Best Way to Finance a £30-40k car?

Tiptop2000

Help. I have always been frugal and spent between £10-15k on a car.
However, we now need a bigger car so either a 4x4 or and estate and my wife and I would like to splash out a bit.

As such I am looking at the best way to finance a car, without ever having gone near finance in my life for a car.

I have a 1-series BMW that will sell for about £10k and I have savings of £15k which I could use. I wanted to know what other options are available and what people recommend. I have a small business with a steady amount of money coming in each month so am not worried about spending £300-500per month on the car if needed.

Any help or advice would be amazing. Feel a bit stupid to be asking.

smashingyour...

Spend the 25k you've got. That should get you a good enough car.

davidjwest

Why do you want a £30-40k car?

Personally I could never contemplate losing £5k in depreciation within the first few months plus paying thousands in interest.

Spend the £25k you've got on something similar a few years old would be my advice.

However, to answer your question - you can probably get a personal loan for £15k or so for around 5% APR if you shop around.

MX5huggy

Lump it on to your mortgage, but pay it off in under the time you will want to replace the money pit.

Netwizard

What are your requirements?

Do you want new or second hand?

If second hand, what age and miles are you looking at?

Whats your MPG requirements? Do you want an Audi RS4 Estate or Skoda Octavia 2.0 TDI? etc

No way would I spend £30-£40k. You can get some amazing deals for MUCH MUCH less, but it all depends on your requirements

Iceweasel

I am newly retired and will probably never buy another new car again - as a private individual.

Far too much depreciation in the early years, in the present economic climate here in the UK.

I've just bought a very well specced BMW under 2 years old done less than 20K miles - for less than half of the price when new.

I intend to keep it around 3 years and then buy another 2 year old.

If you're talking about your business buying the car then you need to speak to your accountants/auditors who will be able to determine the best option for your specific circumstances.

When I was in a similar situation to you, all assets/equipment, including vehicles were deemed written down to zero in 5 years - very tax effective.

Jamie_Carter

have you considered leasing a car? Your accountant may even recommend it.

And for £300 - £500 per month you can get a lot of car, or even one each.

Just an example: http://www.mercedescontracthireleasing.co.uk/

londonTiger

you should be able to buy a fairly good value 3-4 ear old range rover for 20K.

Was watching a documentry on TV called "the dealership", as the name suggests it was about a car dealership.

It looked like it was 3-4 years old because a mk5 golf was on sale for 10K. They had a range rover selling for 20K which was just older than the latest marque (which IMO was better before than what they've come up with now).

The buyer of the range rover was a complete !!!!!!! though. he bought a brand new nissan qashqai for around 20K brand new a year earlier that he wanted to trade in. He paid 4K (around 400 a month). But he only paid abot 100 quid of the cars value. the 3K was all interest.

He was drooling over the range rover like it was a lamborghini, but he stupidly got into a finance agreement a year earlier on a qashqai for the same price as the range rover.

His finance management was absolutely pathetic.

Do yourself a favour, dont buy a brand new car - get something fairly depreciated with at least 50K on the clock.

WIth 50K is will have some warranty left and will still be new and lots of life left, but none of the depreciation baggage to be lumped with

arcon5

In most circumstances leasing is a mugs game. Some try to jusify it based on tax benefits but that rarely justifys it, especially since a business will write down the remaining value - disposal income when sold anyway as a capital allowance.

Strider590

arcon5 wrote: »

In most circumstances leasing is a mugs game. Some try to jusify it based on tax benefits but that rarely justifys it, especially since a business will write down the remaining value - disposal income when sold anyway as a capital allowance.

People will use ANYTHING to justify buying a new car, people want "new car status", but don't want to be seen as looking for it..... So they make excuses, VED, the environment, saving money, lower insurance, better MPG, etc etc etc. It's all BS, because you can't save sh*t by buying a new car.

When I want another car, I just go out and buy one, I don't make pathetic excuses.

TradePro

londonTiger wrote: »

you should be able to buy a fairly good value 3-4 ear old range rover for 20K. (and it will be the last word in unreliability)

Was watching a documentry on TV called "the dealership", as the name suggests it was about a car dealership.

It looked like it was 3-4 years old because a mk5 golf was on sale for 10K. They had a range rover selling for 20K which was just older than the latest marque (which IMO was better before than what they've come up with now). (I think it was a RR Sport, rather than 'not the new RR')

The buyer of the range rover was a complete !!!!!!! though. he bought a brand new nissan qashqai for around 20K brand new a year earlier that he wanted to trade in. He paid 4K (around 400 a month). But he only paid abot 100 quid of the cars value. the 3K was all interest. (looking at the way he does things, I expect he will have rolled some negative equity over from his last car - finance rate on a brand new Nissan should have been very low...)

He was drooling over the range rover like it was a lamborghini, but he stupidly got into a finance agreement a year earlier on a qashqai for the same price as the range rover. (a brand new Qashqai, as opposed to an old, clapped-out RR)

His finance management was absolutely pathetic.

Do yourself a favour, dont buy a brand new car - get something fairly depreciated with at least 50K on the clock. (yeah, when you only have £30-40k to spend, make sure you buy a car with AT LEAST 50,000m battered out of it..?)

WIth 50K is will have some warranty left and will still be new and lots of life left, but none of the depreciation baggage to be lumped with (you quote 3-4 years, so in most cases that would mean no warranty - at 50k, in most cases there would only be 10k warranty left even if the car was newer)

I'm genuinely sorry, I feel like I'm bullying you there, but what an absolutely terrible piece of advice you have just tried to offer the OP.