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  • FIRST POST
    • chelseablue
    • By chelseablue 10th Jul 17, 5:33 PM
    • 2,413Posts
    • 2,889Thanks
    chelseablue
    Best way of buying a car?
    • #1
    • 10th Jul 17, 5:33 PM
    Best way of buying a car? 10th Jul 17 at 5:33 PM
    This isn't going to be happening until next year but I'd like to start planning.

    We currently have a lease car that goes back to the lease company in April.

    We don't want another lease car so would like to purchase one.

    Looking at getting something about 3 years old and keeping it as long as possible.

    Budget is around 150 a month, so thinking of borrowing around 7,000.

    What would the best way be? Personal loan? Car finance? Something else?
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
Page 1
    • zx81
    • By zx81 10th Jul 17, 5:36 PM
    • 16,856 Posts
    • 17,875 Thanks
    zx81
    • #2
    • 10th Jul 17, 5:36 PM
    • #2
    • 10th Jul 17, 5:36 PM
    Savings. .
    • Tarambor
    • By Tarambor 10th Jul 17, 5:40 PM
    • 2,865 Posts
    • 2,073 Thanks
    Tarambor
    • #3
    • 10th Jul 17, 5:40 PM
    • #3
    • 10th Jul 17, 5:40 PM
    You have 10 months. 500 a month saved gives you 5000 which is enough to buy a decent car and no more finance chains around your neck. Short term pain for long term gain.

    Failing that, 0% on purchases credit card or maybe a balance transfer card if you've enough available balance on a card you already have.
    • chelseablue
    • By chelseablue 11th Jul 17, 12:55 PM
    • 2,413 Posts
    • 2,889 Thanks
    chelseablue
    • #4
    • 11th Jul 17, 12:55 PM
    • #4
    • 11th Jul 17, 12:55 PM
    Thank you both, we currently are saving at least 500 a month.

    At the moment this money is earmarked for our wedding in June next year, most supplies it seems only accept cash or cheque as payment.

    What ever we have surplus to the wedding will be going towards the car, but will probably borrow some of it.

    I'll have a look at the longest 0% card. Want to pay it off as quick as possible.
    Never had a loan before, can they be overpaid?
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • zx81
    • By zx81 11th Jul 17, 1:00 PM
    • 16,856 Posts
    • 17,875 Thanks
    zx81
    • #5
    • 11th Jul 17, 1:00 PM
    • #5
    • 11th Jul 17, 1:00 PM
    Yes, they can.
    • DCFC79
    • By DCFC79 11th Jul 17, 2:18 PM
    • 31,690 Posts
    • 19,986 Thanks
    DCFC79
    • #6
    • 11th Jul 17, 2:18 PM
    • #6
    • 11th Jul 17, 2:18 PM
    Although the last reply says "yes they can be overpaid" there's no harm in asking the loan company if you can do this.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Potbellypig
    • By Potbellypig 11th Jul 17, 6:05 PM
    • 187 Posts
    • 83 Thanks
    Potbellypig
    • #7
    • 11th Jul 17, 6:05 PM
    • #7
    • 11th Jul 17, 6:05 PM
    Do you need a 5k car? Roughly how many miles are you doing a week/month?

    18 months ago I bought a Focus for a grand and I do roughly 40 odd miles a day in it. You can pick up a decent one for less than half the 5k you're looking to spend.
    • Herzlos
    • By Herzlos 11th Jul 17, 8:56 PM
    • 7,243 Posts
    • 6,510 Thanks
    Herzlos
    • #8
    • 11th Jul 17, 8:56 PM
    • #8
    • 11th Jul 17, 8:56 PM
    What are your requirements for a car?

    You can get pretty decent cars for well under 7k (I'd stay above about 3k on forecourts to avoid the risky purchases), but it all depends on what you want from a car.

    Start putting the 150/month into an account and that's you got 1350 when your car goes back. Use that as a deposit and borrow the rest you'd need to get a nice, if older, version of the car you need. Then overpay it by as much as you can to get the total cost down.
    • rjwr
    • By rjwr 11th Jul 17, 9:29 PM
    • 334 Posts
    • 208 Thanks
    rjwr
    • #9
    • 11th Jul 17, 9:29 PM
    • #9
    • 11th Jul 17, 9:29 PM
    save save and save again.
    But never spend money you don't have to buy things you don't want to impress people you don't like.
    .
    Originally posted by kidmugsy
    • daveyjp
    • By daveyjp 11th Jul 17, 9:48 PM
    • 7,483 Posts
    • 5,962 Thanks
    daveyjp
    Have you considered buying your current car?
    • chelseablue
    • By chelseablue 12th Jul 17, 8:52 AM
    • 2,413 Posts
    • 2,889 Thanks
    chelseablue
    Its not a lease where we have an option of buying it at the end, it has to go back.


    Its actually the car my partner drives, he commutes for work and drops our son off at nursery every day so want something not too old. Def wont be buying brand new.


    My car is 11 years old and I'll be keeping that going until it dies (aiming to get it to 20 years old haha) but I only work less than 2 miles from home.
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • jimbo747
    • By jimbo747 12th Jul 17, 9:52 AM
    • 468 Posts
    • 1,253 Thanks
    jimbo747
    Get a bike, decent electric one around 1k, give car to OH. 6000 saved.
    • chelseablue
    • By chelseablue 12th Jul 17, 9:55 AM
    • 2,413 Posts
    • 2,889 Thanks
    chelseablue
    Get a bike, decent electric one around 1k, give car to OH. 6000 saved.
    Originally posted by jimbo747


    Good idea! I so would if he didn't have to drop our young son off at nursery
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • Potbellypig
    • By Potbellypig 12th Jul 17, 1:07 PM
    • 187 Posts
    • 83 Thanks
    Potbellypig
    There are much cheaper ways to look at this, than just ''I've got a 150 a month budget, which loan should I get?'' My advice is to give your partner your car, you bike/walk/lift share to work. Save the money you would have spent on the extra car (insurance, petrol, mot, maintenance and the 150) and revisit in x amount of months. Chances are if you do that then you'll be able to afford a decent car for a few grand and be much much better off financially.
    • chelseablue
    • By chelseablue 12th Jul 17, 4:45 PM
    • 2,413 Posts
    • 2,889 Thanks
    chelseablue
    I did think of that, but I have to come home every day in my lunch hour and its a 45 min walk each way.
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • Potbellypig
    • By Potbellypig 13th Jul 17, 7:32 AM
    • 187 Posts
    • 83 Thanks
    Potbellypig
    I did think of that, but I have to come home every day in my lunch hour and its a 45 min walk each way.
    Originally posted by chelseablue
    Seems you've got your heart set on a new car. That's fair enough, it's only natural to want nice things. As this is generally a money saving forum, I'm just giving you options for alternatives.

    Have you looked at the passport scheme? I don't do it but my mother in law does. She pays a monthly amount for a car and gets to swap it every 3 years.
    • Lungboy
    • By Lungboy 13th Jul 17, 9:45 AM
    • 1,376 Posts
    • 1,319 Thanks
    Lungboy
    I did think of that, but I have to come home every day in my lunch hour and its a 45 min walk each way.
    Originally posted by chelseablue
    Cycle? Bus?
    • loskie
    • By loskie 13th Jul 17, 10:02 AM
    • 1,266 Posts
    • 760 Thanks
    loskie
    A car dealer will charge you for the privilege of paying by credit card. look at a cheap loan from the likes of sainsburys bank. or buy a cheaper car, you could get a decent one for 4k with a few years left in it , buy privately not from a dealer at this price range.
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