Considering buying a 2nd hand car: Finance options?

aleatory

Hi, looking at selling my old Corsa and getting something a bit more 30ish. Don't drive that often though so would be happy with a 2 year old model.

Anyone any tips on financing and best places to pick up a competitive rate/deal?

Also, does the loan normally restrict you to buying off a certain shortlist of dealerships or could you literally go on ebay and pick one from an individual?

cheers for any info

steve-L

Unless you can get a better deal then a personal loan is as good as I expect you'll find!

Check out the MSE loan pages.....
What you'll find is that interest rates drop at 7000 therefore no point borrowing 6800 as it may cost you more.

Work out the cheapest personal loan you can get BEFORE you compare with specific car finance.

Don't drive that often though so would be happy with a 2 year old model.

Without telling you how to live your life and spend your money.... but this is MSE
Since you don't drive that often why get a loan for something you hardly use? Why not get a decent 5yr old car you can buy outright?

aleatory

Thanks for the tip on the 7k mark.

I'd be looking to keep it for a similar number of years (corsa is 8 years old at this stage) so I figure I'd still get my money's worth out of it and if circumstances changed and I used it daily then I wouldn't need to go looking for another one again.

steve-L

aleatory wrote: »

Thanks for the tip on the 7k mark.

I'd be looking to keep it for a similar number of years (corsa is 8 years old at this stage) so I figure I'd still get my money's worth out of it and if circumstances changed and I used it daily then I wouldn't need to go looking for another one again.

Oops it £7,500 cut-off.

http://www.moneysavingexpert.com/loans/cheap-personal-loans

That doesn't mean you won't find car finance better but I doubt it....
and car finance is always more difficult to work out as it has lots of catches!

forgotmyname

If you dont use the car much then why nor spend a lot less?

Not very money saving having a car sitting there losing money when you dont use it that much.

After 3 years it will have lost the large chunk of its depreciation and after 5 years it will lose very little. Yet plenty of cars still under manufacturers warranty and will have at least another 10 years life.

steve-L

forgotmyname wrote: »

If you dont use the car much then why nor spend a lot less?

Not very money saving having a car sitting there losing money when you dont use it that much.

After 3 years it will have lost the large chunk of its depreciation and after 5 years it will lose very little. Yet plenty of cars still under manufacturers warranty and will have at least another 10 years life.

This is the way I think (and you).... but it's the OP's money.
if they want to do something I regard as not dissimilar to sticking a £5 note on their drive each week and letting it blow away then that is their prerogative.

Personally I think many people over estimate the difference in a well looked after 5yr old car and a 1 yr old car.... other than the plate and possibly model ... they also overestimate the assurance of buying from a dealer because many items will be excluded and these are the exact same items will require replacing anyway (clutch, brakes, tyres etc.)

A good 5yr old low milage car with a professional valet can be indistinguishable in many respects to a 1yr old.... and after a month they both may look and feel the same!

forgotmyname

And a good high mileage car will look exactly the same as the rows of low mileage ones but a lot cheaper.

If you only do a low annual mileage then buy something with more miles on the clock. You payless for it and after a couple of years the others cars you looked at will now be a similar mileage and you will have lost less money.

aleatory

I guess it's the same reasoning that people buy a car brand new, it's just nicer to have a 2/3 year old car than a 5 year old one.

And while I don't use it that much, I still use it enough to want to drive around in a car that I like the look of as opposed to one that was just purely a functional buy.

I appreciate the difference is subjective, but hey each to their own. When I can afford to buy one brand new I'll probably do that.

forgotmyname

Been there done that regretted it... I lost £6400 on depreciation.

WHY oh WHY.... Never again.

I have bought cars that i wanted not because thats what i needed to do a certain task. I bought a RangeRover because i wanted one.
I was sensible well ish... and bought a tax exempt one. It was great. Drank like a fish but i loved it.

Bought another one to play in that had ben modified and had raised suspension. £100 a year to insure. More money for the fuel

Ive had older sports cars also.

I like my Mondeo. It looks as good as it did when it came out the factory, Yet now past 150,000 miles. It starts on the button. And does everything i need. Its faster than some so called sports models and yet will do 60+mpg.

And they are cheap, What more can i ask for?

knightstyle

How good are you ror a credit card? You can get several k£ for around 3% for a year or slightly more with some of them. Much cheaper than a loan.

steve-L

aleatory wrote: »

I guess it's the same reasoning that people buy a car brand new, it's just nicer to have a 2/3 year old car than a 5 year old one.

And while I don't use it that much, I still use it enough to want to drive around in a car that I like the look of as opposed to one that was just purely a functional buy.

But what is the difference (nicer)? (Its nicer for a month or two.... then its used again?)

I appreciate the difference is subjective, but hey each to their own. When I can afford to buy one brand new I'll probably do that.

I think the point some of us are making is you obviously can't afford a 2yr old Corsa now so why borrow money ???

It's not like you have £7000 sat in your current account (ir I presume you wouldn't be looking for finance) and nothing better to spend it on? If you are going to borrow for a car that you don't use much I'd be tempted to borrow as little as possible....

Less depreciation and less interest....