Finance?

[Little Butch]

I'm 19, been driving for 2 years, had 3 Cars all of which have been bags of st that I've bought because they're all I can afford. Bought my Current mk2 Golf about 2 months ago and it's been nothing but trouble..

I don't know the first thing about finance, could anybody give me advice?

All I want is something that's not ridiculasly slow and is RELIABLE!

[va1o]

What do you want to know? Problem with finance is your stuck with the car for however long the agreement is, and you need to make the payments every month.

[soxboy]

Finance is a very dirty word on this site. Nobody buys cars on finance round here, all bought cash.

At least that's what most on here will have you believe.

Nothing wrong with it as long as you are comfortable repaying it and are wide open as to what you're committing to.

[Gaspode]

The problem with finance is that you are no longer free - you have to make those payments. A much cheaper alternative is to learn a bit about how cars work, and buy an old classic that's cheap to run, cheap to insure, and easy to work on. They are also much cooler than the average modern tin box.

[Frog Dog]

va1o said:

What do you want to know? Problem with finance is your stuck with the car for however long the agreement is, and you need to make the payments every month.

Not always.

You can trade the car in at any time, you have the option to hand it back after paying 50% and can make extra payments whenever you like with most agreements.

Op, look at the base rate and document fees. They're important (more so than an APR rate) and look at PCP options to make it cheaper each month.

What do you want?

[va1o]

Frog Dog said:

You can trade the car in at any time, you have the option to hand it back after paying 50% and can make extra payments whenever you like with most agreements.

Not on contract hire you won't

Edited by va1o on Saturday 4th February 11:08

[killsta]

Depending on the amount you wish to finance quite often it's cheaper and easier just to get a bank loan for the amount then buy what you want with the cash - it means you're free to do what you like with the car as there's no finance outstanding on it.

[Frog Dog]

Contract hire is a different kettle of fish, unlikely the op will be looking at that. He'll be looking at HP or PCP options only. Both have upsides and downsides.

[Frog Dog]

killsta said:

Depending on the amount you wish to finance quite often it's cheaper and easier just to get a bank loan from the amount then buy what you want with the cash - it means you're free to do what you like with the car as there's no finance outstanding on it.

But you also don't get a lot of the protection you get with finance deals.

As said. Look at what the flat rate and document charges, ask for a quote and look st the total cost of borrowing and make sure it suits you.

Worthwhile looking at some RTI Gap insurance too.

[swakelin91]

I've had my car on finance for nearly 2 years now, at first it was great, I got a better car than I would have got with cash.

However 6 months after getting the car I started university, so making the monthly payments hasn't always been ideal, and the fact that after 2 years the car has become dull.

If you can make the monthly payments, and can commit to the length of the contract then I would say go for it.

[wackojacko]

Frog Dog said:

killsta said:

Depending on the amount you wish to finance quite often it's cheaper and easier just to get a bank loan from the amount then buy what you want with the cash - it means you're free to do what you like with the car as there's no finance outstanding on it.

But you also don't get a lot of the protection you get with finance deals.

As said. Look at what the flat rate and document charges, ask for a quote and look st the total cost of borrowing and make sure it suits you.

Worthwhile looking at some RTI Gap insurance too.

A Bank loan has a few more benefits as mentioned above, also sometimes can work out cheaper.

If you can commit to the monthly repayments it is a great way to get a car that would otherwise take you 3 years or so to save up for. Checked with my bank around a month ago and they would charge me £1789 to borrow 15K over 3 years with monthly repayments of £450 ( I think ) figures are pretty close can;t remember exactly but at 18 I think that is rather good going. I researched this area quite thoroughly as I was going to buy a Megane RS250 with the Recaro pack etc but have since bought a track car and now need something to tow it with.....Long and short of it is, Renaults finance deals were pretty close to bank loan prospect other than the finance was a 50% pay off no returns deal where as bank loan would be a charge (for me) of £130 early fee to repay the whole lot back (say if I lost my job and had to sell the car and forfit the loan)

As said above, search around and you can find some relatively good ways to credit yourself with a great car and not be tied down ..... plus a bank loan if payed on time in full each month will also boost your Credit rating a fair bit on a large amount of money.

[kambites]

Little Butch said:

All I want is something that's not ridiculasly slow and is RELIABLE!

You can get something that meets that criteria and then some for about two grand, so you're not talking about much finance. Personally, I think I'd go with a bank loan for that little.