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  • FIRST POST
    • leigh 34
    • By leigh 34 7th Mar 18, 1:47 PM
    • 1Posts
    • 0Thanks
    leigh 34
    car finance
    • #1
    • 7th Mar 18, 1:47 PM
    car finance 7th Mar 18 at 1:47 PM
    hi there iam new to all of this and would like some advice i am a new driver and i am looking to getting a car on finance but i dont have a huge budget at the end of each month i work and i have a family to care for i was wondering if anyone can help me who has a better understanding of this type of thing

    thanks
Page 1
    • fatrab
    • By fatrab 7th Mar 18, 4:00 PM
    • 833 Posts
    • 1,849 Thanks
    fatrab
    • #2
    • 7th Mar 18, 4:00 PM
    • #2
    • 7th Mar 18, 4:00 PM
    Firstly, do a budget and work out exactly what you can afford. Make sure you have an emergency fund in place before you even consider buying a car.

    Next best advice would be that you save the money and buy the car outright instead of borrowing. If that's not an option, can you get a 0% purchases card to buy the car and pay it off within the promotional period?

    Depending on the value of the car you are intending to buy, the next best option would probably be a bank loan. It will be cheaper than car finance (lower interest rate) but the better rates which are available tend to be offered to those borrowing higher amounts (often around £7500 at 3%).

    Car finance through a reputable dealer should be at a sensible rate of interest (4.9-12.9%), beware TV adverts offering car finance before you buy. This is just a high interest loan (29.9% or above).

    These figures are just a general guide and shouldn't be taken as gospel but they'll give you an idea of what to expect.

    Just out of interest, what budget did you have in mind?
    Last edited by fatrab; 07-03-2018 at 4:03 PM.
    You can have results or excuses, but not both.
    May's targets - Lose 1 stone - 6lbs off, 18/31 AFDs, 12/18 lunches.
    37 x £2 coins (#32) - Wannabe debt free by Dec 2022
    • neilmcl
    • By neilmcl 7th Mar 18, 4:33 PM
    • 10,939 Posts
    • 7,750 Thanks
    neilmcl
    • #3
    • 7th Mar 18, 4:33 PM
    • #3
    • 7th Mar 18, 4:33 PM
    Ask your self this, how much can you comfortable afford a month and do you have savings in case of emergencies?
    • jlemaitre
    • By jlemaitre 7th Mar 18, 4:36 PM
    • 112 Posts
    • 72 Thanks
    jlemaitre
    • #4
    • 7th Mar 18, 4:36 PM
    • #4
    • 7th Mar 18, 4:36 PM
    I've done this twice. I can't believe I've actually gone out and bought 2 brand new cars.

    So my advice is to strongly consider the end product, This means are you planning on owning the car, If not consider that you need to stick to the contract it'll likely tell you that you MUST get the car serviced at exact times and at a place that gives the manufacturer/dealership business(more money). Also consider any potential damage you'd be expected to pay for, that a trusted dealership garage.

    Do you have expendable income, if so find out exactly how much you can spare and ensure you add extra for anything that'll go wrong.

    You say this is your first car/new driver, personally i'd get some time under your belt before committing to your 2nd most expensive purchase in your life.

    I budgeted roughly £400 a month out of my wages for the cars, I paid of the 2nd car after 3 years.

    Looking back on it now, I regret buying the cars. Yes I have my own home(mortgage), but if I never bought the cars, I often wonder where I'd be in life now.

    I was saving up for a certain Ford Escort worth roughly £15k for an average condition one, Now that an average-good one is worth £30-£50k. If I never bought these cars i'd have my dream car, Or even a better house/paid off more of my mortgage. Swings and roundabouts.

    Above post has been great advise, so can only echo whats been said.
    • ~Beanie~
    • By ~Beanie~ 7th Mar 18, 4:36 PM
    • 2,935 Posts
    • 2,112 Thanks
    ~Beanie~
    • #5
    • 7th Mar 18, 4:36 PM
    • #5
    • 7th Mar 18, 4:36 PM
    hi there iam new to all of this and would like some advice i am a new driver and i am looking to getting a car on finance but i dont have a huge budget at the end of each month i work and i have a family to care for i was wondering if anyone can help me who has a better understanding of this type of thing

    thanks
    Originally posted by leigh 34
    Can you afford a car? Have you considered the extra costs such as tax/insurance/fuel/new tyres/MOT/repairs etc?

    • fatrab
    • By fatrab 7th Mar 18, 4:54 PM
    • 833 Posts
    • 1,849 Thanks
    fatrab
    • #6
    • 7th Mar 18, 4:54 PM
    • #6
    • 7th Mar 18, 4:54 PM
    Can you afford a car? Have you considered the extra costs such as tax/insurance/fuel/new tyres/MOT/repairs etc?
    Originally posted by ~Beanie~
    I completely agree, might be worth the OP completing an SOA?
    http://www.stoozing.com/calculator/soa.php
    You can have results or excuses, but not both.
    May's targets - Lose 1 stone - 6lbs off, 18/31 AFDs, 12/18 lunches.
    37 x £2 coins (#32) - Wannabe debt free by Dec 2022
    • Frozen_up_north
    • By Frozen_up_north 7th Mar 18, 6:35 PM
    • 1,466 Posts
    • 712 Thanks
    Frozen_up_north
    • #7
    • 7th Mar 18, 6:35 PM
    • #7
    • 7th Mar 18, 6:35 PM
    Around 80 to 90 percent of new car sales are on some form of finance. You see the “new car for only £199 per month” adverts. These usually involve either a hefty deposit or an equally hefty final payment. These deals are OK until the end of the 36 month (or 48) finance period, then you have to start all over again.

    I’ve had one of these deals in the past and wouldn’t touch one again, but they are popular, just read the small print and do your homework on the real cost.
    • iolanthe07
    • By iolanthe07 8th Mar 18, 9:36 AM
    • 5,011 Posts
    • 4,706 Thanks
    iolanthe07
    • #8
    • 8th Mar 18, 9:36 AM
    • #8
    • 8th Mar 18, 9:36 AM
    Also beware that many car dealers have an underhand trick of headlining the flat interest rate, which is approx. half the APR. The APR will be somewhere in the small print.
    I used to think that good grammar is important, but now I know that good wine is importanter.
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