Need new car - how to finance

JillyC8

DrEskimo wrote: »

Well I personally wouldn't panic. Just keep going and repair it as long as it's economically viable. Suspension issues are not costly to fix, and the body issues are probably not worth fixing. Can always try some DIY methods to spruce it up.

Cars break down and it's just one of those things. There is no guarantee that if you buy another car (even brand new) that it won't break down...I would just keep saving. You have a fully funded emergency fund, so you are covered if the worse happens (car completely breaks down and you need to repair or buy another quickly). Increase your savings by cutting your budget if you would like.

Having said that, if you can get a small cost loan for a low cost relative to your budget, then it's not the end of the world either....I don't think there is a strong justification for that though.

I think this is the most sensible route for now, thank you. I'll see how long I can keep it going and keep saving. If it comes to it I could use part of my emergency fund and borrow the rest so I'm not left with too much debt.

Bravepants

JillyC8 wrote: »

I'm hoping to do this but I think my current car may fall apart before my savings reach the level I need to be able to fund both a car and an emergency fund. My car is essential as I commute over 100 miles a day (4 days a week). I will hopefully keep it on the road for longer but not sure how much longer it will last so I'm starting to think ahead now.
.

If your car is falling apart and you need it to go out and earn money, then THAT constitutes an emergency and is what an emergency fund is for.

cranford

MSE has a loan calculator. If you borrow at least £7,500 then interest rates are 2.9% at the moment so a 3yr loan on this will cost about £340 in interest. Maybe you could save this on a car price with a bit of bargaining.

JillyC8

cranford wrote: »

MSE has a loan calculator. If you borrow at least £7,500 then interest rates are 2.9% at the moment so a 3yr loan on this will cost about £340 in interest. Maybe you could save this on a car price with a bit of bargaining.

This would seem like a good option, but with the payments each month being so high, I wouldn't have much left over for anything else, as well as saving, which is something I try to do each month.

JillyC8

I bought my current car (Clio) for £3500 three years ago, and would be looking to spend around the same or less if I can on a new one. It's been a good car with little going wrong. I think that's why I'm convinced it's due for a breakdown!
I hope to get another year out of it, but want to look at the options just in case.

DUTR

JillyC8 wrote: »

I bought my current car (Clio) for £3500 three years ago, and would be looking to spend around the same or less if I can on a new one. It's been a good car with little going wrong. I think that's why I'm convinced it's due for a breakdown!
I hope to get another year out of it, but want to look at the options just in case.

So continue saving for another year until such time a catastrophic breakdown repair cost outweighs keeping the car.

motorguy

JillyC8 wrote: »

I bought my current car (Clio) for £3500 three years ago, and would be looking to spend around the same or less if I can on a new one. It's been a good car with little going wrong. I think that's why I'm convinced it's due for a breakdown!
I hope to get another year out of it, but want to look at the options just in case.

I think given this info, and you're not prepared to have a sizeable monthly payment, i would be driving on at this car as long as possible.

Keep it well maintained, have issues fixed when they occour rather than let them build up to become a prohibitive bill.

JillyC8

Thank you I do think this is the best plan. I keep it fully serviced so hopefully nothing too expensive will go wrong. And as pointed out, a newer car could have problems anyway.

parking_question_chap

How old is the Clio?

wazza2004

I would pay part of it on credit card so I do have additional protection if things go wrong. Remember to pay it in full to avoid interest.