Need new car for work, large deposit but still need loan

Ghostrider

rochja wrote: »

Have you considered a lease scheme? With the mileage you state you will do this could prove prohibitively expensive but if you live somewhere there is a city car scheme you might be able to put business mileage on the lease car - subsidised by any company payment and private mileage on a 'city car'. Leases can vary greatly in price but you get a new reliable car to use at a fraction of the cost of buying. You can also get use of a variety of cars for about £50 pa plus £6 ph plus 2p per mile with no fuel cost, no repair costs etc. Also because lease is effectively pay as you use it is easy to come by

What sort of lease companies are these? Do you have any names or links, i'm quite interested in the idea myself (well actually for my OH) but still.

Cheers

Mallotum_X

Given the past problems on finance, interest rates may end up on the higher side. Why not spend the 2k you have on a car and save up the monthly allowance instead.

petepete99

Mallotum_X wrote: »

Given the past problems on finance, interest rates may end up on the higher side. Why not spend the 2k you have on a car and save up the monthly allowance instead.

Nah. If I'm doing 10,000mi pa then maybe, but 30k plus, it won't work...

Mallotum_X

If you are doing 30k-40k a year then a 5k car isnt really going to be that much more reliable than a 2k car.

With resale values, if you stick 60-80k on over a couple of years than you are not going to have very much of a resale with either a 2k or 5k car.

Rather than take the car allowance do you not have the option of a company car, at the kind of milage you are talking then repair and service bills on a second hand car are going to be fairly high. Most firms that expect that kind of annual milage would normally have a company car as an option.

I dont see any real difference in reliability or resale on a 2k car or 5k on the mileage you are doing. so personally I would spend as little as possible and not worry about resale, rather than take out a 3k loan. Whatever you get will have very high mileage very soon, and high mikeage = low residual.

5k for a 2008 Honda civic diesel seems a bit cheap, and to be honest thats quite a small car to be doing 30-40k a year mileage in. In 2 years then even if you get a low/average mileage car at say 40k on the clock for an 08, you would then have a 5/6 year old car with 120k on the clock. You wont get much for that regardless.

I think you need to rethink this, find out what the job offer is actually for in terms of car/allowance and go from there.

petepete99

Yeah I suppose I will wait to see what the car allowance is. If there is a company car scheme, of any kind, I will be taking that option unless the BIK tax kills me.

Regardless I can't find out more about this until my new manager comes back from his hols and we discuss my new package!

OldGregg1889

Hi all, happy weekend.

Can anyone shed any light on the issue of whether or not leasing schemes such as contract hire are available to those with imperfect credit reports/histories?

Thanks OG

john_white

most 07/08 diesel civics around that price are 100k+ on miles to start. Putting another 80k on in 2 years make resale very difficult. 200k ish miles and 7 years old.

You may need something reliable but I agree a 2k car is a better option, certainly for the first 6 months, see how it goes. Your car allowance will have replenished your deposit in that time. It may be easier to have 2k cars and change every 6 months/20,000 milesand you'll probably loose very little.

AndyCash

I do 25k miles a year and have had 2 cars in the last 2 years, both of which cost less than £1500, a vauxhall astra diesel and a diesel focus. Both have proved pretty reliable and the only reason the astra died was because some fool drove into the back of me!

And there is nothing to say that your 8k car could break down the very next day that you buy it. Just because it cost a lot doesn't mean its guaranteed not to fail. True it would probably have a warranty but it might not cover everything.

But if you manage to get a loan then good luck and I hope you get a cool motor with it.

spud101

I wholeheartedly agree with the AndyCash. I've had a BMW 7 Series for years now, I'm about to move onto my third one. They all cost me less than 2K and they've been gorgeous and great for driving up and down the motorway. They've always been about 10 years old when I've bought them and I've never had any trouble with them letting me down.

The point is, if you're buying a second hand car, (and why would you ever buy new!) there's no need to 'keep up with the Jones's'. Just get something that'll be reliable and if it goes wrong replace it. I would never get into debt for a car again.

petepete99

both good points. I might go back to the beemer 330i I had years ago. OK so it doesn't have the mpg of a 2.2 diesel, but the cost price should more than outweigh the loan repayment to a point where mpg doesn't really matter that much.

No way in hell am I touching a Vauxhall. Sorry no disrespect I just have a personal hatred towards them.