What to buy a new car (well used) best way to fund it?

jackkelly

Hi all,
Looking to buy a new car, (a used car have no need for a brand new one or the finances ) and looking for advice on the finance side and recommendation of which car to go for.
I currently have a Vauxhall Zafira X reg had for 5yrs, I like the space and comfort of it as have 2 under 5yrs, but is startin g to get a little temperimental now has broken down once recently, car alarm started to play up. So thinking change cars before it starts costing real money. My OH drives a peugoet 206 for work, its too small for us as a family car and we both work and commute in different directions.
Have a budget of approx £7500 tops, ideally nearer to £7000.
Was hoping to get a trade in of £2000 for mine and get £5000 on finance from the dealer. ( had a personal loan before for a car and found it very restrictive unable to get rid of car til loan paid) does this sound reasonable?
Now which car to go for, has to fit carseats comfortably, buggy at persent as well as weeks shopping in the back from time to time. Was looking at Ford focus, but do like have a 7 seater at present, as can take grandparents out for the day in 1 car, so was looking at the Grand Scenic. Seen a couple of 05 plates Grand Scenics for £7000 or 07 plate Focus for £7500 decisions decisions
Any advice gratefully recieved, feel free to move if not in the right place.
Cheers

Nile

Hello jackkelly

I'll move your thread to the 'Motoring & Public Transport' board.

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Regards

Nile

Hintza

Pertsonally I would try your bank for a personal loan not linked to car. Once you have a quote on that you will be better placed to compare what the garage offers you (but I suspect it will be a lot more)

AdrianHi

Lombard Direct rates can be as low as 6.9% APR but they are advertising 7.4 to 8.4 typical right now.
Mazda 5 worth a look with sliding doors, just avoid the sport models with wider wheels which have tyre wear issues.

You can sell a car with outstanding finance, you get the buyer to pay direct to the finance house what they are owed and the balance to you.

pianeet

this weeks auto express magazine has price comparisons for all major banks,supermarkets,car dealers etc,also has got all the manufacturers special offers it might be worth buying new with interst free deal rather than used with a high apr

AdrianHi

pianeet wrote: »

this weeks auto express magazine has price comparisons for all major banks,supermarkets,car dealers etc,also has got all the manufacturers special offers it might be worth buying new with interst free deal rather than used with a high apr

The problem is every time I check the figures on a car with 0% finance deals on offer it is a fast depreciating car that works out cheaper to lease instead or buy some other car that holds it's value better even if it means paying finance charges.
As a rule 0% finance = avoid because it's still more expensive than another car where they do charge a modest interest rate but the car retains is value better. On new and young cars depreciation is expensive, finance is cheap, don't fear using finance to avoid the more expensive depreciation.
The one exception I have found is the no deposit 0% finance over 5 years on a new Fiat Bravo which is forecast to retain a respectable 39% of it's value at 36 months.... but..... leasing a Vauxhall Astra is even cheaper and you don't have to cough up for the whole value of the car. Doesn't matter that you don't own it, cars don't last forever, they are just an average monthly expense while you have the use of them.

kitchpoo

One option would be to max out a 0% card. Some available over 18 months still on purchases made in the first 3 months. So assuming 7000 = 389 pcm. But you could always extend that with another card or a low rate loan at that point. This would depend upon a) your credit rating b) your current cards