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  • FIRST POST
    • comete
    • By comete 18th Oct 19, 1:19 PM
    • 7Posts
    • 0Thanks
    comete
    Wife made redundant - what should I do (car loan) ?
    • #1
    • 18th Oct 19, 1:19 PM
    Wife made redundant - what should I do (car loan) ? 18th Oct 19 at 1:19 PM
    Cross Post from another subforum, been advised it might fit better elsewhere and this seems appropriate...

    Bit of insight into our situation:

    We bought our house in zone 2 London last year, our mortgage is pretty low at £1200 a month. Low enough that i can cover the mortgage and bills (never more than £2500 a month) with my salary, with a bit left over.

    My wifes industry is relatively niche, and this has given her the push she needs to set up her own online business (she trialled it in the past on a small scale and made reasonable profits, but now want to reinvest these rather than drawing a salary until its more stable). This is great as I am a remote worker so can be based anywhere, meaning we're no longer tied to London, or any city for that matter. We're having our house valued to sell, with a view to halving our living expenses.

    Really the main thing I need advice on is in relation to a car. I have put down a 1k deposit on an 11k car, with the 10k balance to be paid on collection on 01 November. 8.5k of that 11k is from a bank loan, with monthly repayments of £200. Where we're planning to move we'll absolutely need a car. I'd appreciate your advice on how to proceed with this.

    Option 1: continue with purchase and scrape by in the hope that wife can contribute before we eat through our savings
    Option 2: cancel purchase, lose 1k deposit, buy cheaper car for 2k, and have no monthly repayments
Page 1
    • zx81
    • By zx81 18th Oct 19, 1:21 PM
    • 24,106 Posts
    • 26,835 Thanks
    zx81
    • #2
    • 18th Oct 19, 1:21 PM
    • #2
    • 18th Oct 19, 1:21 PM
    What are your savings?
    • comete
    • By comete 18th Oct 19, 1:41 PM
    • 7 Posts
    • 0 Thanks
    comete
    • #3
    • 18th Oct 19, 1:41 PM
    • #3
    • 18th Oct 19, 1:41 PM
    In the region of 6k
    • djphig
    • By djphig 18th Oct 19, 1:55 PM
    • 48 Posts
    • 39 Thanks
    djphig
    • #4
    • 18th Oct 19, 1:55 PM
    • #4
    • 18th Oct 19, 1:55 PM
    I have done PCPs and loans in the past and have a current bank loan for my existing car. In my opinion, use your own money and buy a cheaper car.

    I will never borrow money to buy a car again. It depreciates at a astonishing rate and by the time you have repaid the bank loan it will be worth next to nothing.

    My 2.0 Seat Leon FR was bought for 20k 4 years ago. It is now worth around 8k max.

    Buying cars on finance makes no sense to me anymore :-D
    • comete
    • By comete 18th Oct 19, 2:17 PM
    • 7 Posts
    • 0 Thanks
    comete
    • #5
    • 18th Oct 19, 2:17 PM
    • #5
    • 18th Oct 19, 2:17 PM
    I've been very lucky, we had a rs clio 220 for 3 years and sold it for pretty much exactly what was outstanding on the finance deal. Very lucky. The deposit i have put down is on a subaru forester sti, which appear to be stable at 8-11k. I don't think it's a bad purchase, I just worry that it might be a bit of a stretch in our current situation, even if it means losing the 1k deposit.
    • jeepjunkie
    • By jeepjunkie 18th Oct 19, 2:30 PM
    • 1,678 Posts
    • 1,478 Thanks
    jeepjunkie
    • #6
    • 18th Oct 19, 2:30 PM
    • #6
    • 18th Oct 19, 2:30 PM
    Only you can decide, but when spending future salary you really have to be sure you can cover the commitment either through a single salary or back it up with savings etc Things tend to come in three's so what if something else unexpectedly comes along shortly... I know people who have been in similar situations and just took on any job until a better one came along.
    • Terence Burrows
    • By Terence Burrows 21st Oct 19, 10:30 AM
    • 17 Posts
    • 1 Thanks
    Terence Burrows
    • #7
    • 21st Oct 19, 10:30 AM
    • #7
    • 21st Oct 19, 10:30 AM
    Tricky thing with finance is that depreciation is affected by a lot of variables - new versions of your car being released included as well as changes in government legalisation. Given your position i wouldn't look to increase my monthly out goings where i don't need to.

    All you need is a reliable car to get you to A-B , it doesn't have to be on finance. Though it will take longer you can easily source a decent car for cash.
    • Clive Woody
    • By Clive Woody 21st Oct 19, 11:51 AM
    • 4,890 Posts
    • 5,477 Thanks
    Clive Woody
    • #8
    • 21st Oct 19, 11:51 AM
    • #8
    • 21st Oct 19, 11:51 AM
    Assuming this is from a dealer, you might want to consider buying a cheaper car given your current circumstances. Try giving them a call and see if the would let you "switch" your deposit onto a different car.
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
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