be able to establish yourself within your employment? It's not ideal but 3 months of paying around £250 which includes insurance tax and the maintenance could be more cost effective than buying a car for 500£ which may not last very long.

Where can one get a 3 month lease?

Cozmo

Thanks a load for your replies and good advice guys, its all very welcome!
Im not fully sure what to do yet, the job I may get does not really require a brand spanking new car so the suggestion of buying a cheaper one does make sense, its just the gamble of if it does go wrong and it being off the road for a while, arranging for work to be done on it etc, although it is a viable option. I have been looking on Autotrader and I could get something for 2k even, providing its reliable, MOT, Tax etc then its do able. My only worry was having to use the dealers finance set up as I imagine it will be a huge % I would pay on top of the actual fee.

drbesty

Cars are pretty reliable these days, buy something Japanese or German and you can't really go wrong