Car Loan

garcon6

I am looking to get a new car soon, would like to take out a personal loan.  My last car I took out i took out a finance deal with Mazda for 5 years which I have almost finished paying, probably paid a lot of interest.  Was thinking of about £16,000, advise needed please.

Regards,

Garcon.

jpsartre

The obvious answer is to go for the loan with the lowest overall costs but it's impossible to know what that will be since nobody here can predict what you will be offered. Have you tried running a loan eligibility calculator, such as MSE's?

Swoosh84

Mazda usually offer interest free finance? Are you sure you paid interest on it? May not have been interest free 5 years ago mind you. But certainly, if you are after a Mazda once again check out their offers, tons of interest free cars on their site. Much cheaper than a loan!

Update: See you mentioned 5 years, its 0% finance on a 3 year deal with Mazda

J

garcon6

Honestly can't remember, but a good point about the interest free offers.

DCFC79

As its a money saving forum why not buy a cheaper car with cash.

DrEskimo

Swoosh84 said:

Mazda usually offer interest free finance? Are you sure you paid interest on it? May not have been interest free 5 years ago mind you. But certainly, if you are after a Mazda once again check out their offers, tons of interest free cars on their site. Much cheaper than a loan!

Update: See you mentioned 5 years, its 0% finance on a 3 year deal with Mazda

J

You need to double check the price of the car on these offers. Typically the retail price is higher, so you are just paying for the interest through a higher purchase cost.

There are countless examples of 0% deals not being applicable when larger discounts are applied, or do not carry finance deposit contributions that other interest bearing offers do.

On used cars, those dealers providing 0% finance also have a tendency to price their cars higher than average.

Whether used or new, ensure you research and check you are getting the car at the best possible price.

Edi81

Why do you need a new car?

foxy-stoat

I would try and save up for a new car and make the existing one last longer than the finance (5 years) or you will be borrowing money all of your life to own a car.

[Deleted User]

garcon6 said:

I am looking to get a new car soon, would like to take out a personal loan.  My last car I took out i took out a finance deal with Mazda for 5 years which I have almost finished paying, probably paid a lot of interest.  Was thinking of about £16,000, advise needed please.

Regards,

Garcon.

I don't know your personal circumstances, your salary, your employment history/industry. Or your credit history. Current level of debt.

But there is no problem taking out a car loan to pay for a car if you can afford to, as I have done in the past.

I took out a 15K loan at 2.8 % last year to pay for a new car because my credit history was great, and my salary was high enough and I only had about 4K on a credit card so i was in a good position to take out a loan of that size to get a reasonably new car with great specs.

Always recommend a solid card/brand that is only a few years old, if you can afford it.

Have a look at the following tools to help you assess you current credit report better:

1. Experian CreditExpert free trial
2. Credit Karma, it's free and looks at your Transunion (formerly CallCredit) credit data.
3. MSE Club Credit
4. CheckMyFile.com

Have a look at these comparison site tools to get an idea of what you may currently be eligible for in terms of loan approval (not rates as they can change once you make a full application):

1. MSE Loan Eligibility checker
2. MoneySuperMarket Loan Eligibility checker
3. MSE Club Credit Loan Eligibility checker

Have you considered taking out a 0% interest money transfer credit card like MBNA? They can offer 10K for example at 14 months interest free period, you'll pay no interest just a 2.99 per cent transfer fee and you can have close to 10K quickly if you are eligible (93% max transfer cap).

Idabiru

Why do you want a new car?

lordmountararat

Idabiru said:

Why do you want a new car?

I imagine it is the reason that many of us buy new cars. If you can afford it, why not relish ownership of a vehicle that no one has owned before you, something that you can cherish and take pride in. look after and enjoy? You can't take your money with you and you're dead for a long time. Life is for living, and if motoring is your thing, then good luck to you.