Advice on Purchasing Car

bigadaj

Dane-ger wrote: »

Well, the car is £25k and is 1 year old, new its £38k. I mnaged to get the price down considerably with the dealer.

I have looked at the same car but 2 years older and it is around £18k for this spec model.

the loan would only be for £15k from the off so the car is always worth more then the loan, at least for the first few years? That's what i mean.

Regards to someone saying use my savings, as i mentioned, id prefer not to incase of any unexpected expenses.

thank you

If you have savings then spend those and set up a standing order for what would have been loan repayments back into your savings account, meaning you are getting the loan interest, not the bank.

Your car valuation numbers don't make a lot of sense, 30% depreciation in year 1 but then only another 10% per year for the next two years, are you comparing retail values as this is nowhere near what you'd get for your car after owning it for two years.

It's up to you and many would say that if you can't afford to pay cash for the car then you can't afford it in any case, but good luck in whatever you choose.

usefulmale

Your 'new' car will spend 8 hours a day sat on the drive whilst you sleep, will probably spend another 8 hours sat in the carpark at work. Why do you want to spend 25 grand on something you will use for just a couple of hours a day? Buy the cheapest, most reliable model you can and view it for what it is. A means of just getting you from A to B.

Put the £290 a month towards a bigger deposit for a house.

jaydeeuk1

Apply for a few 0% on purchases for 12/18 months credit card, most will give £5k+ per card, and a dealer won't have any problem with you paying by more than one method. Its 'cheaper' than using a savings account too.


Even if only 4 of those 18 months gives you a £5k bonus, the car is paid for.


Ignore the posters asking why you are buying a new car when a 1987 Rover metro will do, you can quite obviously afford it, even as it is, and won't be pushed to live beyond your means at all.


Nowt wrong having expensive tastes if you can afford it. I spend hundreds on a bottle of whiskey I'll probably never open, let alone finish!

YorkshireBoy

jaydeeuk1 wrote: »

and a dealer won't have any problem with you paying by more than one method.

Quite correct. After all, he'll simply pass on the 2-3% fee he's charged by his merchant acquirer. And if he doesn't, and absorbs it instead, there was another 2-3% discount to be negotiated for paying by debit card.

Its 'cheaper' than using a savings account too.

OP will be a higher rate tax payer, so will need to be making 2-3% after 40% tax on his (£15K) savings. Pretty unlikely in the current climate I'd have thought.

usefulmale

jaydeeuk1 wrote: »

Apply for a few 0% on purchases for 12/18 months credit card, most will give £5k+ per card, and a dealer won't have any problem with you paying by more than one method. Its 'cheaper' than using a savings account too.


Even if only 4 of those 18 months gives you a £5k bonus, the car is paid for.


Ignore the posters asking why you are buying a new car when a 1987 Rover metro will do, you can quite obviously afford it, even as it is, and won't be pushed to live beyond your means at all.


Nowt wrong having expensive tastes if you can afford it. I spend hundreds on a bottle of whiskey I'll probably never open, let alone finish!

You tell the OP that they can afford it, yet urge them to borrow money to do it. Thats not being able to afford something.

Its a very short step from asking advice on the loans board to asking for help on the Bankrupt board.

mania112

use your savings and put the money you were going to use to pay off the loan back into your savings

ViolaLass

If you get a loan, you'd be effectively paying interest in order to rent your savings.