First Car Purchase

Bonfire_Bride

I think usually they would want to see a little more history than just a phone account...but I may be wrong. I would also try and decrease the cost of the car as you can get a perfectly good car for between 4 and 6k.

dealer_wins

Any possibility of a mobility car that your mum could qualify for. Apologies if its a stupid suggestion I have no idea of criteria for these.

CKhalvashi

dealer_wins wrote: »

Any possibility of a mobility car that your mum could qualify for. Apologies if its a stupid suggestion I have no idea of criteria for these.

Higher rate DLA or PIP, but there is the requirement to give up the benefit for this.

Often it's cheaper than car ownership, however, and with a 20k miles per year agreement, it should be flexible enough for family needs.

aDylan

Edited for privacy.

andyfromotley

Hi dylan,

Probably not what you want to hear, but this is your first major purchase in your life. A life that you live with virtually no outgoings and a steady but not huge wage. You are proposing to take out a loan of more than two thirds of your salary in order to so. Depending on the APR this loan is going to cost you at least £300 each and every month. Thats before you get to service, fuel, saving for insurance for the following year.

Sorry mate but i think thats crackers. You have 2.5k save and in the next few months you could EASILY get that to 5 grand. Buy a perfectly decent car for 3.5k and pay for your insurance outright.

This loan will dominate your life for the next three years. I think you could forget about saving up for a deposit for a house, moving out and renting, having a baby maybe, packing up and travelling the world for a bit, you get the picture.

I do not think this is the wise thing to do, you are at a crossroads, one way is marked debt, the other is marked financial freedom. Choose carefully.

GwylimT

Have you narrowed down a selection of cars that meet your needs?

johnwills

I think finance is better option as compare to personal loan

macman

Nothing wrong with still living at home at 26 if by mutual agreement. But you are paying no rent, no council tax, no contribution to utilities...no food bills either maybe?
That is a financial fantasy world-once you start having to pay 'normal bills', you will find that the loan you propose to take on a low salary will be a huge millstone round your neck.

Herzlos

I'd be wary of borrowing money and keeping savings. Realistically you're looking at getting under 1% interest on the savings and paying over 10% interest on the loan.

As said, you can get nice cars for well under £9k. I'd be looking at cars for half of that (£3-5k), pay the insurance from savings and put all but say £500 (for repairs) towards the car, then borrow the rest.

You'll then get it paid off in well under half the time and will be in a better position to upgrade to a nicer car.

Pablosammy

I'd vote to avoid finance as well. I fell into that trap. Although it may seem affordable now, it WILL drain you, it WILL drag you down and it WILL cost you money in the long run. Either save up a bit more and buy outright, or use some of your existing savings to buy a runaround. There is a forum section on here I think specialising in low cost motoring. It may not be your dream car, but from experience, a dream car is just a normal car after a few months of ownership.