Re: Understanding Finance/Cars!

knittingcupcake

Evening all,

In the future I am possible considering selling my car (Be it £500) according to What car and getting a car on finance..Now I know nothing about finance as was brought up if you can't afford it don't buy it!

However since having children I need something reliable and roadworthy and a friend suggested now you can pay monthly and get free tax/mot and this is cheaper than throwing money at the current heap of junk sat outside!

Thing is I don't understand is they all say from £100 pm yet it's some 1.0 litre car, you need a £3000 deposit and how can you just walk away if you want to hand it back in??? I don't get it?!

Any tips/advice etc. I need something with Isofix and ideally no huge deposits and something I can take back If I decide I can no longer stretch to monthly payments.

Thanks

Nile

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forgotmyname

Finance. Its the only thing that lasts forever on a car.

For the peace of mind of paying a set monthly fee your basically renting the car. Its not yours. You dont own it. Unless you purchase it after the rental/lease period.

OK if you must have a shiny new car and dont mind paying that amount of money every month.
But i have run my current car for 3 or 4 years for less than the price of 1 years lease on a similar sized car.

Things to watch out for, Espeically with children. They get the interior in a poor state. Dropped food/sweets. Shoes on the backs of the seats etc them you may get a large bill at the end anyway.

Take back if you cant afford it anymore.. Thats another issue. NO you cannot do that. You agree a term and there could be severe penalties for trying to pull out.
Unless its HP where you can hand the car back after paying 50% of the total price including interest.

Some repairs will still be down to you. Tyres, Brakes etc. So its not a totally worry free.

Lots of cars have ISO fix they dont need to be new. cars over 10 years old have them.

knittingcupcake

Ah I see..Ideally I would prefer something if it existed like a long term rent. I can afford £140 pm but my car is dying. I'm not concerned about cleanliness as I am OCD and tidy, even after children lol! It would just be nice to not be stuck with hefty bills at awful times for my car. Its a 2000 plate and this year alone a new exhaust, new tyres and wing mirror is falling off and it's high tax as old and always at bad times breaks down. HOWEVER saying that I don't wish to be tied to something nor be conned. A friend said about peugeuot just add fuel, i'm assuming this is tied also then?

sinbad182

You'd probably be better off leasing if its a long term rent you're after. You pay a set amount for an agreed period and mileage, and any problems are fixed under the manufacturer warranty.

Still not a perfect solution though - you have to pay for servicing, and you're locked into the duration and mileage agreed at the start. Some lease companies have lots of hidden charges too.

If you look for a good deal, weigh up all the costs compared to other options, and understand what you're taking on its as close to 'hassle free' motoring as you'll get.

forgotmyname

Just add fuel isnt quite just add fuel though. Tyres and brakes? Then when you hand it back and they say some tiny scratches are above normal wear and tear and thats going to cost £1000 to repair the paintwork.

£140 a month soon pays for an exhaust and tyres and a mirror. £1680 is way more than i have spent on my car in the last 4 + years.

Netwizard

what is wrong with your current car? Sounds to me like you would be much better off fixing that. Why is it dying? what is wrong with it?

painterman2259

hi I am new to this group. I got a car on hp from a finance company in May 2013 at the time the company had fitted a pastime device which they send a code through to you when you make a payment you then you key this into a keypad and it lets you keep on driving. In December I had ankle fusion op so the car has been standing, the December code was put in. the car would not start had a new battery fitted still would not start. This kept happening so my mechanic had it towed into a merc garage it was put on a diagnostic machine still played up the device was shorting out. Had the device removed and diagnostic showed the ecu had blown this was put to the finance company and they said it got nothing to do with them, the cost of all of this stands at £1200.00 are the fianance company at fault please as I have a 3 year contract with them any help would be of great help Thanks

forgotmyname

They could say you damaged the device/ECU fitting the battery. And now you admit to a garage tampering with the device.

Did they give permission for the garage to tamper with it?

After changing the battery did it start sometimes and not others?

ECU maybe fine. It could be another issue.

Cornucopia

knittingcupcake wrote: »

Ah I see..Ideally I would prefer something if it existed like a long term rent.

Which would be a lease or PCP. The issue is that you are buying into a depreciating asset, so your payments need to cover that as well as the ongoing costs. Also, you need to commit to a fixed term contract - starting from 12 months (36 months is typical).

The cost of depreciation alone on a nearly new car is £1000-£2000 per year. More for more expensive vehicles.

I can afford £140 pm but my car is dying.

You'll struggle to find anything new at that price, depending on how much you are putting down. (NB. They call this the deposit, but you walk away without it at the end of the term).. You could look at Used car leasing - this will get you a smaller deposit and lower monthly payments.

e.g. http://www.creditplus.co.uk/vehiclesearch.html?Page=1&PageSize=5&Method=UsedVehicleSearch&ContactID=&LoggedIn=&creditStatus=&monthlyBudget=&term=&deposit=&MileageMin=&MileageMax=&minyear=&maxyear=&minengine=&maxengine=&BudgetMin=&BudgetMax=150&minprice=&maxprice=&Leasing=1&VehicleID=&Make=36&Model=285&fuel=&trans=&chkVehicleTypeID=&colour=&doors=&Order=b-lowhigh

2010 Ford Fiesta, £660 down and 24 x £133

HOWEVER saying that I don't wish to be tied to something nor be conned. A friend said about peugeuot just add fuel, i'm assuming this is tied also then?

AFAIK no one offers anything that flexible. (A car hire company would want £140 for a few days hire).

Have you looked at Car Clubs?

roswell

in 100% of all instances its cheaper to keep your current car than to replace it :-)