Car finance

ratrace

foxy-stoat said:

£205.85 x 48 = £9,880.80 + £1,500 = £11,380.80.  If your balloon payment at the end of year 4 is £5,402.64 then your figures do add up.  Make sure you save the £110 a month for the next 4 years so you can buy it at the end.

I wouldn't buy a diesel if your only going to drive it 10,000 a year though, unless your trips are all fairly long.

Or if you dont want to buy it and the end make sure you take good care of it mechanically and its condition as if you dont they will charge you a lot for anything that falls outside the bvrla guidelines

10k a year you could get away with a diesel depending if the commute is long, i have an astra diesel and the dpf light comes on every 2 weeks or so as i do a lot of short stops but when it does come i take it for a blast on a dual carriageway once i sell this im going back to a petrol

personally i would not get into debt for a car i do my own pcp in which i put £250 away every month and after 3 years buy a £10k car outright no fees no interest no nothing but i do buy high mileage ex fleet cars as i am a part time mechanic so can repair them at work and save on the depreciation 

2 months ago i bought an audi a1 for my sister from bca auction for £6k and sold the a class privately, she is the same just puts money away every month and buy a newer car every few years

if you want a reliable and cheap running car then i would suggest you look at  a toyota auris hybrid they tick a lot of boxes a nice one can be bought for about £10k, hope this helps

foxy-stoat

ratrace said:

foxy-stoat said:

£205.85 x 48 = £9,880.80 + £1,500 = £11,380.80.  If your balloon payment at the end of year 4 is £5,402.64 then your figures do add up.  Make sure you save the £110 a month for the next 4 years so you can buy it at the end.

I wouldn't buy a diesel if your only going to drive it 10,000 a year though, unless your trips are all fairly long.

Or if you dont want to buy it and the end make sure you take good care of it mechanically and its condition as if you dont they will charge you a lot for anything that falls outside the bvrla guidelines

10k a year you could get away with a diesel depending if the commute is long, i have an astra diesel and the dpf light comes on every 2 weeks or so as i do a lot of short stops but when it does come i take it for a blast on a dual carriageway once i sell this im going back to a petrol

personally i would not get into debt for a car i do my own pcp in which i put £250 away every month and after 3 years buy a £10k car outright no fees no interest no nothing but i do buy high mileage ex fleet cars as i am a part time mechanic so can repair them at work and save on the depreciation 

2 months ago i bought an audi a1 for my sister from bca auction for £6k and sold the a class privately, she is the same just puts money away every month and buy a newer car every few years

if you want a reliable and cheap running car then i would suggest you look at  a toyota auris hybrid they tick a lot of boxes a nice one can be bought for about £10k, hope this helps

Sounds like you are on the save as you earn scheme....rare in these parts.

ratrace

Sounds like you are on the save as you earn scheme....rare in these parts.

Being around and working on cars all my life i quickly realized that manufacturers are very deceiving they sell the same product over and over again but all they do is change the cosmetics that people can see, so folk think they are getting a "new shape car" but in reality underneeth its identical. that aside i look at things from a ROI point of view.

Imho, There is no point in me buying a expensive car that i cannot afford (if i cant pay cash i cannot afford it) for it just to sit on the driveway at home when im asleep and then 8 hours in the works carpark just does not make any financial sense to me to me, paying good money for something i hardly use but each to their own.

Grumpy_chap

It sounds like the OP is buying from a Car Supermarket style dealer, not a main dealer.

Looking at the Audi website, this is a £14k car and the OP is paying £14k.  That part of the equation stacks up.

The second part is the finance.  APR at 8% seems high to me, but it is more competitive than Audi publish.  The Audi finance includes "incentives" though - not sure whether the car supermarket would offer that (unlikely), so simply comparing APR is not necessarily comparing apples with apples.

I do think it is possible to find more attractive finance rates that 8% APR.  May be higher monthly payment, though, if not a specific car finance product (with the balloon payment meaning you pay more total but monthly is less).  Paying £3k finance on a £14k car over 4 years, that works out at 20% extra to have a car you can't afford.

ict_guy

If you buy a 4 year old car, remember there will be no manufacturers warranty. I would buy such a vehicle through a main dealer only, not a trader. They will most likely offer some sort of inclusive warranty from some 3rd party, which won’t be worth the paper it’s written on!

lordmountararat

If you buy a 4 year old car, remember there will be no manufacturers warranty.
Not so. A Honda or a Hyundai would have one year's warranty left, and a Kia would have three year's warranty left. I am not sure about the others, but Kia's warranty certainly extends to subsequent owners.

cajef

lordmountararat said:

If you buy a 4 year old car, remember there will be no manufacturers warranty.
Not so. A Honda would have one year's warranty left,

Not so a Honda warranty is three years or 90,000 miles, I am on my third.