20 year old buying 35k car on finance?

hight

Hi there, I am 20 years old and I would like to buy a 35k car on finance.

The car I would like to buy is an a class amg sport 2013. Insurance for the car is 1800 with me main driver, and two additional drivers on the policy.

I have a 10k deposit to put down on the car, I earn 24k a year, however I have some concerns.

Likelyhood of acceptance for finance? I have credit cards, one with 2500 limit, rest small amounts ranging from 800 to 500. 4 in total.
No missed/late payments/defaults/ccjs/ My credit usage is 12% out of 100.

Depreciation very concerned regarding this, how much would the car be worth after say 4 years, with 40 - 50k on the clock? 35k car, could I get 15 - 20k for it after 4 years?

Best finance method? I want to have low monthly payments with the view of owning the car outright after contract is finished. What best route should i go down with? HP/PCP? I would like to trade car in after 3-4 years for a newer model.

Total payable after finance? Car bought at 35k with 10k deposit, how much do you reckon I will be paying the finance company in total? What about this ballon payment thing that stings so many people if they want to keep the car.

Guaranteed Future resale value? How do I go about this with the finance company to minimize my losses.

I also want to buy a house, and I know this is more sensible then buying a bloody car. :rotfl:

warwicktiger

Assuming you are genuine before even considering the above go on to a comparison site and check out the cost of Insurance. You might then think that a different car is a better proposition.

Do you have a salary that will support paying a loan of £30,000 + off over 3-4 years, ie. £800-£900 a month?

Finally, if you are a footballer then ignore the above, just do it, you clearly have more money than sense.

Horizon81

hight wrote: »

I also want to buy a house, and I know this is more sensible then buying a bloody car. :rotfl:

Take your own advice then. A 20 year old on a £24k salary with a £35k car doesn't add up to me.

hight

warwicktiger wrote: »

Assuming you are genuine before even considering the above go on to a comparison site and check out the cost of Insurance. You might then think that a different car is a better proposition.

Do you have a salary that will support paying a loan of £30,000 + off over 3-4 years, ie. £800-£900 a month?

Finally, if you are a footballer then ignore the above, just do it, you clearly have more money than sense.

Ofcourse I am genuine. I did insurance quotes, cheapest is 1800, with admiral. Yes, i have a salary of 24k a year.

I do not understand you regarding the £800 - 900 a month regarding the finance, I don't believe I will paying this much, other than 200 - 300 a month?

System

have you thought about insurance?! I would hate to see that quote!

edit: really?! that's a great quote, i've seen some higher than that for people your age getting a small engined 2k car!

tbh at your age I wouldn't consider spending that much on a car, especially a brand new one, as soon as it's out the showroom you're down on your money! and what is the total cost when it's paid off?
If i was you, i'd be looking at spending that 10k I have on a car, insurance/tax etc and not getting into a massive bit of debt until I was buying a house...

arcon5

Can you afford a £35k car on a £24k/per year wage?

Repayments will be anything between £500-£700 depending on your credit rating.. and at 20 you don't have much of a borrowing history to go on. The cost of maintaining a car like this can easily add several hundred quid per month + insurance at your age...

Depreciation very concerned regarding this, how much would the car be worth after say 4 years, with 40 - 50k on the clock? 35k car, could I get 15 - 20k for it after 4 years?

Hard to say, even that could be pushing it.

Guaranteed Future resale value? How do I go about this with the finance company to minimize my losses.

You can't. Nothing is guaranteed when it comes to cars. GAP insurance would be recommended. But in 4-5 years there's no guarantee the car would even be on the road.

Ofcourse I am genuine. I did insurance quotes, cheapest is 1800, with admiral. Yes, i have a salary of 24k a year.

That sounds very low.. got to be TPF&T only? For a car like this you really need fully comprehensive... what if you write it off in a fault accident or something? Some very high stakes.

I do not understand you regarding the £800 - 900 a month regarding the finance, I don't believe I will paying this much, other than 200 - 300 a month?

£300/ month would take nearly 7 years to pay back at 0% interest. So with interest of anything between 5%-20% you certainly won't be paying as little as £300 per month back.

Loans for cars are usually around the 5 year mark... you'll struggle to find anybody willing to lend for more than 6 years at a push.

See yourself, calculator here: http://www.carloan4u.co.uk/car-finance-calculator.html

Thomas_Hardy

Wasn't it April Fools Day yesterday?

david555_2

Get a great car for 10k and put the rest towards a property if you're not already on the ladder or invest the £600+ per month you'd be saving.

You're paying a massive premium for a depreciating asset and as much as you may want the car, in a year it'll be like a noose around your neck.

k3lvc

Assuming you can find someone to lend you you the money then

a) write off your £10k as soon as you drive it away - you'll never see that again
b) budget min £500 a month for your £25k loan over 5 yrs
c) add £50 a month for GAP
d) add £150 a month for your insurance (but tbh I'd have expected closer to £250 a month unless you're fronting)
e) add £100 a month for servicing/tyres etc

At this point you realise you're over 50% of your monthly salary and yet you still want to buy a house

If I were you and you're dead set on this car then look at a lease deal for a couple of years and save yourself both the £10k and the risk. My only ever £35k car cost me £1k deposit and just under £400 a month for 3 years then I handed it back. At that point my salary was more than double yours plus my company was giving me £10k pa (gross) to fund a car

hight

thanks, just used that carloan website, put in 8k deposit with car value 35k
and 60 months repayment and it came back with the following:

Total Repayment
£31043.25
Total Cost of Credit
£4043.25
Monthly Repayment
£517.39
Representative APR 5.99% (2.64% pa though could get it at 0%

forget it, I am not prepared to pay 500 a month. I will just use the money for deposit on a house and buy a half decent car for 5 - 10k.

It wasn't a troll thread I thought the repayments would be low and obviously it is not. I'm gonna be sensible and won't even try because I know for a fact I'll be having a lovely car but at the same time stressing out I've got £500 to pay per month plus £200 a month on petrol. Not worth it.

Dukesy

Don't do it! Save and put it towards a house instead.

I'm a big, big believer in the idea of 'if you can't afford it today, how will you pay for it tomorrow?' On this basis, other than a mortgage, OH and I live a debt, credit and finance free life which, quite frankly, makes for a lot less stress should the SHTF and means that we have been able to afford the things that really matter - eg the house we wanted without having other major financial commitments in our way.