Car finance

burlington6

DesiBadBoy wrote: »

Firstly make sure its a diesel or has at least 50-60mpg.

Finance APR tend to be high. Find out what it would be. You'll probably find personal loan APR to be much cheaper.

(Text removed by MSE Forum Team)

If you don't need a diesel ( anything less than 15,000 miles a year as a rough guide )....don't buy one.

Caz3121

Gurses wrote: »

I'm currently a student and don't want to deal with a large amount).

do you have any employment income? one of the first questions on a loan application will be what your income is

andyfromotley

Buy a £2k car, keep the other £2k for insurance, tax and servicing. Live life debt free. Not as sexy as a Audi A1 i'll grant you but a much better bet in the long run.

Futuristic

Unless the Audi A1 2012 is a 1.2l, insurance is going to be very expensive.

I'd be very much inclined to spend £5k on a new leased car for 2 years than a old one where repairs are likely and could get expensive very quick

System

Guys, I have £2500 for my insurance (I checked, it's around £2.6k for a year), on top of the £4000 I saved up for the deposit. This doesn't include my other savings (which is around another £4k).

I don't want an Audi to stunt to my friends, all of them already drive nice cars and I couldn't care less about what they drive. I'm materialistic and I've been working part time (full time during summer) since the age of 18, and had small jobs such paper boy before my 18th.

I guess what I'm saying is I've literally been working to save for a car, and I think I deserve the car I want. I have more than the separate £4000 savings (on top of the deposit and insurance) however that's money that is sitting in my other bank. This is over £10k, made from both my employment and my parents chipping in.

I also currently work part-time with a salary close to £9 an hour so paying the finance/loan isn't an issue. This will change to full-time during summer so I can even pay off the car if I want. The only reason I'm not paying off the car is that I don't want to spend £10k (car + insurance) in one day, as I spend a lot of money going out, clothes, etc.

tl;dr I'm materialistic and been working since I was 15. I have over £10k in savings which I'm not planning to touch, hopefully i'll have around £20-25k by the time I marry so I have a good start, with the help of my partners savings, hopefully. So I think I fully deserve the car I want as I've worked for everything I've ever wanted, it isn't money I'm leeching off my parents.

foxy-stoat

So you have £2500 for insurance in cash, another £4000 in cash for the deposit for the car and another £10,000 in a savings account....and your on here asking whether is best to get a £4000 loan or take out £4000 at a dealers to buy the car you want?

Firstly, well done for saving £16500 before your 21st birthday!

I would just take out the £4000 from the savings account and pay back £120 a month over 3 years...which is the best loan on the meerkats which you probably wont get.

spadoosh

Gurses wrote: »

Guys, I have £2500 for my insurance (I checked, it's around £2.6k for a year), on top of the £4000 I saved up for the deposit. This doesn't include my other savings (which is around another £4k).

I don't want an Audi to stunt to my friends, all of them already drive nice cars and I couldn't care less about what they drive. I'm materialistic and I've been working part time (full time during summer) since the age of 18, and had small jobs such paper boy before my 18th.

I guess what I'm saying is I've literally been working to save for a car, and I think I deserve the car I want. I have more than the separate £4000 savings (on top of the deposit and insurance) however that's money that is sitting in my other bank. This is over £10k, made from both my employment and my parents chipping in.

I also currently work part-time with a salary close to £9 an hour so paying the finance/loan isn't an issue. This will change to full-time during summer so I can even pay off the car if I want. The only reason I'm not paying off the car is that I don't want to spend £10k (car + insurance) in one day, as I spend a lot of money going out, clothes, etc.

tl;dr I'm materialistic and been working since I was 15. I have over £10k in savings which I'm not planning to touch, hopefully i'll have around £20-25k by the time I marry so I have a good start, with the help of my partners savings, hopefully. So I think I fully deserve the car I want as I've worked for everything I've ever wanted, it isn't money I'm leeching off my parents.

Your going to be spending nearly £20,000 to drive a car that will be worth about £3000 at the end of that period. Bearing in mind that the list price might be around £8,000. And thats before youve put petrol in it.

[£20k after four years of drving, dont know where or why i got 4 years from]


I reckon the chances are it will be cheaper using ubers 'luxury' service than it will be you driving that car, plus youll be chauffeured in nicer cars than an A1.

System

spadoosh wrote: »

Your going to be spending nearly £20,000 to drive a car that will be worth about £3000 at the end of that period. Bearing in mind that the list price might be around £8,000. And thats before youve put petrol in it.

[£20k after four years of drving, dont know where or why i got 4 years from]


I reckon the chances are it will be cheaper using ubers 'luxury' service than it will be you driving that car, plus youll be chauffeured in nicer cars than an A1.

Where'd you get £10k from? I won't spend £10k on the car in 4 years, no way. I don't drive that much anyway.

Being expensive compared to an Uber isn't the point. I'm 20 years old. I go out, I have friends, I have female friends, you can't really compare an Uber to a personal car. No, the reason I want a car isn't for the females but I've been saving up for it, and I have enough money for it.

The point was which will be cheaper, not if it's worth the car. If the insurance was less, I would have gone for a 1 series coupe for like 11k but on a coupe I'm being given prices of £5k as a second driver (illegal as it's fronting).

Edit: I understand scepticism around buying a first car for nearly £10k, but I've worked for it and I deserve it. The question is which route, bank or showroom but I guess we said whichever is the cheapest.

System

Thanks for the advice mate, I actually didn't think about the diesel/petrol comparison but diesel seems to be the right choice and for some reason the insurance is a lot cheaper.

tberry6686

As you have made up your mind to buy the car that you want then think carefully about how many miles you will do and what sort of driving (long motorway runs, short hops in town). Then do a bit of research. In general, modern diesel engines are not suited to short hops and need a fairly regular long run to reduce the risk of very expensive repairs.