How would you would finance a car, in this situation?
Discussion
pistonoobs said:
My own vehicle also has questionable reliability, and is costing me a fair bit in petrol at the moment.
I love this bit of Man Maths. My car is costing me a bit in petrol, so I will spunk £17k on a new 'efficient' car..... £17k buys a lot of petrol! 
As others have said, I would get the house purchase out the way before deciding what to do with your cash. The new house might need a a bit of work and then you might wish you had your old car for doing runs to the tip etc. Definitely hang fire....
Mike
mike9009 said:
I love this bit of Man Maths. My car is costing me a bit in petrol, so I will spunk £17k on a new 'efficient' car..... £17k buys a lot of petrol!
It's kind of man maths, but it's also a car which is now such a pile of s
te, that it frustrates me just to get in it now, due to the sheer number of faults it has.I've had new-ish cars before and never had a single problem with any of them, and i suppose this is where some of my logic (rational or not) creeps in. This bag of b
ks is 8 years old and still in double-figure mileage, and im sure it was an 'let the apprentice build it on saturday afternoon while we all go to the boozer' car.It beggars belief that you would be willing to spend that amount of money prior to a house move on a car that will depreciate like a stone compared to your current runabout. I can only assume a house move is prone to throwing up unexpected expenses which would be covered by the money you currently have in the bank. As others have said you should wait until the move is complete before even considering a new car to see how your finances lay. Apply some common sense here.
jamiebae said:
To answer the question actually asked, rather than giving an opinion....
Secured finance on the car (not a loan) over 5 years to keep the payments to a minimum and therefore reduce the impact on the 'affordability' factor of the mortgage would be the way to go. Unsecured finance can be treated differently to hire purchase so is not ideal in this situation.
Has this fella's post been completely overlooked?Secured finance on the car (not a loan) over 5 years to keep the payments to a minimum and therefore reduce the impact on the 'affordability' factor of the mortgage would be the way to go. Unsecured finance can be treated differently to hire purchase so is not ideal in this situation.
I would preserve as much of the cash as possible. I would set my sights a little lower on the car and get something fairly new and reliable. A certified used car that comes with say a 6 year, 100000 mile warranty might be a good bet, even better if the dealer is trying to clear inventory. Look at financing costs - consider PCP with a low APR - you can get a lot of car for the money.
Forget the BMW for now. Chop yours in and buy something VW from year 2000 era with a PD130 in it and 100k+ miles. Reliability and getting from A-B issues now sorted, and it's only cost you £2k less whatever you get for your current motor. Sort houses out, get settled in your new one and do all the inevitable fixing/decorating that new houses require, then once you've got all that way out of the way you can start looking at new motors again, and by which time the BMW you want will now be £7k and not £17k. 
Topic Title said:
How would you would finance a car, in this situation?
If it was me:I would sort the house move completely first, if possible putting as many of the additional costs on to the mortgage total (one of the cheapest forms of borrowing), and using cash to pay what couldn't go on the mortgage.
I would then use the remaining cash to buy the car (topping up with a loan or other form of finance if required).
Every month, money that would otherwise have gone on finance repayments would get put back in to savings to rebuild bank balance. If an emergency occurred, I would then borrow (via credit card if instant money is required then paid of with a loan, or loan if there was sufficient time to arrange) if I hadn't saved enough cash to cover it by that point.
If you buy the car with cash and then can't afford to put money aside (equivalent to repayments), you couldn't afford to buy it in the first place.
LaurasOtherHalf said:
jamiebae said:
To answer the question actually asked, rather than giving an opinion....
Secured finance on the car (not a loan) over 5 years to keep the payments to a minimum and therefore reduce the impact on the 'affordability' factor of the mortgage would be the way to go. Unsecured finance can be treated differently to hire purchase so is not ideal in this situation.
Has this fella's post been completely overlooked?Secured finance on the car (not a loan) over 5 years to keep the payments to a minimum and therefore reduce the impact on the 'affordability' factor of the mortgage would be the way to go. Unsecured finance can be treated differently to hire purchase so is not ideal in this situation.
Monthly payments on a car in WHATEVER FLAVOUR (HP, personal loan, secured finance etc...) would be picked up immediately.
They would then reduce the amount they are willing to lend to you commensurately.
OP - DO NOT BUY A NEW CAR.
Frankly, given the details in your OP, I can't believe you are even considering it.
You need every penny you have in order to maximise firstly, the amount they will lend you, and secondly, your deposit.
No matter how you cut it, buying a new car will reduce one or more likely BOTH of those numbers.
If you wait for the house purchase to go through then you can blow as much as you want on a rep-mobile.
But for now - if you want the best house you can, keep the mondeo.
I'm in the same situation but sat down with the mortgage advisor and ran some options through
The worst thing I could do was buy a car, wait, sell & buy houses and then see what's left.
As you said, you'll need the cash, and I asked about having repayments on a loan vs pcp etc etc and ultimately it doesn't stack up as they see you as more of a risk....
Wait I'm afraid, boring eh!
The worst thing I could do was buy a car, wait, sell & buy houses and then see what's left.
As you said, you'll need the cash, and I asked about having repayments on a loan vs pcp etc etc and ultimately it doesn't stack up as they see you as more of a risk....
Wait I'm afraid, boring eh!
TIGA84 said:
99% of houses go up in value over time.
99% of cars go down in value over time.
Ignore the car, sort the house.
Depends on the period of time. Personally, I would not expect a house to go up in value (of any significance, if at all) in the next 5-10 years. Past performance is no indication of future performance etc.99% of cars go down in value over time.
Ignore the car, sort the house.
Ok, so i've had a think about it, and although it pains me to admit, PH is probably right.
Im still getting rid of the mondeo however, so am no looking a Vectra 1.9d Estates. If i can get a nice colour, with nav, that should do. I hear these engines will easily run at 45mpg which will be amazing.
I've set my budget to £7k max (part-ex including) so the very max cash i'll be spending is 5k.
That 5k i can make up in no time i reckon. Even if my house sold tomorrow, i'll still have a couple of months or so i guess to sort finances out, and i've got a fair amount of double time to earn over xmas & new year.
I hope this plan meets the satisfaction of the ph collective massive
Im still getting rid of the mondeo however, so am no looking a Vectra 1.9d Estates. If i can get a nice colour, with nav, that should do. I hear these engines will easily run at 45mpg which will be amazing.
I've set my budget to £7k max (part-ex including) so the very max cash i'll be spending is 5k.
That 5k i can make up in no time i reckon. Even if my house sold tomorrow, i'll still have a couple of months or so i guess to sort finances out, and i've got a fair amount of double time to earn over xmas & new year.
I hope this plan meets the satisfaction of the ph collective massive
pistonoobs said:
Ok, so i've had a think about it, and although it pains me to admit, PH is probably right.
Im still getting rid of the mondeo however, so am no looking a Vectra 1.9d Estates. If i can get a nice colour, with nav, that should do. I hear these engines will easily run at 45mpg which will be amazing.
I've set my budget to £7k max (part-ex including) so the very max cash i'll be spending is 5k.
That 5k i can make up in no time i reckon. Even if my house sold tomorrow, i'll still have a couple of months or so i guess to sort finances out, and i've got a fair amount of double time to earn over xmas & new year.
I hope this plan meets the satisfaction of the ph collective massive
£7k on a Vectra?! Is that even possible Im still getting rid of the mondeo however, so am no looking a Vectra 1.9d Estates. If i can get a nice colour, with nav, that should do. I hear these engines will easily run at 45mpg which will be amazing.
I've set my budget to £7k max (part-ex including) so the very max cash i'll be spending is 5k.
That 5k i can make up in no time i reckon. Even if my house sold tomorrow, i'll still have a couple of months or so i guess to sort finances out, and i've got a fair amount of double time to earn over xmas & new year.
I hope this plan meets the satisfaction of the ph collective massive
Wouldn't be my choice for sure but if that's what you want....
I still stand by my HP suggestion though, payments will impact on affordability of monthly mortgage vs your income but most won't class it as debt when working salary multiples to borrowing available, which they will do with an unsecured loan. Basically, taking an unsecured loan will mean the total amount you can get as a multiple of your salary will reduce by the amount of the loan, the secured finance is unlikely to impact the total available, as long as you can afford it.
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