Best way to buy a car

cliptomaniac

Hi guys

i have pretty good credit and was wondering what is the best way to buy a car. I will put down £1500 on a £10k car. So do you think i should:
a: Get a loan from bank
b: Credit Card
c: Car loan

Also i want to make the monthly payments no more than £140

Any advice would be much appreciated.

Thansk a lot

CLAPTON

If you borrow 8,500 at say 10% APR and only pay 140 per month you will need a loan lasting 7 years.... complete madness (the car will be worthless by then assuming you still have it).

think spending 1500 on the car and save up 140 a month until you have saved for whatever you want

kammyk

CLAPTON wrote: »

If you borrow 8,500 at say 10% APR and only pay 140 per month you will need a loan lasting 7 years.... complete madness (the car will be worthless by then assuming you still have it).

think spending 1500 on the car and save up 140 a month until you have saved for whatever you want

Completely agree there is no need to buy car which you cant really afford. Be debt free!

Johan

cliptomaniac wrote: »

Hi guys

i have pretty good credit and was wondering what is the best way to buy a car. I will put down £1500 on a £10k car. So do you think i should:
a: Get a loan from bank
b: Credit Card
c: Car loan

Also i want to make the monthly payments no more than £140

Any advice would be much appreciated.

Thansk a lot

Yes buy a car for about £1500 with a years MOT and drive away at it untill you have saved up enough for a better car to buy it outright! No debts!

poppy10_2

cliptomaniac wrote: »

Hi guys

i have pretty good credit and was wondering what is the best way to buy a car.

Save up for a year or two, and buy a car that is within your budget.

No wait, silly me, I meant take out a huge loan to buy a flash car, and once you start struggling with the repayments just put it on your credit card.

ameliarate

Not sure the answers so far are very helpful. I too want to buy a new car, though spending a little less and would have liked to read some sensible advice. I have no debt whatsoever, including no mortgage, but not enough savings for a new car and as my daughter is now at university and I have to do longish journerys more regularly am contemplating getting rid of my 6 year old car for one that is 1 or 2 years old.
Perhaps some people who are less sarcastic and judgemental will come along and reply?

CLAPTON

ameliarate wrote: »

Not sure the answers so far are very helpful. I too want to buy a new car, though spending a little less and would have liked to read some sensible advice. I have no debt whatsoever, including no mortgage, but not enough savings for a new car and as my daughter is now at university and I have to do longish journerys more regularly am contemplating getting rid of my 6 year old car for one that is 1 or 2 years old.
Perhaps some people who are less sarcastic and judgemental will come along and reply?

do you truely believe it is sensible to borrow money for a car over a seven year period?...
you are considering replacing a car merely six year old...
if you had borrowed over that period when you bought it you would still be paying for it after you had replaced it.

sensible advice is to spend a lot less in relation to one's ability to repay.

Burlesque_Babe

I think the advice is very sensible.

Getting a long loan on a depreciating asset is never a good move.

£1500 will buy the OP a really reliable car which he/she can drive happily for the next few years whilst saving the £140 a month in a high interest savings account.

There's nothing to guarantee anyone that a car costing £10k (or is 1-2 years old) is going to be any more reliable than one costing £1500 (or 6-10 years old).

ameliarate

keren29 wrote: »

I think the advice is very sensible.

Getting a long loan on a depreciating asset is never a good move.

£1500 will buy the OP a really reliable car which he/she can drive happily for the next few years whilst saving the £140 a month in a high interest savings account.

There's nothing to guarantee anyone that a car costing £10k (or is 1-2 years old) is going to be any more reliable than one costing £1500 (or 6-10 years old).

Whilst I appreciate that what you are saying is correct, my car is starting to cost money at MOT and in fact I am having problems with it at the moment and need a car that is reliable. I think it is a fairly safe bet that a car that is only a year old will be more reliable than one that is six or seven years old and costs less per year in terms of repairs needed. I would also agree that taking a loan out over 7 years is rather too long, however, if someone is going to try to borrow money to purchase a new(er) car then the original request for advice still stands, i.e. what is the best option for borrowing said money?

Sup3rArsenal

This person is asking for advice and not your opinions....

I would look around and see which garages have the 0% offer on their finance.

It would be unlikely that you will get the monthly payment you are after as previously stated it would be a long term..

If all that fails then have a look at the loans section on the website and use that for a guideline.

Johan

keren29 wrote: »

I think the advice is very sensible.

Getting a long loan on a depreciating asset is never a good move.

£1500 will buy the OP a really reliable car which he/she can drive happily for the next few years whilst saving the £140 a month in a high interest savings account.

There's nothing to guarantee anyone that a car costing £10k (or is 1-2 years old) is going to be any more reliable than one costing £1500 (or 6-10 years old).

I myself bought a decent 1994 peugeot 405 diesel back in 2000 and kept it for 4 years, it only cost me £1900 back then. It was very reliable.

If you must borrow for a newer car I would borrow from the bank.