Old Banger vs Used Finance?

Student_debt_Hype

Hi Guys,

I am just about to pass my test (I'm 24, birthday in a month) and I've been learning since I've been 17 (various things got in the way from passing, sports injuries, heading off to uni, moving into my first non uni place etc). Any-who, I'm about to pass my test (fingers crossed) and I'm looking to purchase a car. And I'm torn between old banger and approved used (finance).

If I was 18-21, I would have never considered approved used finance, just get the old banger and embrace the gurgles, bangs and creaks! No brainer!

But I'm coming up to 25 with a job I travel for a lot, mostly local commuting and meetings but with some 100+ miles further afield (once every month maybe), this is one of the reasons I pushed to pass now! I want something reliable and not going to give me anxiety half way down the M1, preferably!

There is also the added (but MUCH less important) factor of 'appearances', while we aren't a suit and tie company, client expectations of us are a large part of acquiring and maintaining them (I work for a UX development company). My collegues drive new fords and VW's, my boss drives a BMW, this is all part of the client 'coffee table talk'. And this isn't a case of envy (at least I don't think so!) it's more of a 'our clients are snooty !!!! holes and this banger could affected their judgement of the company', nothing to do with anything in the company itself!

I have some outstanding debt, all budgeted and controlled, I have room in my budget for finance up to £170 MAX. But a one off payment of £500-£800 would be difficult (I could probably manage it, just).

My main worry is, getting a approved used car from the big names (VW, Peugeot, vauxhall, citroen etc) is risky because I'm a new driver, new drivers are much more likely to have a scrape and a knock here and there in the first year. Insurance seems roughly the same for both a banger and a approved used (sometimes cheaper for the newer used cars). I'm very torn and I'm looking for some experiences and advice!

I don't have parents or family to ask about this unfortunately, so I come to you, the MSE family who've guided me through my first credit cards, first renting and much more. Any thoughts?

MovingForwards

Just buy a looked after old car and you will be good to go.

Have AA /RAC etc cover, as you would with any car.

You have pointed out the stats for newly passed drivers.

Read loads of reviews for cars you like and whittle it down to help you decide which pool you want to go for.

You really dont want finance from a dealer, just get a small loan from your bank over a year or two while you are honing your driving skills.

Student_debt_Hype

Thanks for the reply! I'd almost certainly get it a bank loan rather than dealer finance if I could! I have good credit rating.

Would you suggest getting a £1k loan or something for a 'banger' and just run that around for a roughly a year while I hone my inner speed racer? (don't worry, I'm probably the most non boy racer in the world. I don't even like driving haha).

barnaclebill

Remember, bigger faster cars even in the banger range need more expensive tyres and use more fuel and usually higher insurance and tax costs. Short term if doing a lot of miles you can consider diesel as some people are changing to petrol or electric and some diesel engine cars may be cheaper to buy now and get better mpg on the longer runs you mention.
Good luck on your test.

Herzlos

If you're using it to visit customers, are you getting any business allowance or just expensing it at 45p/mile?


Are you allowed to hire a car for the trips to customers? You'll probably end up in something a bit rubbish that looks like a rental car, but it'll be brand new. I've never had problems visiting customers in rentals but I deal with engineers rather than sales/marketing/management.


You also don't need to go for manufacturer approved; you could get something cheaper but no less presentable from a car supermarket.



I'll be honest; as long as it's clean and looked after, it shouldn't make any real difference what you drive. Ford, VW and BMW are all pretty common, and you can get new ones on finance for fairly little.


You want to consider all of your outgoings - car tax, fuel, tyres (as said, more expensive and higher spec cars mean larger wheels and more expensive tyres. The cost of tyres for mine roughly doubles going from a 16" to a 17" wheel), maintenance, etc.

CardinalWolsey

Work out what your total three year casts are likely to be, and compare across a variety of different cars (old / newer / model). For each work out tax, fuel economy, servicing, tyres, depreciation, MOT, insurance (don't forget that you will have to insure your car for business use if you are visiting client sites). Crunch the numbers and make an informed choice.

lindens

i would ask the company for a pool/hire car for these long trips, or just jump in someone else's car who is also going
get a £1K focus for now, you WILL ding it, you're a new driver

MovingForwards

I took out a bank loan for my first car and paid £425 for it, lasted a few years with minimal outgoings on it.

Went for another old one after my first one was no longer viable and kept going. The newest car I have owned was an 02 plate 2 yearsish ago. My current one is from 1971.

In my previous job I had to attend clients and just had business use for the times I had to use it.

davidwood681

MovingForwards wrote: »

Just buy a looked after old car and you will be good to go.

Have AA /RAC etc cover, as you would with any car.

You have pointed out the stats for newly passed drivers.

Read loads of reviews for cars you like and whittle it down to help you decide which pool you want to go for.

You really dont want finance from a dealer, just get a small loan from your bank over a year or two while you are honing your driving skills.

Complete waste of money.

Pay the money to a trusted or recommended mechanic who has more realistic expectations of a used car

Student_debt_Hype

CardinalWolsey wrote: »

Work out what your total three year casts are likely to be, and compare across a variety of different cars (old / newer / model). For each work out tax, fuel economy, servicing, tyres, depreciation, MOT, insurance (don't forget that you will have to insure your car for business use if you are visiting client sites). Crunch the numbers and make an informed choice.

I hadn't thought of working out for fuel and tax, this could be a game changer over a couple of years. The new cars I'd looked are so cheap to tax and have great mpg. I'll probably do that this weekend, excuse to break out my completely unused spreadsheet skills!

Herzlos wrote: »

If you're using it to visit customers, are you getting any business allowance or just expensing it at 45p/mile?

I honestly haven't thought of that yet, its a small company, only 10 people. This job has been my first real life adult job, I did my degree, and a few design and code bootcamps and worked a supermarket job until I got this (1 year anniversary of the job last month), so I'm 100% new to just about everything relating to business and 'adulting' like claiming miles and stuff. My work have always just paid for my public transport up until now, I've never seen the 'inner workings' so to speak.

GunJack

^^^^ and insurance..that'll be your biggest single cost if it's your first car. Get a confused.com account to compare for different cars - tip, once you've entered all your personal details once, you just need the registration plate to change cars and generate a new quote...you'll be surprised at the cost & difference between different cars, and I'd buy cheap and use the insurance costs to point you to what models to look at.