ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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The mrs has just reserved an Astra SRi sport hatch at our local vauxhall dealer.
Whats the best way of buying? bank loan, dealer finance, 3rd party finance??
Is it worth taking a loan out for a longer period, say 7 years, with the view to sell the car and pay the loan off in three years or so.
The car is £12,595 Looking to borrow just under £12k
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Ben J
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Registered: 31st Jan 05
Location: Cheshire
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Bank loans are usually better than dealer finance deals. Call your bank and see what deal they can give you. Your own bank will usually give you a better deal than a 3rd party loan too. Personally i'd not take it over any longer than 3 years. You don't want it hanging over you any longer. And with interest (even a good, low rate) the car probably won't be worth enough to cover the rest of the loan if you sell in 3 years.
See what the dealer & your own bank can offer, then decide.
Do you really need to spend £12k?
[Edited on 17-10-2010 by Ben J]
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Ben G
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Registered: 12th Jan 07
Location: Essex
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get a bank loan. cheapest way of doing it really.
although i took finance out on both my fiesta and focus, but that was 4.9% apr which is a decent rate.
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
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Dismiss finance straight away, bad idea as the car isn't yours until the very end and if you want to buy the car from the finance company, they charge you a million billion pounds.
If I did it again, I'd be going for a bank loan, or buying a shitter instead.
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John
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Registered: 30th Jun 03
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Go with whatever is the cheapest.
You own the car when it's on finance 
It's also normally cheaper to pay off in a lump sum early.
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Ben J
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Registered: 31st Jan 05
Location: Cheshire
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quote:
Originally posted by John
Go with whatever is the cheapest.
You own the car when it's on finance
It's also normally cheaper to pay off in a lump sum early.
Depends on the type of finance. HPI is hire purchase so you don't own the car until you pay the final blance (if you choose to).
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John G
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Registered: 18th Jul 05
Location: Wirral, Merseyside
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at least with a loan u can sell and the loan stays with you, with finance you will struggle to sell as people wont buy whilst it has outstanding finance and technically your not alowed to sell with outstanding finance
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John
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Registered: 30th Jun 03
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quote:
Originally posted by Ben J
quote:
Originally posted by John
Go with whatever is the cheapest.
You own the car when it's on finance
It's also normally cheaper to pay off in a lump sum early.
Depends on the type of finance. HPI is hire purchase so you don't own the car until you pay the final blance (if you choose to).
I wouldn't call HPI finance, I was talking about straight normal finance, as in just the same as getting a loan.
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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quote:
Originally posted by John
You own the car when it's on finance
If you can't sell it without having to settle the finance, IMO, you don't own it.
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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Its brand new, 1.8VVT with the XP kit (well.. pre reg) so £12k is a decent price i think.
Tesco's is looking cheapest at the moment, 7.6%
£12k over 5 years is £240 p/m
So after three years, she would have paid off £8640, surely the car would be worth £7-8k aslong as its in good nick with low miles? Looking at 2007 models selling now.
That leaves £3360 of outstanding loan + early repayment fee (2months interest)
Seems ok, or am i missing something?
Thanks for all the input.
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hbutler
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Registered: 18th Jan 07
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Bank loan, its not attached to the car that way
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richc
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Registered: 24th Mar 07
Location: Ilkeston
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quote:
Originally posted by ash_corsa
Its brand new, 1.8VVT with the XP kit (well.. pre reg) so £12k is a decent price i think.
Tesco's is looking cheapest at the moment, 7.6%
£12k over 5 years is £240 p/m
So after three years, she would have paid off £8640, surely the car would be worth £7-8k aslong as its in good nick with low miles? Looking at 2007 models selling now.
That leaves £3360 of outstanding loan + early repayment fee (2months interest)
Seems ok, or am i missing something?
Thanks for all the input.
Car will probably be worth less due to the mk6 astra taking off more??
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John
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Registered: 30th Jun 03
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No chance it will be worth 8k in 3 years.
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LeeM
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Registered: 26th Sep 05
Location: Liverpool
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quote:
Originally posted by ash_corsa
Its brand new, 1.8VVT with the XP kit (well.. pre reg) so £12k is a decent price i think.
Tesco's is looking cheapest at the moment, 7.6%
£12k over 5 years is £240 p/m
So after three years, she would have paid off £8640, surely the car would be worth £7-8k aslong as its in good nick with low miles? Looking at 2007 models selling now.
That leaves £3360 of outstanding loan + early repayment fee (2months interest)
Seems ok, or am i missing something?
Thanks for all the input.
Interest. You'll have closer to 6 grand left to pay after the 3 years of payments
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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quote:
Originally posted by LeeM
Interest. You'll have closer to 6 grand left to pay after the 3 years of payments
How do you get to that?
What you think itl be worth in 3 years?
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John
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Registered: 30th Jun 03
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3 year old diesels just now are only worth 8k, a petrol 3 years from now when the new one has been out for longer will be worth 6k if you're lucky.
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Scotty C
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Registered: 6th Nov 05
Location: Kidderminster Drives: 1.6 16v Sport
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About 5 - 6k...
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mwg
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Registered: 19th Feb 04
Location: South Lakes
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Just do which ever one you are most comfortable with financially.
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Pete_vxl
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Registered: 24th Nov 06
Location: Lochgelly, Fife
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These figures youve quoted, are they after your credit search or are those the typical figures from website? Personally i would take a loan as its free standing and also use a bit of savings, that way should something go wrong if you sell the car your selling price would never be less than your settlement fig. Also, why dont you get an 09 plate and extend a warrenty plan, cheaper to buy, most depriciaton is gone. When the new astra comes out too sport hatches will take a good dive.
[Edited on 17-10-2010 by Pete_vxl]
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SteveoBC
Premium Member
Registered: 22nd Feb 07
Location: Bucks
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buy one thats already had an owner but only has a few miles on, saves a but load in registration fees, new car taxes and so on, plus you wont be getting stung with depriciation
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Toby
Premium Member
Registered: 29th Nov 05
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I went for finance, did limit my choice a bit but couldn't get anywhere near 4.9% on a bank loan
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ash_corsa
Member
Registered: 15th Apr 04
Location: Shrewsbury
User status: Offline
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Vaux finance is more than 4.9% more like 8%
No reg fees etc as its a pre reg, Vauxhall were the 1st owner.
How do most people buy new/newish cars? its something neither of us have done before so never had to deal with big depreciation etc...
Our credit is spot on and we are homeowners so the loan shouldnt be a problem at all.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Whichever is cheapest.
They all have minor differences in respect of your rights and legal position but really, it's not about that unless you're planning to default or terminate the arrangement.
Work out what it costs all ways and go with the lowest figure. And I don't mean cheapest monthly payment, I mean lowest total outlay over the period of ownership.
[Edited on 17-10-2010 by Ian]
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
User status: Offline
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Only plan on owning it about three years, so the duration of the loan isnt that important is it?
Am i right in my calculations? After three years at £240 p/m the outstanding balance would be £3360 ish + 2 months interest.
You wouldnt pay interest on the remaining balance surely.
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corsa-sxi
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Registered: 11th Jul 03
Location: Kingston upon Hull
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how about something like this?
http://www.evanshalshaw.com/vehiclesearch/used/vauxhall-used-car-dv59ayt.html
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