On DLA Benefit but have savings can I get a car 0% deal

grace2much

Hi all, I need some advice. I haven't been able to work for the past 5 years due to ill health and receive DLA and Invalidity Benefit. I'm in my early 50's My wife works part time grossing just £100 per week. We have 1 son 12 yr old.

We have zero debt and own our own house without a mortgage valued now at a market price of £120,000 approx. We have about £60,000 in savings but with the benefits and part time work just about £10,000 per year income. We live a very modest and careful lifestyle.

I'd like to buy a new car on a 0% interest deal with the car £10,000 approx over 4 years but I'm assuming with my small income I would be turned down even though I could set aside the full value of the car from my savings as a guarantee. I'm embarrassed to ask the garage in case I'm just laughed at and since I worked all my life until my illness so I suppose my confidence has be dented badly and I feel the shame of not being able to work...............any advice would be gladly listened to, Thanks

DCFC79

It isnt an answer to your question but why not use some of your savings ?

fwor

Also not an answer, but are you aware that - even if you qualify for the 0% interest loan - you will still be paying for the credit, as it will be factored into the car's price.

If you pay up front, you would almost certainly get a significant discount just by haggling.

And of course, as we are mainly into money saving here, you would save a shedload more money by buying the same car "almost new".

grace2much

fwor wrote: »

Also not an answer, but are you aware that - even if you qualify for the 0% interest loan - you will still be paying for the credit, as it will be factored into the car's price.

If you pay up front, you would almost certainly get a significant discount just by haggling.

And of course, as we are mainly into money saving here, you would save a shedload more money by buying the same car "almost new".

I suppose its a mind thing, not being working and then taking a chunk out of my savings. I know you are right I just need to get my head to agree and get my cheque book out:-)

As for the "almost new" idea that would be always my first choice, my last car I bought at 3 years old and is now 7 years old. Maybe I should look for a really cheap loan from my bank use my capital as a guarantee as they know me and my stable financial position and have the capital earning some interest against the loan cost. Or give myself a good talking to until I can force myself to use some of my savings!!! Its the security blanket effect having the savings I need to wrestle with and make a better informed cost vs cost decision thats for pushing me to think this through more carefully...........

YorkshireBoy

grace2much wrote: »

Maybe I should look for a really cheap loan from my bank use my capital as a guarantee as they know me and my stable financial position.

No bank will provide a joint loan of £10K to a couple who only 'earn' £10K per annum.

And your guarantee thinking won't work either. After all, what's to stop you withdrawing the £60K the day after the loan completes and either moving it elsewhere or simply spending it?

Use the savings. And if that worries you, then you can't really afford/shouldn't be spending so much on the car.

Best of luck with whatever you decide to do.

CLAPTON

what's wrong with your 7 year old car?

McKneff

When we bought our 'new' Corsa, it was actually only 3 months old with 18 miles on the clock.

The price was about 3K less than new, I haggled too, car mats, tank of petrol.

Using 10K of your savings would be the most economical way of doing it.

If you cant get your head round it, Lend yourself £however much you need and 'pay yourself back' Youre the winner all the way

grace2much

McKneff wrote: »

When we bought our 'new' Corsa, it was actually only 3 months old with 18 miles on the clock.

The price was about 3K less than new, I haggled too, car mats, tank of petrol.

Using 10K of your savings would be the most economical way of doing it.

If you cant get your head round it, Lend yourself £however much you need and 'pay yourself back' Youre the winner all the way

How simply and profound common sense can be. Thanks mcKneff this is my solution I'm applying to the Bank of Me :T

Thanks to all who offered advice and gently chastised me (and rightly so) into using my own funds...........

McKneff

Glad to be of help,
Dont know where it came from really, it just suddenly popped in there while I was typing.

Hope things work well for you. Good luck

Anniex

custardy

fwor wrote: »

Also not an answer, but are you aware that - even if you qualify for the 0% interest loan - you will still be paying for the credit, as it will be factored into the car's price.

If you pay up front, you would almost certainly get a significant discount just by haggling.

And of course, as we are mainly into money saving here, you would save a shedload more money by buying the same car "almost new".

not always. often dealers get commision from finance deals

CLAPTON

custardy wrote: »

not always. often dealers get commision from finance deals

be surprised if they get much from a 0% deal