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    • Adamc
    • By Adamc 7th Jan 18, 11:08 AM
    • 101Posts
    • 5Thanks
    Adamc
    30K deposit but car has suddenly packed up
    • #1
    • 7th Jan 18, 11:08 AM
    30K deposit but car has suddenly packed up 7th Jan 18 at 11:08 AM
    Hi all - sorry if this is best placed elsewhere.

    My partner and I have 30K deposit for our first home after several years of saving. However, my car has broken down and repair costs are equal to its value.

    Do I deplete the fund and buy a secondhand but newish car outright, or get (hopefully) interest free finance which will affect the mortgage loan available. I feel the latter option may be preferable given that any value of the house that can be paid at the time of purchase is better than taking that amount as part of a mortgage loan (due to interest).

    We are in no rush to buy the house but with seemingly ever increasing prices it seems sensible to get on the ladder.
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 7th Jan 18, 12:13 PM
    • 6,603 Posts
    • 13,878 Thanks
    enthusiasticsaver
    • #2
    • 7th Jan 18, 12:13 PM
    • #2
    • 7th Jan 18, 12:13 PM
    Which is more important to you?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • _sb
    • By _sb 7th Jan 18, 2:13 PM
    • 3 Posts
    • 5 Thanks
    _sb
    • #3
    • 7th Jan 18, 2:13 PM
    • #3
    • 7th Jan 18, 2:13 PM
    Sell your broken car to the scrap man, they'll even come and collect the car from you. Then purchase a very cheap runaround until you have completed house hunting and purchasing. You could literally pick up something for 500, it wont be the car you want but sometimes you need to prioritise.
    • csgohan4
    • By csgohan4 7th Jan 18, 2:33 PM
    • 4,542 Posts
    • 2,838 Thanks
    csgohan4
    • #4
    • 7th Jan 18, 2:33 PM
    • #4
    • 7th Jan 18, 2:33 PM
    I have had some good old bangers in the past, local dealers or Auto trader, just make sure you back ground check them and if you have a mechanic friend, check it out too
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Thrugelmir
    • By Thrugelmir 7th Jan 18, 5:52 PM
    • 58,937 Posts
    • 52,259 Thanks
    Thrugelmir
    • #5
    • 7th Jan 18, 5:52 PM
    • #5
    • 7th Jan 18, 5:52 PM
    or get (hopefully) interest free finance which will affect the mortgage loan available.
    Originally posted by Adamc
    No such thing as a free lunch. The finance is built into the selling price of the vehicle. Try and get a discount by paying in cash from a main dealer.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • stridernje
    • By stridernje 7th Jan 18, 8:14 PM
    • 10 Posts
    • 0 Thanks
    stridernje
    • #6
    • 7th Jan 18, 8:14 PM
    • #6
    • 7th Jan 18, 8:14 PM
    What is the value of the house you are looking to buy? Also how important is the need of the car to you? Are you looking at the second hand house market or brand new with the government 20% incentive?
    One thing I would suggest is to get the maximum mortgage you can afford. House prices will always go up and the gap always get bigger over the long term between smaller & larger houses.
    • bigstevex
    • By bigstevex 8th Jan 18, 1:21 PM
    • 705 Posts
    • 342 Thanks
    bigstevex
    • #7
    • 8th Jan 18, 1:21 PM
    • #7
    • 8th Jan 18, 1:21 PM
    House prices will always go up..... LOL! Yeah I thought that when I bought in 2007, still waiting for it go up past what we paid

    Why not get a cheapish second hand car to last you 1-2 years while you get your house and then get something finance based afterwards so your mortgage isn't affected?
    • stridernje
    • By stridernje 8th Jan 18, 2:58 PM
    • 10 Posts
    • 0 Thanks
    stridernje
    • #8
    • 8th Jan 18, 2:58 PM
    • #8
    • 8th Jan 18, 2:58 PM
    House prices will always go up..... LOL! Yeah I thought that when I bought in 2007, still waiting for it go up past what we paid

    Why not get a cheapish second hand car to last you 1-2 years while you get your house and then get something finance based afterwards so your mortgage isn't affected?
    Originally posted by bigstevex
    You were unlucky then. I brought my house 2010 and it has gone up 47%.
    • Tammykitty
    • By Tammykitty 8th Jan 18, 3:01 PM
    • 579 Posts
    • 1,208 Thanks
    Tammykitty
    • #9
    • 8th Jan 18, 3:01 PM
    • #9
    • 8th Jan 18, 3:01 PM
    get a reasonable car, for a reasonable price, plenty of cars for 2k and under.


    That way you aren't using much of the deposit
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    • honestsammy
    • By honestsammy 8th Jan 18, 3:12 PM
    • 35 Posts
    • 13 Thanks
    honestsammy
    How much is your car worth and how could you possibly spend 30k to fix it?

    If you did buy a decent replacement you would have to spend a few more years saving up, and in that time prices may have moved further.

    At the end of the day it looks like you need to decide what is more important to you, but I think most of the people on this forum will tell you to bite the bullet, get a cheaper car and preserve your savings. I don't think this is not the type of emergency to spend your house deposit on.
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