Advice Wanted on New Car Purchase

orangeapple91

PeacefulWaters wrote: »

Have you considered a cheaper car and saving money monthly so that next time you fancy a new vehicle you can pay cash? Or you can build up a house deposit?

£20k for a second hand car sounds nuts.

I should of mentioned, I am also saving most of my income for a house deposit, the car is very much a secondary priority for me. Yes I have and still am considering a cheaper car

orangeapple91

Dobbibill wrote: »

I agree with PeacefulWaters - that's alot of money for a vehicle.

Save it up then make your choice when you are not in a HP agreement.

You may find you actually like not having to pay out monthly for a car.

Congrats on the promotion too.

Thanks, I hadn't really considered the "life outside car finance" tbh. Sounds quite nice actually doesn't it

orangeapple91

bengalknights wrote: »

Have you considered leasing the car and just keeping the cash on you to invest elsewhere?

I can never seem to find any decent lease deals for less than £300 given my 20k per year mileage

orangeapple91

Pixie5740 wrote: »

Does the budget increase due to promotion come from the company you work for in that they expect you to drive a certain type, age, make of vehicle or is it just that you're earning a bit more money now so want to "treat" yourself to a more expensive car?

I would say mainly a treat. Although, given my annual mileage I would benefit from something more comfortable which I don't have at the moment.

smithers1981

Someone once wrote on here 'buy the most expensive house you can afford, and run the cheapest car'

I would say keep what you have and pay off the £6k sooner using the extra money from your promotion.

Then really start building a decent deposit for a house.

bengalknights

orangeapple91 wrote: »

I can never seem to find any decent lease deals for less than £300 given my 20k per year mileage

Ah ok one way to get round the limit is look for the vehichle will low over mileage allowance

For example VWFS have 7.2p a mile which over 24 months is a extra £30 a month.

Add that to say the current Tiguan/Ateca/Golf/Leon deals and you have it under £300

bengalknights

Dribiddi wrote: »

Can I ask a slightly related q that I don't think metits a new thread.

HP goes on your credit file like a loan you are paying down doesn't it?
Is it the same with leasing?

Yes the lease still shows on your credit file

Dobbibill

orangeapple91 wrote: »

Thanks, I hadn't really considered the "life outside car finance" tbh. Sounds quite nice actually doesn't it

It really is.

Don't get me wrong, I've had finance on vehicles in the past but decided to save for a new car.

My target keeps rising and rising the more I save - but if truth be told, I don't want to part with 'my money' now it's there and will probably opt for one costing much lower than my savings total. I'm in no rush either as my car is still going strong but on 191k miles, I know it's only a matter of time.

Try it - you might like it

MEM62

FIRSTTIMER wrote: »

I want to spend around 10k on a car and I am almost in this dilemma....

2.5k Deposit and 7.5k bank loan over 5 years OR
2.5k Deposit and a PCP.

Which is the better option? My friends are saying PCP as you get more benefits, but I will ultimately keep the car after 3 years so feel I would be paying over the odds in the end

This is often not the case with PCP as people have a tendency to (a) arrive at the end of the contract with excess mileage charges and the associated costs and (b) without having the means to pay the balloon payment. Therefore they roll the deal over onto a new vehicle and start all over again. You'll be making payments forever and never actually own the vehicle. Leasing makes sense for companies, I personally am not convinced that it is a good product for individuals.

Dobbibill wrote: »

It really is.

Don't get me wrong, I've had finance on vehicles in the past but decided to save for a new car.

My target keeps rising and rising the more I save - but if truth be told, I don't want to part with 'my money' now it's there and will probably opt for one costing much lower than my savings total. I'm in no rush either as my car is still going strong but on 191k miles, I know it's only a matter of time.

Try it - you might like it

This is absolutely the way to go. Financing (by any method) and therefore paying interest on any asset with a value that falls like a stone makes absolutely no financial sense. If you presented most individuals with the full final cost, including depreciation, of their 'must have' cars many would make a different choice.

davidwood123

PeacefulWaters wrote: »

Have you considered a cheaper car and saving money monthly so that next time you fancy a new vehicle you can pay cash? Or you can build up a house deposit?

£20k for a second hand car sounds nuts.

Depends what the car is. There are second hand cars out there worth millions you know