Car Finance Question

theblessedone

DrEskimo said:

What's the rush?

If you plan on having the full £14k by September, just plan on buying then. It took me the best part of 6months to find my car for the price I was willing to pay anyway (specific EV).

If anything comes up that means you have to divert some funds away, at least you can do that without having a loan hanging over you....

Big advantage of having the full cash amount is that you can use dealer finance to extra discounts and perks (e.g. I got £1000 deposit contribution and 2 free services on my used car) then settle the finance in full the next day. Trying to do this with two finance agreements is tricky, and you certainly don't want to be paying used car finance rates (mine was 9.9% had I needed it).

The rush is needing a car now, as my current one is one stop short of knackered.

The original scenario was to do just that, save cash and pay outright by September. However, I hadn't factored in my current car breaking down on me.

I guess my original question is more poised at if I take finance out and settle within 3/4 months, will there be any ramifications?

Grumpy_chap

theblessedone said:

I guess my original question is more poised at if I take finance out and settle within 3/4 months, will there be any ramifications?

No.  None whatsoever.

sourcrates

Ebe_Scrooge said:

I have to agree with Grumpy_chap - £7000 is a lot more than I've ever spent on a car.  For that sort of money you can buy a very good used car that ought to be reliable and give many years of service.  Of course, you won't be able to impress the neighbours by driving a brand-new car, but it depends what your priorities are.

Yes, me too lol, I'd never spend that much on a car, I have just recently parted with almost 5k for a mint Mk1, Audi TT, the model I always wanted but refused to pay 20 grand for.

I must confess I had to Google ULEZ, living in the wilds of East Yorkshire, we don`t have things like that up here, of course if its something you desire then fair enough, make the most of it before we all start driving overrated battery type rubbish lol.

theblessedone

sourcrates said:

Ebe_Scrooge said:

I have to agree with Grumpy_chap - £7000 is a lot more than I've ever spent on a car.  For that sort of money you can buy a very good used car that ought to be reliable and give many years of service.  Of course, you won't be able to impress the neighbours by driving a brand-new car, but it depends what your priorities are.

Yes, me too lol, I'd never spend that much on a car, I have just recently parted with almost 5k for a mint Mk1, Audi TT, the model I always wanted but refused to pay 20 grand for.

I must confess I had to Google ULEZ, living in the wilds of East Yorkshire, we don`t have things like that up here, of course if its something you desire then fair enough, make the most of it before we all start driving overrated battery type rubbish lol.

Agreed. Being a petrol-head however and no other commitments, it is a treat to myself. Had the ULEZ charge not come in, I probably would have just stuck with my car.

But needs must, and if I must, I want something a little special. But no longer will I purchase things on credit unless absolutely necessary and knowing I can clear the balance sharpish.

Brie

Any chance of you using a credit card either with a 0% purchase deal or a 0% balance transfer?  That was you could get the best of both worlds, nice new (to you) car soon and a completely flexible pay back at little cost.  

Must admit once when our car went lights up very suddenly and we were forced into a quick purchase the finance guy at the dealership thought we were an easy target.  And he must have thought I was simple when he tried to dazzle me with cheap monthly payments and not wanting to discuss the actual APR or loan fees claiming they were completely irrelevant.  He stopped smiling when I started quoting lending regulations to him.  I would have loved to have walked away from dealing with someone like that but the car was essential for us and as we were buying on 30th Dec in a dead market we got a great deal by boosting their month and year end targets.

[Deleted User]

sourcrates said:

Ebe_Scrooge said:

I have to agree with Grumpy_chap - £7000 is a lot more than I've ever spent on a car.  For that sort of money you can buy a very good used car that ought to be reliable and give many years of service.  Of course, you won't be able to impress the neighbours by driving a brand-new car, but it depends what your priorities are.

Yes, me too lol, I'd never spend that much on a car, I have just recently parted with almost 5k for a mint Mk1, Audi TT, the model I always wanted but refused to pay 20 grand for.

I must confess I had to Google ULEZ, living in the wilds of East Yorkshire, we don`t have things like that up here, of course if its something you desire then fair enough, make the most of it before we all start driving overrated battery type rubbish lol.

Bath and Birmingham have both brought them in, Leeds and Nottingham started (but cancelled), Manchester is thinking of one for next year same with Bristol.

As for "overrated battery type rubbish", I'd suggest you move into the 21st Century. 20th Century ICE tech will be banned from new sales in just 8 1/2 years and EVs are already well established and will only continue to get better, a Tesla is vastly superior to the Audi TT in terms of tech, speed, acceleration etc