Advice: Finance on used car with low or no interest rate

eschaton

Cpu2007 wrote: »

it was a serious question because I didn't know what the 4% was referred to , now that you've explained it is a silly question

Obviously I'm trying to find a good alternative. For example the peugeot has a finance offer that allows to pay the car in rates with 0% interest rate.

I want something similar for the used car that I'm looking for, i might not get 0% but a low interest rate would be nice. The idea of 4% on the transaction and then 0% interest rate sounds very good, sadly I don't fit the requirements.

I got two cc from lloyds (american express and mastercard) when I still was a student. I have been using them for the past 3-4 years and always paid on time monthly. I haven't checked my credit reference or anything but had my credit limit increased to £2500 recently.

Well that is that one cleared up.

If you are buying a USED car and get 0% finance - the costs are included in the price of the car.

Just start saving and buy the car when you have enough pennies saved up.

somethingcorporate

Buying a £16k car on such a small salary is sheer financial lunacy.

Fortunately very few reputable companies (hopefully none) would even consider you for such a loan.

Who in their right mind would think this was a good idea?

DCFC79

You considered going for a car of a lesser value eg £6K ?

eschaton

DCFC79 wrote: »

You considered going for a car of a lesser value eg £6K ?

We have a contender for joke of the week

DCFC79

eschaton wrote: »

We have a contender for joke of the week

Lol , I admit the OP is wanting to spend 16k so my suggestion wont be taken on board but Ive suggested it.

eschaton

DCFC79 wrote: »

Lol , I admit the OP is wanting to spend 16k so my suggestion wont be taken on board but Ive suggested it.

Great advice but far too sensible for the many on here just desperate to dig themselves into debt for something they can't afford.

OP - what kind of deposit are you going to put down for this dream car - or is that a silly question?

Cpu2007

Thank you guys for all your comments and jokes. I really appreciate it

Personally, I'm a person who doesn't make a move financially unless I'm 99% sure that everything will go the way I want to and if I see some sort of disroption in my plan, I'll not go ahead.

Having said that, I have a different type of savings that I've accumulated throut the year; other than the backup saving(which only be used in emergencies), I've accumulated around £1000 for the car deposit and hopefully it should get £2000 in a few months when I'll be buying the car if everything goes well.

One thing I usually do is exagerate the requirements of my target so that if I can reach that "exagerated" target then chances are I will be able to reaach the target in its realistic status. When I say target in this case I mean the price of the car, yes it's a car that will cost me £16,000, an audi a3 2012,white, with only 10,000. I found this car by doind some simple searches but I'm pretty confident that in a few months prices will drop a bit more and in addition I'll consider the same car of previous years (2009,2010,etc) as they have the same specs, which will reduce the cost to a certain extent.

One of the reason why I'm buying this car is because it has been considered reliable by many friends and in addition they've told me that german cars on diesel are very good; I've checked the mileage and it gives more than my vauxhall corsa diesel on specs; I know specs are always exagerated but still even if we round down the numbers, the fuel efficiency of the car is good.

Cornucopia

As a general rule, people set their budgets first, and then find the car to match.

And by "set", I mean "have a realistic view of what they can afford/want to pay".

tonycottee

But I imagine that servicing, tax and insurance will cost you more on the Audi compared to your Corsa. So unless you're doing a high mileage, the saving in fuel costs will be negligible.

somethingcorporate

You have premium car envy with only moderate (or sensible budget) car income. You should really sort your priorities out, spending almost an entire years net income on a device that gets you from A to B that could easily be achieved for a tenth of your initial outlay (let alone the interest you will have to pay) is absolute financial madness and will haunt you for many years (perhaps up to a decade).