Bart
Member
Registered: 19th Aug 02
Location: Midsomer Norton, Bristol Avon
User status: Offline
|
Im considering a new car and dont have much spare cash around (this is being thrown towards our unborn child at the moment!).
Ive been considering a loan, but never really looked at it properly.
Ive spoken to a friend last night who took out a reasonable loan, and when hes ready to get a new car, simply sells it and extends the loan.
Out of curiousty, does anyone else do this? How long do people spread the loan out over?
IVe shopped around, got monthly payments down to £110 by speading a loan of 10k over 12 years, but thats a long time 
Any info or advice from experience would be good.
|
KingDoug
Member
Registered: 13th Oct 09
Location: Dorchester, Dorset
User status: Offline
|
Not tried taking out finance?
|
x14xe sport
Member
Registered: 27th Apr 09
User status: Offline
|
12 yrs, fuck that, you'l seriously regret that after a yr, i took out a loan for a van but only over 2yrs, often cheaper than fiance
|
Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
12 years 
|
Tom G
Member
Registered: 4th Aug 08
Location: Cheshire
User status: Offline
|
quote:
Originally posted by Bart
Im considering a new car and dont have much spare cash around (this is being thrown towards our unborn child at the moment!).
Ive been considering a loan, but never really looked at it properly.
Ive spoken to a friend last night who took out a reasonable loan, and when hes ready to get a new car, simply sells it and extends the loan.
Out of curiousty, does anyone else do this? How long do people spread the loan out over?
IVe shopped around, got monthly payments down to £110 by speading a loan of 10k over 12 years, but thats a long time
Any info or advice from experience would be good.
I got just under 8K of finance spread over 5 yrs for my car, not to bad as i can manage the monthly payments etc but that includes like loads of interest 
|
Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
|
You'd have to be a raving lunatic to take a loan over 12 years. Paying back more than £3k on interest Why not get a cheaper car on finance?
|
Ellis
Member
Registered: 11th Sep 07
Location: Aberdeenshire
User status: Offline
|
Borrowed money from Father for my new car, should be paid off in about 9 months...
|
Dave86
Member
Registered: 3rd Jul 05
Location: Greenock
User status: Offline
|
i got a 10k loan, to pay off a car i sold few months ago, and with the rest i bought another car, payin back over 4 yrs, but ive got spare couple of grand to pay back into it, so should be down to almost 3 years.
|
Ian W
Member
Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline
|
I've had one but only over 3 years, 12 is just mental, even if you bought a brand spanker it would be an old car by the time the loans finished.
|
jaffa
Member
Registered: 27th Mar 00
Location: Stoke-on-Trent
User status: Offline
|
When I got the astra I took out a loan. Was unsure but the gti was costing me more to keep on the raod than the interest on the loan
took out 4.5k over 5yrs. Monthly payments were managable and managed put more away per month so I paid the loan off early.
As mentioned why not a smaller loan over a shorter period?
|
Tiesto
Member
Registered: 6th Jun 02
Location: Hinckley, Leicestershire
User status: Offline
|
I took out 14k over 5 years. Now got 1 1/2 yrs left.
Won't be doing that again in a hurry.
But then you only live once and wanted a nice car so thought why not! Comfortably afford repayments anyway.
[Edited on 22-01-2010 by Tiesto]
|
DizzyRebel
Member
Registered: 2nd Jan 09
Location: Lincoln
User status: Offline
|
Once and never again. I see no point in taking finance out on a luxury item.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
12years,,,,,,,,,,,,,,behave yourself
Nothing wrong with finance so long as you'll not miss the money coming out your account each month.
Ive had finance a few times now & the best thing to do is to stick down at least 50% of the cars value & borrow the rest. If you cant do that the i'd give it a miss for the obvious reasons.
My next car will be on finance as well, for the single reason that it would take far too long to save the cash.
|
ed
Member
Registered: 10th Sep 03
User status: Offline
|
If you need a twelve year loan you can't afford it.
|
John
Member
Registered: 30th Jun 03
User status: Offline
|
You don't need to go as high as 50%, a siezable deposit (probably at least 25%) and over 3 years means the car (in 99% of cases) will always be worth more than the finance you owe so if you have to sell you can pay the finance.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
I took mine over 4yrs, i'll sell it after 2 & walk away with the cash I put down in my pocket & the rest of the finance paid off, having paid the depreciation. Then start over again!!
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
quote:
Originally posted by John
You don't need to go as high as 50%, a siezable deposit (probably at least 25%) and over 3 years means the car (in 99% of cases) will always be worth more than the finance you owe so if you have to sell you can pay the finance.
Depends on how much its worth after the 3yrs & whether you keep it that long.
50% in on a car thats done its hard depreciating & will still be worth a few quid once your done with it playing a safe hand...............to me anyway
|
John
Member
Registered: 30th Jun 03
User status: Offline
|
I'm talking about newer stuff as well tbh, maybe 18 months old max, things will probably be different with older cars.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Well ive never bought new or nearly new. Think the newest car ive ever bought is 4yrs old. Loose too much on new motors!!
|
John
Member
Registered: 30th Jun 03
User status: Offline
|
Unless you buy either pre reg or ~ a year old.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Well yeah again in most cases.
I couldnt afford a pre reg or yr old M3 though Which is what im buying again next. I hope to get a 07 or possibly an 08 about this time next year for around 30k. I need to save up another 5k before I can do it. I think thats achievable!! 
|
John
Member
Registered: 30th Jun 03
User status: Offline
|
See, I couldn't bring myself to pay 30k for a 4 or 5 year old car
|
Mase
Premium Member
Registered: 16th Sep 01
Location: Derbyshire
User status: Offline
|
I've had 13k over 4 years for the Focus, I'm planning on doing the same as Colin, keep for two years, get shot, pay the rest of the loan off and start again.... No way would I consider 12 years, i didn't even know they did such a long term!
Mase
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
quote:
Originally posted by John
See, I couldn't bring myself to pay 30k for a 4 or 5 year old car
3-4yr old & around half of the price when new, safe in the knowledge its certainly not going to loose anywhere near another 25-30k during my ownership? Tempting no?
I couldnt bring myself to pay big money for a new car, knowing its going to be worth half by the time im done with it!! But im glad there are people that see value from it though otherwise I wouldnt get many used bargains to choose from!!
|
Bart
Member
Registered: 19th Aug 02
Location: Midsomer Norton, Bristol Avon
User status: Offline
|
quote:
Originally posted by ed
If you need a twelve year loan you can't afford it.
Indeed.
We are looking to get our mortgage down in the next week or so, but in general, we have quite a large mortgage (£1k a month), still paying for our wedding (16 weeks ago) and now have a little nipper on the way (21 weeks pregenant).
The wife has an Audi TT and I have a 3 series bmw (2dr), both cars are very inpractical.
Looking around auto trader, you can get a nice A4/A4 S Line 2.0L 4 door for around the 10k mark (with 50k milage or less).
That would mean a much smaller loan than I originally thought.
£6k loan over 4 years @ £147 a month aint too bad is it?
|
