Just added 7 /12 years to my mortgage term to save money...

someday_soon

Hi Lifes Grand Plan

Good luck with the 'parting with your cash while on MSE thing'
I could tell you I have just looked at some Kia ceed diesels, 2010 at 8,500 before haggle, that the difference between selling your car privately rather than trade in could match the savings you have made elsewhere, and that 6% loans are good but 0% purchase CC's might be better, but I don't have the time. I need to climb through the window of my car because the central locking has 'stuck' It will start eventually, usually, and I will spend as much time scraping the inside as the outside free of ice because the heating doesn't work and something isn't sealed right.(It's not the hole in the footwell, I have filled that with chewing gum):money:So, good luck with whatever you decide. And if you manage to part with the cash, let me know how.

Seriously, do what is right for you and don't look back.

Someday Soon

System

IMHO always repay a more expensive loan first. This will save you money in the long term. The complicated (but mathematically correct example) from Financial Bliss is correct, however this makes a lot of assumptions.

At the end of the day if you drop overpayments and repay car loan, you will repay the car loan faster and can therefore get back to overpaying your mortgage sooner.

Ive got a few thousand in a student loan left. As much as I would like to get it paid off, I will always overpay mortgage or save because my loan interest rate is a tiny 1.5%.

In terms of car buying, congrats on the baby to come. Kia is a sensible choice, but also have a look at hyundai's which get a 5 year warranty or even a Vauxhall - lifetime warranty (well up to 100k). Depends on your circumstances, but the smaller the car you can get away with, the cheaper it will be. Most of the smaller cars, like the Kia Rio or hyundai i20 will comfortably fit a pram in the boot. Good luck

jaysb

I do understand what your doing - as I needed a bigger car when my first came along.......

but modern cars are pretty reliable and dealers have stock to shift, ignore the asking price

Both of my last cars i brought second hand ... paid £7.5k from a dealer for an 18 month old Toyota Avensis with warranty < 15k on clock, had the car almost 10 years and still drives a dream. Paid 7k for a 2 year Honda CRV with warranty (serviced, taxed and delivered to my door) 30k on clock from a motor lease company....so I don't think you need to buy new

I bought my cars Dec-Feb, end of quarter or end of month, may help you with your negotiations. I saved 2-2.5k off the asking price on each car, so do shop around and be prepared to walk away

Repairs bills - Toyota £800 (gearbox/clutch @ 55k miles) + front discs, thats all in almost 10 years. Honda £0 in 3 years. They seem OK to me, and I guess they are reliable makes

blacksta

jaysb wrote: »

I do understand what your doing - as I needed a bigger car when my first came along.......

but modern cars are pretty reliable and dealers have stock to shift, ignore the asking price

Both of my last cars i brought second hand ... paid £7.5k from a dealer for an 18 month old Toyota Avensis with warranty < 15k on clock, had the car almost 10 years and still drives a dream. Paid 7k for a 2 year Honda CRV with warranty (serviced, taxed and delivered to my door) 30k on clock from a motor lease company....so I don't think you need to buy new

I bought my cars Dec-Feb, end of quarter or end of month, may help you with your negotiations. I saved 2-2.5k off the asking price on each car, so do shop around and be prepared to walk away

Repairs bills - Toyota £800 (gearbox/clutch @ 55k miles) + front discs, thats all in almost 10 years. Honda £0 in 3 years. They seem OK to me, and I guess they are reliable makes

Well said - Many reasonable priced cars about.

Lifes_Grand_Plan

someday_soon wrote: »

I need to climb through the window of my car because the central locking has 'stuck' It will start eventually, usually, and I will spend as much time scraping the inside as the outside free of ice because the heating doesn't work and something isn't sealed right.(It's not the hole in the footwell, I have filled that with chewing gum):money:So, good luck with whatever you decide. And if you manage to part with the cash, let me know how.

Wow, what car is that? Will remember to steer well clear. :eek:

@jaysb - though I had said, but the cars I am looking at are NOT new... they are nearly new so a year or two old.... so I am basically doing exactly what you suggest.

I would agree with you that modern cars are more reliable and break less, but IMHO when they do break, the amounts of tech in them not make problems a lot more expensive to fix i.e. DPF = £1000 ish to fix... electronic dash failure = £££'s etc...

Sounds like you got some good deals on your Avensis and CRV but not sure deals that cheap are about now and if they are, its on the less popular (less frugal) engines...

elantan

Lifes Grand Plan , it couldve been me writting your opening post,

Our car is on its last legs aswell , we looked at a proceed ecodynamic today costing £10,995 , we have sat and worked out can we afford it ? What's the monthly payments etc

We are currently over paying our mortgage by £500 a month , that would allow us to pay a car off faster , but i really want the mortgage out of my face so to speak

Like u i need a reliable car, i work shifts ( night shift) and i need to safety and reliabilty, but i will say this ... I paid £10k for my last car and it's been anything but reliable, it's cost me £2k a year to fix (£166 a month on average ... Compared to the £194 for buying a proceed) .... So what i think i am trying to say is ... Even having an expensive (in my opinion) car does not mean that it will be reliable

Good luck in deciding what to do ... I know i am struggling with the decision.

elantan

Sorry am on my phone so that possibly didnt make total sense .... We paid £10' for our old car .... And we currently spend ( i kid u not ) £2k a year fixing it ( and have done since buying it... Stupid thing keeps breaking )

elantan

someday_soon wrote: »

Hi Lifes Grand Plan

Good luck with the 'parting with your cash while on MSE thing'
I could tell you I have just looked at some Kia ceed diesels, 2010 at 8,500 before haggle, that the difference between selling your car privately rather than trade in could match the savings you have made elsewhere, and that 6% loans are good but 0% purchase CC's might be better, but I don't have the time. I need to climb through the window of my car because the central locking has 'stuck' It will start eventually, usually, and I will spend as much time scraping the inside as the outside free of ice because the heating doesn't work and something isn't sealed right.(It's not the hole in the footwell, I have filled that with chewing gum):money:So, good luck with whatever you decide. And if you manage to part with the cash, let me know how.

Seriously, do what is right for you and don't look back.

Someday Soon

It's not a renault megane that u have by any chance ? Two weeks ago i had to buy a wee heater for mine cause the heater packed in ( £10 out of argos incase your looking)

My central locking aint working either , then when i do get the door open i cant close it so have to use bunji ropes tied from the door around the headrest so that i can close the door .... And thats one of the least worrying things wrong with my car .... But it passes its M.O.T lol

nearlyrich

It's all about balance don't feel guilty if you need to cut back on the overpayment to the mortgage to buy a car that you need to make life easier for you...You have to enjoy the here and now.

Lifes_Grand_Plan

elantan wrote: »

So what i think i am trying to say is ... Even having an expensive (in my opinion) car does not mean that it will be reliable

Thanks for this

I agree having an expensive car doesn't guarantee reliability, but the peace of mind of the 7 year warranty at least means if it does go wrong then it gets fixed for free (within the bounds of the warranty of course). I have also heard very good things about Kia and their warranty compared to the likes of Vauxhall's warranty etc. I suppose that is as much down to dealerships though (before Vauxhall owners jump on me )

Definately think I will get the Ceed, just need to find the right one at the right price now.

BTW elantan did you know that if you are buying direct from Kia, they have 36 months 0% finance within certain limits.