Help with finance

ShanFost_

I have only ever owned one car before; it was an old Corsa which my parents helped me pay for when I was 19, I am now 23 and in need of a new car. Seeing as I haven’t done this on my own before I was hoping to get some advice on how it works and who has the best value?

forgotmyname

Who has the best value? None of them. They all want to add interest onto the money you borrow.

I was told that finance is the only thing that lasts forever on a car. Save up and you can buy the same car for cash and not waste money on interest payments.

My sister bought a car it was overpriced, The interest was stupidly high. 3 1/2 years later she still owes way more than the cars worth and now the car needs quite a bit of work doing.
She cant get rid of the car without having a huge loss.

Dont do it. Save up and buy what you have the cash for.

SmellyPetrol

I too sit in the 'save up and buy outright' camp.
I do understand that sometimes that now how people want to do it though.

In any case, your local dealers will over finance packages - none of them are better than the other in any major way really, it's all handed down to them from corporate really!

You could look at a PCP plan...The size of the balloon payment is decided at the beginning of the contract between you and the lease company, so that if you’re happy with your car you choose to keep it. Of course, you can always feel free to return your vehicle if you are not happy with it or fancy a change.

The monthly payments are calculated based on the size of the deposit and then the difference between the car’s retail and residual values. The more the car holds its value, the better the deal will be for you as a car with a high value has a reduced amount of monthly payments.

But yes; i'm calling the people in their 20's the 'direct debit generation' - seems most prefer a monthly outgoing then buying anything outright!

Herzlos

Find a car you like and can afford with a minimal loan (you can get nice cars on car supermarket forecourts for say £5000, or nearly as nice from smaller places for £2000), and take out a bank loan for the shortfall. Don't worry too much about the car or how fancy it looks; no-one really cares.

You'll be much better off if you buy an older car, put money aside and save up for your next one, maybe upgrading a bit each time.

Don't be put off by a cars age, image or fuel consumption.

OddballJamie

The Yaris is a cracking car but you still want to replace it?

Cheap brake maintenance with that model too.

JustinR1979

Hanna_angels wrote: »

After a bit of logical thinking and helpful advice sought through this forum, it makes sense for me to keep it until it dies. I realised that things like road tax hardly impacts you financially in the grand scheme of things

Is yours a top of the range model with rear brakes?

mollycat

JustinR1979 wrote: »

Is yours a top of the range model with rear brakes?

Everyone knows you dont get rear brakes on a yaris!

forgotmyname

Front brakes are also optional it seems, I was surprised how many CAT C ones there are for sale.

ShanFost_

Thanks for all the feedback guys, It was really helpful and appreciated