Take out finance or save up and just buy outright

[Nervasport]

Right I've been toying with the idea of a new car for some time as my meggy is abit knackered (11 years old 94k) and think its time to get something better. I've spotted a skoda Fabia http://www.drivebenfield.com/approved-used-vehicle... which I like and could afford the payments on when I start my new job in a couple of weeks time.

However I'm not sure as I prefer to buy outright and know everything is taken care of and that it's mine, my family say either take a bank loan out or just get Christmas out the way and save up after new year and get one next year.

Any suggestions?

[Nervasport]

astirling said:

Oh no. You didn't really just ask that question on PH did you?!

In a moment of madness.....yes

[Nervasport]

I think I might just wait a little while until after Christmas where I know I'll be in a better financial position, I worked out all my bills with my new job and I could afford It and possibly pay it off within 3 years if I budget right. Or just save up and pay off in one go like I did with the meggy

[Nervasport]

Just fancy treating myself to something better and more reliable and cheaper to run. I'd keep it for the long haul.

[Nervasport]

ikarl said:

Why do you keep saying meggy?? What's a meggy?

Short for megane

[Nervasport]

Think I might just do what I did before and save up. Like some of you have said it's greater satisfaction knowing you've worked hard to get it and own it outright, rather than paying x amount per month which could be spent/saved on better things. New job is literally a mile from my house so I wouldn't need to use the car as much and when I stop and think about it is be paying x amount on a car I wouldn't use much which would be a waste.

[Nervasport]

xRIEx said:

UVAVU! If by long haul you mean you're going to keep this one for 11 years (or longer) then fine, but are you not going to be bored of a 1.2 hatchback in less time than that? Rather you than me.

To answer the original question, there's nothing wrong with finance but as already mentioned, a bank loan will be cheaper overall (even if monthly payments are higher). What I ask when signing up to this sort of commitment is, "I'll finish paying this in {e.g.} 5 years; how is my life different today compared to 5 years ago, and how different will it be in another 5?"

Uvavu! Isn't that what bob and vic used to say on shooting stars I've decided to just save up and that gives me the security of having a financial buffer if things go tits up aswell as having money for the car.

[Nervasport]

Test drove the Monte Carlo edition yesterday and my god it was brilliant! Seriously considering putting my deposit down ASAP!