Car Finance Options

Arunmor

https://forums.moneysavingexpert.com/discussion/comment/82180849#Comment_82180849

Run the sums and that will tell you what is the best way financially. PCP on second hand cars rarely makes sense.

SimonR22

When looking at loans on CTM have came across a company called My Car Credit offering a PCP option. Has anyone got experience using them?

Cheaper per month than the PCP finance on the Autotrader calculator but have read some mixed reviews about them, any intel?

paul_c123

I think the main problem is you still have £8700 to pay off for the Golf. Obviously its not a secured loan so there's no marker on the car, but during ownership of the next, you'll be paying finance on 2 cars. If you can comfortably afford to do that (circumstances changed for the better recently?) just do it and buy the car you want. All told, there's no "clever" way to finance a car, just avoid something that is the same but higher price.

SimonR22

https://forums.moneysavingexpert.com/discussion/comment/82181039#Comment_82181039

Not quite sure what you mean? I would be selling the golf and paying off the loan immediately (have checked and am able to pay off early with no consequence) and use the remaining money for a deposit on a new one.

Sorry if I’ve misunderstood you lol

paul_c123

https://forums.moneysavingexpert.com/discussion/comment/82181085#Comment_82181085

Ok no worries, we don't know what the actual net deposit you could put forward to the next car is; and we don't know your budget/affordability.

Is the 2020 Golf a Mk7 or Mk8 (its the crossover year)? If its a Mk7, I'd honestly keep it. If its a Mk8 I think I'd get rid and go for a Merc CLA too. Just avoid going for a low spec one. The A class isn't really a prestige car, its just a normal (but nice) car, its kinda dining out on the success of the larger/more expensive models.

Herzlos

https://forums.moneysavingexpert.com/discussion/comment/82180850#Comment_82180850

Is your focus to bring the currently monthly down now or the total cost down over the term? Why are you looking at a £17k CLA instead of a £10k CLA?

If you want the CLA because it drives better, why is the A class in the running?

paul_c123

Having driven both, the CLA drives exactly the same as an A-Class. Obviously a bigger/better engine will perform better, and bigger alloys will ride worse.

Cornucopia

It's all about the numbers - there are plenty of options to reduce your monthlies, though possibly not with these two model options.

Is the charging at work free? If so, there's no real comparison on running costs with a full electric, unless you have reasons not to get one. What is the "petrol money" from work?

SimonR22

https://forums.moneysavingexpert.com/discussion/comment/82181090#Comment_82181090

Ah I see where you’re coming from now, think that’s the part that is confusing me about it all I can’t 100% sort out finance for a new one until I’ve got a confirmed sale figure from my current one can only do projections.

It’s a Mk8 and I do agree with you about getting rid. It’s a nice enough car but I love the CLA but was only going to do it if it was cheaper (which so far it looks like it will be). I liked the A-Class as well but it’s only been included purely as an option lol.

I could spend up to £300 per month on the car but I am aiming to reduce monthly payments to under £244 (what I’m paying now). Understand I may not own the car but I don’t think that bothers me at all, my living situation is secure as is my job so as long as something doesn’t go horribly wrong in my life I wouldn’t ever need to punt the car and pay a loan off.

SimonR22

https://forums.moneysavingexpert.com/discussion/comment/82181269#Comment_82181269

Bring the cost down now, wouldn’t consider doing it if I was going to be more per month.

Looking at the newer Mercs because I like them and, on the face of it, can afford them.