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Loan affordability, can I afford it?

edited 30 November -1 at 1:00AM in Loans
37 replies 4.3K views


  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
    12.1K posts
    Eighth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
    If you are on the verge of buying your first house that is the worst time to saddle yourself with a large loan and quite frankly £22k for a car is ridiculous with nothing to put towards it. You would be really foolish to take out that much in borrowing and if your mortgage company knew you were considering it they could withdraw the offer. Your mortgage was worked out as affordable on your current circumstances which of course shows no such loan. Also only paying £35 towards your credit card is not enough. Your partner does not earn a lot. You do not have children and you are considering saddling yourself with a quarter of a million mortgage and a £22k loan. If she has managed alright with the current car why choose now to change it? How much further is her journey to work when you move?

    I would wait until you are moved in and any immediate bills/work done before even considering buying another car. If you have that much disposable income see how long it takes to save up £5k for a car and borrow another £5k maybe when your existing credit card is paid off on a 0% card. £10k is more than enough for a 2nd hand car.
    Early retired in December 2017

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  • JmahoJmaho Forumite
    23 posts
    I couldn't ever imagine spending 22k on a car but maybe that's just me!I would however review your mortgage offer. I work in the industry and you can get a much cheaper rate than 4.99% even at 95% LTV
  • BrassicWomanBrassicWoman Forumite
    3K posts
    Seventh Anniversary 1,000 Posts Name Dropper Mortgage-free Glee!
    Agree, 2018 is nearly new. Get to '14 or earlier. A decent car will easily go 150k these days and be reliable as long as you service it.
    2021 GC £595/ £2400
  • GycraigGycraig Forumite
    77 posts
    10 Posts First Anniversary
    You want to spend more than two years of your partners salary to buy her an expensive car when she might not even be working soon.

    22k on a Kia that is gonna plummet in value faster than you pay it off. Whilst simultaneously thinking of starting a family. You do you it's your money but just seems crazy to me.
  • tunnie123tunnie123 Forumite
    26 posts
    We have just gone from a Citroen c1 to a second hand all singing all dancing Dacia Duster 18k miles.... it cost us 8k much bigger and more comfortable... no way do you need to spend 22k im assuming you are looking at a range rover....
  • edited 26 June 2019 at 9:35AM
    DCFC79DCFC79 Forumite
    40.2K posts
    Part of the Furniture 10,000 Posts Name Dropper
    edited 26 June 2019 at 9:35AM
    Your wanting to start a family in the future yet your aanting to spend £22k on a car, ok not in cash but on finance. You would pretty much be stealing from your future self. Work out your priorities then rethink the idea of buying a car.

    I understand the reasoning for wanting a vehicle that's comfier, it makes the driver easier of the seat is comfier.
  • nic_cnic_c Forumite
    2.6K posts
    Part of the Furniture 1,000 Posts Name Dropper
    I would reassess you finances taking into account money for house upkeep. You don't say whether its brand new or not, will it need redecorating in the next few years, what about new appliances, etc. You may also want to reassess based on your partner not returning to work for a few years and also the cost to start a family, you say future but are we talking, 1, 3, 5 years away?

    Surely it makes sense to wait a year after moving in to then be able to get an understanding of costs and see how much saved over the year. Budgeting as much for emergencies as haircuts may prove inadequate.
  • foxy-stoatfoxy-stoat Forumite
    6.8K posts
    Fifth Anniversary 1,000 Posts Name Dropper
    Jimmy9012 wrote: »
    Currently Peugeot 107. The seats are not great, especially for longer drives (even 40 minutes), and the ride leaves a lot to be desired. You can feel every bump.

    We are considering something like a slightly old (2018) Kia Sportage, or Hyundai Tucson. That would give room for a family and many comforts that will keep her mobile. For example, for her motorway drive they both have cruise control. They both are automatic, so she does not have to worry about using her left foot at all (yes, easy for us - but over time it will exacerbate her issues)... the lumbar support and seats also feel very comfortable compared to the Peugeot.

    Its not like we are looking at Volvo XC60's or anything. The Kia and Hyundai are mid level SUVs with many comforts that would help her. Older models do not have the same kit list, and seem a little pointless to move to...

    Sounds like you have already justified going from an old £1000 car to a £22,000 newish car.

    Only advice to give you is to read the contract on whatever finance you take and understand that you will be committing to the full length of the term, work out the mileage and dont be talked into putting down less mileage to get the PCP cheaper and you will be charged at the end for wear and tear. Oh and if it is written off then you will be left with no car and no money, at best.

    If only there was a cheaper old mid range 4x4 which are comfortable that wasn't £22,000 that you could buy with say £6,000 cash;

    Nissan Qashqai
    Skoda Yeti
    Mitsubishi ASX
    Peugeot 2008
    Toyota RAV4
    Dacia Duster
    Volkswagen Tiguan
    Hyundai ix35
    Vauxhall Antara
  • Kentish_DaveKentish_Dave
    842 posts
    I had a B7 model RS4, one of the best Audis ever made. After five years’ ownership from new I sold it with 22,000 miles on the clock, in genuinely immaculate condition, for £22,000.

    The idea of someone spending that on a new Kia is bonkers.
  • foxy-stoatfoxy-stoat Forumite
    6.8K posts
    Fifth Anniversary 1,000 Posts Name Dropper
    I had a B7 model RS4, one of the best Audis ever made. After five years’ ownership from new I sold it with 22,000 miles on the clock, in genuinely immaculate condition, for £22,000.

    The idea of someone spending that on a new Kia is bonkers.

    As much as I love the RS4 - spending £50,000-£60,000 on a new one and driving 4,400 miles a year also seems bonkers. Each to their one.
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