Getting a new car on finance?
Discussion
Basically is it worth it? Iv got a 10 year old saxo it needs some work but i like it but i spend most of my money on it every month (around £2-300 after insurance without fuel) so i was thinking about trying to get a new fiesta on finance. I have never had a car on finance and was just wondering if it would really be much better than just keeping the saxo and fixing it? Id appreciate some opinions on this thanks 
.
.IMO, no. buy what you can afford in cash
there are generally much better ways of borrowing money than finance, though car finance does have some other positives i.e. rule of halves an thirds etc.
honestly though, why bother there are such cool cars out there for £1k, awesome ones for £3k. but thats just me:P
there are generally much better ways of borrowing money than finance, though car finance does have some other positives i.e. rule of halves an thirds etc.
honestly though, why bother there are such cool cars out there for £1k, awesome ones for £3k. but thats just me:P
oh. an buying a New car is for complete idiots. (no offense if anyone reading this has)
it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
dabofoppo said:
Basically is it worth it? Iv got a 10 year old saxo it needs some work but i like it but i spend most of my money on it every month (around £2-300 after insurance without fuel) so i was thinking about trying to get a new fiesta on finance. I have never had a car on finance and was just wondering if it would really be much better than just keeping the saxo and fixing it? Id appreciate some opinions on this thanks .
How the hell are you spending all that on a crappy old Saxo? Bodykits? ICE? neon underlights?.There's nothing wrong with finance IMO as long as you can comfortably afford the repayments. You'll loose more money via depreciation on a new car, but you do get a warranty etc. I had a brand new mk7 Fiesta Zetec S before my Z4 and I loved it! You can get some good discounts aswell via the online brokers etc.
If you don't want to take the initial depreciation hit then you could also get a loan and buy an older car privately, or
most used car dealerships will be able to arrange finance aswell.
If you don't want to take the initial depreciation hit then you could also get a loan and buy an older car privately, or
most used car dealerships will be able to arrange finance aswell.
I was in the same situation with my old VTR, every month there was something needed doing on average £150-200 each month, I ended up breaking it and scrapping what I couldn't sell. Got more back than if I'd sold it as it was. I bought an older but more reliable vehicle, with less miles and have only shelled out on servicing and fuel for a year nearly now.
HTF do you spend £200 - £300 a month on maintenance on a car?
Personal view is get rid and use the money in other ways, even if it does mean losing a bit on depreciation it'll be no worse than £2500 - £3000 a year.
There are plenty of benefits to buying a new car as well, such as no MOT, a nice warranty and a car that you know the history of from Day 1. Those who rant on a bout buying new being a stupid move, tend to be those who can' afford one themselves.
Personal view is get rid and use the money in other ways, even if it does mean losing a bit on depreciation it'll be no worse than £2500 - £3000 a year.
There are plenty of benefits to buying a new car as well, such as no MOT, a nice warranty and a car that you know the history of from Day 1. Those who rant on a bout buying new being a stupid move, tend to be those who can' afford one themselves.
R1 Loon said:
HTF do you spend £200 - £300 a month on maintenance on a car?
Personal view is get rid and use the money in other ways, even if it does mean losing a bit on depreciation it'll be no worse than £2500 - £3000 a year.
There are plenty of benefits to buying a new car as well, such as no MOT, a nice warranty and a car that you know the history of from Day 1. Those who rant on a bout buying new being a stupid move, tend to be those who can' afford one themselves.
£3k is a hell of a lot of money. It is in fact plenty enough to get into some very tidy cars. I could have bought a brand new car outright, but I didn't, I went for something older, because depreciation is a mug's game. Personal view is get rid and use the money in other ways, even if it does mean losing a bit on depreciation it'll be no worse than £2500 - £3000 a year.
There are plenty of benefits to buying a new car as well, such as no MOT, a nice warranty and a car that you know the history of from Day 1. Those who rant on a bout buying new being a stupid move, tend to be those who can' afford one themselves.
I too would like to know how you manage to spend £300 a month on running a Saxo excluding insurance and fuel.
I've run plenty of more 'expensive' motors (in terms of parts costs and 'complexity') and probably spent less than £300 on them in a year..!
I've got a suspicion that the costs are actually modifications rather than necessary work...
I've run plenty of more 'expensive' motors (in terms of parts costs and 'complexity') and probably spent less than £300 on them in a year..!
I've got a suspicion that the costs are actually modifications rather than necessary work...
Efbe said:
oh. an buying a New car is for complete idiots. (no offense if anyone reading this has)
Ok I'll bite. I imagine many on here have, how exactly do you think all those second-hand bargains end up on the market? Not every new car bought is a company motorway slag you know. Even the interesting ones had to be bought new first by some 'idiot'.But I kind of see what you mean, some people are willing to lose 20% of the value for the pleasure of having a car spec'd exactly as they'd like it, or for the peace of mind, reliability, fashion, or any other number of reasons. Are they idiots if they can afford it? No of course not. Are they idiots if they can't afford it? I think we all know the answer there.
I've never bought a new car and I would advise against anyone buying one.
However, I can see the advantages - reliability, warranty, no MOT.
My suggestion is unless you've got a fair amount of cash stuck in your bank account to put into a car why not do this:
Look for a 3 year old example of the car you were looking at new, take out a bank loan and then repay that over 3 or 5 years. At least then you can own the car at the end, and the depreciation will be much less.
If you need reliable transport this is quite an instant solution and not as bad as getting car finance on something brand new.
However, I can see the advantages - reliability, warranty, no MOT.
My suggestion is unless you've got a fair amount of cash stuck in your bank account to put into a car why not do this:
Look for a 3 year old example of the car you were looking at new, take out a bank loan and then repay that over 3 or 5 years. At least then you can own the car at the end, and the depreciation will be much less.
If you need reliable transport this is quite an instant solution and not as bad as getting car finance on something brand new.
Efbe said:
oh. an buying a New car is for complete idiots. (no offense if anyone reading this has)
it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
I used to think this way too on New cars it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
However it depends on the spec you want , having looked at specs for the missus new car Auris T Spirit ,with Leather interior , sat nav , privacy glass ,auto etc.
Dealer price brand new is 22k , Only found 1 car on the net with the same spec a second hand dealer car with 3000 miles is 21k !!!.
brand new internet price is 19k fitted with the above combo , this is probably from the same dealership , with 5 year Toyota warranty . They came out on a 10 plate so havent hit the 20% depreciation yet.
and zero road tax , no MOT for 3 years ,75mpg
This is PH everyone buys their cars using petty cash or money from down the back of the sofa.
Seriously though if your car is costing £300 a month then financing a car is not wasting money I suspect your Saxo is worth the square root of f
k all. A brand new car will give you the warranty period duding which it should only cost consumables especially if you pre-pay your servicing.
Seriously though if your car is costing £300 a month then financing a car is not wasting money I suspect your Saxo is worth the square root of f
k all. A brand new car will give you the warranty period duding which it should only cost consumables especially if you pre-pay your servicing.Efbe said:
oh. an buying a New car is for complete idiots. (no offense if anyone reading this has)
it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
No damage (at all !)it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
Known history from day one
Latest spec
Latest technology
Latest safety features (ESP now standard on Fiesta for example)
Full warranty
Own choice of colour/spec
Pleasure of brand new car
Access to low rate manufacturer finance
Convenience
No risk
Need I go on? Of course there are benefits to buying new, why else would people do it?
Insurance might be an issue but I think this is a great deal:
http://www.skoda.co.uk/gbr/finance/offers/contract...
http://www.skoda.co.uk/gbr/finance/offers/contract...
Ari said:
Efbe said:
oh. an buying a New car is for complete idiots. (no offense if anyone reading this has)
it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
No damage (at all !)it's unbelievably stupid. You are paying for the right to lose 20-40% of the car value just by signing the paperwork.
There is no benefit. you get a car you have to run in, have to spend ages going through the buying process with the inevitably annoying and time-wasting car salesmen. And from the experience of my friends, have to bear the teething issues of a brand new car, which i'm sure are getting far worse these days.
There is a whole range of middleground between your saxo and a brand new car. find a 3-5 year old car and save yourself thousands, and end up with something 100 times more interesting, fast and fun than a fiesta :P
Known history from day one
Latest spec
Latest technology
Latest safety features (ESP now standard on Fiesta for example)
Full warranty
Own choice of colour/spec
Pleasure of brand new car
Access to low rate manufacturer finance
Convenience
No risk
Need I go on? Of course there are benefits to buying new, why else would people do it?
Efbe, good night in the pub was it? To suggest that everyone who buys a new car is an idiot
The car we got didn't need running in, the dealership were fantastic and it has been faultless since we bought it. I agree that nearly new is a great way to bag a bargain but blimey, what a naive statement 
So as you're still going to have to insure the new car (and if it's on finance then it will have to be fully comp most likely to comply with the Ts & Cs) then you have £180 a month to put on credit. Then add to this that you still have to find money for things like tyres, servicing and road tax during the (say) 3 year loan period, you need to make sure you can afford these on top (before you even consider fuel of course).
As said above, there is a middle ground of buying something a few years old: Take your £180 per month over 3 years (I wouldn't recommend any longer as the car will be quite old by then anyway) and see what 3-4 year old car you could find for the £5,500 or so that would get you.
If I sound remotely bitter about over borrowing, it's because 25 years ago I went from a scruffy Mk2 Escort into a nearly new MG Metro (stop laughing at the back) as I thought this was going to be trouble free motoring (again, stop laughing at the back). I soon found myself crippled financially; not directly through the loan itself, but I overlooked the other costs of the car and general living, but was stuck with this for 3 years. The car broke down just out of warranty at the end of the first year and I was stuck with a loan for a car that wasn't worth anything until fixed. I had to borrow more money to rebuild the engine (at least I did it myself and learnt how to fix cars I suppose 
). I ended up selling it to clear the loan (which it only just did), borrowing a much smaller amount and buying a 6 year old car, which is probably what I should have done in the first case...
In short, you need to be well off to afford finance.
As said above, there is a middle ground of buying something a few years old: Take your £180 per month over 3 years (I wouldn't recommend any longer as the car will be quite old by then anyway) and see what 3-4 year old car you could find for the £5,500 or so that would get you.
If I sound remotely bitter about over borrowing, it's because 25 years ago I went from a scruffy Mk2 Escort into a nearly new MG Metro (stop laughing at the back) as I thought this was going to be trouble free motoring (again, stop laughing at the back
). I soon found myself crippled financially; not directly through the loan itself, but I overlooked the other costs of the car and general living, but was stuck with this for 3 years. The car broke down just out of warranty at the end of the first year and I was stuck with a loan for a car that wasn't worth anything until fixed. I had to borrow more money to rebuild the engine (at least I did it myself and learnt how to fix cars I suppose ). I ended up selling it to clear the loan (which it only just did), borrowing a much smaller amount and buying a 6 year old car, which is probably what I should have done in the first case...In short, you need to be well off to afford finance.
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