Best way to fund a newer car

t3rm3y

I require a newer car (mines 15 years old and 160k miles,
I have managed to get a small raise of £84 per mth, i think i can stretch to £100 per month (as currently have pretty much nothing left every month after other bills).

What is the best way to find a loan, or credit for a newer car(im not talking brand new) but maybe 5 years old, and as low mileage as possible.

Would a bank loan or car dealer finance be better? or is their more advisable routes?

Ebe_Scrooge

The best MSE advice is don't buy a newer car just for the sake of it - if there's nothing wrong with your existing one then keep it. The cost of buying a new car will pay for an awful lot of repairs.


However, if you've decided you do want a new one, then it's a case of doing the sums. You'll often get a good discount from a dealer if you take their finance, as they make a commission from selling you the finance. But you may well find that a personal loan from a bank will be cheaper. It's a case of visiting the dealers and see what they have to offer, then see what sort of loans are available from banks, then work out the overall cost ( cost of car + loan repayments ).


But if, as you say, you have very little spare cash every month, then I'd think very hard about a new car. £100 a month will probably cover a smallish loan repayment, but you're then left with nothing at all spare. What happens when you get an unexpected bill, or need repairs to the car ? Even a newer car is not immune from problems. At least if you keep your existing one, you can put away the £100 per month that you'd otherwise be spending on the loan, and use that to cover any repairs / maintenance that may be needed.

t3rm3y

my concern is the repairs, as mentioned its 15 years old and aside from the usual MOTs, and services the only things that have cost have been timing belt and recently an alternator.
i have a small savings pot which is for any sudden house costs, and my partner works part time so covers food, most other bills and we will find the money between us for repairs.
but my job spec has slightly changed and involves driving to sites, this could be into london, or further afield, i just dont fancy using my car for that.
i feel i was lucky with my current leon, it was 5 years old and has lasted me really well - and cost £5k, which i had back then, if i can get the same usage, and time out of a replacement i would feel happy.

Gaz83

t3rm3y wrote: »

my concern is the repairs, as mentioned its 15 years old and aside from the usual MOTs, and services the only things that have cost have been timing belt and recently an alternator.
i have a small savings pot which is for any sudden house costs, and my partner works part time so covers food, most other bills and we will find the money between us for repairs.
but my job spec has slightly changed and involves driving to sites, this could be into london, or further afield, i just dont fancy using my car for that.
i feel i was lucky with my current leon, it was 5 years old and has lasted me really well - and cost £5, which i had back then, if i can get the same usage, and time out of a replacement i would feel happy.

If your job spec has changed to involve you driving, then your work should be providing the car. Unless they have specified that's what the raise is for?

ricardinho88

What's your credit like? If it isn't good/excellent, you will probably struggle to get finance from your bank or a dealer.

I work in the industry, and brokers are a good place to start. You can choose a car from anywhere so you aren't limited to a certain dealership, and often they'll throw in history and valuation checks.

andyfromotley

given the very brief details you have given i wouldnt take on a loan at all. you basically have no leeway in your budfet at all but are now using a raise to take out a loan (and for more than your raise!) effectively making you worse off.

Run the current car as long as you can and save save save the extra cash you have.

t3rm3y

the new role will start mainly office based but further down the line i will receive either a car or larger car allowance when i am in the field.
It just for the odd occasions in the mean time, if i have to take any boxes or hardware with me i would prefer to have a reliable vehicle.

And as i have children also i wanted to get a normal size car, not a tiny smart car, or something.
I completely understand what you guys are saying, and i would love to "save" the money, but i jsut know the current car will eat this money up and i will still be driving the car around (if it can be fixed) whereas if i managed to get something newer, and it ran perfectly fine for a year. when i go out i can either continue to use it and save the larger car allowance money. or sell the car and take a company car. (this was the plan anyway)

i would not like to over stretch myself of course, but i also wouldnt want the car to blow up and im without a vehicle and risk losing the job. (or having to purchase something quickly which is not safe, and i certainly wouldnt want to put the children in it..)

jaydeeuk1

If you buy a car out of warranty you could be landed with repair bills, maintenance, mot and servicing costs that are at least as much as your current car. If that 'blows up' then what would you do?
And if you are offered a co car with no car allowance option, you're stuffed again.

swindiff

Some pretty competitive lease deals available

Herzlos

You should be able to get a decent family sized hatchback for about £2k with a bit of looking around. Probably by going private so you'd need to get a bank loan.

If it's for very occasional use, I'd be looking at saving the £100/month and hiring a car for the days you need it. If all you have spare is £100/month you're not going to have any leeway if things go wrong.

ricardinho88

Herzlos wrote: »

You should be able to get a decent family sized hatchback for about £2k with a bit of looking around. Probably by going private so you'd need to get a bank loan.

If it's for very occasional use, I'd be looking at saving the £100/month and hiring a car for the days you need it. If all you have spare is £100/month you're not going to have any leeway if things go wrong.

Car finance companies can also cater for private sales too, so that option would still be available.