Finance more expensive car or buy cheap

Finance more expensive car or buy cheap

Author
Discussion

Car.Interest01

Original Poster:

73 posts

34 months

Monday 11th November
quotequote all
Hi everyone, I have started a new job and currently get the train but have recently found out that I have a new responsibility at work that means the train times will most likely not line up. Due to this I may have to get a car (not the worst thing in the world being a car fanatic). I only need to go into the office 2/3 times a week but it's 50 miles away so a 100 mile commute so I need something that can handle 200/300 miles a week with half of that being motorway miles but ideally I'd like something reliable, a bit fun and quirky and even better if it would be easy enough to learn to work on to save money that would be a bonus!

Now my issue is as I only have 1-1.5k so I see I have 3 options. 1st of course just buy something cheap, 2nd use it as a deposit and take out pcp/hp finance on a newer car, 3rd to use that and take a bank loan out to get the rest of the car (max monthly payment of £150 a month)

My preference would be to own the car to have equity going forward and I need the cheapest option possible but I worry that option 1 would get me something that is too tired to handle the commute and be more of a money pit (and as my money would have gone on the car i wouldnt have the funds to repair easily) than something a bit newer.

Any help for each of the options would be great and any advice would be welcome so thank you!

ChrisH72

2,348 posts

59 months

Monday 11th November
quotequote all
In your position I'd go for option 3.

£1500 cash plus £150 a month loan over say 3 years would get you a £6-7k car. Enough for something efficient and reliable that'll do 300 miles a week without causing you too many problems. If you don't intend to go near ULEZ zones I'd get a diesel for that mileage and motorway use.

Buying a shed for £1-1.5k would be false economy IMO.

samoht

6,282 posts

153 months

Monday 11th November
quotequote all

Assuming you don't have much cash now but the new job will pay decently, I agree with the above, option 3.

Starting a new job and having money coming in future but needing a car now is one of the few clear-cut cases where financing a car is a good move. With the age you're looking at I guess a bank loan will be better than HP, and PCP may be harder to find at this level.

OutInTheShed

9,338 posts

33 months

Tuesday 12th November
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That mileage is a couple of grand a year in diesel.
Saving £150 a month fuel by buying an EV might up the loan amount to get something reasonable?

No perfect answers really, transport is expensive however you do it.

Sheds work out cheap if you are lucky, but I think average spend on repair bills gets significant.
It's a risk and you have to own that. Then again bills are not unknown with cars that cost a lot more.

maz8062

2,608 posts

222 months

Tuesday 12th November
quotequote all
Option 2 - PCP.

Option 3, as suggested above, buys a £6/7k car plus loan payments over 3/4 years. That doesn’t buy you much in today’s market and that level of mileage could cost you in out of warranty maintenance costs. I wouldn’t.

Your money your choice.

Justatwist

84 posts

169 months

Tuesday 12th November
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Option 1 for me if you know what you’re looking for when buying cheap cars.
I’ve got a 1.5 dci 11 plate Megane that I bought for £1500 18 months ago and has been doing 2000 miles a month since then, mainly motorways. It had a stack of history when I bought it and, so far it’s cost me 2 tyres.
If you buy like this and also put £150 a month away, as if you were paying off a loan, you’ll have money for any repairs you may need but will also be saving towards your next car.

Car.Interest01

Original Poster:

73 posts

34 months

Tuesday 12th November
quotequote all
ChrisH72 said:
In your position I'd go for option 3.

£1500 cash plus £150 a month loan over say 3 years would get you a £6-7k car. Enough for something efficient and reliable that'll do 300 miles a week without causing you too many problems. If you don't intend to go near ULEZ zones I'd get a diesel for that mileage and motorway use.

Buying a shed for £1-1.5k would be false economy IMO.
Yeah I work near Surrey so would be close to the ULEZ zone especially if it gets any bigger

Car.Interest01

Original Poster:

73 posts

34 months

Tuesday 12th November
quotequote all
I would like to think option 1 would work and just scrap my ideas of fun, etc and just go looked after amd cared for car but I guess it is luck sometimes

Scootersp

3,392 posts

195 months

Tuesday 12th November
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Option 1

something like this?

https://www.facebook.com/marketplace/item/15466046...


or this?

https://www.facebook.com/marketplace/item/17532964...

Edited by Scootersp on Tuesday 12th November 09:25

ChrisH72

2,348 posts

59 months

Tuesday 12th November
quotequote all
If you weren't on a tight budget, what kind of car would you like ideally?

Might be good to start from there and then work out the best way to get into it.

66HFM

496 posts

32 months

Tuesday 12th November
quotequote all
My personal preference would be Option1 although you can be lucky / unlucky on the car you're buying for circa £1,500, but as stated above put £150 away each month to cover unforeseen costs, you'd also be saving money on the train fare...

Option 3 would be my 2nd choice as you can be flexible on the car you buy and change it when you want to rather than being tied into a 2/3/4 year agreement on a PCP, although there is no guarantee on not having any major bills on a 6/7k car, I think you need to make sure you have access to some money to be able to cover any unforeseen bills.

Good luck.

clockworks

6,126 posts

152 months

Tuesday 12th November
quotequote all
Lease a Nissan Leaf:

https://www.leaseloco.com/car-leasing/nissan/leaf/...

If you can charge at home, the fuel savings will pretty much cover the monthly cost



7 5 7

3,490 posts

118 months

Tuesday 12th November
quotequote all
Cheap car always for me these days, something like a cheap Insignia 1.8vvt petrol (a car designed for motorway miles) - Being petrol means its simple, cheap to fix (generally good to DIY also) and will easily do 45mpg at a steady pace, and they are absolutely throwaway cars in terms of prices now, should get you a fairly new car for not so much money.

Not fun, but does the job for cheap 'reppy' motoring.

Something like this...but, there is loads about
https://www.autotrader.co.uk/car-details/202411055...

Edited by 7 5 7 on Tuesday 12th November 10:39

valiant

11,329 posts

167 months

Tuesday 12th November
quotequote all
Option 1 only if you're comfortable assessing cars as you really are buying at the bottom of the market where all the scud resides. You need reliable and with that budget it's a massive gamble.

Option 3 would be my choice. You can pick up something sensible for your budget as long you're after a sensible car and nothing with expensive running costs.

Option 2 will have you with a used PCP Apr and that can be well over 10% and you either have to go through it all again in three years or find yet more money to pay off the balloon.

nikaiyo2

5,027 posts

202 months

Tuesday 12th November
quotequote all
Option 2 ish.

The others make no sense. Yes you could buy a 20 year old Toyota and drive 300miles a week... but why on gods earth would you? I get shedding if you are pottering round your local area, but to commute on the M25 or M3 or whatever? Nah no thanks.

I would lease something brand new, ok they are not exciting, but no reliability worries,no will it start on a cold morning, no can i drive it in to london etc and I bet not that much more costly over 5 years than buying a succession of disposable old sheds.

https://www.selectcarleasing.co.uk/car-leasing/dac...

Or slightly used
https://www.selectcarleasing.co.uk/car-leasing/hyu...

Jiebo

961 posts

103 months

Tuesday 12th November
quotequote all
Scootersp said:
Option 1

something like this?

https://www.facebook.com/marketplace/item/15466046...


or this?

https://www.facebook.com/marketplace/item/17532964...

Edited by Scootersp on Tuesday 12th November 09:25
Doing 100 miles commute in a shopping trolley isn't the best idea. These things are made for the city, not for long commutes.

OP did the employer make you aware of this change in lifestyle during the interview? 300 miles fully loaded is at least £100 a week, not including your time to drive. £400+ a month is a lot of cash just to get into work these days.


Edited by Jiebo on Tuesday 12th November 13:58

Car.Interest01

Original Poster:

73 posts

34 months

Tuesday 12th November
quotequote all
When I first started I was able to get the train which probably costs me 2k ish a year. But then recently part of the job a report doesn't generate until rather late to when my bus would leave to get to the station so not really but think it was more training me up to the job

Car.Interest01

Original Poster:

73 posts

34 months

Tuesday 12th November
quotequote all
ChrisH72 said:
If you weren't on a tight budget, what kind of car would you like ideally?

Might be good to start from there and then work out the best way to get into it.
I'm not really sure! I'd love something either sporty and fun like a 2 seater or hot hatch but realise that might not be most comfortable to commute in. Ideally I wouldn't want something that everyone else has but also understand that by going with the norm it would make it easier and cheaper

Car.Interest01

Original Poster:

73 posts

34 months

Tuesday 12th November
quotequote all
Would your choice change at all with having a mortgage as pf course loans would count towards the lending possibilities of getting a mortgage

ZX10R NIN

28,369 posts

132 months

Tuesday 12th November
quotequote all
You need a reliable car that'll be sensible on your wallet, all of which is very achievable as long as ULEZ aren't an issue.

A diesel will tick the boxes.

Even when going for a mortgage I'd still say option 3 is your best option but you don't have to spend 7k

Astra GTC 2.0d:

https://www.autotrader.co.uk/car-details/202410125...

https://www.autotrader.co.uk/car-details/202411066...

https://www.autotrader.co.uk/car-details/202409154...

https://www.autotrader.co.uk/car-details/202410285...

As you can see with your 1.5k & a loan for 3k will get you a good reliable car with sensible running costs too.