Anyone used Halifax Car Finance?
Discussion
I've been toying with the idea of getting a diesel car, as I highly reckon my Celica will be too expensive to run doing 16,000 miles a year. Been having a play around with Halifax's car finance calculator and looking at their version of PCP, and found that a particular 14-plate Fiesta 1.5 TDCi, at £8400, will get me monthly payments of 65 quid for 12 months, then baloon payment.
This sounds too good to be true, and you know what they say...
But if I can get such finance, the pro is I'll save 70 quid a month by paying hardly as much for fuel, and no road tax, and drive a much newer high spec car (Titanium pack), but the con is, because payments are so low, will I risk being in neg eq in a year's time? Unless Halifax reckon the rate of depreciation will be low? Thoughts on this?
This sounds too good to be true, and you know what they say...
But if I can get such finance, the pro is I'll save 70 quid a month by paying hardly as much for fuel, and no road tax, and drive a much newer high spec car (Titanium pack), but the con is, because payments are so low, will I risk being in neg eq in a year's time? Unless Halifax reckon the rate of depreciation will be low? Thoughts on this?
Ste1987 said:
I've been toying with the idea of getting a diesel car, as I highly reckon my Celica will be too expensive to run doing 16,000 miles a year. Been having a play around with Halifax's car finance calculator and looking at their version of PCP, and found that a particular 14-plate Fiesta 1.5 TDCi, at £8400, will get me monthly payments of 65 quid for 12 months, then baloon payment.
This sounds too good to be true, and you know what they say...
But if I can get such finance, the pro is I'll save 70 quid a month by paying hardly as much for fuel, and no road tax, and drive a much newer high spec car (Titanium pack), but the con is, because payments are so low, will I risk being in neg eq in a year's time? Unless Halifax reckon the rate of depreciation will be low? Thoughts on this?
Usual caveat changing cars to save money almost never adds up especially based purely on fuel costs.This sounds too good to be true, and you know what they say...
But if I can get such finance, the pro is I'll save 70 quid a month by paying hardly as much for fuel, and no road tax, and drive a much newer high spec car (Titanium pack), but the con is, because payments are so low, will I risk being in neg eq in a year's time? Unless Halifax reckon the rate of depreciation will be low? Thoughts on this?
However, that said, more information is needed for exact answers (deposit, interest rate, balloon payment/GMFV of the car etc). Based on your numbers you will almost certainly be in negative equity - after 12 months there will be £7620 outstanding - the car will be worth say 5.5-6.5k ballpark? (finger in air estimate admittedly).
Things you need to consider:
Current costs of existing car - fuel/tax/depreciation/estimated repairs
Cost of new car - fuel/monthly payment/money put aside for final payment
Have a look here : http://pcpfinancecalculator.co.uk/ to have a play with numbers of deposit etc to work out the costs
To be fair, their car finance has a better rate than their loans.
Anyway, £1700 deposit (assuming I can get £1500 for the Celica + 200 dippa), cash price £8428
£64.42 over 11 months, and balloon payment of £6268.
Now I'm looking at it, that £6268 is the GFV, regardless of deposit. Without that £1700 deposit payments are £218 a month, so it won't actually be cheaper, will it?
In the short term, I can save about £70 a month, that's taking into account both the finance payment and the fuel I'd be using, and I'm planning on being on the property ladder at the start of next year, so that extra £70 a month will make all the difference.
Anyway, £1700 deposit (assuming I can get £1500 for the Celica + 200 dippa), cash price £8428
£64.42 over 11 months, and balloon payment of £6268.
Now I'm looking at it, that £6268 is the GFV, regardless of deposit. Without that £1700 deposit payments are £218 a month, so it won't actually be cheaper, will it?
In the short term, I can save about £70 a month, that's taking into account both the finance payment and the fuel I'd be using, and I'm planning on being on the property ladder at the start of next year, so that extra £70 a month will make all the difference.
mackay45 said:
You'd probably be best off selling the Celica and buying a (non turbo) diesel shed for similar money.
Buying a nearly new Fiesta on finance isn't going to put any money in your pocket for house deposit.
Sound words. The value of the car will not only fall like a stone, but you're keeping the finance company in bread too. Lose/lose.Buying a nearly new Fiesta on finance isn't going to put any money in your pocket for house deposit.
mackay45 said:
How many mpg can you manage in the Celica?
You'd probably be best off selling the Celica and buying a (non turbo) diesel shed for similar money.
Buying a nearly new Fiesta on finance isn't going to put any money in your pocket for house deposit.
Get yourself a previous generation 1.6 TDCI Fiesta. I got one due to doing higher miles (20k per year) 50-60mpg, cheap as chips running costs and can be picked up for £2k.You'd probably be best off selling the Celica and buying a (non turbo) diesel shed for similar money.
Buying a nearly new Fiesta on finance isn't going to put any money in your pocket for house deposit.
mackay45 said:
How many mpg can you manage in the Celica?
You'd probably be best off selling the Celica and buying a (non turbo) diesel shed for similar money.
Buying a nearly new Fiesta on finance isn't going to put any money in your pocket for house deposit.
I'm not worrying about my house deposit, I'm more concerned about my finances when I do move out.You'd probably be best off selling the Celica and buying a (non turbo) diesel shed for similar money.
Buying a nearly new Fiesta on finance isn't going to put any money in your pocket for house deposit.
I've toyed with the idea of getting a diesel shed, but I'm just not keen on the maintenance side of things, unless I just get shut before it's MOT's due. There's a 206 on AT that looks tidy for £1500. I really don't know now
Ste1987 said:
I'm not worrying about my house deposit, I'm more concerned about my finances when I do move out.
I've toyed with the idea of getting a diesel shed, but I'm just not keen on the maintenance side of things, unless I just get shut before it's MOT's due. There's a 206 on AT that looks tidy for £1500. I really don't know now
Well, an almost new shiny one and a non-turbo shed from an auction are the extremes. There's plenty of stuff in-between that will preserve your wealth. I think you need to separate 'want' from 'value', and always bear the Depreciation Monster in mind I've toyed with the idea of getting a diesel shed, but I'm just not keen on the maintenance side of things, unless I just get shut before it's MOT's due. There's a 206 on AT that looks tidy for £1500. I really don't know now
Simpo Two said:
Well, an almost new shiny one and a non-turbo shed from an auction are the extremes. There's plenty of stuff in-between that will preserve your wealth. I think you need to separate 'want' from 'value', and always bear the Depreciation Monster in mind
Doing some man-math with the 206 and it's fuel economy, I won't be any better off than getting that Fiesta. I'm gonna make a phone call to Halifax at the weekend and try and get my head around how it all works
FW18 said:
Get yourself a previous generation 1.6 TDCI Fiesta. I got one due to doing higher miles (20k per year) 50-60mpg, cheap as chips running costs and can be picked up for £2k.
Sounds a good option to me! I used to have a 1.6 TDCI Fiesta (Zetec S though so I guess a bit more fun than a regular one) and it was a good car, would have one again. Was on about 93k when someone went into the back of it and wrote it off 
Ste1987 said:
mackay45 said:
OP - where are you going to get the money from to pay the balloon?
Who says I'm gonna pay it? Just hand it back or trade in
I think you need to think about what you're doing here
So basically it won't be cheaper overall, you won't have a car in a year's time (meaning your hand will be forced regarding getting into a lease deal, which you might not be able to time to coincide perfectly with getting rid of the Fiesta and means you might have to compromise on car/deal), and if I understand mortgages at all (I'm looking to get one soon as well) it might adversely affect your mortgage eligibility.
Just keeping your existing car and chopping it in for a lease once you're set up in the new house would make more sense than the Fiesta on finance plan, in my opinion.
Or get a Fiesta if you want one, but don't kid yourself that it makes sense financially.
Just keeping your existing car and chopping it in for a lease once you're set up in the new house would make more sense than the Fiesta on finance plan, in my opinion.
Or get a Fiesta if you want one, but don't kid yourself that it makes sense financially.
Gassing Station | Finance | Top of Page | What's New | My Stuff