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

elantan

Yep we were looking at the 0% finance ourselves ... It worked out at £194 a month for 3 years we had to put £4k deposit down but we wouldve managed that ... They were gonna give us £1k for our car rofl

Remember u have to get the car checked every year for the warranty to be valid ... U also have to fit kia parts ... Have to admit i like the proceed ( our son is 20 now and has his own car.... Two doors would do us ) the warranty was something we considered , i have heard both good and bad things about the warranty ... But peace of mind is important if the warranty gives you that then deff go for it

Good luck , we may go back today and have another wee look

getmore4less

Borrowing money on the mortgage(by extending term and reducing payments) to overpay other more expensive debt will save you money.

As long as the total payments don't drop after the expensive debt is paid off the mortgage term will reduce again due to overpayments.

Anyone that says different has not done the correct calculations.

Very simple example that works for all values of interest loan sizes and terms

2 1 year loans
£120 @ 0% £10pm
£120 @ 10% £11pm (10% flat APR is 17.9)

so £21pm and total paid is £252 interest £12

pay £21pm on the 10% loan. Zero on the 0% then £21 on the 0%

loan paid off in 6months+ 36p from month 7 interest £6.36 total paid £246.36.

getmore4less

Lifes_Grand_Plan wrote: »

Hello again,

Really sorry but my brain is now spinning after reading the above...

To clarigy your questions - my mortgage is a HSBC tracker and currently at 2.89%

It was £125k to start with and I have always overpaid since I took it in June 2006 so now owe about 80k on it.

One thing I didn't say in the OP which may have misled - My normal payment is £489 a month since my fixed rate ended (June last year) and I went onto the tracker but I have always paid £1100 a month since that time. So taking the £500 off the payments I will be paying £600 a month on the mortgage.

I also didn't say but I have only reduced the payments for a few months to get a bit towards the car, as soon as I have that bit I will stick the £500 straight back on the mortgage so back up to £1100 a month, so I won't actually add 7 1/2 years really unless I decide not to put the payment back up...

If the car loan is a higher rate
Overpay/shorten the car loan before the mortgage it will save you money.

DominicJ_2

3. Because a £12k Kia Ceed comes with a 7 year warranty - a £3k car will not. So 7 years hassle free motoring with the Kia, or potential big repair bills with a £3k car.

Actualy KIA apptoved used come with a new 7 year warrenty, and are only 18 months / 18000 miles old, pricier than £3000 though.
Just a thought.

Lifes_Grand_Plan

DominicJ,

It is the Kia Approved I am looking at...

DominicJ_2

Lifes_Grand_Plan wrote: »

DominicJ,

It is the Kia Approved I am looking at...

Well then, I shall take my crusade elsewhere:)

cheeswright

fascinating reading this as I have Just - yesterday - gritted my teeth and got a new car...well an alternate one

I spent AGES doing the maths as to wether I could stop overpaying the mortgage - which I didnt want to do - or buy a much newer / reliable car....I too looked long and hard at kia....
but the three year running costs are huge - as kias depreciate so fast . even on an older a thus already depreciated car I eventually worked out - much to my surprise too, that even a diesel wasnt as economic as a petrol - shocked by that.....as the initial purchase is more expensive - and for my milage the running costs are very close as well as all sorts of other calculations on interest , parts that need repair that arnt the engine ...etc....
and I went out and bought an old low milage car for less than the deposit I would have had to put on a new one

I might go outside and polish it in a minute - In spite of the fact that its old and waaaaay down the list of desierable cars...:)

Lifes_Grand_Plan

cheeswright wrote: »

fascinating reading this as I have Just - yesterday - gritted my teeth and got a new car...well an alternate one

I spent AGES doing the maths as to wether I could stop overpaying the mortgage - which I didnt want to do - or buy a much newer / reliable car....I too looked long and hard at kia....
but the three year running costs are huge - as kias depreciate so fast . even on an older a thus already depreciated car I eventually worked out - much to my surprise too, that even a diesel wasnt as economic as a petrol - shocked by that.....as the initial purchase is more expensive - and for my milage the running costs are very close as well as all sorts of other calculations on interest , parts that need repair that arnt the engine ...etc....
and I went out and bought an old low milage car for less than the deposit I would have had to put on a new one

I might go outside and polish it in a minute - In spite of the fact that its old and waaaaay down the list of desierable cars...:)

Great new post to add to the mix cheeswright... would be very interested in the facts and figures of your calculations if you have time and don't mind. And any more detail you can offer.

What car did you end up with then?

:beer:

jaysb

cheeswright wrote: »

and I went out and bought an old low milage car for less than the deposit I would have had to put on a new one

I might go outside and polish it in a minute - In spite of the fact that its old and waaaaay down the list of desierable cars...:)

congrats and enjoy your old car !

now that you can continue with overpayments - once you've cleared your mortgage maybe you can treat yourself to a newer model

cheeswright

what car have the basics of how you start working it out
link
they show the basics of three year costing and petrol v diesel running costs
then I went through all my repair receipts and checked how many were infact engine related in the last 5 running the same older car ...answer...non....
so just because a diesel engine lasts longer ?????may not matter to me
then i checked the reviews for build quality on all available options ( all manufactureres in the mpv range)

the difference in tax on newer cars

different depreciations for milage and age

and I bought an MPV ( £26,000 + new)

for under £2,000 - with less than 50,000 miles on the clock
I do expect to have to spend on it...but not the amount I'd spend servicing any kind of loan
and when its trashed - I'll still get scrap - and have been able to save for something lovely that the kids cant trash...perhapse with just two seats.....
so youre quite right jaysb - thats the plan

It took me ages to work out ...but I'm time rich and cash poor


SEAT by the way thanks for asking lifesgrandplan