Car Finance Help?
Discussion
Im looking at spending up to 10k on a car, currently have about £2000 for a deposit, whats the best way to go about getting finance as I dont want to turn up at a car dealers and get ripped off, am I better off applying elsewhere? Ive read/heard that applying for finance from more than one place is a bad move, true or false?
Im also wondering if it is wise for me to buy a car on finance as I am 19 and have had a few minor financial issues in the past due to redundancy etc which has left me a bit dubious about making too many financial commitments.
Oppinions and advice please guys? Thanks in advance
Im also wondering if it is wise for me to buy a car on finance as I am 19 and have had a few minor financial issues in the past due to redundancy etc which has left me a bit dubious about making too many financial commitments.
Oppinions and advice please guys? Thanks in advance
You've said that £10k is just a cap, but with only £2k deposit against a £10k car, it would be difficult to prevent going into "negative equity". This is when the amount outstanding on the loan is more than the car is worth and you really dont want to be there.
No idea how much you get paid, but an £8k loan at 19 seems like a lot to me?
Dealer may be the only option, given your age, as personal loans are likely to be rather expensive, or just unobtainable for you. There are balance transfer credit cards that work out much cheaper than loans, but you really have to be good with money to make them work out. You also may not get a card with a credit limit large enough to pay for the car anyway.
No idea how much you get paid, but an £8k loan at 19 seems like a lot to me?
Dealer may be the only option, given your age, as personal loans are likely to be rather expensive, or just unobtainable for you. There are balance transfer credit cards that work out much cheaper than loans, but you really have to be good with money to make them work out. You also may not get a card with a credit limit large enough to pay for the car anyway.
- Sweeping Generalisation* - without knowing specifics of your credit history you may well struggle to get a car finance agreement in place - some of the major lenders wil not accept applicants under the age of 21 and as you point out that your credit history isn't great, you may end up having to go to one of the sub-prime lenders who will charge the (comparative) earth. I'd suggest having a word with your bank about a personal loan in the first instance - this won't be secured against the car. Good luck in your decisions!
http://www.pistonheads.com/sales/3915969.htm
Get something like that for your money. Comfortably as good as a Fiesta ST and a lot, lot cheaper. Then get something nice in 2/3/4 years.
Get something like that for your money. Comfortably as good as a Fiesta ST and a lot, lot cheaper. Then get something nice in 2/3/4 years.
rfoster said:
*Sweeping Generalisation* - without knowing specifics of your credit history you may well struggle to get a car finance agreement in place - some of the major lenders wil not accept applicants under the age of 21 and as you point out that your credit history isn't great, you may end up having to go to one of the sub-prime lenders who will charge the (comparative) earth. I'd suggest having a word with your bank about a personal loan in the first instance - this won't be secured against the car. Good luck in your decisions!
I'm not far off your age and at 21 I had Skoda finance (Effectively VW Finance.) wanting me to put down £5k on the £13k Fabia vRS I bought. This rather conveniently means for them that so long as I maintain the agreement, the car will never go into negative equity.You'd hope that with that in mind they wouldn't charge that much interest, but they do and it's a lot (£2k over three years, but I have cut this figure by making early repayments.)
I love the car, but wouldn't finance again in-less I was I was getting one of the 0% interest with 50% deposit deals (Quite popular, but I think this is only on new cars really. - Then again, why would a savvy person do that?!). Or 50% deposit and the rest on 7% ish loan.
OP with your age in mind (Minimal outgoings)if you have a decent job you should be able to save quickly.) I wouldn't finance considering your age and employment history. I know it's boring, but some day you may be glad you didn't dip into finance.
Also, I know that 10k is your top end, but consider that over a 2 year term a £10k car would probably loose £3-4K and a £2k car would probably loose £1k.
spud989 said:
http://www.pistonheads.com/sales/3915969.htm
Get something like that for your money. Comfortably as good as a Fiesta ST and a lot, lot cheaper. Then get something nice in 2/3/4 years.
THIS, I don't know about your personal circumstance. But as a young person myself with minimal outgoings, If I really scrape on spending for two months I could buy one of those on the spot. Now if you've done your math and can handle up to £8k over two years at quite a high interest rate, you shouldn't be far off this.Get something like that for your money. Comfortably as good as a Fiesta ST and a lot, lot cheaper. Then get something nice in 2/3/4 years.
Let us know what you decide OP.
Edited by HBFS on Friday 1st June 21:14
I'll go against the grain here and actually offer advice pertaining to your needs. Make sure you get some clear figures in regards to everything before you sign anything. Any extra charges, etc. Interest rates will vary.
Despite what the majority will say, if you sign for Hire Purchase the world will not end instantaneously. I got accepted for it no problem at nineteen but I always did my homework and stayed within my financial limits. A sizable deposit like yours will put you in a favorable position in regards to equity.
If it's what you want to do, and you can trust yourself to approach it sensibly then do it.
Despite what the majority will say, if you sign for Hire Purchase the world will not end instantaneously. I got accepted for it no problem at nineteen but I always did my homework and stayed within my financial limits. A sizable deposit like yours will put you in a favorable position in regards to equity.
If it's what you want to do, and you can trust yourself to approach it sensibly then do it.
SirSamuelOfBuca said:
Or get 6k-7k loan and get a mint focus rs mk1 cheap to insure only grp16
After first monthly payment you will still be like my car is awesome.
Might like a few k if u don't keep it in top shape but they hold value.
My 2p
Cheap to insure a group 16 car when you are 19 years old?After first monthly payment you will still be like my car is awesome.
Might like a few k if u don't keep it in top shape but they hold value.
My 2p
If your parents own an oil field - yes.
If you aren't a Saudi Royal - no.
SirSamuelOfBuca said:
Or get 6k-7k loan and get a mint focus rs mk1 cheap to insure only grp16
After first monthly payment you will still be like my car is awesome.
Might like a few k if u don't keep it in top shape but they hold value.
My 2p
And again, but in English this time, please.After first monthly payment you will still be like my car is awesome.
Might like a few k if u don't keep it in top shape but they hold value.
My 2p
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