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Can't afford car finance
Comments
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I know there are many reasons why it would be a problem, but how COULD it work? Surely, there must be some way to link up people who want to use a car and will pay for it, with people who need the money and can spare their car. We're an enterprising people, it can't be beyond us, surely?0
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Oh, well, there we go - that's everything covered, then!
Other than tyres it IS pretty much everything covered. And even then, you might not go through a set of tyres in 3 years. I get about 30,000 to a pair of fronts, and it looks like maybe 40,000 to a pair of rears.
You seem to be forgetting the heavy incentives to stick with main dealer servicing - at exhorbitant hourly labour rates -
A lot of new cars come with either free servicing or discounted service packs. I think my wifes car came with 5 years servicing for £500 - and thats with BMW. My car came with 2 free services.
for newer cars, and still appear to have ignored depreciation and finance costs, and you.
Yes. Totally.
Buy / lease / PCP / finance a new or nearly new car and in some way you're going to be out a fair bit due to depreciation.
But then you pays your money and you makes your choice. Some people are happy running about in a £500 scrapper. Some people are happy with a 5 year old car for cash. Some people prefer a new car because its perceived to be less "hassle" for them and they are happy to put a monthly cost on that.
Each to their own.
If you're trying to keep a new car into warranty, then ignoring the seven year Koreans (which still exclude wear and tear, of course, so very little will be covered towards the end of that period), you're going to be including at least £2-3,000 per year for them.
Sorry? £2-3000 a year for what??
If you're leasing, then don't forget any costs related to the end-of-lease condition report and any excess mileage charges.
Thats assuming
(a) you've got the mileage you're doing wrong.
(b) you've been stupid enough not to maintain the car to the standard you would if it were your own.
Buying new or nearly new is definitely not cheaper than buying a middle age or old car, but there are other reasons why people do that are not for financial reasons, but yet are valid reasons for them.
I wouldnt criticise someone for their choice of driving a £500 banger nor would i criticise someone for leasing a new car, if it suited their requirements to do so then thats their perrogative.0 -
Even new cars you'll still need to change tyres, possibly pads (clutch too if you have a hyundai) etc within the life of a 3 year finance deal if above avr mileage. If you have some fancy bridgestones on already, you'll be wanting to keep the same make. On older cars you can probably change to a decent mid range set without affecting resale. Not sure what would happen if you handed a can on PCP back with ditchfinders on. Plus to keep the service record you'll need to get annual service which can be easily as much as £200 for them to change oil, visually check stuff and give car a wash. On an older car I'd probably change the oil at a minimum (£20ish) and then give things a once over.
So I'd disagree with you.
If you do above average miles, then you're going to have higher running costs irrespective of what you buy - whether its a cheapie of something new.
As long as the tyres are road legal there would be no issue with handing a car back with non "approved" tyres. Also, you'd generally be quite foolish to hand a car back at the end of a PCP. I've only seen it done once where the value of the residual was much greater than the value of the car. Generally you've equity in there to use as you wish, so you'd be safer selling privately or trading it in, or having a dealer buy it.0 -
I'd look for ways to make sure you can make the payments. An old banger is all very well but they break down and generally cost you more in tax, fuel and repairs.
I'd find another source of money to pay for the car, evening work, ebay some junk you don't need. Reduce your outgoings in other areas as soon as you can so you have more of a buffer between now and the time you think you may be squeezed. The more you do now the better off you'll be. The part time job situation may not last so it seems daft to ditch a car you've just bought when the situation you are worried about may not even happen. For all you know you could get another full time job that is better paid than the original one.
Totally agree with this. I wouldnt be knee jerking into disposing of the car at a heavy loss just because of a short term change of circumstance.0 -
How about just doing a car-share with a good friend? If you know someone responsible who doesn't use a car that often but would appreciate access to a new, reliable car then could you come to a mutually -beneficial arrangement? Go halves on the costs and they can have it weekends, you have it to go to work.
Just a thought.0 -
Depreciation & finance costs.
Yup.
Probably there or there abouts.
If thats what you want to do, it suits your requirements and you can afford it, why not?
Just depends what you feel comfortable with. You could buy a £5K car at 6 years old and it be worth £2K in three years time, so theres still £1,000 a year, plus maintenance, MOT, etc.
You can buy a brand new car these days from £99 a month and rinse and repeat every three years. Likewise you can spend more if you want to.
This time last year i was driving a £300 Fiat Marea JTD and doing 2,000 miles a month in it. It was doing my job per se, but literally every other week there was SOMETHING else go wrong - battery knackered, drivers window stopped working, bonnet stopped opening, glow plug light staying on, bulbs out, due a service, due a timing belt, coming up for MOT, clunky suspension, rattling anti-roll bars.
So i went and got a 9 month old golf on finance. Costs me roughly £200 a month. Saves me roughly £100 a month on diesel as its averaging nearly 70mpg brim to brim, so really its costing me around £100 a month more than driving the dodgy FIAT.
Is that extra £100 a month worth it to me? YES, Totally.
Might it be worth that to someone else who likes tinkering at cars - no probably not.
BUT, each to their own.0 -
Yup.
Probably there or there abouts.
If thats what you want to do, it suits your requirements and you can afford it, why not?
Oh, absolutely. Merely pointing out a VERY important part of the sums, which had been omitted completely by teabelly - thereby skewing the end result massively.0
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