How do you afford your car?

[Coog]

Ok now that we've cleared that up back to topic

 

[southsky sunrise]

Before when I could, I’d use the credit union to buy and sell and was going buy something fast and obnoxious but then got pulled in and told it wasn’t a bank and I couldn’t just take my own money out willynilly even though I was putting more back in, so that put a dampener on it big time and I got another truck. There’s nothing more I’d like to take a golf r or rs whatever out on hp/lease etc but just can justify it when life gets more attention. Il just stuck to rusty Vauxhall’s and enjoy my monies other ways.

 

[mayweather]

I had a PT job throughout my studying too, however I can see Toeman's point. any end up compromising uni work for the income from their pt job. Which is better, them having a pt job and possibly a lesser qualification or a helping hand if you can afford it and the opportunity for better results / standard of qualification?

Also depends on the course, do you think student nurses should study, do the hands on in hospitals (often having to travel to the far end of the country for the experience) plus work a PT job? I know they get a bursary but that doesn't cover it.

As you say its course dependent, the majority of courses out there classed as full time are actually only 2 days a week, history and geography being prime examples.

Kids should know the value of money

 

[Lee]

Before when I could, I’d use the credit union to buy and sell and was going buy something fast and obnoxious but then got pulled in and told it wasn’t a bank and I couldn’t just take my own money out willynilly even though I was putting more back in, so that put a dampener on it big time and I got another truck. There’s nothing more I’d like to take a golf r or rs whatever out on hp/lease etc but just can justify it when life gets more attention. Il just stuck to rusty Vauxhall’s and enjoy my monies other ways.

In what way did they say they were different to a bank in terms of taking your own money out? Did they just mean you were racking up too many transactions across the counter?

 

[southsky sunrise]

T

In what way did they say they were different to a bank in terms of taking your own money out? Did they just mean you were racking up too many transactions across the counter?

Wanting me to take-out a loan against myself and because I was paying it back so quickly they couldn’t get their margin at me with interest. Turns out I can lend myself the money without the interest of a third party

 

[Lappintyre]

Thread resurrection..

Cupra is due to go back any day now & head is all over the place looking at replacements for it. Have a very strong contender but on PCP etc its out of my normal budget once I put in my mileage etc due to it being a 2019 & only being able to finance over X amount of months.

Option 1. Go for PCP, higher monthlies, balloon payment or hand back, limited mileage, no asset at the end (over monthly budget really too)
Option 2. Personal loan, longer term to pay back, asset at the end of said term, can change at any stage, no mileage limits.

Main con to option 2 that I can see is, I am the one taking any hit on depreciation IE buy the car for '£10k' after 12 months it looses £2k, to get another '£10k' I'll need to stump up a further '£2k'. Also, is a personal loan more risky in terms of comeback on a car is something major goes wrong? Would be coming from a main dealer & will have warranty for a period of 12 months which i would extend...and will the personal loan be more risky in terms of my credit vs car finance?

On the plus side for option 2 - it gives more flexibility come change time, which for me, is quite often.. (costly)

I realise that this is where finance scheme comes into their own in that you are essentially paying for the depreciation in your monthlies.

So.. how do I afford this car?

 

[Dan.86]

My interest rate on my PCP while not being massive, takes near a third of my monthly payment. Wouldn’t have annoyed me in the past but I’m changing to a personal loan as soon I can because 2.8% with Tesco is hard to beat. Go with the loan

Or buy it outright because paying off a car means you can’t afford it….

 

[Lappintyre]

That 2.8% is a sweet spot up to £25k, over that & it jumps a lot..

 

[Lyons]

Some of the monthly figures were pretty frightening when I was exploring these options recently.

 

[DJMCA]

I always buy whatever I can with the available cash that I have (not very much) . My £1k daily derv has lasted me 8 years so far, i owe nothing for it apart from tax insurance etc. and I love it.

As much as i love my cars, Id really begrudge buying a car on drip that was depreciating all the time and possibly leaving myself under pressure financially. Id rather spend my wages on other more important things. I dont like buying anything i cant afford outright. Thats just my own personal opinion, im not judging anyone else for being different.

Il get my coat

 

[Lappintyre]

I always buy whatever I can with the available cash that I have (not very much) . My £1k daily derv has lasted me 8 years so far, i owe nothing for it apart from tax insurance etc. and I love it.

As much as i love my cars, Id really begrudge buying a car on drip that was depreciating all the time and possibly leaving myself under pressure financially. Id rather spend my wages on other more important things. I dont like buying anything i cant afford outright. Thats just my own personal opinion, im not judging anyone else for being different.

Il get my coat

Nothing wrong with that outlook one bit. Hats off!

 

[Rocko]

Stopped buying diesel.

 

[AC]

Everyone is different in terms of risk v reward so only you can make that choice.

Money is cheap at the moment (personal loan), providing you have a decent credit rating, the car you are buying is within the loan amount or you have other spare cash/assets to make up the difference. Keeps the monthlies low(er). That's the route I'd go... depreciation is not really something I worry too much about in the present - you are a long time dead! You either take the risk and roll the dice in the hope it doesn't drop like a stone when you come to sell, or you take car finance as a safe option with higher monthlies.

 

[Rocko]

I put £40k into bitcoin and two years later was able to buy my car outright for £20k.



(This is a joke btw)

Should have listened to myself.

 

[ChrisR]

My interest rate on my PCP while not being massive, takes near a third of my monthly payment. Wouldn’t have annoyed me in the past but I’m changing to a personal loan as soon I can because 2.8% with Tesco is hard to beat. Go with the loan

Or buy it outright because paying off a car means you can’t afford it….

This!

Personal loan everytime.

I originally took my old car on PCP, decided I wanted to keep it so paid it off with a personal loan and saved well over £1k in interest.
Had no car payments for 2 years then used the car as a deposit on my new one and took another personal loan.

The interest is tiny & the personal loan (Tesco) allows you to overpay with no fees so you can reduce the term quickly too if you wanted to.

If it’s over £25k where the rate jumps, could you take out two loans with different companies?

 

[Rigger]

1/3 positive equity from the XF-S I traded in, 1/3 my own money and 1/3 on credit.

 

[Lappintyre]

Have no trade in, nor a 1/3 of the value in deposit, but that’s actually a good model you used @Rigger

In other news, the f3cking car I wanted sold this afternoon. There are more out there but none on these shores..

 

[Cro]

I’m a cash buyer kinda guy, but that’s purely because I don’t know the loop holes and tricks lads use when buying big ticket items

There’s definitely smart ways to have class cars without exposing your liquid cash so much

If I knew how to set my neighbours dog up as a limited company and put a car through that you’d best believe I’d be all over it

 

[Rigger]

Have no trade in, nor a 1/3 of the value in deposit, but that’s actually a good model you used @Rigger

In other news, the f3cking car I wanted sold this afternoon. There are more out there but none on these shores..

Unlucky on losing out on the car you wanted.

Only reason I was able to do this was after driving 'old man's' (any prestige car I guess) cars for the last 10 years, and looking after them.

Trade in values started going up after the 1st XF, which I kept for near 7 years. It was fully paid, and at trade in - 9 years old, I got near 11K for it.

The next two XF's did the same - until I part exchanged the last one in. It was valued at 28K, and I had paid off a fair chunk of that - which I used as positive equity for the XJR.

I’m a cash buyer kinda guy, but that’s purely because I don’t know the loop holes and tricks lads use when buying big ticket items

There’s definitely smart ways to have class cars without exposing your liquid cash so much

If I knew how to set my neighbours dog up as a limited company and put a car through that you’d best believe I’d be all over it

I much prefer using a credit card if I'm using my own money - I can always transfer funds to clear the credit card after.

But the protection you get from a credit card - especially with dealers can't be understated.

Section 75 of the Consumer Credit Act:

Section 75 of the Consumer Credit Act - Which?

If you buy goods or services on your credit card, Section 75 can give you extra protection if things go wrong.

www.which.co.uk

 

[PDK]

Unlucky on losing out on the car you wanted.

Only reason I was able to do this was after driving 'old man's' (any prestige car I guess) cars for the last 10 years, and looking after them.

Trade in values started going up after the 1st XF, which I kept for near 7 years. It was fully paid, and at trade in - 9 years old, I got near 11K for it.

The next two XF's did the same - until I part exchanged the last one in. It was valued at 28K, and I had paid off a fair chunk of that - which I used as positive equity for the XJR.

I much prefer using a credit card if I'm using my own money - I can always transfer funds to clear the credit card after.

But the protection you get from a credit card - especially with dealers can't be understated.

Section 75 of the Consumer Credit Act:

Section 75 of the Consumer Credit Act - Which?

If you buy goods or services on your credit card, Section 75 can give you extra protection if things go wrong.

www.which.co.uk

Having experience of claiming under section 75, couldn’t recommend using a credit card more, even for the deposit, then the whole transaction is covered (up to £30k)

 

[Lappintyre]

Interesting that section 75..

 

[Todd]

I’m a cash buyer kinda guy, but that’s purely because I don’t know the loop holes and tricks lads use when buying big ticket items

There’s definitely smart ways to have class cars without exposing your liquid cash so much

If I knew how to set my neighbours dog up as a limited company and put a car through that you’d best believe I’d be all over it

Same, wish i knew the tricks of the trade!

I save, buy, save bit more and go again!

 

[mpowered]

Work stupid amounts of hours to pay for them

 

[Coog]

Finance at the dealer is the easiest but possibly most expensive option in the long run. They incentivise the sale to go through finance so you could always do that to get the incentives then get a loan and pay it off when the outstanding balance dips below the higher rate threshold for the loan. Roll of the dice in assuming you can get the credit then though. But it’s what I’d aim for. If you can’t get the loan for whatever reason then no big deal just continue as before.

Two loans is another option but short term you’re servicing two of them, or you run a lower value loan way out for the same term as the main loan. Not sure what that does to combined overall APR though, probably frigs it. Plus the dealer is likely to be slightly arsey about a ‘cash’ sale as well.

Personally speaking nowadays I rent one good family car and then buy my own cheapies with cash. The odd time I’d take a bridging loan if I haven’t the funds sitting ready to go straight away. Some banks you can literally get almost any amount of money with just a few taps on the phone app, which is a bit mad. Stupidly accessible.

 

[Artoir]

This.