We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Is this the right way to plan my next car purchase? Mortgage Borrowing?
IAMIAM
Posts: 1,394 Forumite
I usually buy a car for 15-20k and have it for a good 10 years.
Mortgage 160k
Additional Borrowing 20k
Total Borrowing 180k at 4.74% Tracker HSBC from 1st July (Hoping its 4.49/4.24 by Summer)
Purchase car on BMW PCP, highest deposit, over 4 years, mileage say 15k. Then once agreement up and running, week later, overpay again by the maximum and have a monthly finance agreement of say £50 a month with a view of paying a balloon payment at the end of the 4 years or indeed cancel and return the car.
Whilst that is happening, pay my Additional borrowing on mortgage at say £400 a month so its cleared in 4-5 years....
Mortgage 160k
Additional Borrowing 20k
Total Borrowing 180k at 4.74% Tracker HSBC from 1st July (Hoping its 4.49/4.24 by Summer)
Purchase car on BMW PCP, highest deposit, over 4 years, mileage say 15k. Then once agreement up and running, week later, overpay again by the maximum and have a monthly finance agreement of say £50 a month with a view of paying a balloon payment at the end of the 4 years or indeed cancel and return the car.
Whilst that is happening, pay my Additional borrowing on mortgage at say £400 a month so its cleared in 4-5 years....
0
Comments
-
Define "right way".
And I'm no expert in car finance, but I don't understand the plan. If the car is £20K and you borrow £20K against your house, why do you need car finance? Is it better than just buying a car and then selling it when/if you want?1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards