Help with finance needed

[Gring]

I want to buy a used car (2004) that is going to cost in the region of £55k.
I am thinking about possibly having a small balloon payment at the end, maybe 15 or 20%. I understand that I will need to pay a 10% deposit.

Do any of you know what kind of rates I am likely to get at the moment, plus what kind of repayments would I be paying over 5 years.

Thanks in advance

Peter

[Gring]

I wasnt actually asking for advice on my sanity, but thanks anyway.


I havent even found the right car yet, I am just after information at this stage.

[Gring]

Dave_ST220 said:

I would think long & hard about this, if you can't afford to buy a £55k car outright then don't even think about it IMO! Running costs, servicing etc are likely to cost a packet on a motor costing that much. A bank loan would make more sense if you want to keep it,that is a massive wedge to spend on a 5 year old car IMO. What car are we talking about?

I am interested in getting a Gallardo, running costs arnt really a huge amount more than my current car, I am used to 12mpg and less, expensive services etc. I think depreciation is not going to be a major killer at the price I would be going in at. In 5 years time, I cant really see Gallardo's dropping in value massively, worst case £35k perhaps, but who knows. If I get one and keep it for the full 5 years, it will not have cost me a massive amount.


I could if I really wanted, buy one outright, even a new one, but that would involve removing the cash from elsewhere, and I dont want to have to do that. So finance doesnt seem such a bad idea to me.

Edited by Gring on Wednesday 8th July 14:44

[Gring]

Sideways Tim said:

Ignore all the nay-sayers and if you want to do it, and in the worst case could clear the debt from personal assets, then go for it.

With a balloon and a 10% deposit, you'd be looking for an apr of less than 7% with repayments in the £800pm region.

That's back of a fag packet calculations, but it'll be near enough.

Thanks alot for that Tim,

I have been getting all kinds of quotes based on £60k, the latest:>

(Working on APR of 9.5%/Flat rate 4.9%.

With a 30% balloon (£18,000), then the monthly payments would be approximately 48 x £1,035 monthly.

Cannot offer 5 years and a balloon. Only 4 years and a balloon.)

Seems quite a high APR, my current APR with Santandar is 8%, where am I likeley to get 7%?

I dont really want to be paying over £1k a month, the less the better.

I could draw some money from a buy to let we have, but really dont want to do that.

[Gring]

flyingjase said:

Have you tried Oracle finance? They seem to advertise as being a niche lender for high end cars. I see them in teh Sunday Times every week talking about 6-7% APR.

Ignore what others are saying, I bought a car off a premiership footballer in Jan and when I HPI'd it, he had finance! And that was a guy that earns £25k per week, so it seems there are situations where you should use finance.

Good luck with Gallardo - very sexy car and may but one myself next year.

Hi Jase, yes I have tried Oracle, quoting slightly less but on 8%.

I just think finance in some situations makes sense, £900 a month in repayments is a fair amount but it's not a huge % of income. Sometimes you have got to do these things, even if they are a stretch. I dont want to wait until I am old before I get an extra special car. I want one now. Even if I cant afford to put petrol in it!