Car Finance or Loan for 20y Old

DCFC79

dgets94 wrote: »

I don't know, it wasn't anything "special" as such, just one that agreed with my back. I don't want to be modifying cars or anything, just something reliable, lifetime warranty, economical and comfy.

I was really just wondering if anyone had any experience of a similar scenario and how best to go about it.

I'd quite like to build up my credit rating as well so thought this was a ideal scenario to go about it.

I've never had finance for a car, I have bought them outright, m,y next 1 will definitely be a couple of years old.

It felt good getting a car with my savings I had saved.

At the end of the day if its what you want to do then do it, no need to get finance to build your credit rating, I've done well without it.

R_P_W

dgets94 wrote: »

Nationwide have offered 23.8% through the soft quote option. It's at least another option.

I understand that people think it's silly to spend, but I do genuinely plan on keeping it for 6-7 years. It's a massive step up from my current car. Repaying over 4 years is my plan, and with planned salary increases each year I thought it made for a relatively sensible choice.

Thanks

23.8 % and paying over four years?! Ouch! On a car that will not hold any value at all. I'm pretty sure you will come to regret this.

19lottie82

Even if the warranty. Is transferable, which I don't think it is, there are so many clauses in it, it's unreal. They're really not worth the paper it's written on.

Seriously, 13k for an second hand Astra is bonkers, and that's before you even consider the eye watering interest rate for a loan. How much will you pay in total, in loan payments?

19lottie82

Even for 8k you could get something like this

http://www.autotrader.co.uk/classified/advert/201404253675025/sort/pricedesc/usedcars/postcode/g207en/make/audi/price-from/6000/radius/1501/onesearchad/used%2Cnearlynew%2Cnew/page/2/maximum-mileage/up_to_60000_miles/maximum-age/up_to_6_years_old/fuel-type/diesel/price-to/8000?logcode=p

And that's thru a dealer so you could prob pick it up for 6.5 private

GingerBob_3

OP, aren't the punters on this site just great eh! You ask them a simple question and they (most of them) are immediately seen in their true colours as officers of the nanny state.

In asnswer to your question, avoid finance at all costs, especially with companies such as Motonovo Finance. Once they get their tentacles around you it's very difficult to escape. You need to ask their permission to sell the vehicle, the DVLA knows it's on finance, and if you try and terminate the agreement when half the balance is paid (a voluntary termination) they make it bloody near impossible for you to do so. This is achieved by employing crooks to report on the condition of the vehicle and slapping punitive excess mileage charges on it. For this latter point, this would definitely affect you. The normal cut-off point is 12k per year; after that, you are caned if you try to VT it.

If you can't get a loan at a decent rate then not getting the car is a better option than finance.

ViolaLass

Paying that amount off over 4 years will mean spending 20% of your pre-tax monthly income on your car - that's before interest, insurance, tax, petrol, repairs, MOT etc.

chambta

I will back the sensible posters on here.

Don't bother.

bsms1147

dgets94 wrote: »

I'm cautions about getting another cheap car as I want something that I can see keeping for 6-7 years to come.

There is no reason a £5,000 car won't last that long.

And spending £13,000 will not guarantee it would.

In time, 30 year old you will kick 20 year old you.

freeman3030

I would always lean towards a loan rather than finance for a car:
*No deposit required
*You will own the car outright from the start, so its up to you when to sell it
*There are no mileage restrictions
*No balloon payment at the end

I'm in a similar situation to you, I bought a 6 month old top of the range Fiesta almost 4 years ago and I don't regret it. It cost me just under 1 years salary and its been incredibly reliable having provided me with 50,000 miles of trouble free motoring, if it broke down tomorrow, I would be happy to spend on it as its cost me nothing so far (apart from the initial outlay). In my experience and from that of friends and family, buying a car around the 5/6 year old mark with average mileage, you're buying someone elses problems and in my eyes, its good money chasing bad. Thats not to say anything will go wrong with good service history, but if you've owned the car from as new as possible, depending on how you treat and look after the car will depend on how well it lasts you. I've always leaned towards getting a newer car and the way I justify it to myself is that I don't drink and I don't smoke, so my luxury is having a nice car. Thats my opinion anyway.

From a money savvy perspective as others have mentioned, it makes financial sense to use the money you have saved and then set aside what payments you would have been making towards the car repayments as a safety fund for repairs.

Its up to you at the end of the day, but a word of warning about Vauxhall, 2 of my friend have got them (one's a corsa and ones a astra) both of which handbrakes have failed. I don't know if its a common problem or just a coincidence, but could be worth looking into.

You're young so why not treat yourself before you get a mortgage and tied down with a family! Good luck!

ricky_v

dgets94 wrote: »

lifetime warranty

The cynic inside of me says that the warranty will only cover something bulletproof like the body of the car, or something cheap like the radio aerial and the oil sump plug. Chances are the clutch, brake calipers, most of the engine, exhaust and others will be put down to wear and tear.

Buy a cheap car now, then once you've built up several years of a good credit history then get a loan at prime rates and buy a newer car if you so whish.

23.8% is a mad rate, credit cards have a lower rate !!!!!!!