Financing a car - best option?

[fjord]

In short;

Had a lot of money, blew it all on a house move. Currently got an E46 320d, worth about 3.5k on p/x. Got 9k in cash but would only want to touch about 4-5k of that (max).

Want an E90 330i/330d with all the bells and whistles, and im looking at about 17k for what I want.

Do i just keep saving and then readress the issue in 12 months or whatever? This would be the sensible option im sure, but I want the new car now (despite only having thr e46 for 10 months).

Alternatively, do i get a loan? Do i entertain finance, or even a lease deal? Ive never had a lease or car finance before, so have no idea what to expect. I'd be looking at paying it off in 12-18 months anyway, whatever it was.

Assuming i set something up where im paying each month, i'd be comfortable with £300 per month max. The less the better obviously.

Suggestions or advice?

[fjord]

Help a brother out guys!

[E30M3SE]

I'd stick with the E46, save up and buy outright, but that's jmo.

[rehab71]

fjord said:

In short;

Had a lot of money, blew it all on a house move. Currently got an E46 320d, worth about 3.5k on p/x. Got 9k in cash but would only want to touch about 4-5k of that (max).

Want an E90 330i/330d with all the bells and whistles, and im looking at about 17k for what I want.

Do i just keep saving and then readress the issue in 12 months or whatever? This would be the sensible option im sure, but I want the new car now (despite only having thr e46 for 10 months).

Alternatively, do i get a loan? Do i entertain finance, or even a lease deal? Ive never had a lease or car finance before, so have no idea what to expect. I'd be looking at paying it off in 12-18 months anyway, whatever it was.

Assuming i set something up where im paying each month, i'd be comfortable with £300 per month max. The less the better obviously.

Suggestions or advice?

£9500 on finance over 18 months will be significantly more then £300 per month?

[oldnbold]

As above. Even basic primary school maths should tell you that £9500 repaid over 18 months at 0% interest(which you are unlikley to get on a used car) will be £527.77 per month.

Lease deals on even bog standard 1.6 3 series are over £400 p/m, so either put more cash in or keep what you have I think.

Edited by oldnbold on Friday 30th August 21:55

[E30M3SE]

I read that line as the OP saying he would be paying it off early, but maybe I'm wrong.

[fjord]

E30M3SE said:

I read that line as the OP saying he would be paying it off early, but maybe I'm wrong.

Yeah, this. If i took it out over 3 years, i'd still pay it off over 18, but i dont know if there's a penalty for that.

[E30M3SE]

No, no penalty. You'll get a rebate on the interest, but as with all loans interest is always front loaded.

[SWoll]

oldnbold said:

As above. Even basic primary school maths should tell you that £9500 repaid over 18 months at 0% interest(which you are unlikley to get on a used car) will be £527.77 per month.

Lease deals on even bog standard 1.6 3 series are over £400 p/m, so either put more cash in or keep what you have I think.

Edited by oldnbold on Friday 30th August 21:55

Condescending and factually incorrect, top posting that man...


F30 BMW 330D M-Sport Step Auto (Business media pack)

£2150 deposit
35 x £359

Total Cost = £14715 inc VAT

Now work out what a 10K loan is going to cost you in interest if taken over 3 years but paid of early, how much a £17K car will depreciate over 3 years, how much it will cost to get a BMW warranty for the same period, how much more expensive the services will be at higher mileages and what else you could be doing useful with the £5K you haven't had to use of your own money upfront.

I'm not saying it's the right option for you, but worth doing the maths IMHO. I did and got rid of an E61 5 Series and now leasing an E-Class.

Edited by SWoll on Saturday 31st August 00:17

[C8LNJ]

The smart money would be to keep saving if the E46 will serve you well for a bit longer with no big bills.

[fjord]

SWoll said:

Condescending and factually incorrect, top posting that man...


F30 BMW 330D M-Sport Step Auto (Business media pack)

£2150 deposit
35 x £359

Total Cost = £14715 inc VAT

Now work out what a 10K loan is going to cost you in interest if taken over 3 years but paid of early, how much a £17K car will depreciate over 3 years, how much it will cost to get a BMW warranty for the same period, how much more expensive the services will be at higher mileages and what else you could be doing useful with the £5K you haven't had to use of your own money upfront.

I'm not saying it's the right option for you, but worth doing the maths IMHO. I did and got rid of an E61 5 Series and now leasing an E-Class.

Edited by SWoll on Saturday 31st August 00:17

Have you found leasing good for you? Or do you look outside and dismay that you dont actually 'own' what's on the drive?

[kambites]

If it was me, I'd just keep what you've got for a bit longer. By next year you'll probably be able to buy a nice straight-six E90 for 10k, which is much more palatable.

[CrowCrow00]

fjord said:

Have you found leasing good for you? Or do you look outside and dismay that you dont actually 'own' what's on the drive?

If you want to look at it that way though you might as well say that you're only leasing a house for the 30 years it takes you to pay off.

[iacabu]

oldnbold said:

Lease deals on even bog standard 1.6 3 series are over £400 p/m, so either put more cash in or keep what you have I think.

Are they?! My dads mate has got a new 320i (not base spec) for around £320 pm. Although i suppose it depends on the deposit put down