Mum needs another car - finance/loan? Help please?

Juliav_2

Hi all,

I am posting on behalf of my mum. She is retiring next year and can't wait. Her car is due for it's MOT and she is sure it won't pass. It is an older car and she needs a lighter runaround.

I would love some advice on whether she should buy on finance or get bank loan. She does have £1200 saved up but feels this is too little money to get a decent car.

margaretclare

Not hire-purchase - that's expensive. A bank loan may be cheaper. Unless by using the £1200 as a deposit she may be able to get a 0% deal from a car dealer.

We paid £4,600 last October for a 4-year old 2-door Peugeot 206 (automatic) which does all that we need it to do.

HTH

Errata

Why not use the £1200 and top it up with a bank loan? Just as there's no such thing as a free lunch, there's also no such thing as 0% finance as the price of the car is boosted to cover it.
A bank loan will also give your mum the freedom to choose any dealer, any car.

CarmineStocky_2

I would agree with using the £1200 and supplementing it with a bank loan (she MUST shop around for this as well as the car, though!). A great runaround would be the Toyota Aygo/Citroen C1/Peogeot 107 (they are effectively the same car made to Toyota's exacting standards). Incredibly low running costs, 50mpg easily attained just tootling around town and £20 per year car tax from next year (£35 this year) and Group 1E insurance group!! Servicing costs are also very low. My wife has one and absolutely loves it!

Ted_Hutchinson

While I agree that you will probably need a tad more than currently saved to buy a reasonable car for the long term and that overdraft/bank loan is probably the cheapest way to go you may find BCA Motability Car Auctions the best place to get a car at below or at least around trade price.

Obviously you need to have sussed the finance first so you can pay on your debit card at the end of the auction but although it does go a bit fast for those unfamiliar with car auctions you do know that the price you are paying is not inflated.

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