Money for a new car

Vince1598

Can anyone help with some advise, I have been forced in to looking for a new car, due to ongoing faults and high running cost’s of my existing one, but I don’t know the best way to fund a new one, to end up with as little debit as possible. The new Car is £13,000 I have not got a lot of money to put down as a despite £2,000 + my old car wroth around £1,000. The options I have been looking at or the following.
1. Take the money out with my mortgage company at the rate I am paying 4.25% and at the end of each year pay some of it off, (cutting the time)
2. Play the credit card game of 0% balance transfers i.e. for 12month then move on to the next one
3. Get a loan The best I have see is 6.7% over 5 year (just to get my payments to what I can afford)
Can some please give me some advice; I don’t want to end up in a large amount of debit, with the way things or in the world.
Vince1598

dbramley

Have you considered repairing your old one? It'll no doubt work out a lot cheaper than taking out £13k on credit. If you stretch yourself and take out the finance what will you do if the new one breaksdown? Would you have enough for servicing and repairs?

If so, then I would avoid the mortgage option as you don't want to be paying for it when your car is long gone. I know you mention paying extra each year but who really does that!?

If you can manage with zero percent credit cards then this will ensure you are not paying interest.

The personal loan might be the best option as it will ensure you have fixed monthly payments - you'll know whats going out each month and when.

Rafter

Vince,

The cheapest way is your mortgage given the low rate - make sure there aren't big fees for taking a 'further advance' though.

The zero % credit card game is cheaper still, although many come with fees that reduce the benefit and you might have trouble getting the money you need quickly.

If you really are worried about debt, I'd look at a cheaper car. You should be able to pick up a decent nearly new car for £6000 with warranty left on it should anything go wrong.

Good luck.

R.

dannynixon

I agree, do you really need a 13k car? Especially if you have been used to driving a car worth 1k? I have been driving a car worth 1k for about 2 years and now drive a car worth about 5k which is in my budget comfortably.

Also with the loan, remember that you will need to keep the card for as long as the loan otherwise this is pointless. Will you really keep a car for 5 years because I knwo that I would struggle

big_gay_kirk

Does anyone need a 13k car.. I've been driving a £250 car for five years.... overall cost not including tax, insurance and petrol has been £650... over 5 years... that's £130 a year guys.... less than one months repayments for some.... and on the subject of insurance.. for a 2 litre estate car I am currently paying £45 a year fully comp.... makes you sick, don't it.....

dannynixon

£45 a year insurance on a 2 litre estate? What insurance3 group is your car in?

I suspect that you would not even insure a 1 litre Nissan Micra for that

big_gay_kirk

No idea of what group.. I just asked for a quote on a 1983 Ford Cortina Crusader 2 litre estate, market value around 800 quid, and thats what they gave me.. glad I didn't mention the fifty quid cashback I got by going through the comparison site.... that would upset people!

Snooze

Vince1598 wrote: »

Can anyone help with some advise, I have been forced in to looking for a new car, due to ongoing faults and high running cost’s of my existing one, but I don’t know the best way to fund a new one, to end up with as little debit as possible. The new Car is £13,000 I have not got a lot of money to put down as a despite £2,000 + my old car wroth around £1,000. The options I have been looking at or the following.
1. Take the money out with my mortgage company at the rate I am paying 4.25% and at the end of each year pay some of it off, (cutting the time)
2. Play the credit card game of 0% balance transfers i.e. for 12month then move on to the next one
3. Get a loan The best I have see is 6.7% over 5 year (just to get my payments to what I can afford)
Can some please give me some advice; I don’t want to end up in a large amount of debit, with the way things or in the world.
Vince1598

You don't need £13k for a decent motor. You can pick up a couple of year old Mondeo for £5k these days and will still have some warranty on it. Get something like the 2.0 TDCi and you'll have yourself a good reliable and economical motor that'll do you well for a long time if you look after it.

As mentioned by others, 0% card(s) would be the ideal option for whatever amount you're gonna pay, but the main problem is getting a card with a high enough limit and you don't find that out until the card arrives. You're extremely unlikely to get a new 0% purchases card with a £13k limit out of the box - in fact I can pretty much guarantee it won't happen. Furthermore, the majority of dealers have a surcharge for paying using credit cards so stick yourself another £50 ish quid on the price there.

A loan is your realistic option to be honest, as borrowing extra on your mortgage might only seem like an extra few quid a month at the time but in the long term you'll be paying a silly amount in interest (face it, unless you've got fantastic money-management skills you ain't gonna overpay...).

Rob

maninthestreet

big_gay_kirk wrote: »

No idea of what group.. I just asked for a quote on a 1983 Ford Cortina Crusader 2 litre estate, market value around 800 quid, and thats what they gave me.. glad I didn't mention the fifty quid cashback I got by going through the comparison site.... that would upset people!

How much is the road tax going to cost in the future?

big_gay_kirk

maninthestreet wrote: »

How much is the road tax going to cost in the future?

from what i gather, it'll stay frozen at £190 a year, like it is now.. the vehicle's too old to come under the emissions taxing system.. though if the Federation of Historical Vehicle Clubs gets it way, the rolling 2 year exemption may come back.. in which case I won't be paying anything....