Car Finance Decision

sarahc4536

I was in a car accident last week, and have found out my car is being classed as a total loss. I have barely any savings, and no idea what my insurance will payout for my car yet (the loss team haven't been in touch at all yet), and looking for advice from others on what would be best to do for getting a new car. 
My intention is to use the payout from the insurance as my deposit, but I can't decide between getting a loan or looking at something like PCP/HP.
I take home around £1300 a month, and pay £400 rent, and currently have a loan that's £225 p/m. Not including phone bill, etc. and a few other bits I save, there isn't much to play with in terms of additional monthly outgoings.
I think I'm leaning more towards getting a new loan to pay off my outstanding loan (£3800 left to pay) and then getting enough to hopefully get a car I want. Mainly because I think I'd really struggle to pay out for PCP/HP at the same time.
I'd like something relatively new (17/18 plate at the oldest if possible) and most likely a Fiesta/Hyundai i20/Corsa or that mid-size range at least. So I know it won't be cheap overall, and I can potentially borrow a small amount from family, but I just feel confused with what's best.

Any advice would be greatly appreciated, even if it's just to tell me I'm on the right track with my train of thought.

Nagme

My advice would be to look closely at your budget. Do you have any savings? From your post I would say don’t get another loan.

8871Jlw

If you’re worried about costs then surely limiting your vehicle in terms of age doesn’t make sense?  A Corsa from 2013 or 2014 would suit your needs would it not?  

Tough to really give good advice, but don’t limit yourself in terms of cars - you can get perfectly good car 10 years old that will suit your needs / lifestyle, just do some due diligence before buying! good luck! 

sheramber

What car did you have? Someone may be able to give you a ball park figure fir the payput.

Why do you want a car 2017/18?

You need to buy what you can afford, not what you would like?

Have you investigated what sort of loan you could get and what the repayment would be? Can you afford the repayments/

 

sarahc4536

8871Jlw said:

If you’re worried about costs then surely limiting your vehicle in terms of age doesn’t make sense?  A Corsa from 2013 or 2014 would suit your needs would it not?  

Tough to really give good advice, but don’t limit yourself in terms of cars - you can get perfectly good car 10 years old that will suit your needs / lifestyle, just do some due diligence before buying! good luck! 

I've been debating that actually, but the only thing that puts me off is knowing the costs for upkeep, I've had cars that have cost me quite a bit on upkeep that were only 5/6 years old so going older puts me off. My recently departed one was 13 years old (I had it for 8) and it just started mounting up.
I'll definitely look into it though.